STATE FARM FIRE INDEPENDENT POLICY EXAM
2026 CERTIFICATION EVALUATION EXAMS
FULL QUESTION SET WITH SOLVED 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. 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. Answer: True
◉ 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. 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 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. 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. Answer: 26250
◉ 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. 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:
2026 CERTIFICATION EVALUATION EXAMS
FULL QUESTION SET WITH SOLVED 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. 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. Answer: True
◉ 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. 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 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. 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. Answer: 26250
◉ 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. 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:
