State Farm Insurance License Exam Questions and Answers (2023) (Verified Answers)

State Farm Insurance License Exam Questions and Answers (2023) (Verified Answers) Abandonment Condition (Correct Answer) 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 Answer) A loss that occurs at a specific time and place Actual Cash Value (ACV) (Correct Answer) Today's replacement cost minus depreciation. Depreciation from wear and tear, or obsolescence. admitted insurer; authorized insurer (Correct Answer) Company that meets a state insurance department's standards and is allowed to do business in that state. Adverse Selection (Correct Answer) the tendency of insureds with a greater than average chance of loss to purchase insurance Annual Transit Policy (Correct Answer) Nonfiled commercial inland marine transportation form that insures a property owner's incoming or outgoing shipments of goods during a year Appraisal Clause (Correct Answer) A survey of property to determine the insurable value of the property or the value of the loss sustained. Appraisal Condition (Correct Answer) Policy condition that outlines a procedure for when the insured and insurer disagree on the amount of a loss Assignment (Correct Answer) The legal transfer of one's interest in an insurance policy to another person. Aviation Hull Insurance (Correct Answer) Provides coverage for physical damage to an aircraft. Bailee's Customers Policy (Correct 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 (Correct 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 (Correct 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 (Correct Answer) A person or organization that has temporary possession of someone else's personal property.