State Farm Property EXAM Questions AND Correct Answers
a commercial property special form covers property in transit up to - ✔✔5k
A homeowner sells his house to a friend. the friend wants to keep the
homeowners current policy in effect. under the assignment provision which of
the following is most likely? - ✔✔the homeowner will need to get written
consent from the insurer before the policy can be reassigned
A person who is not named as an insured on the dec page of a policy but is
protected by the policy is known as the - ✔✔additional insured
All of the following are conditions commonly found in the insurance policy
EXCEPT - ✔✔insuring agreement
An insured has a liability policy that sets the amount at 50k for all claims that
arise from a single incident. which type of limit of liability does this insured's
policy have? - ✔✔per occurrence
An insurer neglects to pay for legitimate claim that is covered under the terms
of the policy. Which of the following insurance principles has the insurer
violated - ✔✔consideration
Before an insurer will pay any loss under a policy, what is usually required from
the insured? - ✔✔proof of loss
If a property is covered by comp a for 20k and comp b covers the same property
for 40k, how much will comp a pay on a 24k loss? - ✔✔8000
, pro rata liability applies
each policy pays a percentage of the loss based on the percentage of coverage
that policy provides.
comp a carries 1/3 of the total coverage (20k + 40k = 60k)
Therefore 1/3 of the 24k loss is 8,000
If more than one person has an insurable interest in the property covered under
a dwelling policy - ✔✔The insurer will be liable for only the insured's interest in
the damaged property
In forming an insurance contract, when does acceptance usually occur? -
✔✔when an insurer's underwriter approves coverage
In property insurance actual cash value is defined as which of the following -
✔✔Replacement cost at the time of the loss, less depreciation
In return for premium, an insurance company - ✔✔be fair in underwriting and
pay covered losses
In the event of a loss covered by the policy, if the insurer requests a signed
sworn proof of loss, the named insured is required to submit it within - ✔✔a
specified time
a commercial property special form covers property in transit up to - ✔✔5k
A homeowner sells his house to a friend. the friend wants to keep the
homeowners current policy in effect. under the assignment provision which of
the following is most likely? - ✔✔the homeowner will need to get written
consent from the insurer before the policy can be reassigned
A person who is not named as an insured on the dec page of a policy but is
protected by the policy is known as the - ✔✔additional insured
All of the following are conditions commonly found in the insurance policy
EXCEPT - ✔✔insuring agreement
An insured has a liability policy that sets the amount at 50k for all claims that
arise from a single incident. which type of limit of liability does this insured's
policy have? - ✔✔per occurrence
An insurer neglects to pay for legitimate claim that is covered under the terms
of the policy. Which of the following insurance principles has the insurer
violated - ✔✔consideration
Before an insurer will pay any loss under a policy, what is usually required from
the insured? - ✔✔proof of loss
If a property is covered by comp a for 20k and comp b covers the same property
for 40k, how much will comp a pay on a 24k loss? - ✔✔8000
, pro rata liability applies
each policy pays a percentage of the loss based on the percentage of coverage
that policy provides.
comp a carries 1/3 of the total coverage (20k + 40k = 60k)
Therefore 1/3 of the 24k loss is 8,000
If more than one person has an insurable interest in the property covered under
a dwelling policy - ✔✔The insurer will be liable for only the insured's interest in
the damaged property
In forming an insurance contract, when does acceptance usually occur? -
✔✔when an insurer's underwriter approves coverage
In property insurance actual cash value is defined as which of the following -
✔✔Replacement cost at the time of the loss, less depreciation
In return for premium, an insurance company - ✔✔be fair in underwriting and
pay covered losses
In the event of a loss covered by the policy, if the insurer requests a signed
sworn proof of loss, the named insured is required to submit it within - ✔✔a
specified time
