State Farm Estimatics Exam Latest Questions and
Answers (2025 2026) (Verified Answers).pdf
90 days - ANSWER-In the proof of los provision, the insured must submit written proof of loss within this
timeframe.
Absolute Assignment - ANSWER-Policy assignment when assignee receives full control over the policy
and full rights to its benefits.
Accelerated benefits rider - ANSWER-Life insurance rider that allow for early payment of some portion
of policy's face amount, should the insured suffer from terminal illness/injury.
accidental death and dismemberment (AD&D) - ANSWER-Insurance providing payment if the insurance
death results from an accident or if the insured accidentally severs a limb above the wrist or ankle joints
or permanent blindness.
accidental death benefit rider - ANSWER-Life insurance policy rider providing for payment of an
additional benefit when death occurs by accidental means.
accidental means provision - ANSWER-Accident policies require that claims must result from an
accident, rather than illness. For example, a dismemberment policy will not pay for amputation of a
deceased limb.
adhesion - ANSWER-Contract must be accepted by the insured exactly as it is written by the insurer.
Terms of contract cannot be negotiated. Contract is offered on a take it or leave it basis.
adjustable life - ANSWER-Policy allows the policymaker to adjust the policy's face amount, premium, and
type of protection without having to complete a new application or any additional underwriting.
admitted insurer - ANSWER-An insurance company that has been approved to operate within a given
jurisdiction.
adverse selection - ANSWER-Selection against the company. Tendency of less favorable insurance risks
to seek or continue insurance to a greater extent than others. Also, tendency of policy owners to take
advantage of favorable options in insurance contracts.
,State Farm Estimatics Exam Latest Questions and
Answers (2025 2026) (Verified Answers).pdf
agency - ANSWER-Situation wherein one party has the power to act for another in dealing with third
parties.
agents (producer) report - ANSWER-Section of an insurance application where the agent, details
personal observations about the applicant.
aleatory - ANSWER-Insurance premiums will always be unequal to the benefits received. Benefits will
usually be larger than the premium.
annually renewable term (ART) - ANSWER-A form of renewable term insurance that provides coverage
for one year and allows policyowner to renew coverage each year, without evidence of insurability.
annuitant - ANSWER-One to whom an annuity is payable, or a person upon the continuance of whose
life further payment depends.
any occupation - ANSWER-A definition of total disability. The insured must be unable to perform any job
for which he is "reasonably suited by reason of education, training, or experience." It is more difficult for
the insured to collect benefits under this definition.
apparent authority - ANSWER-The insured believes the agent has authority to act based on actions,
words or deeds of the agent. Even though the agent may not have been granted such authority by the
insurer, they will be held liable for the actions of the agent.
assignment of benefits - ANSWER-The policyowner allows a healthcare provider to bill the insurer and
receive benefits on the policy owners behalf.
attained age - ANSWER-With reference to an insured, the current insurance age.
automatic premium loan provision - ANSWER-Authorizes the insurer to automatically pay any premium
in default at the end of the grace period. The premium owed plus interest charged is deducted from the
policy's cash value.
, State Farm Estimatics Exam Latest Questions and
Answers (2025 2026) (Verified Answers).pdf
aviation exclusion - ANSWER-The insurer will not pay a claim if the insured dies as a result of flying an
aircraft or acting as a member of a flight crew. In most cases, the insurer will offer the applicant the
opportunity to purchase a rider offsetting the exclusion.
basic medical expense policy - ANSWER-Health insurance policy that provides first dollar coverage for
specified health care, such as hospitalization, surgery, or physician services. Characterized by a limited
benefit periods and relatively low coverage limits.
beneficiary - ANSWER-Person to whom the proceeds of a life or accident policy are payable when the
insured dies.
blackout period - ANSWER-Social Security pays a benefit to a surviving spouse left to care for a child
under the age of 16. That benefit stops when the child turns 16 and will not resume until the surviving
spouse is at least 60.
blanket policy - ANSWER-Covers a number of individuals who are exposed to the same hazards, such as
members of an athletic team, company officials who are passengers in the same company plane, and so
forth.
business overhead expense insurance - ANSWER-If a business owner becomes disabled, this policy will
not replace the owner's income, but will instead help pay the expenses of operating the business such as
rent, utilities and wages.
Buy-sell agreement - ANSWER-Agreement that a deceased businessowner's interest will be sold and
purchased at a predetermined price or at a price according to a predetermined formula.
buyers guide - ANSWER-A generic publication that explains life insurance in a way that an average
consumer can understand. It does not contain specific product or policy information
buyers guides - ANSWER-Informational consumer guide books that explain insurance policies and
insurance concepts, and many states, they are required to be given to applicants when certain types of
coverage are being considered.
