State Farm Estimatics Exam (Latest 2025 / 2026): Most Comprehensive Qs & Ans - to Pass the Exam, 100% Verified - UPDATED

State Farm Insurance License Exam
Abandonment Condition - ANS>>A condition often contained in property insurance
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policies that states that the insured cannot abandon damaged property to the insurer
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and demand to be reimbursed for its full value.
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Accident - ANS>>A loss that occurs at a specific time and place
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Actual Cash Value (ACV) - ANS>>Today's replacement cost minus depreciation.
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Depreciation from wear and tear, or obsolescence.
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admitted insurer; authorized insurer - ANS>>Company that meets a state insurance
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department's standards and is allowed to do business in that state.
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Adverse Selection - ANS>>the tendency of insureds with a greater than average
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chance of loss to purchase insurance
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Annual Transit Policy - ANS>>Nonfiled commercial inland marine transportation form
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that insures a property owner's incoming or outgoing shipments of goods during a
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year
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Appraisal Clause - ANS>>A survey of property to determine the insurable value of the
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property or the value of the loss sustained.
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Appraisal Condition - ANS>>Policy condition that outlines a procedure for when the
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insured and insurer disagree on the amount of a loss
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Assignment - ANS>>The legal transfer of one's interest in an insurance policy to
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another person.
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Aviation Hull Insurance - ANS>>Provides coverage for physical damage to an aircraft.
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Bailee's Customers Policy - ANS>>Nonfiled commercial inland marine form obtained
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by a bailee to cover loss or damage to customers' property in the bailee's custody
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without regard to liability.
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Appurtenant Structures - ANS>>Buildings of lesser value that are on the same
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premises as the main building insured under a property policy; they are usually
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covered by the policy.
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Assignment Condition - ANS>>Condition in insurance policies that specifies that the
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policy cannot be transferred to another unless the company consents to the transfer
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in writing.
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, Bailee - ANS>>A person or organization that has temporary possession of someone
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else's personal property.
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Basic Perils in Homeowners Policy - ANS>>There are 14 perils. Fire, lightening, riot,
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explosion, vehicles, volcanic eruption, civil commotion, smoke, hail, aircraft,
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windstorm, vandalism, malicious mischief, theft.
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Basic Property Policy Structure (DICEE) - ANS>>D - Declarations
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I - Insuring agreement
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C - Conditions
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E - Exclusions
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E - Endorsements
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Blanket Insurance - ANS>>Type of insurance policy that covers more than one item of
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property at a single location or one or more items of property at multiple locations
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Builders Risk Coverage Form - ANS>>Commercial property coverage forms that
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covers commercial, residential, or farm buildings that are under construction or during
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remodeling.
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Cargo Insurance - ANS>>Type of ocean marine insurance that covers goods while
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they are in transit over water.
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Binder - ANS>>Oral or written statement that provides immediate insurance protection
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for a specified period; designed to provide temporary coverage until a policy is issued
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or denied.
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BOP - ANS>>Package policy designed to provide broad property and liability
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coverage for small businesses; eligibility requirements are stricter than the CPP.
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Business Income Policy - ANS>>Pays for loss of income that the insured sustains due
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to a direct physical loss from a covered peril that forces the insured to suspend
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operations until the property can be repaired, rebuilt, or replaced with reasonable
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speed; available with or without extra expense coverage.
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Causes of Loss Form - ANS>>Separate form used with the commercial property
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coverage part of the commercial package policy that lists covered perils and
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exclusions. Several different versions provide increasingly broader coverage from
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basic to broad to special.
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Condominium Association Coverage Form - ANS>>Commercial Property coverage ee ee ee ee ee ee ee



form that covers the buildings in a condominium complex. Does not cover
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condominium owner's personal property.
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