State Farm Fire Independent Policy Exam with correct
answers Verified as A+++
Terms in this set (53)
The insured has a HO-3 policy in force. All of the losses are
covered except: Select the single best answer:
B. Detached garage used to
A. Shed rented to a tenant, to store furniture
operate a lawnmower repair
B. Detached garage used to operate a lawnmower repair shop
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
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
E. ALE payments will not exceed property, but not to exceed 24 months.
20% of Coverage A limits.
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 shortest of
three time frames as dictated by the policy.
E. ALE payments will not exceed 20% of Coverage A limits.
, 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?
A. Coverage for personal Select the single best answer:
property applies for perils listed
A. Coverage for personal property applies for perils listed under
under Section I - Losses
Insured, Coverage B - Personal Section I - Losses Insured, Coverage B - Personal Property and
Property and Section I - Section I - Additional Coverages.
B. Coverage B applies only for items Jennifer owns, while anywhere in the
Additional Coverages. world.
C. The limit of liability for theft loss to jewelry and furs is $1000
or 10% of the Coverage B limit, whichever is greater.
D.The limit of liability for tornado losses to firearms is $2,500.
Under an HO-3 policy, deductibles apply to which of the following type(s) of
losses.
Select the single best answer:
B. Fire Department Service Charges
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
In the HO-3 policy, Coverage C consists of three coverages:
Additional Living
False its Additional Living expense,
Expense Fair Rental
Fair rental value and prohibited
Value
use Property Removed
True or False
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.
True
3.) The amount payable to the insured will be the greater of the
amounts arrived at in steps 1 and 2.
True or False
The definition of an insured includes all of the following
except: Select the single best answer:
, A. Person(s) listed on the Declaration Page
Spouse B. Spouse, if a resident of the household
C. Relatives, if residents of the household
D.Any person under the age of 21 in the care of the named insured,
resident spouse, or a resident relative
E. Spouse
Joe Smith has a HO-3 policy. He is a carpenter and has collected 100
2"X4" studs and 30 2"X6" rafters from various job sites. Joe has no
False specific plans to use the lumber.
The lumber is covered under Coverage A.
True or False
answers Verified as A+++
Terms in this set (53)
The insured has a HO-3 policy in force. All of the losses are
covered except: Select the single best answer:
B. Detached garage used to
A. Shed rented to a tenant, to store furniture
operate a lawnmower repair
B. Detached garage used to operate a lawnmower repair shop
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
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
E. ALE payments will not exceed property, but not to exceed 24 months.
20% of Coverage A limits.
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 shortest of
three time frames as dictated by the policy.
E. ALE payments will not exceed 20% of Coverage A limits.
, 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?
A. Coverage for personal Select the single best answer:
property applies for perils listed
A. Coverage for personal property applies for perils listed under
under Section I - Losses
Insured, Coverage B - Personal Section I - Losses Insured, Coverage B - Personal Property and
Property and Section I - Section I - Additional Coverages.
B. Coverage B applies only for items Jennifer owns, while anywhere in the
Additional Coverages. world.
C. The limit of liability for theft loss to jewelry and furs is $1000
or 10% of the Coverage B limit, whichever is greater.
D.The limit of liability for tornado losses to firearms is $2,500.
Under an HO-3 policy, deductibles apply to which of the following type(s) of
losses.
Select the single best answer:
B. Fire Department Service Charges
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
In the HO-3 policy, Coverage C consists of three coverages:
Additional Living
False its Additional Living expense,
Expense Fair Rental
Fair rental value and prohibited
Value
use Property Removed
True or False
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.
True
3.) The amount payable to the insured will be the greater of the
amounts arrived at in steps 1 and 2.
True or False
The definition of an insured includes all of the following
except: Select the single best answer:
, A. Person(s) listed on the Declaration Page
Spouse B. Spouse, if a resident of the household
C. Relatives, if residents of the household
D.Any person under the age of 21 in the care of the named insured,
resident spouse, or a resident relative
E. Spouse
Joe Smith has a HO-3 policy. He is a carpenter and has collected 100
2"X4" studs and 30 2"X6" rafters from various job sites. Joe has no
False specific plans to use the lumber.
The lumber is covered under Coverage A.
True or False