Answers (2025 2026) (Verified Answers).pdf
90 days - ANSWER-In the proof of los provision, the insured must submit written proof of loss within this
timeframe.
Absolute Assignment - ANSWER-Policy assignment when assignee receives full control over the policy
and full rights to its benefits.
Accelerated benefits rider - ANSWER-Life insurance rider that allow for early payment of some portion
of policy's face amount, should the insured suffer from terminal illness/injury.
accidental death and dismemberment (AD&D) - ANSWER-Insurance providing payment if the insurance
death results from an accident or if the insured accidentally severs a limb above the wrist or ankle joints
or permanent blindness.
accidental death benefit rider - ANSWER-Life insurance policy rider providing for payment of an
additional benefit when death occurs by accidental means.
accidental means provision - ANSWER-Accident policies require that claims must result from an
accident, rather than illness. For example, a dismemberment policy will not pay for amputation of a
deceased limb.
adhesion - ANSWER-Contract must be accepted by the insured exactly as it is written by the insurer.
Terms of contract cannot be negotiated. Contract is offered on a take it or leave it basis.
adjustable life - ANSWER-Policy allows the policymaker to adjust the policy's face amount, premium, and
type of protection without having to complete a new application or any additional underwriting.
admitted insurer - ANSWER-An insurance company that has been approved to operate within a given
jurisdiction.
adverse selection - ANSWER-Selection against the company. Tendency of less favorable insurance risks
to seek or continue insurance to a greater extent than others. Also, tendency of policy owners to take
advantage of favorable options in insurance contracts.
,State Farm Estimatics Exam Latest Questions and
Answers (2025 2026) (Verified Answers).pdf
agency - ANSWER-Situation wherein one party has the power to act for another in dealing with third
parties.
agents (producer) report - ANSWER-Section of an insurance application where the agent, details
personal observations about the applicant.
aleatory - ANSWER-Insurance premiums will always be unequal to the benefits received. Benefits will
usually be larger than the premium.
annually renewable term (ART) - ANSWER-A form of renewable term insurance that provides coverage
for one year and allows policyowner to renew coverage each year, without evidence of insurability.
annuitant - ANSWER-One to whom an annuity is payable, or a person upon the continuance of whose
life further payment depends.
any occupation - ANSWER-A definition of total disability. The insured must be unable to perform any job
for which he is "reasonably suited by reason of education, training, or experience." It is more difficult for
the insured to collect benefits under this definition.
apparent authority - ANSWER-The insured believes the agent has authority to act based on actions,
words or deeds of the agent. Even though the agent may not have been granted such authority by the
insurer, they will be held liable for the actions of the agent.
assignment of benefits - ANSWER-The policyowner allows a healthcare provider to bill the insurer and
receive benefits on the policy owners behalf.
attained age - ANSWER-With reference to an insured, the current insurance age.
automatic premium loan provision - ANSWER-Authorizes the insurer to automatically pay any premium
in default at the end of the grace period. The premium owed plus interest charged is deducted from the
policy's cash value.
, State Farm Estimatics Exam Latest Questions and
Answers (2025 2026) (Verified Answers).pdf
aviation exclusion - ANSWER-The insurer will not pay a claim if the insured dies as a result of flying an
aircraft or acting as a member of a flight crew. In most cases, the insurer will offer the applicant the
opportunity to purchase a rider offsetting the exclusion.
basic medical expense policy - ANSWER-Health insurance policy that provides first dollar coverage for
specified health care, such as hospitalization, surgery, or physician services. Characterized by a limited
benefit periods and relatively low coverage limits.
beneficiary - ANSWER-Person to whom the proceeds of a life or accident policy are payable when the
insured dies.
blackout period - ANSWER-Social Security pays a benefit to a surviving spouse left to care for a child
under the age of 16. That benefit stops when the child turns 16 and will not resume until the surviving
spouse is at least 60.
blanket policy - ANSWER-Covers a number of individuals who are exposed to the same hazards, such as
members of an athletic team, company officials who are passengers in the same company plane, and so
forth.
business overhead expense insurance - ANSWER-If a business owner becomes disabled, this policy will
not replace the owner's income, but will instead help pay the expenses of operating the business such as
rent, utilities and wages.
Buy-sell agreement - ANSWER-Agreement that a deceased businessowner's interest will be sold and
purchased at a predetermined price or at a price according to a predetermined formula.
buyers guide - ANSWER-A generic publication that explains life insurance in a way that an average
consumer can understand. It does not contain specific product or policy information
buyers guides - ANSWER-Informational consumer guide books that explain insurance policies and
insurance concepts, and many states, they are required to be given to applicants when certain types of
coverage are being considered.
