2024-2025 STATE FARM QUESTIONS WITH VERIFIED
ANSWERS
Who owns their renewals? ANSWER: Independents
Insurance may not cover the following events: Gambling, investing, market value
of homes
What underlying coverages are normally necessary for an umbrella? ANSWER:
auto and personal.
ANSWER: Conditions that preclude policy assignments. Transfer of Rights and
Duties
Expectant interest is ANSWER Not insured.
Flood, power outage, and earth movement are - ANSWER Excluded on DP and
HO.
What are the three main rating factors for personal automobiles? - ANSWER 1)
Safe driving record. 2) yearly kilometres driven 3) Years of Driving Experience
Failure Plan does not encourage - ANSWER Competition.
Loss exposures that result in a monetary damage claim owing to another person's
injury or property damage. - ANSWER Liability Loss Exposure
The individuals whose property is being insured are the ANSWER Insured.
The individual seeking damage is the ANSWER Claimant.
, When the insurance cancels, the premium is repaid - ANSWER pro-rata.
Representation can qualify as an ANSWER Implied Warranty.
What is the Fire Department's service charge, cause for repairs, and debris disposal
on a HO? - ANSWER: Additional charges.
ANSWER Coverage D in an HO includes fair rental coverage.
How is the combined ratio calculated? - ANSWER Add Loss + Expense Ratio
Not obtaining collision coverage for your car is an example of risk--ANSWER
Retention
Not buying a motorboat is an example of - ANSWER Avoidance/ Elimination.
Installing a sprinkler system in your home exemplifies risk reduction.
Purchasing homeowner's policies is an area of risk. - ANSWER Transfer
Source of investment capital, payouts for losses, and decrease in financial
uncertainty are discussed - ANSWER Benefits of Insurance.
Unintentional or intended concealment authorizes the insured or insurer to-
ANSWER Rescind.
Personal auto policy medical pay, net limiters are - ANSWER per person.
ANSWERS
Who owns their renewals? ANSWER: Independents
Insurance may not cover the following events: Gambling, investing, market value
of homes
What underlying coverages are normally necessary for an umbrella? ANSWER:
auto and personal.
ANSWER: Conditions that preclude policy assignments. Transfer of Rights and
Duties
Expectant interest is ANSWER Not insured.
Flood, power outage, and earth movement are - ANSWER Excluded on DP and
HO.
What are the three main rating factors for personal automobiles? - ANSWER 1)
Safe driving record. 2) yearly kilometres driven 3) Years of Driving Experience
Failure Plan does not encourage - ANSWER Competition.
Loss exposures that result in a monetary damage claim owing to another person's
injury or property damage. - ANSWER Liability Loss Exposure
The individuals whose property is being insured are the ANSWER Insured.
The individual seeking damage is the ANSWER Claimant.
, When the insurance cancels, the premium is repaid - ANSWER pro-rata.
Representation can qualify as an ANSWER Implied Warranty.
What is the Fire Department's service charge, cause for repairs, and debris disposal
on a HO? - ANSWER: Additional charges.
ANSWER Coverage D in an HO includes fair rental coverage.
How is the combined ratio calculated? - ANSWER Add Loss + Expense Ratio
Not obtaining collision coverage for your car is an example of risk--ANSWER
Retention
Not buying a motorboat is an example of - ANSWER Avoidance/ Elimination.
Installing a sprinkler system in your home exemplifies risk reduction.
Purchasing homeowner's policies is an area of risk. - ANSWER Transfer
Source of investment capital, payouts for losses, and decrease in financial
uncertainty are discussed - ANSWER Benefits of Insurance.
Unintentional or intended concealment authorizes the insured or insurer to-
ANSWER Rescind.
Personal auto policy medical pay, net limiters are - ANSWER per person.
