STATE FARM INSURANCE LICENSE EXAM 2026
LATEST UPDATE QUESTIONS AND CORRECT
VERIFIED ANSWERS ALREDY GRADED A+
Pair and Set Provision - ANS-Found in some property and inland marine policies stating the
company will pay for loss of part of a set by either repairing or replacing the damaged article
or paying the difference between the ACV of the intact set and the ACV of the articles
remaining after the loss.
Parts of a legal contract (CLOC/CLAC) - ANS-Competent parties
Lawful objective
Offer and acceptance
Consideration
Personal effects form - ANS-Inland marine form that covers an insured's personal belongings,
such as baggage, while traveling.
Open Peril; all risk; special coverage - ANS-Insurance policy that protects the insured from
losses caused by any peril that is not specifically excluded by the policy
Parts of a Homeowners Policy - ANS-Coverage A - dwelling
Coverage B - other structures
Coverage C - personal property/contents
Coverage D - loss of use/additional living expenses
Coverage E - personal liability
Coverage F - medical payments to others
, Personal Articles Form - ANS-Inland marine form that provides scheduled coverage for nine
optional classes of personal property: jewelry, furs, cameras, musical instruments, silverware,
golf equipment, fine arts, stamp collections, and coin collections.
Primary Insurance - ANS-When two or more coverage or policies apply to the same loss, the
one that pays first, up to its limit of liability or the amount of the loss, whichever is less.
Pro Rata Basis - ANS-Insurance company cancels the policy; unearned premium is returned to
the insured. No penalty is applied to this method of cancellation.
Protection and Indemnity - ANS-Form of ocean marine liability insurance that covers a variety
of types of liability, such as a damage to cargo through negligence and damage to other
property or another boat resulting from collision.
Pure Risk - ANS-A risk in which there in no chance of gain, only loss; only risk that is insurable.
Repair Cost - ANS-The cost to fix a damaged or destroyed item of property; may be the basis
of reimbursement for a loss.
Pro Rata other insurance; contribution by limits - ANS-Method of handling insurance when
more than one coverage applies to a loss; each coverage pays a portion of the loss in
proportion to the relationship its limit of liability bears to the total limit of liability under all
applicable insurance
Proximate Cause - ANS-An action that, in a natural and continuous sequence produces a loss.
"If it had not been for..."
LATEST UPDATE QUESTIONS AND CORRECT
VERIFIED ANSWERS ALREDY GRADED A+
Pair and Set Provision - ANS-Found in some property and inland marine policies stating the
company will pay for loss of part of a set by either repairing or replacing the damaged article
or paying the difference between the ACV of the intact set and the ACV of the articles
remaining after the loss.
Parts of a legal contract (CLOC/CLAC) - ANS-Competent parties
Lawful objective
Offer and acceptance
Consideration
Personal effects form - ANS-Inland marine form that covers an insured's personal belongings,
such as baggage, while traveling.
Open Peril; all risk; special coverage - ANS-Insurance policy that protects the insured from
losses caused by any peril that is not specifically excluded by the policy
Parts of a Homeowners Policy - ANS-Coverage A - dwelling
Coverage B - other structures
Coverage C - personal property/contents
Coverage D - loss of use/additional living expenses
Coverage E - personal liability
Coverage F - medical payments to others
, Personal Articles Form - ANS-Inland marine form that provides scheduled coverage for nine
optional classes of personal property: jewelry, furs, cameras, musical instruments, silverware,
golf equipment, fine arts, stamp collections, and coin collections.
Primary Insurance - ANS-When two or more coverage or policies apply to the same loss, the
one that pays first, up to its limit of liability or the amount of the loss, whichever is less.
Pro Rata Basis - ANS-Insurance company cancels the policy; unearned premium is returned to
the insured. No penalty is applied to this method of cancellation.
Protection and Indemnity - ANS-Form of ocean marine liability insurance that covers a variety
of types of liability, such as a damage to cargo through negligence and damage to other
property or another boat resulting from collision.
Pure Risk - ANS-A risk in which there in no chance of gain, only loss; only risk that is insurable.
Repair Cost - ANS-The cost to fix a damaged or destroyed item of property; may be the basis
of reimbursement for a loss.
Pro Rata other insurance; contribution by limits - ANS-Method of handling insurance when
more than one coverage applies to a loss; each coverage pays a portion of the loss in
proportion to the relationship its limit of liability bears to the total limit of liability under all
applicable insurance
Proximate Cause - ANS-An action that, in a natural and continuous sequence produces a loss.
"If it had not been for..."
