STATE FARM PROPERTY EXAMINATION
TEST BANK SOLVED QUESTIONS AND
COMPLETE ANSWERS
●● Accident
Answer: A loss that occurs at a specific time and place
●● Actual Cash Value (ACV)
Answer: Today's replacement cost minus depreciation. Depreciation
from wear and tear, or obsolescence.
●● admitted insurer; authorized insurer
Answer: Company that meets a state insurance department's standards
and is allowed to do business in that state.
●● Adverse Selection
Answer: the tendency of insureds with a greater than average chance of
loss to purchase insurance
●● Annual Transit Policy
Answer: Nonfiled commercial inland marine transportation form that
insures a property owner's incoming or outgoing shipments of goods
during a year
,●● Appraisal Clause
Answer: A survey of property to determine the insurable value of the
property or the value of the loss sustained.
●● Appraisal Condition
Answer: Policy condition that outlines a procedure for when the insured
and insurer disagree on the amount of a loss
●● Assignment
Answer: The legal transfer of one's interest in an insurance policy to
another person.
●● Aviation Hull Insurance
Answer: Provides coverage for physical damage to an aircraft.
●● Bailee's Customers Policy
Answer: 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
, Answer: 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
Answer: Condition in insurance policies that specifies that the policy
cannot be transferred to another unless the company consents to the
transfer in writing.
●● Bailee
Answer: A person or organization that has temporary possession of
someone else's personal property.
●● Basic Perils in Homeowners Policy
Answer: 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)
Answer: D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
TEST BANK SOLVED QUESTIONS AND
COMPLETE ANSWERS
●● Accident
Answer: A loss that occurs at a specific time and place
●● Actual Cash Value (ACV)
Answer: Today's replacement cost minus depreciation. Depreciation
from wear and tear, or obsolescence.
●● admitted insurer; authorized insurer
Answer: Company that meets a state insurance department's standards
and is allowed to do business in that state.
●● Adverse Selection
Answer: the tendency of insureds with a greater than average chance of
loss to purchase insurance
●● Annual Transit Policy
Answer: Nonfiled commercial inland marine transportation form that
insures a property owner's incoming or outgoing shipments of goods
during a year
,●● Appraisal Clause
Answer: A survey of property to determine the insurable value of the
property or the value of the loss sustained.
●● Appraisal Condition
Answer: Policy condition that outlines a procedure for when the insured
and insurer disagree on the amount of a loss
●● Assignment
Answer: The legal transfer of one's interest in an insurance policy to
another person.
●● Aviation Hull Insurance
Answer: Provides coverage for physical damage to an aircraft.
●● Bailee's Customers Policy
Answer: 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
, Answer: 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
Answer: Condition in insurance policies that specifies that the policy
cannot be transferred to another unless the company consents to the
transfer in writing.
●● Bailee
Answer: A person or organization that has temporary possession of
someone else's personal property.
●● Basic Perils in Homeowners Policy
Answer: 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)
Answer: D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
