STATE FARM FIRE INDEPENDENT

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STATE FARM FIRE INDEPENDENT

POLICY EXAM QUESTIONS &

ANSWERS ( A+ GRADED 100%

VERIFIED)

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.

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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

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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:

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• 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