State Farm
Insurance License
Exam Questions and
Answers Latest
2026
AbandonmentBConditionB-
BAnswerBBABconditionBoftenBcontainedBinBpropertyBinsuranceBpoliciesBthatBstatesBtha
tBtheBinsuredBcannotBabandonBdamagedBpropertyBtoBtheBinsurerBandBdemandBtoBbe
BreimbursedBforBitsBfullBvalue.
AccidentB-BAnswerBBABlossBthatBoccursBatBaBspecificBtimeBandBplace
ActualBCashBValueB(ACV)B-
BAnswerBBToday'sBreplacementBcostBminusBdepreciation.BDepreciationBfromBwearBand
Btear,BorBobsolescence.
admittedBinsurer;BauthorizedBinsurerB-
BAnswerBBCompanyBthatBmeetsBaBstateBinsuranceBdepartment'sBstandardsBandBisBallo
wedBtoBdoBbusinessBinBthatBstate.
AdverseBSelectionB-
BAnswerBBtheBtendencyBofBinsuredsBwithBaBgreaterBthanBaverageBchanceBofBlossBtoB
purchaseBinsurance
AnnualBTransitBPolicyB-
BAnswerBBNonfiledBcommercialBinlandBmarineBtransportationBformBthatBinsuresBaBpro
pertyBowner'sBincomingBorBoutgoingBshipmentsBofBgoodsBduringBaByear
,AppraisalBClauseB-
BAnswerBBABsurveyBofBpropertyBtoBdetermineBtheBinsurableBvalueBofBtheBpropertyBo
rBtheBvalueBofBtheBlossBsustained.
AppraisalBConditionB-
BAnswerBBPolicyBconditionBthatBoutlinesBaBprocedureBforBwhenBtheBinsuredBandBinsu
rerBdisagreeBonBtheBamountBofBaBloss
AssignmentB-
BAnswerBBTheBlegalBtransferBofBone'sBinterestBinBanBinsuranceBpolicyBtoBanotherBper
son.
AviationBHullBInsuranceB-
BAnswerBBProvidesBcoverageBforBphysicalBdamageBtoBanBaircraft.
Bailee'sBCustomersBPolicyB-
BAnswerBBNonfiledBcommercialBinlandBmarineBformBobtainedBbyBaBbaileeBtoBcoverBlo
ssBorBdamageBtoBcustomers'BpropertyBinBtheBbailee'sBcustodyBwithoutBregardBtoBliabi
lity.
AppurtenantBStructuresB-
BAnswerBBBuildingsBofBlesserBvalueBthatBareBonBtheBsameBpremisesBasBtheBmainBbui
ldingBinsuredBunderBaBpropertyBpolicy;BtheyBareBusuallyBcoveredBbyBtheBpolicy.
AssignmentBConditionB-
BAnswerBBConditionBinBinsuranceBpoliciesBthatBspecifiesBthatBtheBpolicyBcannotBbeBtr
ansferredBtoBanotherBunlessBtheBcompanyBconsentsBtoBtheBtransferBinBwriting.
BaileeB-
BAnswerBBABpersonBorBorganizationBthatBhasBtemporaryBpossessionBofBsomeoneBelse'
sBpersonalBproperty.
, BasicBPerilsBinBHomeownersBPolicyB-
BAnswerBBThereBareB14Bperils.BFire,Blightening,Briot,Bexplosion,Bvehicles,BvolcanicBeru
ption,BcivilBcommotion,Bsmoke,Bhail,Baircraft,Bwindstorm,Bvandalism,BmaliciousBmischie
f,Btheft.
BasicBPropertyBPolicyBStructureB(DICEE)B-BAnswerBBDB-BDeclarations
IB-BInsuringBagreement
CB-BConditions
EB-BExclusions
EB-BEndorsements
BlanketBInsuranceB-
BAnswerBBTypeBofBinsuranceBpolicyBthatBcoversBmoreBthanBoneBitemBofBpropertyBat
BaBsingleBlocationBorBoneBorBmoreBitemsBofBpropertyBatBmultipleBlocations
BuildersBRiskBCoverageBFormB-
BAnswerBBCommercialBpropertyBcoverageBformsBthatBcoversBcommercial,Bresidential,B
orBfarmBbuildingsBthatBareBunderBconstructionBorBduringBremodeling.
CargoBInsuranceB-
BAnswerBBTypeBofBoceanBmarineBinsuranceBthatBcoversBgoodsBwhileBtheyBareBinBtran
sitBoverBwater.
BinderB-
BAnswerBBOralBorBwrittenBstatementBthatBprovidesBimmediateBinsuranceBprotectionBf
orBaBspecifiedBperiod;BdesignedBtoBprovideBtemporaryBcoverageBuntilBaBpolicyBisBissu
edBorBdenied.
BOPB-
BAnswerBBPackageBpolicyBdesignedBtoBprovideBbroadBpropertyBandBliabilityBcoverageB
forBsmallBbusinesses;BeligibilityBrequirementsBareBstricterBthanBtheBCPP.
