State Farm Property | 41 Questions and Answers(A+ Solution guide)

In property insurance actual cash value is defined as which of the following - Replacement cost at the time of the loss, less depreciation Peril is most easily defined as - the cause of loss insured against What is a leading factor in the determination of actual cash value - replacement cost Replacement cost is defined as - 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 - Specific coverage Which of the following is used in the formula for calculating the actual cash value of a property - replacement cost What is the purpose of the coinsurance clause found in property insurance policies? - 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? - 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 - stated amount What is stated amount coverage - In stated amt coverage the value of the insured property is determined at the time the policy is written.