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State Farm Fire Independent Policy Exam Verified 2024
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State Farm Fire Independent Policy Exam Verified 2024
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State Farm Fire Independent Policy ExamVerified 2024
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
Water stains on the drywall $ 220
Water stains on the area rug $125
Antique vase (broken by force of wind) $375
How much should you pay on this loss? All repairs have been made.
Select the single best answer:
A. $ 0
B. $1,920
C. $2,420
D. $2,170
E. $2,045 - ANSWER-2170
An HO-3 policy is in force with Coverage A limits of $75,000, Coverage B limits of
$56,250 and a deductible of $500.
During a severe thunderstorm, a window is broken by hail and wind blows rain water
through the window. Rainwater damages the hardwood floor, wall paper, vertical blinds,
and an area rug. The insured presents the following claim:
Sand and finish floor $650
Remove and replace wall paper $320
Remove and replace vertical blinds $175
Replace area rug $35
All repairs are complete. How much do you owe the insured?
Select the single best answer:
A. $325
B. $645
C. $470
D. $680
E. $ 0 - ANSWER-680
An HO-3 policy is in force with coverage A limits of $75,000. The policy has a $1,000
deductible. The house is totally destroyed by a tornado and the cost to replace the
house is $75,550 plus debris removal of $4,225 for a total claim of $79,775. All repairs
, have been completed. What is the amount of your final settlement? Consider the
deductible in your calculations.
Select the single best answer:
A. $79,775
B. $78,750
C. $78,775
D. $77,750
E. $74,000 - ANSWER-78750
An HO-3 policy is in force. A severe windstorm blows down a large oak tree in the
insured's front yard. A portion of the tree falls upon and damages the roof of the insured
dwelling. Which of the following expenses would not be covered?
Select the single best answer:
A. $150.00 to remove the limb from the roof.
B. $500.00 to replace the tree.
C. $400.00 cut the tree up and haul it to the municipal landfill.
D. $500.00 repair roof.
E. All the above items would be covered. - ANSWER-B. $500.00 to replace the tree.
Assume an HO-3 is in force. The insured's home is damaged by a severe windstorm
and the family is forced to move into a motel for 2 weeks. The insured provided the
following receipts. The water, electricity and telephone remained in service following the
loss.
Amount Paid Amount Normally Spent
Mortgage Payment $985 $985
Hotel Bills $1,075 $0
Water $25 $35
Electricity $125 $95
Telephone $10 $38
Cable TV $0 $29
Meals in Restaurants $505 $150
Food prepared at home $0 $210
Automobile $35 $20
Laundry $60 $10
Dry cleaning $15 $15
How much do you owe for ALE. Do not consider a deductible.
Select the single best answer:
A. $ 253
B. $ 320
C. $1,520
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