State Farm 2024 Study Exam

State Farm Homeowner Policy FP-7955 Deducible 2024
Study Exam


-zCORRECTzANSWER-



Gamingz-zCORRECTzANSWER-
Gamingziszazmanipulationzthezsolicitationzandzsubmissionzofzapplicationsztozobtainzcompensationzandzorza
gentzincentives.zThisztypezofzactivityzisznotzinzthezbestzinterestzofzthezcompanyzofzitszpolicyholderszandziszs
trictlyzprohibited.



Tiezinzsalesz-zCORRECTzANSWER-
Azpracticezrequiringzazcustomerztozpurchasezonezproductzorzservicezinzorderztozqualifyzforzazdifferentzprod
uctzorzservice.



Rebatingz-zCORRECTzANSWER-
Rebatingziszofferingzazprospectzorzcustomerzazspecialzincentiveztozpurchasezorzcontinuezazpolicy.zThiszpract
iceziszillegalzinzmostzstateszandziszagainstzStatezFarmzpolicyzevenzinzstateszwherezitziszallowed.



Unapprovedzvendorz-zCORRECTzANSWER-
Anyzvendorzthatzdoesznotzhavezanzagreementzinzplacezwithzstatezfarm,zorzserviceszreceivedzfromzanzappro
vedzvendorzthatzarezoutsidezthezscopezofzthezvendorszagreementzwithzSF.



UnauthorizedzVendorz-zCORRECTzANSWER-
AzspecificzVendorzthatzStatezFarmzhaszidentifiedzasznotzauthorizedztozbezusedzbyzSFzorzSfzagentszdueztozth
ezpotentialzriskszposedztozSFzbyzengagementzwithzthezvendor.zAgentszshouldznotzusezanzunauthorizedzven
dor.zIfzanzagentzuseszanzunauthorizedzvendorzhiszcouldzimpactzthezrelationship.



Demonstrationsz-zCORRECTzANSWER-
showszguaranteedzpremiumszforzaztermzpolicy.zInzadditionzitzwillzincludezguaranteedzcashzvalues.



Illustrationsz-zCORRECTzANSWER-
usedzaszaztoolztozeducatezthezcustomerzconcerningzthezfeatureszandzprovisionszofzpolicyzoptions.

,Submissionzofzanzapplicationzforzanzinsurancezpolicyziszbestzdescribedzas?z-zCORRECTzANSWER-offer



Informationzusedzinzunderwritingzazpolicyzforzanzinsured,ziszmadezavailableztozinzinsuredzbecausezofzwhich
zofzthese?z-zCORRECTzANSWER-FinancialzServiceszModernizationzAct




WhatzmustzbezdoneztozrenewzyourzInsurancezLicense?z-zCORRECTzANSWER-
12zHourszofzContinuingzEducationzwithinz2zYears



WhichzofzthezfollowingzisznotzazcharacteristiczofzazMutualzInsurancezCompany?z-zCORRECTzANSWER-
AzpolicyholderziszazvotingzmemberzonzthezBoardzofzDirectors



Propertyzinsurancezpolicieszthatzapplyzcoveragezonlyztozperilszthatzarezstatedzinzthezpolicy,zarezconsideredz
tozbezwrittenzon?z-zCORRECTzANSWER-Aznamedzperilzbasis



Azphysicalzhazardzdescribeszwhichzofzthezfollowing?z-zCORRECTzANSWER-
Thezstoragezofzflammablesznearzazfurnace



Whenzazproducerzcollectszazpremiumzonzanzinsurancezcontractzandzdepositszthatzinzaztrustzaccountzforzth
ezinsurer.zThiszmakeszthezproducerza?z-zCORRECTzANSWER-Broker



InzPropertyzandzCasualtyzInsurance,zwhenzazformziszattachedztozfurtherzdefinezcertainzpolicyzprovisionszorz
conditions,zorzaddszadditionalzcoverage,zitziszknownzas?z-zCORRECTzANSWER-Anzendorsement



AlphazInsurancezCompanyzdoeszbusinesszinzallzfiftyzstates,zhoweverzitszhomezofficeziszlocatedzinzRhodezIsla
nd.zToztheirzbusinesszinzCalifornia,zAlphazInsurancezCompanyzis?z-zCORRECTzANSWER-Foreign



AgentzZzisztryingztozsellzazclientzazpolicy.zAfraidzofzlosingzhiszsalezhezoffersztozgivezthezclientz10%zofzhiszcom
missionszifzthezclientzwillzbuyzthezpolicy.zThatzagentzwouldzbezguiltyzofzwhichzunfairztradezpractice?z-
zCORRECTzANSWER-Rebating




