State Farm (2026) Ultimate Questions
and Answers 100% Correct (verified)
‣ Warranties (GI) -✓✓Statements made in an application for insurance or material
stipulations in the policy that are guaranteed as true in all respects.
‣ Waiver (GI) -✓✓The voluntary abandonment of a known or legal right or advantage.
‣ Agent (IL) -✓✓An insurance licensed producer appointed by an insurer to represent
that company to present policies on its behalf.
‣ Agent Residence (IL) -✓✓Resident Agent - producer who resides and is licensed in
this state.
Non Resident Agent - producer who resides and is licensed in any other state.
‣ Assigned Risk Plan (IL) -✓✓A state required plan where all insurers must participate,
providing auto insurance for those persons not able to obtain insurance through normal
channels.
‣ Burglary (IL) -✓✓The taking of property from inside the premises by a person
unlawfully entering or leaving the premises as evidenced by visible signs of forcible
entry or exit.
‣ Construction (frame) (PI) -✓✓A structure with walls and interior structural components
made of wood or other combustible materials.
‣ Personal Auto Policy
Raising Factors
(Most Common) (CI) -✓✓Liability - age, sex, marital status, driving record, vehicle use,
annual mileage, territory of garage, and liability limits selected.
Physical Damage - all of the above, plus, year, make and model of the insured vehicle,
deductible selected.
‣ Personal Auto Policy
Parts A-F
(CI) -✓✓A - Liability Coverage
B - Medical Payments Coverage
C - Uninsured and underinsured motorists coverage
D - Coverage for damage to your auto
E - Duties after an accident or loss
F - General Provisions
‣ Workers Compensation
,Benefits
(CI) -✓✓- Medical benefits
- Disability income benefits
- Rehabilitation benefits
- Death and survivor benefits (funeral expenses)
‣ Workers Compensation
Types of Laws
(CI) -✓✓Compulsory - Employers required to provide Workers' Compensation benefits
to employees or demonstrate the ability to provide.
Elective - Employers have choice to accept or reject Workers' Compensation laws.
Monopolistic - Workers Compensation insurance only available through state fund.
Competitive - Workers' Compensation insurance available through private insurers.
‣ Personal Articles Floater (PI) -✓✓Used to insure 'individual' personal property on an
itemized or scheduled basis.
Coverage is worldwide.
‣ Personal Articles Floater
(Examples)
(PI) -✓✓- Personal jewelry floater
- Personal effects floater (items worn by travelers)
- Fine arts floater (paintings, manuscripts, antiques)
- Camera floater
- Musical instrument Floater
‣ Personal Watercraft Insurance
(PI) -✓✓Boatowners Policy- similar to HO, covers boats that can be towed, property &
liability.
Outboard Motorboat Policy - inland marine form, covers outboard motors and boats,
direct property loss only.
Yacht Policy - ocean marine form, larger vessels, property & liability.
‣ Truckers Coverage Form
(CI) -✓✓For those firms or persons that are in the business of transporting goods or
commodities for another
Section I- Covered Autos
Section II - Liability Cov
Section III- Trailer Interchange Coverage - covers trailer that ind does not own but has
in his possession along with a written Trailer Interchange Agreement
Section IV - Physical Damage Coverage
Section V- Truckers Conditions
Section VI- Definitions
‣ Ocean Marine Insurance
, (PI) -✓✓Protect against losses to property while being chipped by ocean, or inland
waterways.
Unregulated in regard to forms and rates
‣ Ocean Marine Policy
(PI) -✓✓- Hull Insurance - ship itself
- Cargo Insurance - goods being shipped
- Freight Insurance - freight charges and import duties
-General Average - loss is apportioned or shared among all
- Particular Average - loss affects only a particular interest
- Collision/Running down clause - collision with another vessel
- Inchmaree Clause - burst boiler, broken propeller, crew navigation errors
‣ Ocean Marine Policy
(PI) -✓✓Written "full value" ad will become void if certain implied warranties are violated:
Legality-legal goods
Seaworthiness - seaworthy ship/competent crew
No Deviation in Voyage - sail the course filed with the insurer.
‣ Nationwide Marine Definition
(PI) -✓✓Six broad classes of property that may be insured under a marine contract:
*Imports
*Exports
*Domestic Shipments
*Instrumentalities of Transportation or Communication (bridges, tunnels, towers)
*Personal Property Floater Risks
*Commercial Property Floater Risks
‣ Commercial Inland Marine Coverage
Forms and Floaters
(PI) -✓✓- Accounts Receivable Coverage Form (C)
- Bailees Custoemrs Form (U)
- Commercial Articles Coverage Form (C)
- Contractors Equipment Floater (U)
- Electronic Data Processing Floater (U)
- Equipment Dealers Coverage Form (C)
- Installation Floater (U)
- Jewelers Block Coverage Form (C)
- Valuable Papers and Records Coverage Form (C)
‣ Guarantee Association
(IL) -✓✓A nonprofit association generally comprised of all licensed, admitted carriers
that covers claims of insolvent member carriers.
and Answers 100% Correct (verified)
‣ Warranties (GI) -✓✓Statements made in an application for insurance or material
stipulations in the policy that are guaranteed as true in all respects.
