2024 /2025 |© copyright | This work may not be copied for profit gain | Excell!
State Farm Fire Independent Policy Exam
Questions & 100% Correct Answers- Latest
Test | Graded A+ | Passed
Select the false statement listed below: In the HO-3 policy, the ALE 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
✓ -:- E. ALE payments will not exceed 20% of Coverage A limits.
The insured has a HO-3 policy in force. All of the losses are covered except:
Select the single best answer:
1|Page | Grade A+| 2024/2025
,2024 /2025 |© copyright | This work may not be copied for profit gain | Excell!
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
✓ -:- B. Detached garage used to operate a lawnmower repair shop
Jennifer Marco has a HO-3 policy, with a Coverage B limit of $75,000, a $500
deductible, and no Option AI, ID, FA or JF. Which of the 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
2|Page | Grade A+| 2024/2025
, 2024 /2025 |© copyright | This work may not be copied for profit gain | Excell!
✓ -:- A. Coverage for personal property applies for perils listed under
Section I - Losses Insured, Coverage B - Personal Property and Section
I - Additional Coverages.
Under an HO-3 policy, deductibles 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
✓ -:- B. Fire Department Service Charges
In the HO-3 policy, Coverage C consists of three coverages:
Additional Living Expense
Fair Rental Value
Property Removed
3|Page | Grade A+| 2024/2025
State Farm Fire Independent Policy Exam
Questions & 100% Correct Answers- Latest
Test | Graded A+ | Passed
Select the false statement listed below: In the HO-3 policy, the ALE 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
✓ -:- E. ALE payments will not exceed 20% of Coverage A limits.
The insured has a HO-3 policy in force. All of the losses are covered except:
Select the single best answer:
1|Page | Grade A+| 2024/2025
,2024 /2025 |© copyright | This work may not be copied for profit gain | Excell!
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
✓ -:- B. Detached garage used to operate a lawnmower repair shop
Jennifer Marco has a HO-3 policy, with a Coverage B limit of $75,000, a $500
deductible, and no Option AI, ID, FA or JF. Which of the 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
2|Page | Grade A+| 2024/2025
, 2024 /2025 |© copyright | This work may not be copied for profit gain | Excell!
✓ -:- A. Coverage for personal property applies for perils listed under
Section I - Losses Insured, Coverage B - Personal Property and Section
I - Additional Coverages.
Under an HO-3 policy, deductibles 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
✓ -:- B. Fire Department Service Charges
In the HO-3 policy, Coverage C consists of three coverages:
Additional Living Expense
Fair Rental Value
Property Removed
3|Page | Grade A+| 2024/2025
