STATE FARM FIRE INDEPENDENT POLICY EXAM WITH COMPLETE SOLUTIONS

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FIRE v




INDEPENDENT
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POLICYEXAM
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COMPLETE
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SOLUTIONS
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, State Farm Fire Independent Policy Exam with Complete
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Solutions v




Select the false statement listed below: In the HO-3 policy, the ALE payments will
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be made only for:
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Select the single best answer:
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A. The shortest time necessary to repair or replace the damaged property, but not
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to exceed 24 months.
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B. If the insured does not rebuild, the time necessary for the insured to relocate in
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permanent living quarters, but not to exceed 24 months.
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C. ALE payments can run beyond the expiration of the policy.
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D. ALE payments are limited to incurred costs for the shortest of three time frames
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as dictated by the policy.
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E. ALE payments will not exceed 20% of Coverage A limits. - ANSWER-E. ALE
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payments will not exceed 20% of Coverage A limits.
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The insured has a HO-3 policy in force. All of the losses are covered except:
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Select the single best answer:
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A. Shed rented to a tenant, to store furniture
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B. Detached garage used to operate a lawnmower repair shop
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C. Garage rented to the neighbor to store an antique automobile
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D. Basement used as an office for insured's bookkeeping business
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, E. Garage (attached) rented to tenant to store fishing boat - ANSWER-B. Detached
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garage used to operate a lawnmower repair shop
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Jennifer Marco has a HO-3 policy, with a Coverage B limit of $75,000, a $500
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deductible, and no Option AI, ID, FA or JF. Which of the following statements is
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true concerning her personal property?
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Select the single best answer:
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A. Coverage for personal property applies for perils listed under Section I - Losses
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Insured, Coverage B - Personal Property and Section I - Additional Coverages.
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B. Coverage B applies only for items Jennifer owns, while anywhere in the world.
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C. The limit of liability for theft loss to jewelry and furs is $1000 or 10% of the
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Coverage B limit, whichever is greater.
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D. The limit of liability for tornado losses to firearms is $2,500. - ANSWER-A.
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Coverage for personal property applies for perils listed under Section I - Losses
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Insured, Coverage B - Personal Property and Section I - Additional Coverages.
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Under an HO-3 policy, deductibles apply to which of the following type(s) of
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losses.
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Select the single best answer:
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A. Credit Card, Bank Fund Transfer Card, Forgery and Counterfeit Money
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B. Fire Department Service Charges
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C. Rekey locks after keys are stolen
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D. Debris Removal Charges - ANSWER-B. Fire Department Service Charges
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