State Farm Fire Property Exam With Complete Solution

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