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STATE FARM PROPERTY EXAM|
COMPREHENSIVE Q&A FOR CERTIFICATION
SUCCESS
What are the four essential elements of all legal contracts - correct-answer - offer
and acceptance, consideration, competent parties, and legal purpose
In forming an insurance contract, when does acceptance usually occur? - correct-
answer - when an insurer's underwriter approves coverage
Who is responsible for filling out a notice of claim form - correct-answer - insured
what is a notice of claim - correct-answer - a form or statement from an insured
to an insurer, informing the insurer that events leading to a possible claim have
occurred
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If a property is covered by comp a for 20k and comp b covers the same property
for 40k, how much will comp a pay on a 24k loss? - correct-answer - 8000
pro rata liability applies
each policy pays a percentage of the loss based on the percentage of coverage
that policy provides.
comp a carries 1/3 of the total coverage (20k + 40k = 60k)
Therefore 1/3 of the 24k loss is 8,000
In the event of a loss covered by the policy, if the insurer requests a signed sworn
proof of loss, the named insured is required to submit it within - correct-answer -
a specified time
STATE FARM PROPERTY EXAM|
COMPREHENSIVE Q&A FOR CERTIFICATION
SUCCESS
What are the four essential elements of all legal contracts - correct-answer - offer
and acceptance, consideration, competent parties, and legal purpose
In forming an insurance contract, when does acceptance usually occur? - correct-
answer - when an insurer's underwriter approves coverage
Who is responsible for filling out a notice of claim form - correct-answer - insured
what is a notice of claim - correct-answer - a form or statement from an insured
to an insurer, informing the insurer that events leading to a possible claim have
occurred
, 2|Page
If a property is covered by comp a for 20k and comp b covers the same property
for 40k, how much will comp a pay on a 24k loss? - correct-answer - 8000
pro rata liability applies
each policy pays a percentage of the loss based on the percentage of coverage
that policy provides.
comp a carries 1/3 of the total coverage (20k + 40k = 60k)
Therefore 1/3 of the 24k loss is 8,000
In the event of a loss covered by the policy, if the insurer requests a signed sworn
proof of loss, the named insured is required to submit it within - correct-answer -
a specified time
