State Farm Property Test 100% Verified
Correct Answers Latest Update 2024
1. In property insurance actual cash value is defined as which of the follow- ing:correct
answer: Replacement cost at the time of the loss, less depreciation
2. Peril is most easily defined as:correct answer: the cause of loss insured against
3. What is a leading factor in the determination of actual cash value:correct answer: replace-
ment cost
4. Replacement cost is defined as:correct answer: full replacement of property at its current
cost, new and without reduction for depreciation
5. Property insurance that provides 100k coverage for a building and 50k coverage for
personal property at a single location is called:correct answer: Specific coverage
6. Which of the following is used in the formula for calculating the actual cash value of a
property:correct answer: replacement cost
7. What is the purpose of the coinsurance clause found in property insurance policies?:correct
answer: Encourage the insured to insure the property closer to its full value
8. An insured has a liability policy that sets the amount at 50k for all claims thatarise from a
single incident. which type of limit of liability does this insured's policy have?:correct answer:
per occurrence
9. When the amount of insurance written in a property policy is not subject toany
coinsurance provision and that amount is paid in the event of a coveredloss, the coverage is
said to be written as:correct answer: stated amount
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, 10.What is stated amount coverage:correct answer: In stated amt coverage the value
of theinsured property is determined at the time the policy is written.
in the event of a loss, that amount is paid without regard to any coinsuranceprovision.
However, if the loss is less than the total, the insurer has salvage rights with theinsured
having first right of refusal of the salvage.
11. What type of liability would a person who owns a swimming pool have?:correct answer:
- Absolute
12.What is absolute liability:correct answer: Any conduct that is inherently dangerous
imposesabsolute liability. the claimant does not have to prove anything
13.Insurable interestin the property covered in a policy must be proven:correct answer: at
the time of loss
14.Which of the following is NOT an element of negligence
breach, unbroken chain, libel, duty:correct answer: libel
15.what is libel:correct answer: a type of intentional tort
16.With respect to the business of insurance, a hazard is:correct answer: any condition
or exposure that increases the possibility of loss
17.What are the four essential elements of all legal contracts:correct answer: offer and
accep- tance, consideration, competent parties, and legal purpose
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Correct Answers Latest Update 2024
1. In property insurance actual cash value is defined as which of the follow- ing:correct
answer: Replacement cost at the time of the loss, less depreciation
2. Peril is most easily defined as:correct answer: the cause of loss insured against
3. What is a leading factor in the determination of actual cash value:correct answer: replace-
ment cost
4. Replacement cost is defined as:correct answer: full replacement of property at its current
cost, new and without reduction for depreciation
5. Property insurance that provides 100k coverage for a building and 50k coverage for
personal property at a single location is called:correct answer: Specific coverage
6. Which of the following is used in the formula for calculating the actual cash value of a
property:correct answer: replacement cost
7. What is the purpose of the coinsurance clause found in property insurance policies?:correct
answer: Encourage the insured to insure the property closer to its full value
8. An insured has a liability policy that sets the amount at 50k for all claims thatarise from a
single incident. which type of limit of liability does this insured's policy have?:correct answer:
per occurrence
9. When the amount of insurance written in a property policy is not subject toany
coinsurance provision and that amount is paid in the event of a coveredloss, the coverage is
said to be written as:correct answer: stated amount
Ask for various Exams or Study materials from ()
, 10.What is stated amount coverage:correct answer: In stated amt coverage the value
of theinsured property is determined at the time the policy is written.
in the event of a loss, that amount is paid without regard to any coinsuranceprovision.
However, if the loss is less than the total, the insurer has salvage rights with theinsured
having first right of refusal of the salvage.
11. What type of liability would a person who owns a swimming pool have?:correct answer:
- Absolute
12.What is absolute liability:correct answer: Any conduct that is inherently dangerous
imposesabsolute liability. the claimant does not have to prove anything
13.Insurable interestin the property covered in a policy must be proven:correct answer: at
the time of loss
14.Which of the following is NOT an element of negligence
breach, unbroken chain, libel, duty:correct answer: libel
15.what is libel:correct answer: a type of intentional tort
16.With respect to the business of insurance, a hazard is:correct answer: any condition
or exposure that increases the possibility of loss
17.What are the four essential elements of all legal contracts:correct answer: offer and
accep- tance, consideration, competent parties, and legal purpose
Ask for various Exams or Study materials from ()
