PROPERTY AND CASUALTY STATE
FARM EXAM QUESTIONS AND
ANSWERS. VERIFIED 2026.
Warranties (GI) - ANS Statements made in an application for insurance or material
stipulations in the policy that are guaranteed as true in all respects.
Waiver (GI) - ANS The voluntary abandonment of a known or legal right or advantage.
Agent (IL) - ANS An insurance licensed producer appointed by an insurer to represent that
company to present policies on its behalf.
Agent Residence (IL) - ANS Resident Agent - producer who resides and is licensed in this
state.
Non Resident Agent - producer who resides and is licensed in any other state.
Assigned Risk Plan (IL) - ANS A state required plan where all insurers must participate,
providing auto insurance for those persons not able to obtain insurance through normal
channels.
Burglary (IL) - ANS The taking of property from inside the premises by a person unlawfully
entering or leaving the premises as evidenced by visible signs of forcible entry or exit.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Construction (frame) (PI) - ANS A structure with walls and interior structural components
made of wood or other combustible materials.
Personal Auto Policy
Raising Factors
(Most Common) (CI) - ANS Liability - age, sex, marital status, driving record, vehicle use,
annual mileage, territory of garage, and liability limits selected.
Physical Damage - all of the above, plus, year, make and model of the insured vehicle,
deductible selected.
Personal Auto Policy
Parts A-F
(CI) - ANS A - Liability Coverage
B - Medical Payments Coverage
C - Uninsured and underinsured motorists coverage
D - Coverage for damage to your auto
E - Duties after an accident or loss
F - General Provisions
Workers Compensation
Benefits
(CI) - ANS - Medical benefits
- Disability income benefits
- Rehabilitation benefits
- Death and survivor benefits (funeral expenses)
Workers Compensation
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Types of Laws
(CI) - ANS Compulsory - Employers required to provide Workers' Compensation benefits to
employees or demonstrate the ability to provide.
Elective - Employers have choice to accept or reject Workers' Compensation laws.
Monopolistic - Workers Compensation insurance only available through state fund.
Competitive - Workers' Compensation insurance available through private insurers.
Personal Articles Floater (PI) - ANS Used to insure 'individual' personal property on an
itemized or scheduled basis.
Coverage is worldwide.
Personal Articles Floater
(Examples)
(PI) - ANS - Personal jewelry floater
- Personal effects floater (items worn by travelers)
- Fine arts floater (paintings, manuscripts, antiques)
- Camera floater
- Musical instrument Floater
Personal Watercraft Insurance
(PI) - ANS Boatowners Policy- similar to HO, covers boats that can be towed, property &
liability.
Outboard Motorboat Policy - inland marine form, covers outboard motors and boats, direct
property loss only.
Yacht Policy - ocean marine form, larger vessels, property & liability.
Truckers Coverage Form
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, (CI) - ANS For those firms or persons that are in the business of transporting goods or
commodities for another
Section I- Covered Autos
Section II - Liability Cov
Section III- Trailer Interchange Coverage - covers trailer that ind does not own but has in his
possession along with a written Trailer Interchange Agreement
Section IV - Physical Damage Coverage
Section V- Truckers Conditions
Section VI- Definitions
Ocean Marine Insurance
(PI) - ANS Protect against losses to property while being chipped by ocean, or inland
waterways.
Unregulated in regard to forms and rates
Ocean Marine Policy
(PI) - ANS - Hull Insurance - ship itself
- Cargo Insurance - goods being shipped
- Freight Insurance - freight charges and import duties
-General Average - loss is apportioned or shared among all
- Particular Average - loss affects only a particular interest
- Collision/Running down clause - collision with another vessel
- Inchmaree Clause - burst boiler, broken propeller, crew navigation errors
Ocean Marine Policy
(PI) - ANS Written "full value" ad will become void if certain implied warranties are violated:
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
FARM EXAM QUESTIONS AND
ANSWERS. VERIFIED 2026.
Warranties (GI) - ANS Statements made in an application for insurance or material
stipulations in the policy that are guaranteed as true in all respects.
Waiver (GI) - ANS The voluntary abandonment of a known or legal right or advantage.
Agent (IL) - ANS An insurance licensed producer appointed by an insurer to represent that
company to present policies on its behalf.
Agent Residence (IL) - ANS Resident Agent - producer who resides and is licensed in this
state.
Non Resident Agent - producer who resides and is licensed in any other state.
Assigned Risk Plan (IL) - ANS A state required plan where all insurers must participate,
providing auto insurance for those persons not able to obtain insurance through normal
channels.
Burglary (IL) - ANS The taking of property from inside the premises by a person unlawfully
entering or leaving the premises as evidenced by visible signs of forcible entry or exit.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Construction (frame) (PI) - ANS A structure with walls and interior structural components
made of wood or other combustible materials.
Personal Auto Policy
Raising Factors
(Most Common) (CI) - ANS Liability - age, sex, marital status, driving record, vehicle use,
annual mileage, territory of garage, and liability limits selected.
Physical Damage - all of the above, plus, year, make and model of the insured vehicle,
deductible selected.
Personal Auto Policy
Parts A-F
(CI) - ANS A - Liability Coverage
B - Medical Payments Coverage
C - Uninsured and underinsured motorists coverage
D - Coverage for damage to your auto
E - Duties after an accident or loss
F - General Provisions
Workers Compensation
Benefits
(CI) - ANS - Medical benefits
- Disability income benefits
- Rehabilitation benefits
- Death and survivor benefits (funeral expenses)
Workers Compensation
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Types of Laws
(CI) - ANS Compulsory - Employers required to provide Workers' Compensation benefits to
employees or demonstrate the ability to provide.
Elective - Employers have choice to accept or reject Workers' Compensation laws.
Monopolistic - Workers Compensation insurance only available through state fund.
Competitive - Workers' Compensation insurance available through private insurers.
Personal Articles Floater (PI) - ANS Used to insure 'individual' personal property on an
itemized or scheduled basis.
Coverage is worldwide.
Personal Articles Floater
(Examples)
(PI) - ANS - Personal jewelry floater
- Personal effects floater (items worn by travelers)
- Fine arts floater (paintings, manuscripts, antiques)
- Camera floater
- Musical instrument Floater
Personal Watercraft Insurance
(PI) - ANS Boatowners Policy- similar to HO, covers boats that can be towed, property &
liability.
Outboard Motorboat Policy - inland marine form, covers outboard motors and boats, direct
property loss only.
Yacht Policy - ocean marine form, larger vessels, property & liability.
Truckers Coverage Form
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, (CI) - ANS For those firms or persons that are in the business of transporting goods or
commodities for another
Section I- Covered Autos
Section II - Liability Cov
Section III- Trailer Interchange Coverage - covers trailer that ind does not own but has in his
possession along with a written Trailer Interchange Agreement
Section IV - Physical Damage Coverage
Section V- Truckers Conditions
Section VI- Definitions
Ocean Marine Insurance
(PI) - ANS Protect against losses to property while being chipped by ocean, or inland
waterways.
Unregulated in regard to forms and rates
Ocean Marine Policy
(PI) - ANS - Hull Insurance - ship itself
- Cargo Insurance - goods being shipped
- Freight Insurance - freight charges and import duties
-General Average - loss is apportioned or shared among all
- Particular Average - loss affects only a particular interest
- Collision/Running down clause - collision with another vessel
- Inchmaree Clause - burst boiler, broken propeller, crew navigation errors
Ocean Marine Policy
(PI) - ANS Written "full value" ad will become void if certain implied warranties are violated:
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
