STATE FARM ESTIMATICS EXAM STUDY
GUIDE 2026 COMPLETE QUESTIONS WITH
CORRECT DETAILED ANSWERS || 100%
GUARANTEED PASS <RECENT VERSION>
State Farm Estimatics Exam Study Guide (2026 Edition)
Section 1: Policy & Procedures (Questions 1-25)
1. What is the primary purpose of an Actual Cash Value (ACV) settlement?
a) To pay the cost to replace the damaged item with a new one.
b) To pay the market value of the property at the time of the loss.
c) To pay the replacement cost minus depreciation.
d) To pay the original purchase price of the item.
2. In a Replacement Cost Value (RCV) policy, when is the recoverable
depreciation paid to the policyholder?
a) Immediately upon the initial estimate being completed.
b) After the policyholder has actually repaired or replaced the damaged property.
c) It is subtracted from the total payment and never paid.
d) Only if the policyholder uses a State Farm-approved vendor.
3. The "duties after a loss" section of a policy typically requires the insured to
do all the following EXCEPT:
a) Protect the property from further damage.
b) Notify the police in case of theft.
c) Provide a sworn proof of loss.
d) Perform all repairs before the adjuster's inspection.
4. What is the term for the amount the policyholder must pay out-of-pocket
before the insurance coverage begins?
a) Premium
b) Deductible
,c) Co-pay
d) Liability
5. A standard HO-3 policy typically provides what type of coverage for the
dwelling?
a) Actual Cash Value
b) Broad Form
c) Special Form (All-Risk)
d) Basic Form
6. Which of the following is generally considered a "covered peril" under a
standard HO-3 policy's dwelling coverage?
a) Flood
b) Earthquake
c) Windstorm
d) Intentional loss
7. What does the "Other Structures" coverage on a homeowner's policy
typically cover?
a) The main dwelling and attached garages.
b) Detached structures on the residence premises, like a shed or detached garage.
c) Personal property anywhere in the world.
d) The policyholder's personal liability.
8. If a tree falls on a insured's house during a storm, what is the first thing the
adjuster should verify?
a) The species of the tree.
b) That the cost to remove the tree is covered.
c) That the damage is caused by a covered peril.
d) The name of the arborist the insured will use.
9. Which valuation method is typically used for roof surfaces in an ACV
settlement?
a) Brand new shingle cost
b) Cost to repair, with no deduction
, c) Replacement cost minus depreciation for age and condition
d) The original installation cost
10. What is the primary purpose of a Proof of Loss form?
a) To authorize the start of repairs.
b) To serve as a formal, sworn statement of the claim amount requested by the
insured.
c) To cancel the insurance policy.
d) To hire a public adjuster.
11. A "reservation of rights" letter from the insurance company indicates:
a) The claim has been fully approved for payment.
b) The company is investigating the claim but may deny coverage later.
c) The policyholder has failed to pay their premium.
d) The deductible has been waived.
12. What is "subrogation"?
a) The process of estimating the value of a loss.
b) The right of an insurer to pursue a third party that caused the loss.
c) The act of canceling an insurance policy.
d) The inspection of a property before issuing a policy.
13. Which part of a homeowner's policy would cover medical payments to a
guest who falls on your property?
a) Coverage A - Dwelling
b) Coverage B - Other Structures
c) Coverage C - Personal Property
d) Coverage F - Medical Payments to Others
14. An ordinance or law coverage endorsement is designed to cover:
a) The cost of fines from the city.
b) The increased cost to rebuild to current building codes.
c) The cost of legal advice for the policyholder.
d) Damage caused by government action.
15. When estimating a loss, what is the term for the list of required repairs
and their associated costs?
GUIDE 2026 COMPLETE QUESTIONS WITH
CORRECT DETAILED ANSWERS || 100%
GUARANTEED PASS <RECENT VERSION>
State Farm Estimatics Exam Study Guide (2026 Edition)
Section 1: Policy & Procedures (Questions 1-25)
1. What is the primary purpose of an Actual Cash Value (ACV) settlement?
a) To pay the cost to replace the damaged item with a new one.
b) To pay the market value of the property at the time of the loss.
c) To pay the replacement cost minus depreciation.
d) To pay the original purchase price of the item.
2. In a Replacement Cost Value (RCV) policy, when is the recoverable
depreciation paid to the policyholder?
a) Immediately upon the initial estimate being completed.
b) After the policyholder has actually repaired or replaced the damaged property.
c) It is subtracted from the total payment and never paid.
d) Only if the policyholder uses a State Farm-approved vendor.
3. The "duties after a loss" section of a policy typically requires the insured to
do all the following EXCEPT:
a) Protect the property from further damage.
b) Notify the police in case of theft.
c) Provide a sworn proof of loss.
d) Perform all repairs before the adjuster's inspection.
4. What is the term for the amount the policyholder must pay out-of-pocket
before the insurance coverage begins?
a) Premium
b) Deductible
,c) Co-pay
d) Liability
5. A standard HO-3 policy typically provides what type of coverage for the
dwelling?
a) Actual Cash Value
b) Broad Form
c) Special Form (All-Risk)
d) Basic Form
6. Which of the following is generally considered a "covered peril" under a
standard HO-3 policy's dwelling coverage?
a) Flood
b) Earthquake
c) Windstorm
d) Intentional loss
7. What does the "Other Structures" coverage on a homeowner's policy
typically cover?
a) The main dwelling and attached garages.
b) Detached structures on the residence premises, like a shed or detached garage.
c) Personal property anywhere in the world.
d) The policyholder's personal liability.
8. If a tree falls on a insured's house during a storm, what is the first thing the
adjuster should verify?
a) The species of the tree.
b) That the cost to remove the tree is covered.
c) That the damage is caused by a covered peril.
d) The name of the arborist the insured will use.
9. Which valuation method is typically used for roof surfaces in an ACV
settlement?
a) Brand new shingle cost
b) Cost to repair, with no deduction
, c) Replacement cost minus depreciation for age and condition
d) The original installation cost
10. What is the primary purpose of a Proof of Loss form?
a) To authorize the start of repairs.
b) To serve as a formal, sworn statement of the claim amount requested by the
insured.
c) To cancel the insurance policy.
d) To hire a public adjuster.
11. A "reservation of rights" letter from the insurance company indicates:
a) The claim has been fully approved for payment.
b) The company is investigating the claim but may deny coverage later.
c) The policyholder has failed to pay their premium.
d) The deductible has been waived.
12. What is "subrogation"?
a) The process of estimating the value of a loss.
b) The right of an insurer to pursue a third party that caused the loss.
c) The act of canceling an insurance policy.
d) The inspection of a property before issuing a policy.
13. Which part of a homeowner's policy would cover medical payments to a
guest who falls on your property?
a) Coverage A - Dwelling
b) Coverage B - Other Structures
c) Coverage C - Personal Property
d) Coverage F - Medical Payments to Others
14. An ordinance or law coverage endorsement is designed to cover:
a) The cost of fines from the city.
b) The increased cost to rebuild to current building codes.
c) The cost of legal advice for the policyholder.
d) Damage caused by government action.
15. When estimating a loss, what is the term for the list of required repairs
and their associated costs?
