State Farm Fire Independent Policy EXAM Questions AND Correct Answers
An HO-3 homeowners policy with a $250 deductible is in force and the policy
limits (Coverage A and Coverage B) are adequate to cover this damage. During a
severe windstorm, rain blows through open windows and causes the following
damage:
Hardwood floor in the dining room $1,700
Water stains on the drywall $ 220
Water stains on the area rug $125
Antique vase (broken by force of wind) $375
How much should you pay on this loss? All repairs have been made.
Select the single best answer:
A. $ 0
B. - ✔✔2170
An HO-3 policy is in force with Coverage A limits of $75,000, Coverage B limits of
$56,250 and a deductible of $500.
During a severe thunderstorm, a window is broken by hail and wind blows rain
water through the window. Rainwater damages the hardwood floor, wall paper,
vertical blinds, and an area rug. The insured presents the following claim:
Sand and finish floor $650
Remove and replace wall paper $320
Remove and replace vertical blinds $175
Replace area rug $35
,All repairs are complete. How - ✔✔680
An HO-3 policy is in force with coverage A limits of $75,000. The policy has a
$1,000 deductible. The house is totally destroyed by a tornado and the cost to
replace the house is $75,550 plus debris removal of $4,225 for a total claim of
$79,775. All repairs have been completed. What is the amount of your final
settlement? Consider the deductible in your calculations.
Select the single best answer:
A. $79,775
B. $78,750
C. $78,775
D. $77,750
E. $74,000 - ✔✔78750
An HO-3 policy is in force. A severe windstorm blows down a large oak tree in
the insured's front yard. A portion of the tree falls upon and damages the roof
of the insured dwelling. Which of the following expenses would not be covered?
Select the single best answer:
A. $150.00 to remove the limb from the roof.
B. $500.00 to replace the tree.
C. $400.00 cut the tree up and haul it to the municipal landfill.
D. $500.00 repair roof.
, E. All the above items would be covered. - ✔✔B. $500.00 to replace the tree.
Assume an HO-3 is in force. The insured's home is damaged by a severe
windstorm and the family is forced to move into a motel for 2 weeks. The
insured provided the following receipts. The water, electricity and telephone
remained in service following the loss.
Amount Paid Amount Normally Spent
Mortgage Payment $985 $985
Hotel Bills $1,075 $0
Water $25 $35
Electricity $125 $95
Telephone $10 $38
Cable TV $0 $29
Meals in Restaurants $505 $150
Food prepared at home $0 $210
Automobile $35 $20
Laund - ✔✔1248
Assume you have a HO-3 policy in force and do not have any endorsements
added to the policy. Which of the following types of loss will be covered?
Select the single best answer:
A. The home sustains structural damage due to an earthquake.
An HO-3 homeowners policy with a $250 deductible is in force and the policy
limits (Coverage A and Coverage B) are adequate to cover this damage. During a
severe windstorm, rain blows through open windows and causes the following
damage:
Hardwood floor in the dining room $1,700
Water stains on the drywall $ 220
Water stains on the area rug $125
Antique vase (broken by force of wind) $375
How much should you pay on this loss? All repairs have been made.
Select the single best answer:
A. $ 0
B. - ✔✔2170
An HO-3 policy is in force with Coverage A limits of $75,000, Coverage B limits of
$56,250 and a deductible of $500.
During a severe thunderstorm, a window is broken by hail and wind blows rain
water through the window. Rainwater damages the hardwood floor, wall paper,
vertical blinds, and an area rug. The insured presents the following claim:
Sand and finish floor $650
Remove and replace wall paper $320
Remove and replace vertical blinds $175
Replace area rug $35
,All repairs are complete. How - ✔✔680
An HO-3 policy is in force with coverage A limits of $75,000. The policy has a
$1,000 deductible. The house is totally destroyed by a tornado and the cost to
replace the house is $75,550 plus debris removal of $4,225 for a total claim of
$79,775. All repairs have been completed. What is the amount of your final
settlement? Consider the deductible in your calculations.
Select the single best answer:
A. $79,775
B. $78,750
C. $78,775
D. $77,750
E. $74,000 - ✔✔78750
An HO-3 policy is in force. A severe windstorm blows down a large oak tree in
the insured's front yard. A portion of the tree falls upon and damages the roof
of the insured dwelling. Which of the following expenses would not be covered?
Select the single best answer:
A. $150.00 to remove the limb from the roof.
B. $500.00 to replace the tree.
C. $400.00 cut the tree up and haul it to the municipal landfill.
D. $500.00 repair roof.
, E. All the above items would be covered. - ✔✔B. $500.00 to replace the tree.
Assume an HO-3 is in force. The insured's home is damaged by a severe
windstorm and the family is forced to move into a motel for 2 weeks. The
insured provided the following receipts. The water, electricity and telephone
remained in service following the loss.
Amount Paid Amount Normally Spent
Mortgage Payment $985 $985
Hotel Bills $1,075 $0
Water $25 $35
Electricity $125 $95
Telephone $10 $38
Cable TV $0 $29
Meals in Restaurants $505 $150
Food prepared at home $0 $210
Automobile $35 $20
Laund - ✔✔1248
Assume you have a HO-3 policy in force and do not have any endorsements
added to the policy. Which of the following types of loss will be covered?
Select the single best answer:
A. The home sustains structural damage due to an earthquake.
