STATE FARM HOMEOWNER POLICY
FP-7955 DEDUCIBLE
COMPREHENSIVE STUDY GUIDE 2026
FULL QUESTIONS AND SOLUTIONS
GRADED A+
◍ A commemorative plate located on top of the upper cabinets in the kitchen
falls and lands on an heirloom soup terrine breaking both. Which statement
is true?(A) Both pieces are covered under the Falling Object Peril(B) Only
the soup terrine is covered from damage resulting from the Falling
Object(C) Neither is covered under the Falling Object Peril.
Answer: (C) Neither is covered under the Falling Object Peril
◍ Fair Rental Value Coverage - False Statement.
Answer: Loss or expense caused by the cancellation of a lease is covered.
(Note: This is NOT true; cancellation of a lease is an excluded indirect loss).
◍ Mr. Holder's roof has sustained damaged by birds and rodents. During a rain
storm, water entered the home through this roof damage causing damage to
the ceiling and a throw rug. What can you pay for on this loss?(A)The
ceiling(B)The throw rug(C)The roof, ceiling, and throw rug(D)All of the
above(E)None of the above.
Answer: (A)The ceiling
◍ Our Insured has Option ID for $20,000.00, which is applicable for repairs to
dwelling extensions, other structures?.
Answer: False
◍ Sworn Proof of Loss - Excluded Detail.
Answer: The insured's income and net worth at the time of loss.
, ◍ Due to a general power outage in the area, the food in Mr. Holder's freezer
spoiled and the resulting smell ruined the freezer. We can pay to replace
both the food and the freezer?.
Answer: False
◍ Insurance for Older Homes (RC > Market Value).
Answer: HO-8.
◍ Broad Theft Coverage - Silverware Limit.
Answer: $2,500 (Note: The prompt lists $1,000 as an exception because the
standard limit is higher).
◍ Option ID applies to the dwelling and other structures..
Answer: False
◍ Liberalization Clause.
Answer: Changes adopted by the insurer that broaden coverage
automatically apply to the policy at no additional premium.
◍ The beach house furnishings have been replaced and you have verified the
replacement cost at $25,459.99. The coverage B limits are $100,000.00.
Consider the $250.00 deductible in your calculations. How much would you
pay on this loss?(A)$25,209.99(B)$9,750(C)$10,000.00(D)None of the
above.
Answer: (C)$10,000.00
◍ Dwelling Policy Eligibility - False Statement.
Answer: The dwelling must be owner-occupied. (Note: Dwelling policies
can be used for rental properties).
◍ Mrs. P Holder's Policy Limits for Coverage B is $90,000. While she is
away, her home is broken in to and her Mink Coat and silverware is stolen.
Which of the following statements are true:(A)Coverage would only be
extended to Jewelry, silverware and Furs listed in the declarations(B)The
limit for all jewelry and furs for the peril of Theft is $2500.00(C)No
coverage for Jewelry and Furs unless Option JF is shown in the
FP-7955 DEDUCIBLE
COMPREHENSIVE STUDY GUIDE 2026
FULL QUESTIONS AND SOLUTIONS
GRADED A+
◍ A commemorative plate located on top of the upper cabinets in the kitchen
falls and lands on an heirloom soup terrine breaking both. Which statement
is true?(A) Both pieces are covered under the Falling Object Peril(B) Only
the soup terrine is covered from damage resulting from the Falling
Object(C) Neither is covered under the Falling Object Peril.
Answer: (C) Neither is covered under the Falling Object Peril
◍ Fair Rental Value Coverage - False Statement.
Answer: Loss or expense caused by the cancellation of a lease is covered.
(Note: This is NOT true; cancellation of a lease is an excluded indirect loss).
◍ Mr. Holder's roof has sustained damaged by birds and rodents. During a rain
storm, water entered the home through this roof damage causing damage to
the ceiling and a throw rug. What can you pay for on this loss?(A)The
ceiling(B)The throw rug(C)The roof, ceiling, and throw rug(D)All of the
above(E)None of the above.
Answer: (A)The ceiling
◍ Our Insured has Option ID for $20,000.00, which is applicable for repairs to
dwelling extensions, other structures?.
Answer: False
◍ Sworn Proof of Loss - Excluded Detail.
Answer: The insured's income and net worth at the time of loss.
, ◍ Due to a general power outage in the area, the food in Mr. Holder's freezer
spoiled and the resulting smell ruined the freezer. We can pay to replace
both the food and the freezer?.
Answer: False
◍ Insurance for Older Homes (RC > Market Value).
Answer: HO-8.
◍ Broad Theft Coverage - Silverware Limit.
Answer: $2,500 (Note: The prompt lists $1,000 as an exception because the
standard limit is higher).
◍ Option ID applies to the dwelling and other structures..
Answer: False
◍ Liberalization Clause.
Answer: Changes adopted by the insurer that broaden coverage
automatically apply to the policy at no additional premium.
◍ The beach house furnishings have been replaced and you have verified the
replacement cost at $25,459.99. The coverage B limits are $100,000.00.
Consider the $250.00 deductible in your calculations. How much would you
pay on this loss?(A)$25,209.99(B)$9,750(C)$10,000.00(D)None of the
above.
Answer: (C)$10,000.00
◍ Dwelling Policy Eligibility - False Statement.
Answer: The dwelling must be owner-occupied. (Note: Dwelling policies
can be used for rental properties).
◍ Mrs. P Holder's Policy Limits for Coverage B is $90,000. While she is
away, her home is broken in to and her Mink Coat and silverware is stolen.
Which of the following statements are true:(A)Coverage would only be
extended to Jewelry, silverware and Furs listed in the declarations(B)The
limit for all jewelry and furs for the peril of Theft is $2500.00(C)No
coverage for Jewelry and Furs unless Option JF is shown in the
