State Farm Fire Independent
Policy Exam with complete
answers(verified for accuracy)
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 shortest of
three time frames as dictated by the policy.
E. ALE payments will not exceed 20% of Coverage A limits. - answer
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:
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 - answer
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 for theft loss to jewelry and furs is $1000 or
10% of the Coverage B limit, whichever is greater.
D. The limit of liability for tornado losses to firearms is $2,500. -
answer 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 - answer B. Fire Department Service
Charges
, In the HO-3 policy, Coverage C consists of three coverages:
Additional Living Expense
Fair Rental Value
Property Removed
True or False - answer False its Additional Living expense, Fair
rental value and prohibited use
The steps in applying the 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 - answer True
The definition of an insured includes all of the following except:
Select the single best answer:
A. Person(s) listed on the Declaration Page
B. Spouse, if a resident of the household
C. Relatives, if residents of the household
D. Any person under the age of 21 in the care of the named insured,
resident spouse, or a resident relative
E. Spouse - answer Spouse
Policy Exam with complete
answers(verified for accuracy)
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 shortest of
three time frames as dictated by the policy.
E. ALE payments will not exceed 20% of Coverage A limits. - answer
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:
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 - answer
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 for theft loss to jewelry and furs is $1000 or
10% of the Coverage B limit, whichever is greater.
D. The limit of liability for tornado losses to firearms is $2,500. -
answer 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 - answer B. Fire Department Service
Charges
, In the HO-3 policy, Coverage C consists of three coverages:
Additional Living Expense
Fair Rental Value
Property Removed
True or False - answer False its Additional Living expense, Fair
rental value and prohibited use
The steps in applying the 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 - answer True
The definition of an insured includes all of the following except:
Select the single best answer:
A. Person(s) listed on the Declaration Page
B. Spouse, if a resident of the household
C. Relatives, if residents of the household
D. Any person under the age of 21 in the care of the named insured,
resident spouse, or a resident relative
E. Spouse - answer Spouse
