State Farm Fire Independent Adjuster Certification Study Questions With Correct And Updated Answers 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: A. 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. C. ALE payments can run beyond the expiration of the policy. D. ALE payments are limited to incurred costs for the shorte E. ALE payments will not exceed 20% of Coverage A limits.
CORRECT ANSWER : C. ALE payments can run beyond
the expiration of the policy.
Question : 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 E. 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: 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.
Question : 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 B. Fire Department Service Charges
- Rekey locks after keys are stolen D. Debris Removal
Charges
CORRECT ANSWER : B. Fire Department Service Charges
Question : 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
Question : 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
Question : We have an expert-written solution to this
problem! The definition of an insured includes all of the
following except: Select the single best answer: A. Person(s) listed on the Declaration Page 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
CORRECT ANSWER : E. Spouse
Question : 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 specific plans to use the lumber.The lumber is covered under Coverage A. True or False
CORRECT ANSW ER: False
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 B. Free
standing gas range C. Built-in microwave oven D. Automatic garage door opener E. Water softener system