STATE FARM ESTIMATICS | STATE FARM INSURANCE | ACADEMIC YEAR 2026/2027 |
COMPREHENSIVE CERTIFICATION EXAMINATION PACKAGE — 4 FILES
COMBINED | 50 VERIFIED QUESTIONS AND CORRECT ANSWER RATIONALES
1. Inland Marine Insurance - ANSWERS-Property insurance coverage designed to insure
exposures that cannot be conveniently or reasonably confined to a fixed location or
insured under a standard form. Includes coverage for property in transit, overland,
moveable property, instruments of transportation and communication (bridges,
roads, and television/radio towers), legal liability for bailees coverage, and
computerized equipment.
2. Insuring Agreement - ANSWERS-Section in the policy that describes what property is
covered and the perils the policy insures against.
3. Jettison - ANSWERS-A voluntary action to rid a ship of cargo to prevent further damage
or peril.
4. Liberalization Clause - ANSWERS-Condition found in property insurance contracts
that provides that if the insurer broadens coverage under a policy form or
endorsement without requiring an additional premium, then all existing similar
policies or endorsements will be construed to contain the broadened coverage
5. MCS-90 - ANSWERS-Endorsement attached to the truckers coverage form to provide
public liability coverage.
6. Intervening Cause - ANSWERS-An independent action that breaks the chain of
causation and sets in motion a new chain of events; when this occurs, it became the
new proximate cause.
7. Legal Liability - ANSWERS-Commercial property coverage form that covers the
insured for liability arising out of negligent damage to the property of others while it is
in the insured's care, custody, or control.
8. Market Value - ANSWERS-The amount property could be sold for at the time of of loss.
May be used to determine the amount of reimbursement for a loss.
9. Messenger - ANSWERS-In a crime policy, defined as an insured , partner, or employee
who has care and custody of insured property outside the premises.
10. Morale Hazard - ANSWERS-Hazard created by an individual's tendency to contribute
to a loss through his own irresponsible actions or carelessness.
11. Motor Truck Cargo Policy - ANSWERS-Commercial inland marine policy that protects
a carrier against its liability for damage to domestic shipments in its custody.
12. Named (specified) Peril Policy - ANSWERS-Insurance policy that insures only against
perils specifically listed in the policy.
, 13. National Flood Insurance Program (NFIP) - ANSWERS-Program run by the federal
government that makes flood insurance available to eligible communities at
subsidized rate; includes coverage for both building and personal property with
separate deductible for each.
14. Motor Carrier Coverage Form - ANSWERS-commercial auto coverage form that is an
alternate to the truckers coverage form; it can be used to cover anyone who transports
property by auto in a commercial enterprise
15. Mysterious Disappearance - ANSWERS-Loss of property due to unknown cause; theft
must be ruled out.
16. Named Insured - ANSWERS-Person, business, or other entity named in the
declarations to whom the policy is issued.
17. Nonconcurrency - ANSWERS-Situation that exists when the same property is covered
by more than one policy, but the policies are not identical as to the extent of coverage
provided.
18. Ocean Marine - ANSWERS-Insurance designed to provide broad coverage for cargo
and ships in transit over sea; includes cargo insurance, hull insurance, freight
insurance, and protection and indemnity insurance.
19. Pair and Set Provision - ANSWERS-Found in some property and inland marine policies
stating the company will pay for loss of part of a set by either repairing or replacing the
damaged article or paying the difference between the ACV of the intact set and the
ACV of the articles remaining after the loss.
20. Parts of a legal contract (CLOC/CLAC) - ANSWERS-Competent parties
Lawful objective
Offer and acceptance
Consideration
21. Personal effects form - ANSWERS-Inland marine form that covers an insured's
personal belongings, such as baggage, while traveling.
