State Farm Fire Independent Policy Exam
With complete questions and answers
Newest 2025/26 100% PASS
Select the false statement listed below: In the HO-3 policy, the ALE payments will be made only for:
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
Select the single best answer: II! II! II! II!
A. The shortest time necessary to repair or replace the damaged property, but not to exceed 24 months.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
B. If the insured does not rebuild, the time necessary for the insured to relocate in permanent living
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
quarters, but not to exceed 24 months.
II! II! II! II! II! II! II!
C. ALE payments can run beyond the expiration of the policy.
II! II! II! II! II! II! II! II! II! II!
D. ALE payments are limited to incurred costs for the shorte - Correct Answers E. ALE payments will not
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
exceed 20% of Coverage A limits.
II! II! II! II! II! II!
II! The insured has a HO-3 policy in force. All of the losses are covered except:
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
Select the single best answer: II! II! II! II!
A. Shed rented to a tenant, to store furniture
II! II! II! II! II! II! II! II!
B. Detached garage used to operate a lawnmower repair shop
II! II! II! II! II! II! II! II! II!
C. Garage rented to the neighbor to store an antique automobile
II! II! II! II! II! II! II! II! II! II!
D. Basement used as an office for insured's bookkeeping business
II! II! II! II! II! II! II! II! II!
E. Garage (attached) rented to tenant to store fishing boat - Correct Answers B. Detached garage used to
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
operate a lawnmower repair shop
II! II! II! II! II!
II! Jennifer Marco has a HO-3 policy, with a Coverage B limit of $75,000, a $500 deductible, and no Option AI,
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! ID, FA or JF. Which of the following statements is true concerning her personal property?
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
,Select the single best answer: II! II! II! II!
A. Coverage for personal property applies for perils listed under Section I - Losses Insured, Coverage B -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
Personal Property and Section I - Additional Coverages.
II! II! II! II! II! II! II! II!
B. Coverage B applies only for items Jennifer owns, while anywhere in the world.
II! II! II! II! II! II! II! II! II! II! II! II! II!
C. The limit of liability - Correct Answers A. Coverage for personal property applies for perils listed under
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
Section I - Losses Insured, Coverage B - Personal Property and Section I - Additional Coverages.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Under an HO-3 policy, deductibles apply to which of the following type(s) of losses.
II! II! II! II! II! II! II! II! II! II! II! II! II!
Select the single best answer: II! II! II! II!
A. Credit Card, Bank Fund Transfer Card, Forgery and Counterfeit Money
II! II! II! II! II! II! II! II! II! II!
B. Fire Department Service Charges
II! II! II! II!
C. Rekey locks after keys are stolen
II! II! II! II! II! II!
D. Debris Removal Charges - Correct Answers B. Fire Department Service Charges
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! In the HO-3 policy, Coverage C consists of three coverages:
II! II! II! II! II! II! II! II! II!
Additional Living Expense II! II!
Fair Rental Value II! II!
Property Removed II!
True or False - Correct Answers False its Additional Living expense, Fair rental value and prohibited use
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! The steps in applying the deductible on a HO-3 homeowners policy are:
II! II! II! II! II! II! II! II! II! II! II!
1.)The deductible is first applied to the covered loss.
II! II! II! II! II! II! II! II!
2.)Any coverage or special limits are then applied to the covered loss.
II! II! II! II! II! II! II! II! II! II! II!
3.)The amount payable to the insured will be the greater of the amounts arrived at in steps 1 and 2.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
, True or False - Correct Answers True
II! II! II! II! II! II! II! II! II! II!
II! The definition of an insured includes all of the following except:
II! II! II! II! II! II! II! II! II! II!
Select the single best answer:II! II! II! II!
A. Person(s) listed on the Declaration Page
II! II! II! II! II! II!
B. Spouse, if a resident of the household
II! II! II! II! II! II! II!
C. Relatives, if residents of the household
II! II! II! II! II! II!
D. Any person under the age of 21 in the care of the named insured, resident spouse, or a resident relative
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
E. Spouse - Correct Answers Spouse
II! II! II! II! II! II! II! II! II!
II! Joe Smith has a HO-3 policy. He is a carpenter and has collected 100 2"X4" studs and 30 2"X6" rafters from
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! various job sites. Joe has no specific plans to use the lumber. The lumber is covered under Coverage A.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
True or False - Correct Answers False
II! II! II! II! II! II! II! II! II! II!
II! Under an HO-3 policy, which of the following would be a Coverage B item?
II! II! II! II! II! II! II! II! II! II! II! II! II!
Select the single best answer:II! II! II! II!
A. Satellite dish bolted to the eave of the house
II! II! II! II! II! II! II! II! II!
B. Free standing gas range
II! II! II! II!
C. Built-in microwave oven
II! II! II!
D. Automatic garage door opener
II! II! II! II!
E. Water softener system - Correct Answers Free Standing gas range
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Under an HO-3 policy, which of the following would not be a Coverage A item?
