State Farm Insurance License Exam
With Correct Answers(Graded A+)
A condition often contained in property insurance policies that states that the insured cannot abandon
damaged property to the insurer and demand to be reimbursed for its full value. - correct answers
Abandonment Condition
A loss that occurs at a specific time and place - correct answers Accident
Today's replacement cost minus depreciation. Depreciation from wear and tear, or obsolescence. -
correct answers Actual Cash Value (ACV)
Company that meets a state insurance department's standards and is allowed to do business in that
state. - correct answers admitted insurer; authorized insurer
the tendency of insureds with a greater than average chance of loss to purchase insurance - correct
answers Adverse Selection
Nonfiled commercial inland marine transportation form that insures a property owner's incoming or
outgoing shipments of goods during a year - correct answers Annual Transit Policy
A survey of property to determine the insurable value of the property or the value of the loss sustained.
- correct answers Appraisal Clause
, Policy condition that outlines a procedure for when the insured and insurer disagree on the amount of a
loss - correct answers Appraisal Condition
The legal transfer of one's interest in an insurance policy to another person. - correct answers
Assignment
Provides coverage for physical damage to an aircraft. - correct answers Aviation Hull Insurance
Nonfiled commercial inland marine form obtained by a bailee to cover loss or damage to customers'
property in the bailee's custody without regard to liability. - correct answers Bailee's Customers Policy
Buildings of lesser value that are on the same premises as the main building insured under a property
policy; they are usually covered by the policy. - correct answers Appurtenant Structures
Condition in insurance policies that specifies that the policy cannot be transferred to another unless the
company consents to the transfer in writing. - correct answers Assignment Condition
A person or organization that has temporary possession of someone else's personal property. - correct
answers Bailee
There are 14 perils. Fire, lightening, riot, explosion, vehicles, volcanic eruption, civil commotion, smoke,
hail, aircraft, windstorm, vandalism, malicious mischief, theft. - correct answers Basic Perils in
Homeowners Policy
D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements - correct answers Basic Property Policy Structure (DICEE)
Type of insurance policy that covers more than one item of property at a single location or one or more
items of property at multiple locations - correct answers Blanket Insurance
With Correct Answers(Graded A+)
A condition often contained in property insurance policies that states that the insured cannot abandon
damaged property to the insurer and demand to be reimbursed for its full value. - correct answers
Abandonment Condition
A loss that occurs at a specific time and place - correct answers Accident
Today's replacement cost minus depreciation. Depreciation from wear and tear, or obsolescence. -
correct answers Actual Cash Value (ACV)
Company that meets a state insurance department's standards and is allowed to do business in that
state. - correct answers admitted insurer; authorized insurer
the tendency of insureds with a greater than average chance of loss to purchase insurance - correct
answers Adverse Selection
Nonfiled commercial inland marine transportation form that insures a property owner's incoming or
outgoing shipments of goods during a year - correct answers Annual Transit Policy
A survey of property to determine the insurable value of the property or the value of the loss sustained.
- correct answers Appraisal Clause
, Policy condition that outlines a procedure for when the insured and insurer disagree on the amount of a
loss - correct answers Appraisal Condition
The legal transfer of one's interest in an insurance policy to another person. - correct answers
Assignment
Provides coverage for physical damage to an aircraft. - correct answers Aviation Hull Insurance
Nonfiled commercial inland marine form obtained by a bailee to cover loss or damage to customers'
property in the bailee's custody without regard to liability. - correct answers Bailee's Customers Policy
Buildings of lesser value that are on the same premises as the main building insured under a property
policy; they are usually covered by the policy. - correct answers Appurtenant Structures
Condition in insurance policies that specifies that the policy cannot be transferred to another unless the
company consents to the transfer in writing. - correct answers Assignment Condition
A person or organization that has temporary possession of someone else's personal property. - correct
answers Bailee
There are 14 perils. Fire, lightening, riot, explosion, vehicles, volcanic eruption, civil commotion, smoke,
hail, aircraft, windstorm, vandalism, malicious mischief, theft. - correct answers Basic Perils in
Homeowners Policy
D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements - correct answers Basic Property Policy Structure (DICEE)
Type of insurance policy that covers more than one item of property at a single location or one or more
items of property at multiple locations - correct answers Blanket Insurance
