State Farm Fire Independent Policy Exam
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(2026) UPDATE |2026!! STUDY GUIDE EXAM
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Terms in this set (50)
Select the false statement listed E. ALE payments will not exceed 20% of
below: In the HO-3 policy, the ALE Coverage A limits.
payments will be made only for:
Select the single best answer:
A. The shortest time necessary to
repair or replace the damaged
property, but not to exceed 24
months.
B. If the insured does not rebuild,
the time necessary for the insured
to relocate in permanent living
quarters, but not to exceed 24
months.
C. ALE payments can run beyond
the expiration of the policy.
D. ALE payments are limited to
incurred costs for the shorte
,The insured has a HO-3 policy in B. Detached garage used to operate a
force. All of the losses are covered lawnmower repair shop
except:
Select the single best answer:
A. Shed rented to a tenant, to store
furniture
B. Detached garage used to
operate a lawnmower repair shop
C. Garage rented to the neighbor
to store an antique automobile
D. Basement used as an office for
insured's bookkeeping business
E. Garage (attached) rented to
tenant to store fishing boat
Jennifer Marco has a HO-3 policy, A. Coverage for personal property applies for
with a Coverage B limit of $75,000, perils listed under Section I - Losses Insured,
a $500 deductible, and no Option Coverage B - Personal Property and Section I -
AI, ID, FA or JF. Which of the Additional Coverages.
following statements is true
concerning her personal property?
Select the single best answer:
A. Coverage for personal property
applies for perils listed under
Section I - Losses Insured,
Coverage B - Personal Property
and Section I - Additional
Coverages.
B. Coverage B applies only for
items Jennifer owns, while anywhere
in the world.
C. The limit of liability
, Under an HO-3 policy, deductibles B. Fire Department Service Charges
apply to which of the following
type(s) of losses.
Select the single best answer:
A. Credit Card, Bank Fund Transfer
Card, Forgery and Counterfeit
Money
B. Fire Department Service Charges
C. Rekey locks after keys are stolen
D. Debris Removal Charges
In the HO-3 policy, Coverage C False its Additional Living expense, Fair rental
consists of three coverages: value and prohibited use
Additional Living Expense
Fair Rental Value
Property Removed
True or False
The steps in applying the True
deductible on a HO-3 homeowners
policy are:
1.)The deductible is first applied to
the covered loss.
2.)Any coverage or special limits are
then applied to the covered loss.
3.)The amount payable to the
insured will be the greater of the
amounts arrived at in steps 1 and 2.
True or False
Questions & Answers | 100% Verified solutions
(2026) UPDATE |2026!! STUDY GUIDE EXAM
Save
Terms in this set (50)
Select the false statement listed E. ALE payments will not exceed 20% of
below: In the HO-3 policy, the ALE Coverage A limits.
payments will be made only for:
Select the single best answer:
A. The shortest time necessary to
repair or replace the damaged
property, but not to exceed 24
months.
B. If the insured does not rebuild,
the time necessary for the insured
to relocate in permanent living
quarters, but not to exceed 24
months.
C. ALE payments can run beyond
the expiration of the policy.
D. ALE payments are limited to
incurred costs for the shorte
,The insured has a HO-3 policy in B. Detached garage used to operate a
force. All of the losses are covered lawnmower repair shop
except:
Select the single best answer:
A. Shed rented to a tenant, to store
furniture
B. Detached garage used to
operate a lawnmower repair shop
C. Garage rented to the neighbor
to store an antique automobile
D. Basement used as an office for
insured's bookkeeping business
E. Garage (attached) rented to
tenant to store fishing boat
Jennifer Marco has a HO-3 policy, A. Coverage for personal property applies for
with a Coverage B limit of $75,000, perils listed under Section I - Losses Insured,
a $500 deductible, and no Option Coverage B - Personal Property and Section I -
AI, ID, FA or JF. Which of the Additional Coverages.
following statements is true
concerning her personal property?
Select the single best answer:
A. Coverage for personal property
applies for perils listed under
Section I - Losses Insured,
Coverage B - Personal Property
and Section I - Additional
Coverages.
B. Coverage B applies only for
items Jennifer owns, while anywhere
in the world.
C. The limit of liability
, Under an HO-3 policy, deductibles B. Fire Department Service Charges
apply to which of the following
type(s) of losses.
Select the single best answer:
A. Credit Card, Bank Fund Transfer
Card, Forgery and Counterfeit
Money
B. Fire Department Service Charges
C. Rekey locks after keys are stolen
D. Debris Removal Charges
In the HO-3 policy, Coverage C False its Additional Living expense, Fair rental
consists of three coverages: value and prohibited use
Additional Living Expense
Fair Rental Value
Property Removed
True or False
The steps in applying the True
deductible on a HO-3 homeowners
policy are:
1.)The deductible is first applied to
the covered loss.
2.)Any coverage or special limits are
then applied to the covered loss.
3.)The amount payable to the
insured will be the greater of the
amounts arrived at in steps 1 and 2.
True or False