WhenzdoeszthezTexaszPropertyzandzCasualtyzInsurancezGuaranteezAssociationzpayzcoveredzclaims?z-
zCORRECTzANSWER-WhenzanzAdmittedzInsurerzbecomeszinsolvent

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Hasznotzcommittedzanzactzforzwhichzazlicensezmayzbezdenie



Allzofzthezfollowingzarezhazardszforzinsurancezunderwriting,zEXCEPT?z-zCORRECTzANSWER-Incidental



Azpersonzcanzpurchasezanzinsurancezpolicyztozcoverzlosseszfromzallzthezfollowing,zEXCEPT?z-
zCORRECTzANSWER-Anzoperationzofzdrugzsmuggling




Whichzriskzmanagementzoption,zbestzdescribeszinsurance?z-zCORRECTzANSWER-Transferzrisk



WhichzofzthezfollowingzactszdoesznotzconstitutezTransactingzInsurance?z-zCORRECTzANSWER-
Makingzphonezcallsztozsetzupzappointments



Azbinderzwouldzbezwhichzofzthese?z-zCORRECTzANSWER-Temporaryzproofzofzinsurance



Thezstandardizedzpolicyzstructurezforzinsurancezpolicieszdoesznotzincludezwhichzofzthezfollowing?z-
zCORRECTzANSWER-Duties




ThezDepartmentzofzInsurancezrequireszallzofzthesezforzLicensing,zEXCEPT?z-zCORRECTzANSWER-
HighzSchoolzDiplomazorzGED



ThezcommissionerzofzInsurancezcanzdozwhichzofzthese?z-zCORRECTzANSWER-
SetzcontinuingzeducationzrequirementszinzTexas



ThezCommissionerzofzinsuranceziszresponsiblezforzallzofzthezfollowing,zEXCEPT?z-zCORRECTzANSWER-
Makezinsurancezlawszwhenzappropriate



Thezsectionzofzazpropertyzpolicyzthatzspecifieszthezobligationszandzdutieszofzthezinsuredzandzthezinsurerzisz
the?z-zCORRECTzANSWER-Conditions



WhichzofzthezfollowingziszNOTzfoundzinzazpropertyzinsurancezbinder?z-zCORRECTzANSWER-
Amountzofzpremium

, ThezTexaszPropertyzandzCasualtyzInsurancezGuarantyzAssociationzpayszcoveredzclaimszagainstzwhichzofzth
ezfollowing?z-zCORRECTzANSWER-Insolventzinsurers



Azclaimantztoldztheirzinsurerztheyzwerezsurezthatzazcertainzpiecezofzpropertyzwaszinzthezbuildingzthatzburn
ed.zMadeza?z-zCORRECTzANSWER-Warranty



MzhitzFzwithzhiszpersonalzautozcausingzdamages.zFzfiledzonzhiszownzpolicyzandzhiszinsurerzpaidzthezdamage
s.zF'szinsurerzwillzgozafterzMzandzM'szinsurerzforzthezpaidzdamages.zThisziszcalled?z-zCORRECTzANSWER-
Subrogation



IfzanzAgentzmakeszincompletezcomparisonszofzpolicies,zthatzAgentzwouldzbezguiltyzof?z-
zCORRECTzANSWER-UnfairzComparisons




WhichzLicenseziszrequiredzforzazpersonzwhozsuperviseszotherszforzanzInsurancezCompany?z-
zCORRECTzANSWER-ManagingzGeneralzAgent




___________zinsuranceziszusedztozprovidezcoveragezwhenzinsurancezisznotzavailablezfromzanzadmittedzcar
rier.z-zCORRECTzANSWER-Surplus



Theznamedzinsuredziszfoundzinzwhatzsectionzofzazpropertyzpolicy?z-zCORRECTzANSWER-Declarations



Az___________zcoverszanzemployeezinzazpositionzofzprivateztrustzandzprotectszanzemployerzagainstzlosszca
usedzbyzthezemployee'szdishonesty.z-zCORRECTzANSWER-Fidelityzbond



AzBuilder'szRiskzpolicyzautomaticallyzendsz___________zdayszafterzconstructionziszcomplete.z-
zCORRECTzANSWER-90




Tziszthezmanagingzlawyerzinzhiszfirmzandzwantszprofessionalzliabilityzcoveragezforzhiszfirmzthatzwouldzcover
zwhichzofzthezfollowing?z-zCORRECTzANSWER-Azclientzsueszthezlawyerzforzpurposelyzlosingzhiszcase




InlandzMarinezPolicieszarezgenerallyzwrittenzonzwhatzbasis?z-zCORRECTzANSWER-OpenzPeril