STATE FARM ESTIMATICS FINAL EXAM GUIDE 2025
|MOST COMMON QUESTIONS WITH CORRECTLY
VERIFIED ANSWERS|ALREADY A+
GRADED|GUARANTEED PASS
Which statement describes a peril? - a tornado damaged the insured's home
a flood is an example of - A peril
Tiffany leaves her car unlocked when she goes shopping. - Morale
Insurance company incorporated in Wisconsin and conducting business in Wisconsin is known
as a domestic company. What kind of company are they considered if they do business in
Minnesota? - Foreign
what is a contractor device for transferring risk from a person, business or organization to an
insurance company? - Insurance
which of the following represents a pure risk? - The chance your house may burn down
What is a contractor device for transferring risk from a person, business, or organization to an
insurance company? - Insurance
which of the following represents a pure risk? - the chance at your house may burn down
Suzanne regularly leaves her side door unlocked when she leaves for work period one afternoon
a thief entered her apartment and stole all of her jewelry. What was the hazard in this example.
- the door being unlocked
sometimes an individual or business has an exceptionally large or specialized risk that no
authorized insurers can or will cover. In this case the individual or business may call? - a
non admitted insurance company.
The ABC insurance company is incorporated in Mexico. While doing business in Texas it is -
a alien insurer
the potential for accidents and other losses is called - an exposure
,Jennifer and Randy place a bet on the outcome of a basketball game period this is an example
of. - A speculative Risk
An insurance company licensed to do business in a particular state is called - A certificate
of authority
a loss that occurs as a consequence of a direct loss is called - An Indirect Loss
which of the following is not a type of hazard - Pure Hazard
An insurance contract is prepared by one party (the insurance company) with little or no
opportunity for the other party (the insured) to bargain. This this characteristic is called -
Adhesion
In insurance, an insured may pay premium for many years without having a loss, or an insured
may suffer a loss and get a larger amount of money from the insurance company than he has
paid in premiums. For this reason, an insurance contract is - Aleatory
In an insurance contract, the consideration that the insured gives is called - the premium
payment
An agreement between two parties is also called - offer and acceptance
the failure to disclose known facts is - concealment
a statement that is guaranteed to be true is a - Warranty
Allison's auto insurance policy is due on the 10th of each month period ever since she has had
the policy, she has sent the premium in on the 16th of the month period the insurer has been
accepting the premium this way for the past five years period a new CEO takes over and decides
to cancel Allison's policy for a non-payment of premium. Allison contests this decision and
legally gets the policy reinstated. The decision to reinstate the policy is an example of. -
Estoppel
Misrepresentations do not necessarily void insurance contracts period to do so they must be -
Material
Which of the following would not be included on the declarations page of the policy? -
The exclusions in the policy
What type of insurance policy protects the insured from loss caused by damage to covered
property by a covered peril? - Property insurance policy
, Which of the following is not a part of the structure of a property or casualty -
Explanations
Which of the following terms describes the person listed first on the declarations page of a
policy when there is more than one named insured? - First Name Insured
Greg's policy states that a loss will not be covered unless it occurs within the United states or
Canada. What is the name of this provision in his policy? - the policy territory provision
when an insured decides to cancel an insurance policy before the expiration date the unlearned
premium is returned on - A short rate basis
Todd and Mary have insurance protection for their home with a policy deductible of $500. One
night the thunderstorm knocks the tree onto their roof and causes $2500 in damage. How much
money will the insurance company pay to Todd and Mary to fix their roof? - $2000
Marcus has two policies that will cover his $20,000 loss period company A will pay the first
$15,000, and Company B pays the remainder. In this example, company A's policy is considered.
