State Farm Property Exam Questions with Verified
Answers
Inzpropertyzinsurancezactualzcashzvalueziszdefinedzaszwhichzofzthezfollowingz-zCORRECTzANSWER-
Replacementzcostzatztheztimezofzthezloss,zlesszdepreciation
Perilziszmostzeasilyzdefinedzasz-zCORRECTzANSWER-thezcausezofzlosszinsuredzagainst
Whatziszazleadingzfactorzinzthezdeterminationzofzactualzcashzvaluez-zCORRECTzANSWER-replacementzcost
Replacementzcostziszdefinedzasz-zCORRECTzANSWER-
fullzreplacementzofzpropertyzatzitszcurrentzcost,znewzandzwithoutzreductionzforzdepreciation
Propertyzinsurancezthatzprovidesz100kzcoveragezforzazbuildingzandz50kzcoveragezforzpersonalzpropertyzatz
azsinglezlocationziszcalledz-zCORRECTzANSWER-Specificzcoverage
Whichzofzthezfollowingziszusedzinzthezformulazforzcalculatingzthezactualzcashzvaluezofzazpropertyz-
zCORRECTzANSWER-replacementzcost
Whatziszthezpurposezofzthezcoinsurancezclausezfoundzinzpropertyzinsurancezpolicies?z-zCORRECTzANSWER-
Encouragezthezinsuredztozinsurezthezpropertyzcloserztozitszfullzvalue
Anzinsuredzhaszazliabilityzpolicyzthatzsetszthezamountzatz50kzforzallzclaimszthatzarisezfromzazsinglezincident.z
whichztypezofzlimitzofzliabilityzdoeszthiszinsured'szpolicyzhave?z-zCORRECTzANSWER-perzoccurrence
Whenzthezamountzofzinsurancezwrittenzinzazpropertyzpolicyzisznotzsubjectztozanyzcoinsurancezprovisionzan
dzthatzamountziszpaidzinzthezeventzofzazcoveredzloss,zthezcoverageziszsaidztozbezwrittenzasz-
zCORRECTzANSWER-statedzamount
Whatziszstatedzamountzcoveragez-zCORRECTzANSWER-
Inzstatedzamtzcoveragezthezvaluezofzthezinsuredzpropertyziszdeterminedzatztheztimezthezpolicyziszwritten.z
, inzthezeventzofzazloss,zthatzamountziszpaidzwithoutzregardztozanyzcoinsurancezprovision.z
However,zifzthezlossziszlesszthanztheztotal,zthezinsurerzhaszsalvagezrightszwithzthezinsuredzhavingzfirstzrightz
ofzrefusalzofzthezsalvage.
Whatztypezofzliabilityzwouldzazpersonzwhozownszazswimmingzpoolzhave?z-zCORRECTzANSWER-Absolute
Whatziszabsolutezliabilityz-zCORRECTzANSWER-
Anyzconductzthatziszinherentlyzdangerouszimposeszabsolutezliability.zthezclaimantzdoesznotzhaveztozprovez
anything
Insurablezinterestzinzthezpropertyzcoveredzinzazpolicyzmustzbezprovenz-zCORRECTzANSWER-
atztheztimezofzloss
WhichzofzthezfollowingziszNOTzanzelementzofznegligencez
breach,zunbrokenzchain,zlibel,zdutyz-zCORRECTzANSWER-libel
whatziszlibelz-zCORRECTzANSWER-aztypezofzintentionalztort
Withzrespectztozthezbusinesszofzinsurance,zazhazardzisz-zCORRECTzANSWER-
anyzconditionzorzexposurezthatzincreaseszthezpossibilityzofzloss
Whatzarezthezfourzessentialzelementszofzallzlegalzcontractsz-zCORRECTzANSWER-
offerzandzacceptance,zconsideration,zcompetentzparties,zandzlegalzpurpose
Inzformingzanzinsurancezcontract,zwhenzdoeszacceptancezusuallyzoccur?z-zCORRECTzANSWER-
whenzanzinsurer'szunderwriterzapproveszcoverage
Whoziszresponsiblezforzfillingzoutzaznoticezofzclaimzformz-zCORRECTzANSWER-insured
