STATE FARM FIRE INDEPENDENT POLICY EXAM
STUDY GUIDE 2026 QUESTIONS WITH
ANSWERS GRADED A+
◉ All fires are not covered by the Standard Fire policies, only those
that: Answer: are hostile and have a flame or glow
◉ At what time does a fire policy go into affect? Answer: 12:01am
standard time at the location of the insured's property
◉ A property is insured under two Standard Fire policies for
$25,000 each. A fire causes $10,000 worth of damage. What is the
maximum amount the insured may collect under each policy?
Answer: $5,000
◉ A fire burning in the middle of the living room would be
considered: Answer: a hostile fire
◉ An insured's house is damaged by fire caused by a neighbor's
negligence. The insurance company will attempt to recover damage
from the neighbor. This is called: Answer: subrogation
,◉ Which of the following statements are true concerning
requirements of the standard fire policy? Answer: The insured must
separate damaged from undamaged property in the event there is a
loss AND If a loss occurs, the insured normally has 60 days to file a
proof of loss with the insurer
◉ Which types of property are excluded from coverage under the
basic fire policy? Answer: accounts, currency, deeds, and securities
◉ Who is insured under the Standard Fire policy? Answer: the
named insured and his legal representatives
◉ An agreement which affords temporary insurance protection until
the policy is issued is called: Answer: a binder
◉ as a general rule, a complete fire insurance policy would be made
up of: Answer: the Standard Fire policy with one or more forms
attached
◉ The one condition listed below which will not void a fire policy:
a) false swearing
b) misrepresentation
c) over-insurance
d) concealment Answer: over-insurance
,◉ replacement cost minus depreciation: Answer: Actual Cash Value
(ACV)
◉ The Standard Fire policy with an extended coverage endorsement
attached covers which of the following: Answer: riot
◉ A loss due to order of Civil Authority: Answer: is excluded unless
the loss occurs because of an order by Civil Authorities for the
purpose of controlling a fire
◉ The term "unoccupancy" refers to the absence of : Answer:
persons from a building
◉ Suppose a fire occurs on February 26th. On April 30th, the
insurance company notifies the mortgagee the insured has not filed
a proof of loss. To protect their interest, the mortgagee must file a
proof of loss within _________ days after what date? Answer: 60 days
after April 30th
◉ For recovery under the Standard Fire policy, a party must:
Answer: be named in the policy and show an insurable interest in
the property at the time the loss occurs
, ◉ What is the requirement on how much experience one must have
to be elected the insurance commissioner in Georgia? Answer: None
◉ Once elected, how long is the insurance commissioner's term?
Answer: 4 years
◉ Is there a limit on the number of terms an insurance
commissioner can serve? Answer: No
◉ Who is Georgia's current insurance commissioner? Answer: Ralph
Hudgens
◉ What two capacities does Georgia's insurance commissioner
serve? Answer: 1. Chief Officer of Insurance Dept.
2. Chief Fire Marshall
◉ What happens if the Insurance Commissioner has to resign early?
Answer: No election; the Chief Deputy will take over
◉ What is the requirement to serve as Chief Deputy in Georgia?
Answer: must have a bond in the amount of $15,000
◉ If you are a domestic insurer in Georgia, how often does code say
your financials must be examined? Answer: once every 5 years
STUDY GUIDE 2026 QUESTIONS WITH
ANSWERS GRADED A+
◉ All fires are not covered by the Standard Fire policies, only those
that: Answer: are hostile and have a flame or glow
◉ At what time does a fire policy go into affect? Answer: 12:01am
standard time at the location of the insured's property
◉ A property is insured under two Standard Fire policies for
$25,000 each. A fire causes $10,000 worth of damage. What is the
maximum amount the insured may collect under each policy?
Answer: $5,000
◉ A fire burning in the middle of the living room would be
considered: Answer: a hostile fire
◉ An insured's house is damaged by fire caused by a neighbor's
negligence. The insurance company will attempt to recover damage
from the neighbor. This is called: Answer: subrogation
,◉ Which of the following statements are true concerning
requirements of the standard fire policy? Answer: The insured must
separate damaged from undamaged property in the event there is a
loss AND If a loss occurs, the insured normally has 60 days to file a
proof of loss with the insurer
◉ Which types of property are excluded from coverage under the
basic fire policy? Answer: accounts, currency, deeds, and securities
◉ Who is insured under the Standard Fire policy? Answer: the
named insured and his legal representatives
◉ An agreement which affords temporary insurance protection until
the policy is issued is called: Answer: a binder
◉ as a general rule, a complete fire insurance policy would be made
up of: Answer: the Standard Fire policy with one or more forms
attached
◉ The one condition listed below which will not void a fire policy:
a) false swearing
b) misrepresentation
c) over-insurance
d) concealment Answer: over-insurance
,◉ replacement cost minus depreciation: Answer: Actual Cash Value
(ACV)
◉ The Standard Fire policy with an extended coverage endorsement
attached covers which of the following: Answer: riot
◉ A loss due to order of Civil Authority: Answer: is excluded unless
the loss occurs because of an order by Civil Authorities for the
purpose of controlling a fire
◉ The term "unoccupancy" refers to the absence of : Answer:
persons from a building
◉ Suppose a fire occurs on February 26th. On April 30th, the
insurance company notifies the mortgagee the insured has not filed
a proof of loss. To protect their interest, the mortgagee must file a
proof of loss within _________ days after what date? Answer: 60 days
after April 30th
◉ For recovery under the Standard Fire policy, a party must:
Answer: be named in the policy and show an insurable interest in
the property at the time the loss occurs
, ◉ What is the requirement on how much experience one must have
to be elected the insurance commissioner in Georgia? Answer: None
◉ Once elected, how long is the insurance commissioner's term?
Answer: 4 years
◉ Is there a limit on the number of terms an insurance
commissioner can serve? Answer: No
◉ Who is Georgia's current insurance commissioner? Answer: Ralph
Hudgens
◉ What two capacities does Georgia's insurance commissioner
serve? Answer: 1. Chief Officer of Insurance Dept.
2. Chief Fire Marshall
◉ What happens if the Insurance Commissioner has to resign early?
Answer: No election; the Chief Deputy will take over
◉ What is the requirement to serve as Chief Deputy in Georgia?
Answer: must have a bond in the amount of $15,000
◉ If you are a domestic insurer in Georgia, how often does code say
your financials must be examined? Answer: once every 5 years
