STATE FARM PROPERTY COMPREHENSIVE QUESTIONS AND ANSWERS 2026 (FULL TEST).

STATE FARM PROPERTY COMPREHENSIVE
QUESTIONS AND ANSWERS 2026 (FULL TEST)



In property insurance actual cash value is defined as which of the following -

CORRECT ANSWER (S) -Replacement cost at the time of the loss, less depreciation




Peril is most easily defined as - CORRECT ANSWER (S) -the cause of loss insured

against




What is a leading factor in the determination of actual cash value - CORRECT

ANSWER (S) -replacement cost




Replacement cost is defined as - CORRECT ANSWER (S) -full replacement of

property at its current cost, new and without reduction for depreciation

, Property insurance that provides 100k coverage for a building and 50k coverage

for personal property at a single location is called - CORRECT ANSWER (S) -Specific

coverage




Which of the following is used in the formula for calculating the actual cash value

of a property - CORRECT ANSWER (S) -replacement cost




What is the purpose of the coinsurance clause found in property insurance

policies? - CORRECT ANSWER (S) -Encourage the insured to insure the property

closer to its full value




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? - CORRECT ANSWER (S) -per occurrence