STATE FARM POLICY STUDY EXAM
STATE FARM POLICY STUDY EXAM QUESTIONS AND
ANSWERS GRADED A+ LATEST UPDATE.
Coverage B limits are typically 75% of Coverage A - Dwelling Limits. ANS >> True-Comments: Coverage B
limits are typically 75% of Coverage A - Dwelling limits but more can be purchased.
Under which of the following coverages does the deductible not apply? ANS >> There are three
coverages in which the deductible does not apply: Fire Department Service Charge Credit Card, Bank
Fund Transfer Card, Forgery and Counterfeit Money Locks These coverages are found on pages 5 &
7 of the FP-7955 policy.
Select the three coverages provided under Coverage C - Loss of Use? ANS >> 1-Additonal living expense
2-Fair rental value
3-Prohibited use
Which statement is not true regarding Coverage B - Personal Property? ANS >> The limit of liability for
damage to firearms caused by any of the 16 named perils is limited to $2500 in the aggregate
Comments: That's right! The $2500 special limit for fire arms only applies to the peril of theft.
, STATE FARM POLICY STUDY EXAM
Coverage A - Dwelling Extension limits are typically 10% of Coverage A - Dwelling limits. ANS >> True-
Comments: Coverage A - Dwelling Extension limits are typically 10% of Coverage A - Dwelling limits but
more can be purchased.
The third step in applying the deductible is to pay the greater of the two amounts arrived at in step one
and step two. ANS >> False-
Comments: The third step in applying the deductible is to pay the lesser of the two amounts arrived at in
step one and step two.
The definition of an insured includes all of the following except: ANS >> A spouse not named in the
policy and not living in the household
Comments: All of these individuals meet the definition of an insured except a spouse not named in the
policy and not living in the household. A spouse does not have to be named in the policy to be
considered an insured but they must live in the household. Refer to Definitions on page 1 of the FP-7955
policy.
The named insured is a finish carpenter and keeps leftover trim boards from job sites in a detached
garage on the residence premises. The insured has no plans to use the trim boards. The trim boards are
covered under Coverage A. ANS >> False-
Comments: Since the insured has no plans to use the trim boards for the construction, alteration or
repair of the dwelling or other structures on the residence premises, the trim boards would not be
covered under Coverage A - Dwelling. Refer to Sect. I Coverages, Coverage A - Dwelling, paragraph 1.b.
Which of the following is not considered Coverage A? ANS >> Free-standing range
Comments: All of the items listed are considered Coverage A except the free-standing range. A free-
standing range is not permanently attached to Coverage A property and removing the free-standing
range would not deface the property.
Rain blows through a window that was accidentally left open and damages a throw rug. The damage to
the rug is covered under Coverage B - Personal Property. ANS >> False-
Comments: In order for coverage to apply to Coverage B property inside a building there must first be an
opening created in the roof or wall of the building caused by wind or hail allowing rain, snow, sleet, sand
or dust to enter. Since the window was left open, the water damaged rug is not covered. Refer to Sect. I -
Losses Insured, Coverage B - Personal Property, paragraph 2.
STATE FARM POLICY STUDY EXAM QUESTIONS AND
ANSWERS GRADED A+ LATEST UPDATE.
Coverage B limits are typically 75% of Coverage A - Dwelling Limits. ANS >> True-Comments: Coverage B
limits are typically 75% of Coverage A - Dwelling limits but more can be purchased.
Under which of the following coverages does the deductible not apply? ANS >> There are three
coverages in which the deductible does not apply: Fire Department Service Charge Credit Card, Bank
Fund Transfer Card, Forgery and Counterfeit Money Locks These coverages are found on pages 5 &
7 of the FP-7955 policy.
Select the three coverages provided under Coverage C - Loss of Use? ANS >> 1-Additonal living expense
2-Fair rental value
3-Prohibited use
Which statement is not true regarding Coverage B - Personal Property? ANS >> The limit of liability for
damage to firearms caused by any of the 16 named perils is limited to $2500 in the aggregate
Comments: That's right! The $2500 special limit for fire arms only applies to the peril of theft.
, STATE FARM POLICY STUDY EXAM
Coverage A - Dwelling Extension limits are typically 10% of Coverage A - Dwelling limits. ANS >> True-
Comments: Coverage A - Dwelling Extension limits are typically 10% of Coverage A - Dwelling limits but
more can be purchased.
The third step in applying the deductible is to pay the greater of the two amounts arrived at in step one
and step two. ANS >> False-
Comments: The third step in applying the deductible is to pay the lesser of the two amounts arrived at in
step one and step two.
The definition of an insured includes all of the following except: ANS >> A spouse not named in the
policy and not living in the household
Comments: All of these individuals meet the definition of an insured except a spouse not named in the
policy and not living in the household. A spouse does not have to be named in the policy to be
considered an insured but they must live in the household. Refer to Definitions on page 1 of the FP-7955
policy.
The named insured is a finish carpenter and keeps leftover trim boards from job sites in a detached
garage on the residence premises. The insured has no plans to use the trim boards. The trim boards are
covered under Coverage A. ANS >> False-
Comments: Since the insured has no plans to use the trim boards for the construction, alteration or
repair of the dwelling or other structures on the residence premises, the trim boards would not be
covered under Coverage A - Dwelling. Refer to Sect. I Coverages, Coverage A - Dwelling, paragraph 1.b.
Which of the following is not considered Coverage A? ANS >> Free-standing range
Comments: All of the items listed are considered Coverage A except the free-standing range. A free-
standing range is not permanently attached to Coverage A property and removing the free-standing
range would not deface the property.
Rain blows through a window that was accidentally left open and damages a throw rug. The damage to
the rug is covered under Coverage B - Personal Property. ANS >> False-
Comments: In order for coverage to apply to Coverage B property inside a building there must first be an
opening created in the roof or wall of the building caused by wind or hail allowing rain, snow, sleet, sand
or dust to enter. Since the window was left open, the water damaged rug is not covered. Refer to Sect. I -
Losses Insured, Coverage B - Personal Property, paragraph 2.
