State Farm Property exams with correct
questions and answers
, In property insurance actual cash value is defined as which of the following -
correct ans:Replacement cost at the time of the loss, less depreciation
Peril is most easily defined as - correct ans:the cause of loss insured against
What is a leading factor in the determination of actual cash value - correct
ans:replacement cost
Replacement cost is defined as - correct ans:full replacement of property at
its current cost, new and without reduction for depreciation
Property insurance that provides 100k coverage for a building and 50k
coverage for personal property at a single location is called - correct
ans:Specific coverage
Which of the following is used in the formula for calculating the actual cash
value of a property - correct ans:replacement cost
What is the purpose of the coinsurance clause found in property insurance
policies? - correct ans:Encourage the insured to insure the property closer to
its full value
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? - correct ans:per occurrence
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 - correct ans:stated amount
What is stated amount coverage - correct ans:In stated amt coverage the
value of the insured property is determined at the time the policy is written.
questions and answers
, In property insurance actual cash value is defined as which of the following -
correct ans:Replacement cost at the time of the loss, less depreciation
Peril is most easily defined as - correct ans:the cause of loss insured against
What is a leading factor in the determination of actual cash value - correct
ans:replacement cost
Replacement cost is defined as - correct ans:full replacement of property at
its current cost, new and without reduction for depreciation
Property insurance that provides 100k coverage for a building and 50k
coverage for personal property at a single location is called - correct
ans:Specific coverage
Which of the following is used in the formula for calculating the actual cash
value of a property - correct ans:replacement cost
What is the purpose of the coinsurance clause found in property insurance
policies? - correct ans:Encourage the insured to insure the property closer to
its full value
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? - correct ans:per occurrence
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 - correct ans:stated amount
What is stated amount coverage - correct ans:In stated amt coverage the
value of the insured property is determined at the time the policy is written.
