STATE FARM EXAM ACTUAL EXAM QUESTIONS WITH COMPLETE
STATE FARM EXAM
SOLUTION GUIDE (A+ GRADED 100% VERIFIED) LATEST VERSION
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2025!!
1. Which statement describes a peril? a tornado damaged the
insured's home
2. a flood is an example of A peril
3. Tiffany leaves her car unlocked when she goes shop- Morale
ping.
4. Insurance company incorporated in Wisconsin and Foreign
conducting business in Wisconsin is known as a do-
mestic company. What kind of company are they con-
sidered if they do business in Minnesota?
5. what is a contractor device for transferring risk from Insurance
a person, business or organization to an insurance
company?
6. which of the following represents a pure risk? The chance your house
may burn down
7. What is a contractor device for transferring risk from Insurance
a person, business, or organization to an insurance
company?
8. which of the following represents a pure risk? the chance at your house
may burn down
9. Suzanne regularly leaves her side door unlocked the door being 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.
10. sometimes an individual or business has an excep- a non admitted insurance
tionally large or specialized risk that no authorized company.
, STATE FARM EXAM
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insurers can or will cover. In this case the individual or
business may call?
11. The ABC insurance company is incorporated in Mexi- a alien insurer
co. While doing business in Texas it is
12. the potential for accidents and other losses is called an exposure
13. Jennifer and Randy place a bet on the outcome of a A speculative Risk
basketball game period this is an example of.
14. An insurance company licensed to do business in a A certificate of authority
particular state is called
15. a loss that occurs as a consequence of a direct loss is An Indirect Loss
called
16. which of the following is not a type of hazard Pure Hazard
17. An insurance contract is prepared by one party (the Adhesion
insurance company) with little or no opportunity for
the other party (the insured) to bargain. This this char-
acteristic is called
18. In insurance, an insured may pay premium for many Aleatory
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
19. In an insurance contract, the consideration that the the premium payment
insured gives is called
20. An agreement between two parties is also called offer and acceptance
, STATE FARM EXAM
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21. the failure to disclose known facts is concealment
22. a statement that is guaranteed to be true is a Warranty
23. Allison's auto insurance policy is due on the 10th of Estoppel
each month period ever since she has had the poli-
cy, she has sent the premium in on the 16th of the
month period the insurer has been accepting the pre-
mium 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.
24. Misrepresentations do not necessarily void insurance Material
contracts period to do so they must be
25. Which of the following would not be included on the The exclusions in the poli-
declarations page of the policy? cy
26. What type of insurance policy protects the insured Property insurance policy
from loss caused by damage to covered property by
a covered peril?
27. Which of the following is not a part of the structure of Explanations
a property or casualty
28. Which of the following terms describes the person First Name Insured
listed first on the declarations page of a policy when
there is more than one named insured?
29. the policy territory provi-
sion
STATE FARM EXAM
SOLUTION GUIDE (A+ GRADED 100% VERIFIED) LATEST VERSION
Study online at https://quizlet.com/_fsdvjc
2025!!
1. Which statement describes a peril? a tornado damaged the
insured's home
2. a flood is an example of A peril
3. Tiffany leaves her car unlocked when she goes shop- Morale
ping.
4. Insurance company incorporated in Wisconsin and Foreign
conducting business in Wisconsin is known as a do-
mestic company. What kind of company are they con-
sidered if they do business in Minnesota?
5. what is a contractor device for transferring risk from Insurance
a person, business or organization to an insurance
company?
6. which of the following represents a pure risk? The chance your house
may burn down
7. What is a contractor device for transferring risk from Insurance
a person, business, or organization to an insurance
company?
8. which of the following represents a pure risk? the chance at your house
may burn down
9. Suzanne regularly leaves her side door unlocked the door being 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.
10. sometimes an individual or business has an excep- a non admitted insurance
tionally large or specialized risk that no authorized company.
, STATE FARM EXAM
Study online at https://quizlet.com/_fsdvjc
insurers can or will cover. In this case the individual or
business may call?
11. The ABC insurance company is incorporated in Mexi- a alien insurer
co. While doing business in Texas it is
12. the potential for accidents and other losses is called an exposure
13. Jennifer and Randy place a bet on the outcome of a A speculative Risk
basketball game period this is an example of.
14. An insurance company licensed to do business in a A certificate of authority
particular state is called
15. a loss that occurs as a consequence of a direct loss is An Indirect Loss
called
16. which of the following is not a type of hazard Pure Hazard
17. An insurance contract is prepared by one party (the Adhesion
insurance company) with little or no opportunity for
the other party (the insured) to bargain. This this char-
acteristic is called
18. In insurance, an insured may pay premium for many Aleatory
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
19. In an insurance contract, the consideration that the the premium payment
insured gives is called
20. An agreement between two parties is also called offer and acceptance
, STATE FARM EXAM
Study online at https://quizlet.com/_fsdvjc
21. the failure to disclose known facts is concealment
22. a statement that is guaranteed to be true is a Warranty
23. Allison's auto insurance policy is due on the 10th of Estoppel
each month period ever since she has had the poli-
cy, she has sent the premium in on the 16th of the
month period the insurer has been accepting the pre-
mium 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.
24. Misrepresentations do not necessarily void insurance Material
contracts period to do so they must be
25. Which of the following would not be included on the The exclusions in the poli-
declarations page of the policy? cy
26. What type of insurance policy protects the insured Property insurance policy
from loss caused by damage to covered property by
a covered peril?
27. Which of the following is not a part of the structure of Explanations
a property or casualty
28. Which of the following terms describes the person First Name Insured
listed first on the declarations page of a policy when
there is more than one named insured?
29. the policy territory provi-
sion
