STATE FARM FIRE INDEPENDENT POLICY EXAM
2026 COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ 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. 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
2026 COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ 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. 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
