State Farm Insurance License Exam with latest solutions

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