State Farm Insurance License Exam; Questions & Answers: Guaranteed A+ Score: Updated

Abandonment Condition (Ans- A condition often contained in property insurance policies that states that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value. Accident (Ans- A loss that occurs at a specific time and place Actual Cash Value (ACV) (Ans- Today's replacement cost minus depreciation. Depreciation from wear and tear, or obsolescence. admitted insurer; authorized insurer (Ans- Company that meets a state insurance department's standards and is allowed to do business in that state. Adverse Selection (Ans- the tendency of insureds with a greater than average chance of loss to purchase insurance Annual Transit Policy (Ans- Nonfiled commercial inland marine transportation form that insures a property owner's incoming or outgoing shipments of goods during a year Appraisal Clause (Ans- A survey of property to determine the insurable value of the property or the value of the loss sustained. Appraisal Condition (Ans- Policy condition that outlines a procedure for when the insured and insurer disagree on the amount of a loss Assignment (Ans- The legal transfer of one's interest in an insurance policy to another person. Aviation Hull Insurance (Ans- Provides coverage for physical damage to an aircraft. Bailee's Customers Policy (Ans- Nonfiled commercial inland marine form obtained by a bailee to cover loss or damage to customers' property in the bailee's custody without regard to liability. Appurtenant Structures (Ans- Buildings of lesser value that are on the same premises as the main building insured under a property policy; they are usually covered by the policy. Assignment Condition (Ans- Condition in insurance policies that specifies that the policy cannot be transferred to another unless the company consents to the transfer in writing. Bailee (Ans- A person or organization that has temporary possession of someone else's personal property. Basic Perils in Homeowners Policy (Ans- 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) (Ans- D - Declarations I - Insuring agreement C - Conditions E - Exclusions E - Endorsements Blanket Insurance (Ans- 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