State Farm Insurance License Exam with precise detailed answers

State Farm Insurance License Exam with
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precise detailed answers
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Abandonment |Condition |- |CORRECT |ANSWER💢✔A |condition |often |contained |in |property |insurance |
policies |that |states |that |the |insured |cannot |abandon |damaged |property |to |the |insurer |and |demand |to
|be |reimbursed |for |its |full |value.




Accident |- |CORRECT |ANSWER💢✔A |loss |that |occurs |at |a |specific |time |and |place



Actual |Cash |Value |(ACV) |- |CORRECT |ANSWER💢✔Today's |replacement |cost |minus |depreciation. |
Depreciation |from |wear |and |tear, |or |obsolescence.



admitted |insurer; |authorized |insurer |- |CORRECT |ANSWER💢✔Company |that |meets |a |state |insurance |
department's |standards |and |is |allowed |to |do |business |in |that |state.



Adverse |Selection |- |CORRECT |ANSWER💢✔the |tendency |of |insureds |with |a |greater |than |average |
chance |of |loss |to |purchase |insurance



Annual |Transit |Policy |- |CORRECT |ANSWER💢✔Nonfiled |commercial |inland |marine |transportation |form
|that |insures |a |property |owner's |incoming |or |outgoing |shipments |of |goods |during |a |year




Appraisal |Clause |- |CORRECT |ANSWER💢✔A |survey |of |property |to |determine |the |insurable |value |of |
the |property |or |the |value |of |the |loss |sustained.



Appraisal |Condition |- |CORRECT |ANSWER💢✔Policy |condition |that |outlines |a |procedure |for |when |the |
insured |and |insurer |disagree |on |the |amount |of |a |loss



Assignment |- |CORRECT |ANSWER💢✔The |legal |transfer |of |one's |interest |in |an |insurance |policy |to |
another |person.

, Aviation |Hull |Insurance |- |CORRECT |ANSWER💢✔Provides |coverage |for |physical |damage |to |an |aircraft.



Bailee's |Customers |Policy |- |CORRECT |ANSWER💢✔Nonfiled |commercial |inland |marine |form |obtained |
by |a |bailee |to |cover |loss |or |damage |to |customers' |property |in |the |bailee's |custody |without |regard |to |
liability.



Appurtenant |Structures |- |CORRECT |ANSWER💢✔Buildings |of |lesser |value |that |are |on |the |same |
premises |as |the |main |building |insured |under |a |property |policy; |they |are |usually |covered |by |the |
policy.



Assignment |Condition |- |CORRECT |ANSWER💢✔Condition |in |insurance |policies |that |specifies |that |the |
policy |cannot |be |transferred |to |another |unless |the |company |consents |to |the |transfer |in |writing.



Bailee |- |CORRECT |ANSWER💢✔A |person |or |organization |that |has |temporary |possession |of |someone |
else's |personal |property.



Basic |Perils |in |Homeowners |Policy |- |CORRECT |ANSWER💢✔There |are |14 |perils. |Fire, |lightening, |riot, |
explosion, |vehicles, |volcanic |eruption, |civil |commotion, |smoke, |hail, |aircraft, |windstorm, |vandalism, |
malicious |mischief, |theft.



Basic |Property |Policy |Structure |(DICEE) |- |CORRECT |ANSWER💢✔D |- |Declarations

I |- |Insuring |agreement

C |- |Conditions

E |- |Exclusions

E |- |Endorsements



Blanket |Insurance |- |CORRECT |ANSWER💢✔Type |of |insurance |policy |that |covers |more |than |one |item |
of |property |at |a |single |location |or |one |or |more |items |of |property |at |multiple |locations



Builders |Risk |Coverage |Form |- |CORRECT |ANSWER💢✔Commercial |property |coverage |forms |that |
covers |commercial, |residential, |or |farm |buildings |that |are |under |construction |or |during |remodeling.