STATE FARM ESTIMATICS MASTERY
EXAM QUESTIONS AND ANSWERS
1. How is Actual Cash Value (ACV) typically calculated in property insurance?
2. In roofing, how many square feet are in one ‘square’?
A. 10 square feet
B. 100 square feet
C. 50 square feet
D. 1,000 square feet
Answer: B
Conceptual Explanation: A ‘square’ is a standard unit of measurement in roofing equal to
100 square feet.
3. Which Xactimate code category is used for interior painting?
A. DRY
B. PNT
C. CLN
D. FNC
,Answer: B
Conceptual Explanation: The PNT category code in Xactimate stands for Painting.
4. What is the purpose of a ‘Supplement’ in the claims process?
A. To cancel the existing policy
B. To renew the insurance policy for another year
C. To decrease the amount paid to the contractor
D. To request additional funds for items missed in the original estimate
Answer: D
Conceptual Explanation: A supplement is a request for additional payment due to hidden
damage or items omitted from the initial estimate.
5. Under a standard HO-3 policy, which coverage applies to the main dwelling?
A. Coverage A
B. Coverage B
C. Coverage C
D. Coverage D
Answer: A
Conceptual Explanation: Coverage A applies to the dwelling; Coverage B to other
structures; Coverage C to personal property; and Coverage D to loss of use.
, 6. Which term describes the amount an insured must pay out-of-pocket before the insurer
pays a claim?
A. Premium
B. Deductible
C. Limit
D. Co-insurance
Answer: B
Conceptual Explanation: The deductible is the specific amount the policyholder is
responsible for paying on a covered loss.
7. What is ‘Profit and Overhead’ (P&O) typically calculated as in a standard estimate?
A. 5% for profit and 5% for overhead
B. 10% for profit and 10% for overhead
C. 15% for profit and 5% for overhead
D. 20% total combined for overhead only
Answer: B
Conceptual Explanation: Standard industry practice for general contractors is to apply
10% for overhead and 10% for profit.
8. What does ‘depreciation’ represent in an insurance estimate?
A. The increase in value due to repairs
EXAM QUESTIONS AND ANSWERS
1. How is Actual Cash Value (ACV) typically calculated in property insurance?
2. In roofing, how many square feet are in one ‘square’?
A. 10 square feet
B. 100 square feet
C. 50 square feet
D. 1,000 square feet
Answer: B
Conceptual Explanation: A ‘square’ is a standard unit of measurement in roofing equal to
100 square feet.
3. Which Xactimate code category is used for interior painting?
A. DRY
B. PNT
C. CLN
D. FNC
,Answer: B
Conceptual Explanation: The PNT category code in Xactimate stands for Painting.
4. What is the purpose of a ‘Supplement’ in the claims process?
A. To cancel the existing policy
B. To renew the insurance policy for another year
C. To decrease the amount paid to the contractor
D. To request additional funds for items missed in the original estimate
Answer: D
Conceptual Explanation: A supplement is a request for additional payment due to hidden
damage or items omitted from the initial estimate.
5. Under a standard HO-3 policy, which coverage applies to the main dwelling?
A. Coverage A
B. Coverage B
C. Coverage C
D. Coverage D
Answer: A
Conceptual Explanation: Coverage A applies to the dwelling; Coverage B to other
structures; Coverage C to personal property; and Coverage D to loss of use.
, 6. Which term describes the amount an insured must pay out-of-pocket before the insurer
pays a claim?
A. Premium
B. Deductible
C. Limit
D. Co-insurance
Answer: B
Conceptual Explanation: The deductible is the specific amount the policyholder is
responsible for paying on a covered loss.
7. What is ‘Profit and Overhead’ (P&O) typically calculated as in a standard estimate?
A. 5% for profit and 5% for overhead
B. 10% for profit and 10% for overhead
C. 15% for profit and 5% for overhead
D. 20% total combined for overhead only
Answer: B
Conceptual Explanation: Standard industry practice for general contractors is to apply
10% for overhead and 10% for profit.
8. What does ‘depreciation’ represent in an insurance estimate?
A. The increase in value due to repairs
