State farm auto external claim Resource Certification
Exam Questions And Correct Answers With Rationales.
State Farm Auto External Claim Resource (ECR) Exam – Questions 1–30
Question 1
Which of the following is the primary role of an External Claim Resource (ECR)?
A. Assist with complex claims, provide guidance, and ensure accurate settlement
B. Repair vehicles directly
C. Set insurance premiums
D. Approve policy applications
Correct Answer: A
Rationale:
ECRs support field claims adjusters, ensuring claims are processed efficiently, accurately, and in
compliance with policy and company standards.
Question 2
Which of the following is the first step when handling an auto claim?
A. Verify coverage, gather policy details, and document the incident
B. Repair the vehicle immediately
C. Determine total loss before inspection
D. Contact the finance department
Correct Answer: A
Rationale:
Coverage verification and documentation ensure that the claim is valid and all relevant policy limits,
deductibles, and exclusions are understood.
Question 3
Which of the following is true regarding liability claims?
,A. Determine fault, assess damages, and apply policy limits
B. Only repair the vehicle regardless of fault
C. Liability claims do not require investigation
D. Ignore medical damages
Correct Answer: A
Rationale:
Liability claims require fault determination and evaluation of damages to ensure proper settlement.
Question 4
Which of the following is true about supplemental claims?
A. Submitted when additional damage is discovered after the initial inspection
B. Only applies to cosmetic damage
C. Optional for all policies
D. No documentation is required
Correct Answer: A
Rationale:
Supplemental claims ensure that all additional necessary repairs are captured for accurate
payment.
Question 5
Which of the following best describes total loss evaluation?
A. When repair costs approach or exceed the vehicle’s actual cash value (ACV)
B. Only for vehicles older than 10 years
C. Depends on cosmetic damage only
D. Ignored if airbags are intact
Correct Answer: A
Rationale:
Total loss is determined by comparing repair costs to the ACV, not just age or cosmetic condition.
Question 6
Which of the following is true about coverage verification?
A. Confirm limits, deductibles, and policy exclusions before processing claims
B. Optional step for minor repairs
C. Deductibles do not affect claim payouts
D. Only applies to property claims
Correct Answer: A
, Rationale:
Coverage verification ensures claims are handled accurately within policy terms.
Question 7
Which of the following is true about emergency mitigation?
A. Immediate measures such as towing or stabilization to prevent further damage
B. Cosmetic repairs only
C. Optional for all claims
D. Ignored if vehicle is drivable
Correct Answer: A
Rationale:
Emergency mitigation reduces additional damage, preserves value, and lowers claim costs.
Question 8
Which of the following is true regarding ACV (Actual Cash Value)?
A. Replacement cost minus depreciation
B. Full replacement cost without adjustments
C. Only market value of similar vehicles
D. Ignored for liability claims
Correct Answer: A
Rationale:
ACV adjusts for wear and tear, ensuring fair settlement for older vehicles.
Question 9
Which of the following best describes replacement cost coverage?
A. Pays full cost to repair or replace damaged parts with similar quality
B. Always subtracts depreciation
C. Covers only labor
D. Only cosmetic repairs
Correct Answer: A
Rationale:
Replacement cost ensures the vehicle is fully restored to pre-loss condition.
Question 10
Which of the following is true about hidden damage in auto claims?
Exam Questions And Correct Answers With Rationales.
State Farm Auto External Claim Resource (ECR) Exam – Questions 1–30
Question 1
Which of the following is the primary role of an External Claim Resource (ECR)?
A. Assist with complex claims, provide guidance, and ensure accurate settlement
B. Repair vehicles directly
C. Set insurance premiums
D. Approve policy applications
Correct Answer: A
Rationale:
ECRs support field claims adjusters, ensuring claims are processed efficiently, accurately, and in
compliance with policy and company standards.
Question 2
Which of the following is the first step when handling an auto claim?
A. Verify coverage, gather policy details, and document the incident
B. Repair the vehicle immediately
C. Determine total loss before inspection
D. Contact the finance department
Correct Answer: A
Rationale:
Coverage verification and documentation ensure that the claim is valid and all relevant policy limits,
deductibles, and exclusions are understood.
Question 3
Which of the following is true regarding liability claims?
,A. Determine fault, assess damages, and apply policy limits
B. Only repair the vehicle regardless of fault
C. Liability claims do not require investigation
D. Ignore medical damages
Correct Answer: A
Rationale:
Liability claims require fault determination and evaluation of damages to ensure proper settlement.
Question 4
Which of the following is true about supplemental claims?
A. Submitted when additional damage is discovered after the initial inspection
B. Only applies to cosmetic damage
C. Optional for all policies
D. No documentation is required
Correct Answer: A
Rationale:
Supplemental claims ensure that all additional necessary repairs are captured for accurate
payment.
Question 5
Which of the following best describes total loss evaluation?
A. When repair costs approach or exceed the vehicle’s actual cash value (ACV)
B. Only for vehicles older than 10 years
C. Depends on cosmetic damage only
D. Ignored if airbags are intact
Correct Answer: A
Rationale:
Total loss is determined by comparing repair costs to the ACV, not just age or cosmetic condition.
Question 6
Which of the following is true about coverage verification?
A. Confirm limits, deductibles, and policy exclusions before processing claims
B. Optional step for minor repairs
C. Deductibles do not affect claim payouts
D. Only applies to property claims
Correct Answer: A
, Rationale:
Coverage verification ensures claims are handled accurately within policy terms.
Question 7
Which of the following is true about emergency mitigation?
A. Immediate measures such as towing or stabilization to prevent further damage
B. Cosmetic repairs only
C. Optional for all claims
D. Ignored if vehicle is drivable
Correct Answer: A
Rationale:
Emergency mitigation reduces additional damage, preserves value, and lowers claim costs.
Question 8
Which of the following is true regarding ACV (Actual Cash Value)?
A. Replacement cost minus depreciation
B. Full replacement cost without adjustments
C. Only market value of similar vehicles
D. Ignored for liability claims
Correct Answer: A
Rationale:
ACV adjusts for wear and tear, ensuring fair settlement for older vehicles.
Question 9
Which of the following best describes replacement cost coverage?
A. Pays full cost to repair or replace damaged parts with similar quality
B. Always subtracts depreciation
C. Covers only labor
D. Only cosmetic repairs
Correct Answer: A
Rationale:
Replacement cost ensures the vehicle is fully restored to pre-loss condition.
Question 10
Which of the following is true about hidden damage in auto claims?