22. Open Peril; all risk; special coverage - ANSWERS-Insurance policy that protects the
insured from losses caused by any peril that is not specifically excluded by the policy
23. Parts of a Homeowners Policy - ANSWERS-Coverage A - dwelling
Coverage B - other structures
Coverage C - personal property/contents
Coverage D - loss of use/additional living expenses
Coverage E - personal liability
Coverage F - medical payments to others
COMPREHENSIVE CERTIFICATION EXAMINATION PACKAGE — 4 FILES
COMBINED | 50 VERIFIED QUESTIONS AND CORRECT ANSWER RATIONALES
1. Inland Marine Insurance - ANSWERS-Property insurance coverage designed to insure
exposures that cannot be conveniently or reasonably confined to a fixed location or
insured under a standard form. Includes coverage for property in transit, overland,
moveable property, instruments of transportation and communication (bridges,
roads, and television/radio towers), legal liability for bailees coverage, and
computerized equipment.
2. Insuring Agreement - ANSWERS-Section in the policy that describes what property is
covered and the perils the policy insures against.
3. Jettison - ANSWERS-A voluntary action to rid a ship of cargo to prevent further damage
or peril.
4. Liberalization Clause - ANSWERS-Condition found in property insurance contracts
that provides that if the insurer broadens coverage under a policy form or
endorsement without requiring an additional premium, then all existing similar
policies or endorsements will be construed to contain the broadened coverage
5. MCS-90 - ANSWERS-Endorsement attached to the truckers coverage form to provide
public liability coverage.
6. Intervening Cause - ANSWERS-An independent action that breaks the chain of
causation and sets in motion a new chain of events; when this occurs, it became the
new proximate cause.
7. Legal Liability - ANSWERS-Commercial property coverage form that covers the
insured for liability arising out of negligent damage to the property of others while it is
in the insured's care, custody, or control.
8. Market Value - ANSWERS-The amount property could be sold for at the time of of loss.
May be used to determine the amount of reimbursement for a loss.
9. Messenger - ANSWERS-In a crime policy, defined as an insured , partner, or employee
who has care and custody of insured property outside the premises.
10. Morale Hazard - ANSWERS-Hazard created by an individual's tendency to contribute
to a loss through his own irresponsible actions or carelessness.
11. Motor Truck Cargo Policy - ANSWERS-Commercial inland marine policy that protects
a carrier against its liability for damage to domestic shipments in its custody.
12. Named (specified) Peril Policy - ANSWERS-Insurance policy that insures only against
perils specifically listed in the policy.
, 13. National Flood Insurance Program (NFIP) - ANSWERS-Program run by the federal
government that makes flood insurance available to eligible communities at
subsidized rate; includes coverage for both building and personal property with
separate deductible for each.
14. Motor Carrier Coverage Form - ANSWERS-commercial auto coverage form that is an
alternate to the truckers coverage form; it can be used to cover anyone who transports
property by auto in a commercial enterprise
15. Mysterious Disappearance - ANSWERS-Loss of property due to unknown cause; theft
must be ruled out.
16. Named Insured - ANSWERS-Person, business, or other entity named in the
declarations to whom the policy is issued.
17. Nonconcurrency - ANSWERS-Situation that exists when the same property is covered
by more than one policy, but the policies are not identical as to the extent of coverage
provided.
18. Ocean Marine - ANSWERS-Insurance designed to provide broad coverage for cargo
and ships in transit over sea; includes cargo insurance, hull insurance, freight
insurance, and protection and indemnity insurance.
19. Pair and Set Provision - ANSWERS-Found in some property and inland marine policies
stating the company will pay for loss of part of a set by either repairing or replacing the
damaged article or paying the difference between the ACV of the intact set and the
ACV of the articles remaining after the loss.
20. Parts of a legal contract (CLOC/CLAC) - ANSWERS-Competent parties
Lawful objective
Offer and acceptance
Consideration
21. Personal effects form - ANSWERS-Inland marine form that covers an insured's
personal belongings, such as baggage, while traveling.
22. Open Peril; all risk; special coverage - ANSWERS-Insurance policy that protects the
insured from losses caused by any peril that is not specifically excluded by the policy
23. Parts of a Homeowners Policy - ANSWERS-Coverage A - dwelling
Coverage B - other structures
Coverage C - personal property/contents
Coverage D - loss of use/additional living expenses
Coverage E - personal liability
Coverage F - medical payments to others
