State Farm Fire Independent Policy Exam Latest 2022/2023 Graded A+

Chuck Bailey has a HO-3 policy with Loss Settlement Provisions of A1 & B1. After Chuck has made repairs to Coverage A items and replaced Coverage B items, claim payment (subject to any limit of liability) will be based upon which of the following amounts? Select the single best answer: A. Salvage value B. Replacement cost C. Market value D. \Original purchase price E. Actual cash value {Ans: Replacement cost}In an HO-3 policy, Option AI (Additional Insured) provides coverage for: Select the single best answer: A. Coverage C B. Coverage B C. Coverage A D. Coverage A and Coverage B E. Coverage A and Coverage C {Ans: C. Coverage A}Bill Smith constructed an awning beside his detached garage, under which he stores his small fishing boat. He screwed the framing of the awning to the fascia of the garage and supported the other side with posts set in concrete. Since the awning has no foundation, it is not considered a Coverage A item. True or False {Ans: False}We insure Steve Smith with a HO-3 policy. Steve works at the Acme Vacuum Co. On weekends and in the evenings he repairs vacuum cleaners in a detached building structure