State Farm Insurance License Exam

Abandonment Condition - 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 - A loss that occurs at a specific time and place Actual Cash Value (ACV) - Today's replacement cost minus depreciation. Depreciation from wear and tear, or obsolescence. admitted insurer; authorized insurer - Company that meets a state insurance department’s standard and is allowed to do business in that state. Adverse Selection - the tendency of insureds with a greater than average chance of loss to purchase insurance Annual Transit Policy - Nonfilmed commercial inland marine transportation form that insures a property owner's incoming or outgoing shipments of goods during a year Appraisal Clause - A survey of property to determine the insurable value of the property or the value of the loss sustained. Appraisal Condition - Policy condition that outlines a procedure for when the insured an