- Primary insurance
which provision specifies that an insurance policy may not be transferred to anyone else
without the written consent of the insurer unless the name insured dies. - Assignment
provision
A financial loss resulting directly from a loss to property, such as a house fire or a diamond ring
being stolen, is called. - A direct loss
an insured owns a $200,000 home and ensures it for $100,000. If the insurance home was
completely destroyed by a fire, how much money would the insurance company pay if the
insured has a policy that requires a minimum of 80% coverage? - $100,000
Which policy ensures a property against all perils specifically listed in the policy? - named
peril policy
when a semi truck hit gregg's house, he and his family had to stay in a nearby hotel for two
weeks while repairs were made. The hotel bill came to $1000 and the cost of food came to $415
what was the indirect loss? - the hotel bill and cost of food
the term that describes the absences of both people and property from the premises is. -
vacant
which of the following coverages ensures against all risks of direct physical loss that are not
specifically excluded in the policy? - Special perils
|MOST COMMON QUESTIONS WITH CORRECTLY
VERIFIED ANSWERS|ALREADY A+
GRADED|GUARANTEED PASS
Which statement describes a peril? - a tornado damaged the insured's home
a flood is an example of - A peril
Tiffany leaves her car unlocked when she goes shopping. - Morale
Insurance company incorporated in Wisconsin and conducting business in Wisconsin is known
as a domestic company. What kind of company are they considered if they do business in
Minnesota? - Foreign
what is a contractor device for transferring risk from a person, business or organization to an
insurance company? - Insurance
which of the following represents a pure risk? - The chance your house may burn down
What is a contractor device for transferring risk from a person, business, or organization to an
insurance company? - Insurance
which of the following represents a pure risk? - the chance at your house may burn down
Suzanne regularly leaves her side door unlocked when she leaves for work period one afternoon
a thief entered her apartment and stole all of her jewelry. What was the hazard in this example.
- the door being unlocked
sometimes an individual or business has an exceptionally large or specialized risk that no
authorized insurers can or will cover. In this case the individual or business may call? - a
non admitted insurance company.
The ABC insurance company is incorporated in Mexico. While doing business in Texas it is -
a alien insurer
the potential for accidents and other losses is called - an exposure
,Jennifer and Randy place a bet on the outcome of a basketball game period this is an example
of. - A speculative Risk
An insurance company licensed to do business in a particular state is called - A certificate
of authority
a loss that occurs as a consequence of a direct loss is called - An Indirect Loss
which of the following is not a type of hazard - Pure Hazard
An insurance contract is prepared by one party (the insurance company) with little or no
opportunity for the other party (the insured) to bargain. This this characteristic is called -
Adhesion
In insurance, an insured may pay premium for many years without having a loss, or an insured
may suffer a loss and get a larger amount of money from the insurance company than he has
paid in premiums. For this reason, an insurance contract is - Aleatory
In an insurance contract, the consideration that the insured gives is called - the premium
payment
An agreement between two parties is also called - offer and acceptance
the failure to disclose known facts is - concealment
a statement that is guaranteed to be true is a - Warranty
Allison's auto insurance policy is due on the 10th of each month period ever since she has had
the policy, she has sent the premium in on the 16th of the month period the insurer has been
accepting the premium this way for the past five years period a new CEO takes over and decides
to cancel Allison's policy for a non-payment of premium. Allison contests this decision and
legally gets the policy reinstated. The decision to reinstate the policy is an example of. -
Estoppel
Misrepresentations do not necessarily void insurance contracts period to do so they must be -
Material
Which of the following would not be included on the declarations page of the policy? -
The exclusions in the policy
What type of insurance policy protects the insured from loss caused by damage to covered
property by a covered peril? - Property insurance policy
, Which of the following is not a part of the structure of a property or casualty -
Explanations
Which of the following terms describes the person listed first on the declarations page of a
policy when there is more than one named insured? - First Name Insured
Greg's policy states that a loss will not be covered unless it occurs within the United states or
Canada. What is the name of this provision in his policy? - the policy territory provision
when an insured decides to cancel an insurance policy before the expiration date the unlearned
premium is returned on - A short rate basis
Todd and Mary have insurance protection for their home with a policy deductible of $500. One
night the thunderstorm knocks the tree onto their roof and causes $2500 in damage. How much
money will the insurance company pay to Todd and Mary to fix their roof? - $2000
Marcus has two policies that will cover his $20,000 loss period company A will pay the first
$15,000, and Company B pays the remainder. In this example, company A's policy is considered.
- Primary insurance
which provision specifies that an insurance policy may not be transferred to anyone else
without the written consent of the insurer unless the name insured dies. - Assignment
provision
A financial loss resulting directly from a loss to property, such as a house fire or a diamond ring
being stolen, is called. - A direct loss
an insured owns a $200,000 home and ensures it for $100,000. If the insurance home was
completely destroyed by a fire, how much money would the insurance company pay if the
insured has a policy that requires a minimum of 80% coverage? - $100,000
Which policy ensures a property against all perils specifically listed in the policy? - named
peril policy
when a semi truck hit gregg's house, he and his family had to stay in a nearby hotel for two
weeks while repairs were made. The hotel bill came to $1000 and the cost of food came to $415
what was the indirect loss? - the hotel bill and cost of food
the term that describes the absences of both people and property from the premises is. -
vacant
which of the following coverages ensures against all risks of direct physical loss that are not
specifically excluded in the policy? - Special perils