‣ Waiver (GI) -✓✓The voluntary abandonment of a known or legal right or advantage.
‣ Agent (IL) -✓✓An insurance licensed producer appointed by an insurer to represent
that company to present policies on its behalf.
‣ Agent Residence (IL) -✓✓Resident Agent - producer who resides and is licensed in
this state.
Non Resident Agent - producer who resides and is licensed in any other state.
‣ Assigned Risk Plan (IL) -✓✓A state required plan where all insurers must participate,
providing auto insurance for those persons not able to obtain insurance through normal
channels.
‣ Burglary (IL) -✓✓The taking of property from inside the premises by a person
unlawfully entering or leaving the premises as evidenced by visible signs of forcible
entry or exit.
‣ Construction (frame) (PI) -✓✓A structure with walls and interior structural components
made of wood or other combustible materials.
‣ Personal Auto Policy
Raising Factors
(Most Common) (CI) -✓✓Liability - age, sex, marital status, driving record, vehicle use,
annual mileage, territory of garage, and liability limits selected.
Physical Damage - all of the above, plus, year, make and model of the insured vehicle,
deductible selected.
‣ Personal Auto Policy
Parts A-F
(CI) -✓✓A - Liability Coverage
B - Medical Payments Coverage
C - Uninsured and underinsured motorists coverage
D - Coverage for damage to your auto
E - Duties after an accident or loss
F - General Provisions
‣ Workers Compensation
,Benefits
(CI) -✓✓- Medical benefits
- Disability income benefits
- Rehabilitation benefits
- Death and survivor benefits (funeral expenses)
‣ Workers Compensation
Types of Laws
(CI) -✓✓Compulsory - Employers required to provide Workers' Compensation benefits
to employees or demonstrate the ability to provide.
Elective - Employers have choice to accept or reject Workers' Compensation laws.
Monopolistic - Workers Compensation insurance only available through state fund.
Competitive - Workers' Compensation insurance available through private insurers.
‣ Personal Articles Floater (PI) -✓✓Used to insure 'individual' personal property on an
itemized or scheduled basis.
Coverage is worldwide.
‣ Personal Articles Floater
(Examples)
(PI) -✓✓- Personal jewelry floater
- Personal effects floater (items worn by travelers)
- Fine arts floater (paintings, manuscripts, antiques)
- Camera floater
- Musical instrument Floater
‣ Personal Watercraft Insurance
(PI) -✓✓Boatowners Policy- similar to HO, covers boats that can be towed, property &
liability.
Outboard Motorboat Policy - inland marine form, covers outboard motors and boats,
direct property loss only.
Yacht Policy - ocean marine form, larger vessels, property & liability.
‣ Truckers Coverage Form
(CI) -✓✓For those firms or persons that are in the business of transporting goods or
commodities for another
Section I- Covered Autos
Section II - Liability Cov
Section III- Trailer Interchange Coverage - covers trailer that ind does not own but has
in his possession along with a written Trailer Interchange Agreement
Section IV - Physical Damage Coverage
Section V- Truckers Conditions
Section VI- Definitions
‣ Ocean Marine Insurance
, (PI) -✓✓Protect against losses to property while being chipped by ocean, or inland
waterways.
Unregulated in regard to forms and rates
‣ Ocean Marine Policy
(PI) -✓✓- Hull Insurance - ship itself
- Cargo Insurance - goods being shipped
- Freight Insurance - freight charges and import duties
-General Average - loss is apportioned or shared among all
- Particular Average - loss affects only a particular interest
- Collision/Running down clause - collision with another vessel
- Inchmaree Clause - burst boiler, broken propeller, crew navigation errors
‣ Ocean Marine Policy
(PI) -✓✓Written "full value" ad will become void if certain implied warranties are violated:
Legality-legal goods
Seaworthiness - seaworthy ship/competent crew
No Deviation in Voyage - sail the course filed with the insurer.
‣ Nationwide Marine Definition
(PI) -✓✓Six broad classes of property that may be insured under a marine contract:
*Imports
*Exports
*Domestic Shipments
*Instrumentalities of Transportation or Communication (bridges, tunnels, towers)
*Personal Property Floater Risks
*Commercial Property Floater Risks
‣ Commercial Inland Marine Coverage
Forms and Floaters
(PI) -✓✓- Accounts Receivable Coverage Form (C)
- Bailees Custoemrs Form (U)
- Commercial Articles Coverage Form (C)
- Contractors Equipment Floater (U)
- Electronic Data Processing Floater (U)
- Equipment Dealers Coverage Form (C)
- Installation Floater (U)
- Jewelers Block Coverage Form (C)
- Valuable Papers and Records Coverage Form (C)
‣ Guarantee Association
(IL) -✓✓A nonprofit association generally comprised of all licensed, admitted carriers
that covers claims of insolvent member carriers.
