State Farm Property Newest Version (2026)
Complete Questions and 100% Correct
Answers (A+)
• Tie in sales -✓✓A practice requiring a customer to purchase one product or
service in order to qualify for a different product or service.
• Rebating -✓✓Rebating is offering a prospect or customer a special incentive to
purchase or continue a policy. This practice is illegal in most states and is against
State Farm policy even in states where it is allowed.
• Unapproved vendor -✓✓Any vendor that does not have an agreement in place
with state farm, or services received from an approved vendor that are outside the
scope of the vendors agreement with SF.
• Unauthorized Vendor -✓✓A specific Vendor that State Farm has identified as not
authorized to be used by SF or Sf agents due to the potential risks posed to SF by
engagement with the vendor. Agents should not use an unauthorized vendor. If an
agent uses an unauthorized vendor his could impact the relationship.
• Demonstrations -✓✓shows guaranteed premiums for a term policy. In addition it
will include guaranteed cash values.
• Illustrations -✓✓used as a tool to educate the customer concerning the features
and provisions of policy options.
• Submission of an application for an insurance policy is best described as? -
✓✓offer
• Information used in underwriting a policy for an insured, is made available to in
insured because of which of these? -✓✓Financial Services Modernization Act
• What must be done to renew your Insurance License? -✓✓12 Hours of
Continuing Education within 2 Years
• Which of the following is not a characteristic of a Mutual Insurance Company? -
✓✓A policyholder is a voting member on the Board of Directors
,• Property insurance policies that apply coverage only to perils that are stated in the
policy, are considered to be written on? -✓✓A named peril basis
• A physical hazard describes which of the following? -✓✓The storage of
flammables near a furnace
• When a producer collects a premium on an insurance contract and deposits that in
a trust account for the insurer. This makes the producer a? -✓✓Broker
• In Property and Casualty Insurance, when a form is attached to further define
certain policy provisions or conditions, or adds additional coverage, it is known as?
-✓✓An endorsement
• Alpha Insurance Company does business in all fifty states, however its home
office is located in Rhode Island. To their business in California, Alpha Insurance
Company is? -✓✓Foreign
• Agent Z is trying to sell a client a policy. Afraid of losing his sale he offers to
give the client 10% of his commissions if the client will buy the policy. That agent
would be guilty of which unfair trade practice? -✓✓Rebating
• When does the Texas Property and Casualty Insurance Guarantee Association
pay covered claims? -✓✓When an Admitted Insurer becomes insolvent
• Before issuing a nonresident license, the Department must find that the applicant?
-✓✓Has not committed an act for which a license may be denie
• All of the following are hazards for insurance underwriting, EXCEPT? -
✓✓Incidental
• A person can purchase an insurance policy to cover losses from all the following,
EXCEPT? -✓✓An operation of drug smuggling
• Which risk management option, best describes insurance? -✓✓Transfer risk
• Which of the following acts does not constitute Transacting Insurance? -
✓✓Making phone calls to set up appointments
,• A binder would be which of these? -✓✓Temporary proof of insurance
• The standardized policy structure for insurance policies does not include which of
the following? -✓✓Duties
• The Department of Insurance requires all of these for Licensing, EXCEPT? -
✓✓High School Diploma or GED
• The commissioner of Insurance can do which of these? -✓✓Set continuing
education requirements in Texas
• The Commissioner of insurance is responsible for all of the following, EXCEPT?
-✓✓Make insurance laws when appropriate
• The section of a property policy that specifies the obligations and duties of the
insured and the insurer is the? -✓✓Conditions
• Which of the following is NOT found in a property insurance binder? -
✓✓Amount of premium
• The Texas Property and Casualty Insurance Guaranty Association pays covered
claims against which of the following? -✓✓Insolvent insurers
• A claimant told their insurer they were sure that a certain piece of property was in
the building that burned. Made a? -✓✓Warranty
• M hit F with his personal auto causing damages. F filed on his own policy and his
insurer paid the damages. F's insurer will go after M and M's insurer for the paid
damages. This is called? -✓✓Subrogation
• If an Agent makes incomplete comparisons of policies, that Agent would be
guilty of? -✓✓Unfair Comparisons
• Which License is required for a person who supervises others for an Insurance
Company? -✓✓Managing General Agent
, • ___________ insurance is used to provide coverage when insurance is not
available from an admitted carrier. -✓✓Surplus
• The named insured is found in what section of a property policy? -
✓✓Declarations
• A ___________ covers an employee in a position of private trust and protects an
employer against loss caused by the employee's dishonesty. -✓✓Fidelity bond
• A Builder's Risk policy automatically ends ___________ days after construction
is complete. -✓✓90
• T is the managing lawyer in his firm and wants professional liability coverage for
his firm that would cover which of the following? -✓✓A client sues the lawyer for
purposely losing his case
• Inland Marine Policies are generally written on what basis? -✓✓Open Peril
• Errors and omissions insurance will NOT pay for which of the following claims?
-✓✓Attorney inadvertently breaks a client's leg
• If an insurance producer negligently fails to renew an insured's policy and a claim
occurs, the wrongful action by the producer should be covered by which of the
following? -✓✓It would be covered under the producer's Errors and Omissions
Liability Policy
• In the commercial package policy, the Earthquake and Volcanic Eruption
Endorsement covers an earthquake and all shocks or eruptions that occur within
what period? -✓✓168 hours
• The Broad Causes of Loss Form in the commercial package policy adds which of
these perils? -✓✓Weight of ice, snow, or sleet
• The Extra Expense form pays the necessary expenses incurred by the insured
during which of the following? -✓✓Period of Restoration
• Who is allowed under the Common Policy Conditions of a Commercial Package
Policy to make changes with insurer consent? -✓✓The first named insured
Complete Questions and 100% Correct
Answers (A+)
• Tie in sales -✓✓A practice requiring a customer to purchase one product or
service in order to qualify for a different product or service.
