STATE FARM PROPERTY TEST QUESTIONS AND
ANSWERS
In property insurance actual cash value is defined as which of the following -
ANSWER Replacement cost at the time of the loss, less depreciation
Peril is most easily defined as - ANSWER the cause of loss insured against
What is a leading factor in the determination of actual cash value - ANSWER
replacement cost
Replacement cost is - ANSWER complete replacement of property at its
current cost, new and without deduction for depreciation
Property coverage that covers 100k on a building and 50k on personal property
in a single location is called - ANSWER Specific coverage
What is used in the calculation formula of a property's actual cash value -
ANSWER replacement cost
What is the coinsurance clause in property insurance policies designed to do? -
ANSWER Encourage the insured to insure the property closer to its full value
, An insured has a liability policy that pays the amount 50k for all claims that
result from any one occurrence. what kind of limit of liability does the insured's
policy contain? - ANSWER per occurrence
When insurance under a property policy is not subject to any coinsurance
requirement and the amount is paid upon occurrence of a covered loss, the
coverage is written as - ANSWER stated amount
What is stated amount coverage - ANSWER In stated amt coverage the value
of the insured property is determined at the time the policy is issued.
in the event of a loss, that amount is due without regard to any coinsurance
provision.
However, if the loss is not total, the insurer has salvage rights with the insured
having first right of refusal of the salvage.
What type of liability would someone who owns a swimming pool have? -
ANSWER Absolute
What is absolute liability - ANSWER Any act which is inherently dangerous
gives rise to absolute liability. the claimant need not prove anything
Insurable interest in the property insured under a policy must be established -
ANSWER at the time of loss
Which of the following is NOT an element of negligence
ANSWERS
In property insurance actual cash value is defined as which of the following -
ANSWER Replacement cost at the time of the loss, less depreciation
Peril is most easily defined as - ANSWER the cause of loss insured against
What is a leading factor in the determination of actual cash value - ANSWER
replacement cost
Replacement cost is - ANSWER complete replacement of property at its
current cost, new and without deduction for depreciation
Property coverage that covers 100k on a building and 50k on personal property
in a single location is called - ANSWER Specific coverage
What is used in the calculation formula of a property's actual cash value -
ANSWER replacement cost
What is the coinsurance clause in property insurance policies designed to do? -
ANSWER Encourage the insured to insure the property closer to its full value
, An insured has a liability policy that pays the amount 50k for all claims that
result from any one occurrence. what kind of limit of liability does the insured's
policy contain? - ANSWER per occurrence
When insurance under a property policy is not subject to any coinsurance
requirement and the amount is paid upon occurrence of a covered loss, the
coverage is written as - ANSWER stated amount
What is stated amount coverage - ANSWER In stated amt coverage the value
of the insured property is determined at the time the policy is issued.
in the event of a loss, that amount is due without regard to any coinsurance
provision.
However, if the loss is not total, the insurer has salvage rights with the insured
having first right of refusal of the salvage.
What type of liability would someone who owns a swimming pool have? -
ANSWER Absolute
What is absolute liability - ANSWER Any act which is inherently dangerous
gives rise to absolute liability. the claimant need not prove anything
Insurable interest in the property insured under a policy must be established -
ANSWER at the time of loss
Which of the following is NOT an element of negligence
