State Farm Insurance License Exam

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.