State Farm Test Prep: Questions & Answers
100 years - correct answers How long has State Farm been in business?
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19,000 - correct answers How many agents does State Farm have across the US?
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Al Clark, 45 years, 40mm GWP, No - correct answers Who has the largest State Farm agency? How long have
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they been in business? How much do they manage in GWP? Is it all organic?
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They created price differences, someone in Chicago should pay more than someone in West TX because
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higher likelihood of getting into an auto accident - correct answers Why was State Farm founded?
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Private - correct answers Is State Farm publicly traded or private?
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1. Agent aspirant route (producing in an office and then becoming an approved candidate to agency
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internship to TICA) or 2. External applicant - not someone in State Farm that becomes approved and then goes
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into agency internship and TICA) - correct answers What are the 2 ways you can become a State Farm Agent?
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New Market - correct answers What is the term State Farm uses when you start scratch?
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Assignment - correct answers What is the term State Farm uses when you are given a book?
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, MOA - multiple office agent - correct answers What is the term State Farm uses when you are given a second
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location?
Scorecard, hitting moving metrics in monthly & annual lines of business sold - correct answers What is the
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annual bonus program called with State Farm? What does it entail?
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Premium builder, same as scorecard but only on TICA program and higher commissions; primarily applies to
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new market agents but get a PBP for up to 2 years depending on size of assignment - correct answers What is
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the bonus program used for TICA agents? What does it entail?
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11 - correct answers What is the highest commission percentage you can achieve with State Farm?
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10% - correct answers Most agents end up earning what commission rate with State Farm?
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AAIP - correct answers What is State Farm's retirement program for Agents called?
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In 5th year agent receives 5% of agency revenues as AAIP payment for 20 years. Pros - if you put in retirement
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account, nice chunk of change. Cons - Most agents don't put it into a retirement account - correct answers How
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does State Farm's retirement program work? What are its pros/cons?
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They think it is just as good as equity because the money grows in a 401k, Ask Moderator - correct answers Why
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do Agents find State Farm's retirement plan attractive compared to Goosehead ownership? How can you
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overcome this objection on the phone? k k k k k
Entry Agent year with State Farm, 12 months - correct answers What is the TICA program and how long is it?
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Permanent contract - correct answers If State Farm approves a TICA agent, what contract will they offer them?
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AA94, AA97, AA05 - they year they were introduced - correct answers What are the Agent contract names at
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State Farm? What do they mean? k k k k k
100 years - correct answers How long has State Farm been in business?
k k k k k k k k k k k k
19,000 - correct answers How many agents does State Farm have across the US?
k k k k k k k k k k k k k
Al Clark, 45 years, 40mm GWP, No - correct answers Who has the largest State Farm agency? How long have
k k k k k k k k k k k k k k k k k k k k
they been in business? How much do they manage in GWP? Is it all organic?
k k k k k k k k k k k k k k
They created price differences, someone in Chicago should pay more than someone in West TX because
k k k k k k k k k k k k k k k k
higher likelihood of getting into an auto accident - correct answers Why was State Farm founded?
k k k k k k k k k k k k k k k
Private - correct answers Is State Farm publicly traded or private?
k k k k k k k k k k
1. Agent aspirant route (producing in an office and then becoming an approved candidate to agency
k k k k k k k k k k k k k k k k
internship to TICA) or 2. External applicant - not someone in State Farm that becomes approved and then goes
k k k k k k k k k k k k k k k k k k k
into agency internship and TICA) - correct answers What are the 2 ways you can become a State Farm Agent?
k k k k k k k k k k k k k k k k k k k
New Market - correct answers What is the term State Farm uses when you start scratch?
k k k k k k k k k k k k k k k
Assignment - correct answers What is the term State Farm uses when you are given a book?
k k k k k k k k k k k k k k k k
, MOA - multiple office agent - correct answers What is the term State Farm uses when you are given a second
k k k k k k k k k k k k k k k k k k k k k
location?
Scorecard, hitting moving metrics in monthly & annual lines of business sold - correct answers What is the
k k k k k k k k k k k k k k k k k k
annual bonus program called with State Farm? What does it entail?
k k k k k k k k k k
Premium builder, same as scorecard but only on TICA program and higher commissions; primarily applies to
k k k k k k k k k k k k k k k k
new market agents but get a PBP for up to 2 years depending on size of assignment - correct answers What is
k k k k k k k k k k k k k k k k k k k k k k
the bonus program used for TICA agents? What does it entail?
k k k k k k k k k k
11 - correct answers What is the highest commission percentage you can achieve with State Farm?
k k k k k k k k k k k k k k k
10% - correct answers Most agents end up earning what commission rate with State Farm?
k k k k k k k k k k k k k k
AAIP - correct answers What is State Farm's retirement program for Agents called?
k k k k k k k k k k k k
In 5th year agent receives 5% of agency revenues as AAIP payment for 20 years. Pros - if you put in retirement
k k k k k k k k k k k k k k k k k k k k k k
account, nice chunk of change. Cons - Most agents don't put it into a retirement account - correct answers How
k k k k k k k k k k k k k k k k k k k
does State Farm's retirement program work? What are its pros/cons?
k k k k k k k k k k
They think it is just as good as equity because the money grows in a 401k, Ask Moderator - correct answers Why
k k k k k k k k k k k k k k k k k k k k k
do Agents find State Farm's retirement plan attractive compared to Goosehead ownership? How can you
k k k k k k k k k k k k k k k k
overcome this objection on the phone? k k k k k
Entry Agent year with State Farm, 12 months - correct answers What is the TICA program and how long is it?
k k k k k k k k k k k k k k k k k k k k
Permanent contract - correct answers If State Farm approves a TICA agent, what contract will they offer them?
k k k k k k k k k k k k k k k k k
AA94, AA97, AA05 - they year they were introduced - correct answers What are the Agent contract names at
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State Farm? What do they mean? k k k k k