State Farm Fire Independent Policy
Exam Questions And Answers
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 shorte - - correct
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
,State Farm Fire Independent Policy
Exam Questions And Answers
E. Garage (attached) rented to tenant to store fishing boat - - correct
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 - - correct 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
, State Farm Fire Independent Policy
Exam Questions And Answers
B. Fire Department Service Charges
C. Rekey locks after keys are stolen
D. Debris Removal Charges - - correct 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 - - correct 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 - - correct answer ✅True
Exam Questions And Answers
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 shorte - - correct
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
,State Farm Fire Independent Policy
Exam Questions And Answers
E. Garage (attached) rented to tenant to store fishing boat - - correct
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 - - correct 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
, State Farm Fire Independent Policy
Exam Questions And Answers
B. Fire Department Service Charges
C. Rekey locks after keys are stolen
D. Debris Removal Charges - - correct 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 - - correct 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 - - correct answer ✅True
