Exam update with verified and complete

State Farm Fire Independent Policy Exam update with verified and complete solution Question : Select the false statement listed below: In the HO-

3 policy, the ALE payments will be made only for:

Select the single best answer:

• The shortest time necessary to repair or replace the

damaged property, but not to exceed 24 months.

• If the insured does not rebuild, the time necessary for the

insured to relocate in permanent living quarters, but not to exceed 24 months.

• ALE payments can run beyond the expiration of the policy.
• ALE payments are limited to incurred costs for the shorte
• ALE payments will not exceed 20% of Coverage A limits.

Correct answer: A. The shortest time necessary to repair or

replace the damaged property, but not to exceed 24 months.

Question : The insured has a HO-3 policy in force. All of the

losses are covered except:

Select the single best answer:

• Shed rented to a tenant, to store furniture
• Detached garage used to operate a lawnmower repair shop
• Garage rented to the neighbor to store an antique

automobile

• Basement used as an office for insured's bookkeeping

business

• Garage (attached) rented to tenant to store fishing boat

Correct answer: B. Detached garage used to operate a

lawnmower repair shop

Question : 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:

• Coverage for personal property applies for perils listed

under Section I - Losses Insured, Coverage B - Personal Property and Section I - Additional Coverages.

• Coverage B applies only for items Jennifer owns, while

anywhere in the world.

• 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.

Question : Under an HO-3 policy, deductibles apply to which

of the following type(s) of losses.

Select the single best answer:

• Credit Card, Bank Fund Transfer Card, Forgery and

Counterfeit Money

• Fire Department Service Charges
• Rekey locks after keys are stolen
• Debris Removal Charges

Correct answer: B. Fire Department Service Charges

Question : The definition of an insured includes all of the

following except:

Select the single best answer:

• Person(s) listed on the Declaration Page
• Spouse, if a resident of the household
• Relatives, if residents of the household

• Any person under the age of 21 in the care of the named

insured, resident spouse, or a resident relative

• Spouse

Correct answer: Spouse

Question : Under an HO-3 policy, which of the following

would be a Coverage B item?

Select the single best answer:

• Satellite dish bolted to the eave of the house
• Free standing gas range
• Built-in microwave oven
• Automatic garage door opener
• Water softener system

Correct answer: Free Standing gas range

Question : Under an HO-3 policy, which of the following

would not be a Coverage A item?

Select the single best answer:

• Automatic lawn sprinkler system