Answers
Inzpropertyzinsurancezactualzcashzvalueziszdefinedzaszwhichzofzthezfollowingz-zCORRECTzANSWER-
Replacementzcostzatztheztimezofzthezloss,zlesszdepreciation
Perilziszmostzeasilyzdefinedzasz-zCORRECTzANSWER-thezcausezofzlosszinsuredzagainst
Whatziszazleadingzfactorzinzthezdeterminationzofzactualzcashzvaluez-zCORRECTzANSWER-replacementzcost
Replacementzcostziszdefinedzasz-zCORRECTzANSWER-
fullzreplacementzofzpropertyzatzitszcurrentzcost,znewzandzwithoutzreductionzforzdepreciation
Propertyzinsurancezthatzprovidesz100kzcoveragezforzazbuildingzandz50kzcoveragezforzpersonalzpropertyzatz
azsinglezlocationziszcalledz-zCORRECTzANSWER-Specificzcoverage
Whichzofzthezfollowingziszusedzinzthezformulazforzcalculatingzthezactualzcashzvaluezofzazpropertyz-
zCORRECTzANSWER-replacementzcost
Whatziszthezpurposezofzthezcoinsurancezclausezfoundzinzpropertyzinsurancezpolicies?z-zCORRECTzANSWER-
Encouragezthezinsuredztozinsurezthezpropertyzcloserztozitszfullzvalue
Anzinsuredzhaszazliabilityzpolicyzthatzsetszthezamountzatz50kzforzallzclaimszthatzarisezfromzazsinglezincident.z
whichztypezofzlimitzofzliabilityzdoeszthiszinsured'szpolicyzhave?z-zCORRECTzANSWER-perzoccurrence
Whenzthezamountzofzinsurancezwrittenzinzazpropertyzpolicyzisznotzsubjectztozanyzcoinsurancezprovisionzan
dzthatzamountziszpaidzinzthezeventzofzazcoveredzloss,zthezcoverageziszsaidztozbezwrittenzasz-
zCORRECTzANSWER-statedzamount
Whatziszstatedzamountzcoveragez-zCORRECTzANSWER-
Inzstatedzamtzcoveragezthezvaluezofzthezinsuredzpropertyziszdeterminedzatztheztimezthezpolicyziszwritten.z
, inzthezeventzofzazloss,zthatzamountziszpaidzwithoutzregardztozanyzcoinsurancezprovision.z
However,zifzthezlossziszlesszthanztheztotal,zthezinsurerzhaszsalvagezrightszwithzthezinsuredzhavingzfirstzrightz
ofzrefusalzofzthezsalvage.
Whatztypezofzliabilityzwouldzazpersonzwhozownszazswimmingzpoolzhave?z-zCORRECTzANSWER-Absolute
Whatziszabsolutezliabilityz-zCORRECTzANSWER-
Anyzconductzthatziszinherentlyzdangerouszimposeszabsolutezliability.zthezclaimantzdoesznotzhaveztozprovez
anything
Insurablezinterestzinzthezpropertyzcoveredzinzazpolicyzmustzbezprovenz-zCORRECTzANSWER-
atztheztimezofzloss
WhichzofzthezfollowingziszNOTzanzelementzofznegligencez
breach,zunbrokenzchain,zlibel,zdutyz-zCORRECTzANSWER-libel
whatziszlibelz-zCORRECTzANSWER-aztypezofzintentionalztort
Withzrespectztozthezbusinesszofzinsurance,zazhazardzisz-zCORRECTzANSWER-
anyzconditionzorzexposurezthatzincreaseszthezpossibilityzofzloss
Whatzarezthezfourzessentialzelementszofzallzlegalzcontractsz-zCORRECTzANSWER-
offerzandzacceptance,zconsideration,zcompetentzparties,zandzlegalzpurpose
Inzformingzanzinsurancezcontract,zwhenzdoeszacceptancezusuallyzoccur?z-zCORRECTzANSWER-
whenzanzinsurer'szunderwriterzapproveszcoverage
Whoziszresponsiblezforzfillingzoutzaznoticezofzclaimzformz-zCORRECTzANSWER-insured
