STATE FARM INSURANCE
LICENSE EXAM QUESTIONS
AND CORRECT DETAILED
ANSWERS UPDATE ALREADY A
GRADED|NEW!
STATE FARM INSURANCE LICENSE EXAM
Assignment Condition - CORRECT ANSWER -Condition
in insurance policies that specifies that the policy cannot be
transferred to another unless the company consents to the
transfer in writing.
Bailee - CORRECT ANSWER -A person or organization
that has temporary possession of someone else's personal
property.
Basic Perils in Homeowners Policy - CORRECT ANSWER
-There are 14 perils. Fire, lightening, riot, explosion, vehicles,
,volcanic eruption, civil commotion, smoke, hail, aircraft,
windstorm, vandalism, malicious mischief, theft.
Basic Property Policy Structure (DICEE) - CORRECT
ANSWER -D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
Blanket Insurance - CORRECT ANSWER -Type of
insurance policy that covers more than one item of property at
a single location or one or more items of property at multiple
locations
Builders Risk Coverage Form - CORRECT ANSWER -
Commercial property coverage forms that covers commercial,
residential, or farm buildings that are under construction or
during remodeling.
,Cargo Insurance - CORRECT ANSWER -Type of ocean
marine insurance that covers goods while they are in transit
over water.
Binder - CORRECT ANSWER -Oral or written statement
that provides immediate insurance protection for a specified
period; designed to provide temporary coverage until a policy
is issued or denied.
BOP - CORRECT ANSWER -Package policy designed to
provide broad property and liability coverage for small
businesses; eligibility requirements are stricter than the CPP.
Business Income Policy - CORRECT ANSWER -Pays for
loss of income that the insured sustains due to a direct
physical loss from a covered peril that forces the insured to
suspend operations until the property can be repaired, rebuilt,
or replaced with reasonable speed; available with or without
extra expense coverage.
, Causes of Loss Form - CORRECT ANSWER -Separate form
used with the commercial property coverage part of the
commercial package policy that lists covered perils and
exclusions. Several different versions provide increasingly
broader coverage from basic to broad to special.
Condominium Association Coverage Form - CORRECT
ANSWER -Commercial Property coverage form that covers
the buildings in a condominium complex. Does not cover
condominium owner's personal property.
Coverage D on a HO Policy - Loss of Use - CORRECT
ANSWER -If property loss makes the residence premises
uninhabitable, the additional living expenses are covered; or if
a covered loss to the insured's property makes a part of the
residence premises uninhabitable that is rented to others or
held for rental by the insured, this coverage will pay the fair
rental value.
LICENSE EXAM QUESTIONS
AND CORRECT DETAILED
ANSWERS UPDATE ALREADY A
GRADED|NEW!
STATE FARM INSURANCE LICENSE EXAM
Assignment Condition - CORRECT ANSWER -Condition
in insurance policies that specifies that the policy cannot be
transferred to another unless the company consents to the
transfer in writing.
Bailee - CORRECT ANSWER -A person or organization
that has temporary possession of someone else's personal
property.
Basic Perils in Homeowners Policy - CORRECT ANSWER
-There are 14 perils. Fire, lightening, riot, explosion, vehicles,
,volcanic eruption, civil commotion, smoke, hail, aircraft,
windstorm, vandalism, malicious mischief, theft.
Basic Property Policy Structure (DICEE) - CORRECT
ANSWER -D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
Blanket Insurance - CORRECT ANSWER -Type of
insurance policy that covers more than one item of property at
a single location or one or more items of property at multiple
locations
Builders Risk Coverage Form - CORRECT ANSWER -
Commercial property coverage forms that covers commercial,
residential, or farm buildings that are under construction or
during remodeling.
,Cargo Insurance - CORRECT ANSWER -Type of ocean
marine insurance that covers goods while they are in transit
over water.
Binder - CORRECT ANSWER -Oral or written statement
that provides immediate insurance protection for a specified
period; designed to provide temporary coverage until a policy
is issued or denied.
BOP - CORRECT ANSWER -Package policy designed to
provide broad property and liability coverage for small
businesses; eligibility requirements are stricter than the CPP.
Business Income Policy - CORRECT ANSWER -Pays for
loss of income that the insured sustains due to a direct
physical loss from a covered peril that forces the insured to
suspend operations until the property can be repaired, rebuilt,
or replaced with reasonable speed; available with or without
extra expense coverage.
, Causes of Loss Form - CORRECT ANSWER -Separate form
used with the commercial property coverage part of the
commercial package policy that lists covered perils and
exclusions. Several different versions provide increasingly
broader coverage from basic to broad to special.
Condominium Association Coverage Form - CORRECT
ANSWER -Commercial Property coverage form that covers
the buildings in a condominium complex. Does not cover
condominium owner's personal property.
Coverage D on a HO Policy - Loss of Use - CORRECT
ANSWER -If property loss makes the residence premises
uninhabitable, the additional living expenses are covered; or if
a covered loss to the insured's property makes a part of the
residence premises uninhabitable that is rented to others or
held for rental by the insured, this coverage will pay the fair
rental value.