Insurance License
Exam Questions and
Answers Latest
2026
AbandonmentBConditionB-
BAnswerBBABconditionBoftenBcontainedBinBpropertyBinsuranceBpoliciesBthatBstatesBtha
tBtheBinsuredBcannotBabandonBdamagedBpropertyBtoBtheBinsurerBandBdemandBtoBbe
BreimbursedBforBitsBfullBvalue.
AccidentB-BAnswerBBABlossBthatBoccursBatBaBspecificBtimeBandBplace
ActualBCashBValueB(ACV)B-
BAnswerBBToday'sBreplacementBcostBminusBdepreciation.BDepreciationBfromBwearBand
Btear,BorBobsolescence.
admittedBinsurer;BauthorizedBinsurerB-
BAnswerBBCompanyBthatBmeetsBaBstateBinsuranceBdepartment'sBstandardsBandBisBallo
wedBtoBdoBbusinessBinBthatBstate.
AdverseBSelectionB-
BAnswerBBtheBtendencyBofBinsuredsBwithBaBgreaterBthanBaverageBchanceBofBlossBtoB
purchaseBinsurance
AnnualBTransitBPolicyB-
BAnswerBBNonfiledBcommercialBinlandBmarineBtransportationBformBthatBinsuresBaBpro
pertyBowner'sBincomingBorBoutgoingBshipmentsBofBgoodsBduringBaByear
,AppraisalBClauseB-
BAnswerBBABsurveyBofBpropertyBtoBdetermineBtheBinsurableBvalueBofBtheBpropertyBo
rBtheBvalueBofBtheBlossBsustained.
AppraisalBConditionB-
BAnswerBBPolicyBconditionBthatBoutlinesBaBprocedureBforBwhenBtheBinsuredBandBinsu
rerBdisagreeBonBtheBamountBofBaBloss
AssignmentB-
BAnswerBBTheBlegalBtransferBofBone'sBinterestBinBanBinsuranceBpolicyBtoBanotherBper
son.
AviationBHullBInsuranceB-
BAnswerBBProvidesBcoverageBforBphysicalBdamageBtoBanBaircraft.
Bailee'sBCustomersBPolicyB-
BAnswerBBNonfiledBcommercialBinlandBmarineBformBobtainedBbyBaBbaileeBtoBcoverBlo
ssBorBdamageBtoBcustomers'BpropertyBinBtheBbailee'sBcustodyBwithoutBregardBtoBliabi
lity.
AppurtenantBStructuresB-
BAnswerBBBuildingsBofBlesserBvalueBthatBareBonBtheBsameBpremisesBasBtheBmainBbui
ldingBinsuredBunderBaBpropertyBpolicy;BtheyBareBusuallyBcoveredBbyBtheBpolicy.
AssignmentBConditionB-
BAnswerBBConditionBinBinsuranceBpoliciesBthatBspecifiesBthatBtheBpolicyBcannotBbeBtr
ansferredBtoBanotherBunlessBtheBcompanyBconsentsBtoBtheBtransferBinBwriting.
BaileeB-
BAnswerBBABpersonBorBorganizationBthatBhasBtemporaryBpossessionBofBsomeoneBelse'
sBpersonalBproperty.
, BasicBPerilsBinBHomeownersBPolicyB-
BAnswerBBThereBareB14Bperils.BFire,Blightening,Briot,Bexplosion,Bvehicles,BvolcanicBeru
ption,BcivilBcommotion,Bsmoke,Bhail,Baircraft,Bwindstorm,Bvandalism,BmaliciousBmischie
f,Btheft.
BasicBPropertyBPolicyBStructureB(DICEE)B-BAnswerBBDB-BDeclarations
IB-BInsuringBagreement
CB-BConditions
EB-BExclusions
EB-BEndorsements
BlanketBInsuranceB-
BAnswerBBTypeBofBinsuranceBpolicyBthatBcoversBmoreBthanBoneBitemBofBpropertyBat
BaBsingleBlocationBorBoneBorBmoreBitemsBofBpropertyBatBmultipleBlocations
BuildersBRiskBCoverageBFormB-
BAnswerBBCommercialBpropertyBcoverageBformsBthatBcoversBcommercial,Bresidential,B
orBfarmBbuildingsBthatBareBunderBconstructionBorBduringBremodeling.
CargoBInsuranceB-
BAnswerBBTypeBofBoceanBmarineBinsuranceBthatBcoversBgoodsBwhileBtheyBareBinBtran
sitBoverBwater.
BinderB-
BAnswerBBOralBorBwrittenBstatementBthatBprovidesBimmediateBinsuranceBprotectionBf
orBaBspecifiedBperiod;BdesignedBtoBprovideBtemporaryBcoverageBuntilBaBpolicyBisBissu
edBorBdenied.
BOPB-
BAnswerBBPackageBpolicyBdesignedBtoBprovideBbroadBpropertyBandBliabilityBcoverageB
forBsmallBbusinesses;BeligibilityBrequirementsBareBstricterBthanBtheBCPP.