State Farm Fire Independent Policy Exam Complete
Test , Practice Questions, Verified Answer Key, and
Study Guide for ( 2026 Edition) || Most Recent Exam
2026-2027 Actual Complete Real Exam Questions And
Correct Answers (Verified Answers) Already Graded
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Under an HO-3 policy with Option JF, which if the following
statements is true
concerning a jewelry
loss?
Select the single best
answer:
A. Coverage applies only for the sixteen Section I-Losses
Insured, Coverage BPersonal Property named perils.
B. The limit of liability for theft jewelry and furs is $1,000.
C. Coverage only applies for the items listed on the schedule in
the Declarations.
D. Coverage is for accidental direct physical loss or damage
unless otherwise stated. - ANSWER -D. Coverage is for
accidental direct physical loss or damage unless otherwise
stated.
We insure Steve Smith with a HO-3 policy. Steve works at the
Acme Vacuum Co. On weekends and in the evenings he repairs
vacuum cleaners in a detached building structure on the
,insured premises. The building is damaged by a severe
windstorm. Since Steve owns his business and only works part
time the damage will be paid under the Dwelling Extension
coverage of the policy.
True or False - ANSWER -False
Judy Howard owns a home at 2500 Mocking Bird Lane. She had
a HO-3 policy in force. She sold the home on June 5, XX and
began moving her personal property to a new residence. On
June 27 a tornado damaged the personal property at the new
location. Judy's policy is still in force. She did not have a policy
in force for the new location.
Select the single best answer:
A. Coverage up to the Coverage B limits applies at the new
location
B. Coverage up to the Coverage B limits applies at the original -
ANSWER -D. A and B are both correct.
The cooling system for the insured's freezer is damaged due to
a power failure and all food in the unit is spoiled before the
insured becomes aware of the loss. You can pay for the food if
there is a HO-3 policy in force.
True or False - ANSWER -True
, Select the choice below that most accurately describes
treatment of a
deductible under the HO-3
policy.
Select the single best answer:
A. The deductible may be partially absorbed.
B. The deductible may be completely absorbed.
C. The deductible is not applied to Fire Department Service
Charges.
D. The deductible may be absorbed due to covered loss in
excess of a coverage limit or a special limit.
E. All the above are true. - ANSWER -E. All the above are true.
The insured (HO-3 policy in force) is building a barn on
property where he plans to build a new home and move in the
future. The property is not listed on the Declaration Page.
During the construction process he stores construction
materials and supplies for the barn in his detached garage at
the insured premises. These building materials and supplies
are destroyed. They are not covered under Coverage A.
True or False - ANSWER -True
Chuck Bailey has a HO-3 policy with Loss Settlement
Provisions of A1 & B1. After Chuck has made repairs to
Coverage A items and replaced Coverage B items, claim
Test , Practice Questions, Verified Answer Key, and
Study Guide for ( 2026 Edition) || Most Recent Exam
2026-2027 Actual Complete Real Exam Questions And
Correct Answers (Verified Answers) Already Graded
A+ | Newest Exam | Just Released!!
Under an HO-3 policy with Option JF, which if the following
statements is true
concerning a jewelry
loss?
Select the single best
answer:
A. Coverage applies only for the sixteen Section I-Losses
Insured, Coverage BPersonal Property named perils.
B. The limit of liability for theft jewelry and furs is $1,000.
C. Coverage only applies for the items listed on the schedule in
the Declarations.
D. Coverage is for accidental direct physical loss or damage
unless otherwise stated. - ANSWER -D. Coverage is for
accidental direct physical loss or damage unless otherwise
stated.
We insure Steve Smith with a HO-3 policy. Steve works at the
Acme Vacuum Co. On weekends and in the evenings he repairs
vacuum cleaners in a detached building structure on the
,insured premises. The building is damaged by a severe
windstorm. Since Steve owns his business and only works part
time the damage will be paid under the Dwelling Extension
coverage of the policy.
True or False - ANSWER -False
Judy Howard owns a home at 2500 Mocking Bird Lane. She had
a HO-3 policy in force. She sold the home on June 5, XX and
began moving her personal property to a new residence. On
June 27 a tornado damaged the personal property at the new
location. Judy's policy is still in force. She did not have a policy
in force for the new location.
Select the single best answer:
A. Coverage up to the Coverage B limits applies at the new
location
B. Coverage up to the Coverage B limits applies at the original -
ANSWER -D. A and B are both correct.
The cooling system for the insured's freezer is damaged due to
a power failure and all food in the unit is spoiled before the
insured becomes aware of the loss. You can pay for the food if
there is a HO-3 policy in force.
True or False - ANSWER -True
, Select the choice below that most accurately describes
treatment of a
deductible under the HO-3
policy.
Select the single best answer:
A. The deductible may be partially absorbed.
B. The deductible may be completely absorbed.
C. The deductible is not applied to Fire Department Service
Charges.
D. The deductible may be absorbed due to covered loss in
excess of a coverage limit or a special limit.
E. All the above are true. - ANSWER -E. All the above are true.
The insured (HO-3 policy in force) is building a barn on
property where he plans to build a new home and move in the
future. The property is not listed on the Declaration Page.
During the construction process he stores construction
materials and supplies for the barn in his detached garage at
the insured premises. These building materials and supplies
are destroyed. They are not covered under Coverage A.
True or False - ANSWER -True
Chuck Bailey has a HO-3 policy with Loss Settlement
Provisions of A1 & B1. After Chuck has made repairs to
Coverage A items and replaced Coverage B items, claim
