2
State Farm Insurance License Exam
STATE FARM INSURANCE LICENSE EXAM
WITH 100% ACCURATE ANSWERS| A+
GRADED.
Abandonment Condition -CORRECT ANS 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.
Accident -CORRECT ANS A loss that occurs at a specific time and place
Actual Cash Value (ACV) -CORRECT ANS Today's replacement cost minus
depreciation. Depreciation from wear and tear, or obsolescence.
admitted insurer; authorized insurer -CORRECT ANS Company that meets a state
insurance department's standards and is allowed to do business in that state.
Adverse Selection -CORRECT ANS the tendency of insureds with a greater than
average chance of loss to purchase insurance
Annual Transit Policy -CORRECT ANS Nonfiled commercial inland marine
transportation form that insures a property owner's incoming or outgoing shipments
of goods during a year
Appraisal Clause -CORRECT ANS A survey of property to determine the insurable
value of the property or the value of the loss sustained.
Appraisal Condition -CORRECT ANS Policy condition that outlines a procedure for
when the insured and insurer disagree on the amount of a loss
Assignment -CORRECT ANS The legal transfer of one's interest in an insurance
policy to another person.
A+ GRADED 1
, 2
State Farm Insurance License Exam
Aviation Hull Insurance -CORRECT ANS Provides coverage for physical damage to
an aircraft.
Bailee's Customers Policy -CORRECT ANS 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.
Appurtenant Structures -CORRECT ANS 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.
Assignment Condition -CORRECT ANS Condition in insurance policies that
specifies that the policy cannot be transferred to another unless the company
consents to the transfer in writing.
Bailee -CORRECT ANS A person or organization that has temporary possession of
someone else's personal property.
Basic Perils in Homeowners Policy -CORRECT ANS There are 14 perils. Fire,
lightening, riot, explosion, vehicles, volcanic eruption, civil commotion, smoke, hail,
aircraft, windstorm, vandalism, malicious mischief, theft.
Basic Property Policy Structure (DICEE) -CORRECT ANS D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
Blanket Insurance -CORRECT ANS 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
A+ GRADED 2
State Farm Insurance License Exam
STATE FARM INSURANCE LICENSE EXAM
WITH 100% ACCURATE ANSWERS| A+
GRADED.
Abandonment Condition -CORRECT ANS 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.
Accident -CORRECT ANS A loss that occurs at a specific time and place
Actual Cash Value (ACV) -CORRECT ANS Today's replacement cost minus
depreciation. Depreciation from wear and tear, or obsolescence.
admitted insurer; authorized insurer -CORRECT ANS Company that meets a state
insurance department's standards and is allowed to do business in that state.
Adverse Selection -CORRECT ANS the tendency of insureds with a greater than
average chance of loss to purchase insurance
Annual Transit Policy -CORRECT ANS Nonfiled commercial inland marine
transportation form that insures a property owner's incoming or outgoing shipments
of goods during a year
Appraisal Clause -CORRECT ANS A survey of property to determine the insurable
value of the property or the value of the loss sustained.
Appraisal Condition -CORRECT ANS Policy condition that outlines a procedure for
when the insured and insurer disagree on the amount of a loss
Assignment -CORRECT ANS The legal transfer of one's interest in an insurance
policy to another person.
A+ GRADED 1
, 2
State Farm Insurance License Exam
Aviation Hull Insurance -CORRECT ANS Provides coverage for physical damage to
an aircraft.
Bailee's Customers Policy -CORRECT ANS 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.
Appurtenant Structures -CORRECT ANS 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.
Assignment Condition -CORRECT ANS Condition in insurance policies that
specifies that the policy cannot be transferred to another unless the company
consents to the transfer in writing.
Bailee -CORRECT ANS A person or organization that has temporary possession of
someone else's personal property.
Basic Perils in Homeowners Policy -CORRECT ANS There are 14 perils. Fire,
lightening, riot, explosion, vehicles, volcanic eruption, civil commotion, smoke, hail,
aircraft, windstorm, vandalism, malicious mischief, theft.
Basic Property Policy Structure (DICEE) -CORRECT ANS D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
Blanket Insurance -CORRECT ANS 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
A+ GRADED 2