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
With complete questions and answers
Newest 2025/26 100% PASS
Select the false statement listed below: In the HO-3 policy, the ALE payments will be made only for:
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
Select the single best answer: II! II! II! II!
A. The shortest time necessary to repair or replace the damaged property, but not to exceed 24 months.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
B. If the insured does not rebuild, the time necessary for the insured to relocate in permanent living
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
quarters, but not to exceed 24 months.
II! II! II! II! II! II! II!
C. ALE payments can run beyond the expiration of the policy.
II! II! II! II! II! II! II! II! II! II!
D. ALE payments are limited to incurred costs for the shorte - Correct Answers E. ALE payments will not
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
exceed 20% of Coverage A limits.
II! II! II! II! II! II!
II! The insured has a HO-3 policy in force. All of the losses are covered except:
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
Select the single best answer: II! II! II! II!
A. Shed rented to a tenant, to store furniture
II! II! II! II! II! II! II! II!
B. Detached garage used to operate a lawnmower repair shop
II! II! II! II! II! II! II! II! II!
C. Garage rented to the neighbor to store an antique automobile
II! II! II! II! II! II! II! II! II! II!
D. Basement used as an office for insured's bookkeeping business
II! II! II! II! II! II! II! II! II!
E. Garage (attached) rented to tenant to store fishing boat - Correct Answers B. Detached garage used to
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
operate a lawnmower repair shop
II! II! II! II! II!
II! Jennifer Marco has a HO-3 policy, with a Coverage B limit of $75,000, a $500 deductible, and no Option AI,
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! ID, FA or JF. Which of the following statements is true concerning her personal property?
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
,Select the single best answer: II! II! II! II!
A. Coverage for personal property applies for perils listed under Section I - Losses Insured, Coverage B -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
Personal Property and Section I - Additional Coverages.
II! II! II! II! II! II! II! II!
B. Coverage B applies only for items Jennifer owns, while anywhere in the world.
II! II! II! II! II! II! II! II! II! II! II! II! II!
C. The limit of liability - Correct Answers A. Coverage for personal property applies for perils listed under
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
Section I - Losses Insured, Coverage B - Personal Property and Section I - Additional Coverages.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Under an HO-3 policy, deductibles apply to which of the following type(s) of losses.
II! II! II! II! II! II! II! II! II! II! II! II! II!
Select the single best answer: II! II! II! II!
A. Credit Card, Bank Fund Transfer Card, Forgery and Counterfeit Money
II! II! II! II! II! II! II! II! II! II!
B. Fire Department Service Charges
II! II! II! II!
C. Rekey locks after keys are stolen
II! II! II! II! II! II!
D. Debris Removal Charges - Correct Answers B. Fire Department Service Charges
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! In the HO-3 policy, Coverage C consists of three coverages:
II! II! II! II! II! II! II! II! II!
Additional Living Expense II! II!
Fair Rental Value II! II!
Property Removed II!
True or False - Correct Answers False its Additional Living expense, Fair rental value and prohibited use
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! The steps in applying the deductible on a HO-3 homeowners policy are:
II! II! II! II! II! II! II! II! II! II! II!
1.)The deductible is first applied to the covered loss.
II! II! II! II! II! II! II! II!
2.)Any coverage or special limits are then applied to the covered loss.
II! II! II! II! II! II! II! II! II! II! II!
3.)The amount payable to the insured will be the greater of the amounts arrived at in steps 1 and 2.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
, True or False - Correct Answers True
II! II! II! II! II! II! II! II! II! II!
II! The definition of an insured includes all of the following except:
II! II! II! II! II! II! II! II! II! II!
Select the single best answer:II! II! II! II!
A. Person(s) listed on the Declaration Page
II! II! II! II! II! II!
B. Spouse, if a resident of the household
II! II! II! II! II! II! II!
C. Relatives, if residents of the household
II! II! II! II! II! II!
D. Any person under the age of 21 in the care of the named insured, resident spouse, or a resident relative
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
E. Spouse - Correct Answers Spouse
II! II! II! II! II! II! II! II! II!
II! Joe Smith has a HO-3 policy. He is a carpenter and has collected 100 2"X4" studs and 30 2"X6" rafters from
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! various job sites. Joe has no specific plans to use the lumber. The lumber is covered under Coverage A.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
True or False - Correct Answers False
II! II! II! II! II! II! II! II! II! II!
II! Under an HO-3 policy, which of the following would be a Coverage B item?
II! II! II! II! II! II! II! II! II! II! II! II! II!
Select the single best answer:II! II! II! II!
A. Satellite dish bolted to the eave of the house
II! II! II! II! II! II! II! II! II!
B. Free standing gas range
II! II! II! II!
C. Built-in microwave oven
II! II! II!
D. Automatic garage door opener
II! II! II! II!
E. Water softener system - Correct Answers Free Standing gas range
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Under an HO-3 policy, which of the following would not be a Coverage A item?
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