• Rebating -✓✓Rebating is offering a prospect or customer a special incentive to
purchase or continue a policy. This practice is illegal in most states and is against
State Farm policy even in states where it is allowed.
• Unapproved vendor -✓✓Any vendor that does not have an agreement in place
with state farm, or services received from an approved vendor that are outside the
scope of the vendors agreement with SF.
• Unauthorized Vendor -✓✓A specific Vendor that State Farm has identified as not
authorized to be used by SF or Sf agents due to the potential risks posed to SF by
engagement with the vendor. Agents should not use an unauthorized vendor. If an
agent uses an unauthorized vendor his could impact the relationship.
• Demonstrations -✓✓shows guaranteed premiums for a term policy. In addition it
will include guaranteed cash values.
• Illustrations -✓✓used as a tool to educate the customer concerning the features
and provisions of policy options.
• Submission of an application for an insurance policy is best described as? -
✓✓offer
• Information used in underwriting a policy for an insured, is made available to in
insured because of which of these? -✓✓Financial Services Modernization Act
• What must be done to renew your Insurance License? -✓✓12 Hours of
Continuing Education within 2 Years
• Which of the following is not a characteristic of a Mutual Insurance Company? -
✓✓A policyholder is a voting member on the Board of Directors
,• Property insurance policies that apply coverage only to perils that are stated in the
policy, are considered to be written on? -✓✓A named peril basis
• A physical hazard describes which of the following? -✓✓The storage of
flammables near a furnace
• When a producer collects a premium on an insurance contract and deposits that in
a trust account for the insurer. This makes the producer a? -✓✓Broker
• In Property and Casualty Insurance, when a form is attached to further define
certain policy provisions or conditions, or adds additional coverage, it is known as?
-✓✓An endorsement
• Alpha Insurance Company does business in all fifty states, however its home
office is located in Rhode Island. To their business in California, Alpha Insurance
Company is? -✓✓Foreign
• Agent Z is trying to sell a client a policy. Afraid of losing his sale he offers to
give the client 10% of his commissions if the client will buy the policy. That agent
would be guilty of which unfair trade practice? -✓✓Rebating
• When does the Texas Property and Casualty Insurance Guarantee Association
pay covered claims? -✓✓When an Admitted Insurer becomes insolvent
• Before issuing a nonresident license, the Department must find that the applicant?
-✓✓Has not committed an act for which a license may be denie
• All of the following are hazards for insurance underwriting, EXCEPT? -
✓✓Incidental
• A person can purchase an insurance policy to cover losses from all the following,
EXCEPT? -✓✓An operation of drug smuggling
• Which risk management option, best describes insurance? -✓✓Transfer risk
• Which of the following acts does not constitute Transacting Insurance? -
✓✓Making phone calls to set up appointments
,• A binder would be which of these? -✓✓Temporary proof of insurance
• The standardized policy structure for insurance policies does not include which of
the following? -✓✓Duties
• The Department of Insurance requires all of these for Licensing, EXCEPT? -
✓✓High School Diploma or GED
• The commissioner of Insurance can do which of these? -✓✓Set continuing
education requirements in Texas
• The Commissioner of insurance is responsible for all of the following, EXCEPT?
-✓✓Make insurance laws when appropriate
• The section of a property policy that specifies the obligations and duties of the
insured and the insurer is the? -✓✓Conditions
• Which of the following is NOT found in a property insurance binder? -
✓✓Amount of premium
• The Texas Property and Casualty Insurance Guaranty Association pays covered
claims against which of the following? -✓✓Insolvent insurers
• A claimant told their insurer they were sure that a certain piece of property was in
the building that burned. Made a? -✓✓Warranty
• M hit F with his personal auto causing damages. F filed on his own policy and his
insurer paid the damages. F's insurer will go after M and M's insurer for the paid
damages. This is called? -✓✓Subrogation
• If an Agent makes incomplete comparisons of policies, that Agent would be
guilty of? -✓✓Unfair Comparisons
• Which License is required for a person who supervises others for an Insurance
Company? -✓✓Managing General Agent
, • ___________ insurance is used to provide coverage when insurance is not
available from an admitted carrier. -✓✓Surplus
• The named insured is found in what section of a property policy? -
✓✓Declarations
• A ___________ covers an employee in a position of private trust and protects an
employer against loss caused by the employee's dishonesty. -✓✓Fidelity bond
• A Builder's Risk policy automatically ends ___________ days after construction
is complete. -✓✓90
• T is the managing lawyer in his firm and wants professional liability coverage for
his firm that would cover which of the following? -✓✓A client sues the lawyer for
purposely losing his case
• Inland Marine Policies are generally written on what basis? -✓✓Open Peril
• Errors and omissions insurance will NOT pay for which of the following claims?
-✓✓Attorney inadvertently breaks a client's leg
• If an insurance producer negligently fails to renew an insured's policy and a claim
occurs, the wrongful action by the producer should be covered by which of the
following? -✓✓It would be covered under the producer's Errors and Omissions
Liability Policy
• In the commercial package policy, the Earthquake and Volcanic Eruption
Endorsement covers an earthquake and all shocks or eruptions that occur within
what period? -✓✓168 hours
• The Broad Causes of Loss Form in the commercial package policy adds which of
these perils? -✓✓Weight of ice, snow, or sleet
• The Extra Expense form pays the necessary expenses incurred by the insured
during which of the following? -✓✓Period of Restoration
• Who is allowed under the Common Policy Conditions of a Commercial Package
Policy to make changes with insurer consent? -✓✓The first named insured
