State Farm Property | Questions with 100% Verified
Answers | Latest Update 2026/2027
Question: In property insurance actual cash value is defined as which of
the following
Answer: Replacement cost at the time of the loss, less depreciation
Question: Peril is most easily defined as
Answer: the cause of loss insured against
Question: What is a leading factor in the determination of actual cash
value
Answer: replacement cost
Question: Replacement cost is defined as
Answer: full replacement of property at its current cost, new and without reduction for
depreciation
Question: Property insurance that provides 100k coverage for a building
and 50k coverage for personal property at a single location is
called
Answer: Specific coverage
Question: Which of the following is used in the formula for calculating
the actual cash value of a property
Answer: replacement cost
Question: What is the purpose of the coinsurance clause found in
property insurance policies?
Answer: Encourage the insured to insure the property closer to its full value
Question: An insured has a liability policy that sets the amount at 50k for
all claims that arise from a single incident. which type of limit
of liability does this insured's policy have?
Answer: per occurrence
Question: When the amount of insurance written in a property policy is
not subject to any coinsurance provision and that amount is
paid in the event of a covered loss, the coverage is said to be
written as
Answer: stated amount
, Question: What is stated amount coverage
Answer: In stated amt coverage the value of the insured property is determined at the time
the
policy is written.
in the event of a loss, that amount is paid without regard to any coinsurance provision.
However, if the loss is less than the total, the insurer has salvage rights with the insured
having first right of refusal of the salvage.
Question: What type of liability would a person who owns a swimming
pool have?
Answer: Absolute
Question: What is absolute liability
Answer: Any conduct that is inherently dangerous imposes absolute liability. the claimant does
not
have to prove anything
Question: Insurable interest in the property covered in a policy must be
proven
Answer: at the time of loss
Question: Which of the following is NOT an element of negligence
breach, unbroken chain, libel, duty
Answer: libel
Question: what is libel
Answer: a type of intentional tort
Question: With respect to the business of insurance, a hazard is
Answer: any condition or exposure that increases the possibility of loss
Question: What are the four essential elements of all legal contracts
Answer: offer and acceptance, consideration, competent parties, and legal purpose
Question: In forming an insurance contract, when does acceptance
usually occur?
Answer: when an insurer's underwriter approves coverage
Question: Who is responsible for filling out a notice of claim form
Answer: insured
Question: what is a notice of claim
Answer: a form or statement from an insured to an insurer, informing the insurer that events
leading to a possible claim have occurred
Answers | Latest Update 2026/2027
Question: In property insurance actual cash value is defined as which of
the following
Answer: Replacement cost at the time of the loss, less depreciation
Question: Peril is most easily defined as
Answer: the cause of loss insured against
Question: What is a leading factor in the determination of actual cash
value
Answer: replacement cost
Question: Replacement cost is defined as
Answer: full replacement of property at its current cost, new and without reduction for
depreciation
Question: Property insurance that provides 100k coverage for a building
and 50k coverage for personal property at a single location is
called
Answer: Specific coverage
Question: Which of the following is used in the formula for calculating
the actual cash value of a property
Answer: replacement cost
Question: What is the purpose of the coinsurance clause found in
property insurance policies?
Answer: Encourage the insured to insure the property closer to its full value
Question: An insured has a liability policy that sets the amount at 50k for
all claims that arise from a single incident. which type of limit
of liability does this insured's policy have?
Answer: per occurrence
Question: When the amount of insurance written in a property policy is
not subject to any coinsurance provision and that amount is
paid in the event of a covered loss, the coverage is said to be
written as
Answer: stated amount
, Question: What is stated amount coverage
Answer: In stated amt coverage the value of the insured property is determined at the time
the
policy is written.
in the event of a loss, that amount is paid without regard to any coinsurance provision.
However, if the loss is less than the total, the insurer has salvage rights with the insured
having first right of refusal of the salvage.
Question: What type of liability would a person who owns a swimming
pool have?
Answer: Absolute
Question: What is absolute liability
Answer: Any conduct that is inherently dangerous imposes absolute liability. the claimant does
not
have to prove anything
Question: Insurable interest in the property covered in a policy must be
proven
Answer: at the time of loss
Question: Which of the following is NOT an element of negligence
breach, unbroken chain, libel, duty
Answer: libel
Question: what is libel
Answer: a type of intentional tort
Question: With respect to the business of insurance, a hazard is
Answer: any condition or exposure that increases the possibility of loss
Question: What are the four essential elements of all legal contracts
Answer: offer and acceptance, consideration, competent parties, and legal purpose
Question: In forming an insurance contract, when does acceptance
usually occur?
Answer: when an insurer's underwriter approves coverage
Question: Who is responsible for filling out a notice of claim form
Answer: insured
Question: what is a notice of claim
Answer: a form or statement from an insured to an insurer, informing the insurer that events
leading to a possible claim have occurred
