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State Farm Fire Independent Policy
Exam 2026|Comprehensive Questions
And Answers
Lightning hits a power transformer two streets away from the risk and knocks out
the power to the entire area. The temperature is in the 20's and our insured's
home is heated by an electric furnace. The insured has a HO-3 policy in force. ALE
will be payable on this loss.
True or False - correct-answer - False
In the HO-3 policy, resulting ALE and Fair Rental Value can be paid for up to two
weeks if use of the premises is prohibited by civil authorities because of direct
covered damage to a neighboring premises caused by a loss insured.
True or False - correct-answer - True
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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 - correct-answer - 78750
Our insured has a HO-3 policy in force. The insured premises is located on the Gulf
Coast. The National Weather Bureau issued a hurricane warning affecting the
insured premises on July 18th. The insured removed antique furniture and stored
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it in a warehouse 50 miles inland. The furniture was damaged by flood waters
August 22nd. We will pay for the damage to the furniture.
True or False - correct-answer - False
The insured has an HO-3 policy with a Coverage A limit of $250,000 and Option ID
of $50,000. The in-ground swimming pool, located 20 feet away from the home, is
totally destroyed by a loss insured. What is the maximum amount you can pay for
pool debris removal and replacement of the pool?
Select the single best answer:
A. $25,000
B. $31,500
C. $30,000
D. $26,250
E. $50,000 - correct-answer - 26250
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In an HO-3 policy, Option AI (Additional Insured) provides coverage for:
Select the single best answer:
A. Coverage C
B. Coverage B
C. Coverage A
D. Coverage A and Coverage B
E. Coverage A and Coverage C - correct-answer - C. Coverage A
Under an HO-3 policy with Option JF, which if the following statements is true
concerning a jewelry loss?
Select the single best answer:
A. Coverage applies only for the sixteen Section I-Losses Insured, Coverage B-
Personal Property named perils.
B. The limit of liability for theft jewelry and furs is $1,000.
State Farm Fire Independent Policy
Exam 2026|Comprehensive Questions
And Answers
Lightning hits a power transformer two streets away from the risk and knocks out
the power to the entire area. The temperature is in the 20's and our insured's
home is heated by an electric furnace. The insured has a HO-3 policy in force. ALE
will be payable on this loss.
True or False - correct-answer - False
In the HO-3 policy, resulting ALE and Fair Rental Value can be paid for up to two
weeks if use of the premises is prohibited by civil authorities because of direct
covered damage to a neighboring premises caused by a loss insured.
True or False - correct-answer - True
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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 - correct-answer - 78750
Our insured has a HO-3 policy in force. The insured premises is located on the Gulf
Coast. The National Weather Bureau issued a hurricane warning affecting the
insured premises on July 18th. The insured removed antique furniture and stored
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it in a warehouse 50 miles inland. The furniture was damaged by flood waters
August 22nd. We will pay for the damage to the furniture.
True or False - correct-answer - False
The insured has an HO-3 policy with a Coverage A limit of $250,000 and Option ID
of $50,000. The in-ground swimming pool, located 20 feet away from the home, is
totally destroyed by a loss insured. What is the maximum amount you can pay for
pool debris removal and replacement of the pool?
Select the single best answer:
A. $25,000
B. $31,500
C. $30,000
D. $26,250
E. $50,000 - correct-answer - 26250
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In an HO-3 policy, Option AI (Additional Insured) provides coverage for:
Select the single best answer:
A. Coverage C
B. Coverage B
C. Coverage A
D. Coverage A and Coverage B
E. Coverage A and Coverage C - correct-answer - C. Coverage A
Under an HO-3 policy with Option JF, which if the following statements is true
concerning a jewelry loss?
Select the single best answer:
A. Coverage applies only for the sixteen Section I-Losses Insured, Coverage B-
Personal Property named perils.
B. The limit of liability for theft jewelry and furs is $1,000.
