STATE FARM FIRE INDEPENDENT POLICY

STATE FARM FIRE INDEPENDENT POLICY

EXAM 2024 WITH QUESTIONS & CORRECT

ANSWERS GRADED A+

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 for theft loss to jewelry and furs is $1000 or 10% of the

Coverage B limit, whichever is greater.

• The limit of liability for tornado losses to firearms is $2,500. - ANSWER-A.

Coverage for personal property applies for perils listed under Section I - Losses Insured, Coverage B - Personal Property and Section I - Additional Coverages.

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 - ANSWER-B. Fire Department Service Charges 1 / 3

In the HO-3 policy, Coverage C consists of three coverages:

Additional Living Expense Fair Rental Value Property Removed

True or False - ANSWER-False its Additional Living expense, Fair rental value and prohibited use

The steps in applying the deductible on a HO-3 home owners 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 - ANSWER-True

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 - ANSWER-False

Under an HO-3 policy, which of the following would be a Coverage B item?

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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 - ANSWER-Free Standing gas range

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
• Wall to wall carpet attached to the dwelling
• A new (in the box), built-in microwave oven the insured intends to install in his

fishing cabin.

• A shed, on a foundation, rented to a neighbor to store the neighbor's boat
• Materials and supplies to build bookshelves in the basement of the residence

premises and stored in the garage - ANSWER-E. Materials and supplies to build bookshelves in the basement of the residence premises and stored in the garage

An HO-3 homeowners policy with a $250 deductible is in force and the policy limits (Coverage A and Coverage B) are adequate to cover this damage. During a severe windstorm, rain blows through open windows and causes the following

damage:

Hardwood floor in the dining room $1,700

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