State Farm Estimatics Exam – Complete
2026/2027 Version with Verified Questions
and Correct Answers – Graded A+
1. What is the primary purpose of an insurance estimate?
A) To determine the premium
B) To document the scope and cost of covered damage
C) To set the policy deductible
D) To cancel the policy
Answer B: To document the scope and cost of covered damage
Rationale: Estimates quantify repair/replacement costs so the insurer can settle covered claims
accurately.
2. In Xactimate-style estimating, "RCV" stands for:
A) Reduced Coverage Value
B) Replacement Cost Value
C) Repair Cost Verification
D) Replacement Coverage Variance
Answer B: Replacement Cost Value
Rationale: RCV is the cost to repair or replace without depreciation.
3. "ACV" in claims estimating means:
A) Actual Cash Value
B) Actual Cash Value
C) Adjusted Coverage Value
D) Applied Cost Valuation
Answer A: Actual Cash Value
,Rationale: ACV = RCV minus depreciation; reflects the item’s pre-loss value.
4. One roofing "square" equals:
A) 10 sq ft
B) 100 sq ft
C) 1,000 sq ft
D) 144 sq ft
Answer B: 100 sq ft
Rationale: Roofing materials are sold by the square; 1 square = 100 sq ft of roof area.
5. A roof measures 40 ft by 30 ft on one slope. How many squares is that slope?
A) 8 squares
B) 12 squares
C) 14 squares
D) 16 squares
Answer B: 12 squares
Rationale: 40 × 30 = 1,200 sq ft ÷ 100 = 12 squares.
6. The most common waste factor added to roofing shingles is:
A) 2%
B) 10–15%
C) 25–30%
D) 50%
Answer B: 10–15%
Rationale: Typical waste for cut/hip/valley shingles is 10–15%; complex roofs may require more.
7. What does "O&P" stand for in an insurance estimate?
,A) Overhead and Profit
B) Overhead and Profit
C) Owner and Policyholder
D) Operational and Procedural
Answer A: Overhead and Profit
Rationale: O&P compensates a general contractor for indirect costs and profit when multiple trades are
involved.
8. Overhead typically covers:
A) Direct labor
B) Indirect business expenses like supervision, insurance, and equipment
C) Materials only
D) Permits only
Answer B: Indirect business expenses like supervision, insurance, and equipment
Rationale: Overhead is indirect cost; profit is the contractor’s margin.
9. Depreciation is best defined as:
A) Increase in value over time
B) Loss of value due to age, wear, and tear
C) The deductible amount
D) The tax on repairs
Answer B: Loss of value due to age, wear, and tear
Rationale: Depreciation reduces RCV to ACV based on the item’s useful life and condition.
10. Recoverable depreciation is typically paid:
A) Upfront with the first check
B) After repairs are completed and documented
C) At policy renewal
, D) Only if the insured sues
Answer B: After repairs are completed and documented
Rationale: Insurers release recoverable depreciation upon proof that repairs were made.
11. What is a deductible?
A) The amount the insurer pays
B) The amount the insured pays out-of-pocket before coverage applies
C) A discount on premiums
D) A type of endorsement
Answer B: The amount the insured pays out-of-pocket before coverage applies
Rationale: Deductibles reduce small claims and share risk with the policyholder.
12. A "supplement" in a claim is:
A) A discount
B) An addition to the original estimate for missed or additional damage
C) A policy cancellation
D) A type of photo
Answer B: An addition to the original estimate for missed or additional damage
Rationale: Supplements correct omissions or address newly discovered damage.
13. Which tool is standard for measuring a roof and creating a sketch?
A) Hammer
B) Tape measure and chalk
C) Flashlight
D) Screwdriver
Answer B: Tape measure and chalk
Rationale: Accurate measurements and a sketch support the estimate; digital tools are also common.
2026/2027 Version with Verified Questions
and Correct Answers – Graded A+
1. What is the primary purpose of an insurance estimate?
A) To determine the premium
B) To document the scope and cost of covered damage
C) To set the policy deductible
D) To cancel the policy
Answer B: To document the scope and cost of covered damage
Rationale: Estimates quantify repair/replacement costs so the insurer can settle covered claims
accurately.
2. In Xactimate-style estimating, "RCV" stands for:
A) Reduced Coverage Value
B) Replacement Cost Value
C) Repair Cost Verification
D) Replacement Coverage Variance
Answer B: Replacement Cost Value
Rationale: RCV is the cost to repair or replace without depreciation.
3. "ACV" in claims estimating means:
A) Actual Cash Value
B) Actual Cash Value
C) Adjusted Coverage Value
D) Applied Cost Valuation
Answer A: Actual Cash Value
,Rationale: ACV = RCV minus depreciation; reflects the item’s pre-loss value.
4. One roofing "square" equals:
A) 10 sq ft
B) 100 sq ft
C) 1,000 sq ft
D) 144 sq ft
Answer B: 100 sq ft
Rationale: Roofing materials are sold by the square; 1 square = 100 sq ft of roof area.
5. A roof measures 40 ft by 30 ft on one slope. How many squares is that slope?
A) 8 squares
B) 12 squares
C) 14 squares
D) 16 squares
Answer B: 12 squares
Rationale: 40 × 30 = 1,200 sq ft ÷ 100 = 12 squares.
6. The most common waste factor added to roofing shingles is:
A) 2%
B) 10–15%
C) 25–30%
D) 50%
Answer B: 10–15%
Rationale: Typical waste for cut/hip/valley shingles is 10–15%; complex roofs may require more.
7. What does "O&P" stand for in an insurance estimate?
,A) Overhead and Profit
B) Overhead and Profit
C) Owner and Policyholder
D) Operational and Procedural
Answer A: Overhead and Profit
Rationale: O&P compensates a general contractor for indirect costs and profit when multiple trades are
involved.
8. Overhead typically covers:
A) Direct labor
B) Indirect business expenses like supervision, insurance, and equipment
C) Materials only
D) Permits only
Answer B: Indirect business expenses like supervision, insurance, and equipment
Rationale: Overhead is indirect cost; profit is the contractor’s margin.
9. Depreciation is best defined as:
A) Increase in value over time
B) Loss of value due to age, wear, and tear
C) The deductible amount
D) The tax on repairs
Answer B: Loss of value due to age, wear, and tear
Rationale: Depreciation reduces RCV to ACV based on the item’s useful life and condition.
10. Recoverable depreciation is typically paid:
A) Upfront with the first check
B) After repairs are completed and documented
C) At policy renewal
, D) Only if the insured sues
Answer B: After repairs are completed and documented
Rationale: Insurers release recoverable depreciation upon proof that repairs were made.
11. What is a deductible?
A) The amount the insurer pays
B) The amount the insured pays out-of-pocket before coverage applies
C) A discount on premiums
D) A type of endorsement
Answer B: The amount the insured pays out-of-pocket before coverage applies
Rationale: Deductibles reduce small claims and share risk with the policyholder.
12. A "supplement" in a claim is:
A) A discount
B) An addition to the original estimate for missed or additional damage
C) A policy cancellation
D) A type of photo
Answer B: An addition to the original estimate for missed or additional damage
Rationale: Supplements correct omissions or address newly discovered damage.
13. Which tool is standard for measuring a roof and creating a sketch?
A) Hammer
B) Tape measure and chalk
C) Flashlight
D) Screwdriver
Answer B: Tape measure and chalk
Rationale: Accurate measurements and a sketch support the estimate; digital tools are also common.
