State Farm Insurance License Exam 2023 with verified solutions

Abandonment Condition correct answersA 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 correct answersA loss that occurs at a specific time and place Actual Cash Value (ACV) correct answersToday's replacement cost minus depreciation. Depreciation from wear and tear, or obsolescence. admitted insurer; authorized insurer correct answersCompany that meets a state insurance department's standards and is allowed to do business in that state. Adverse Selection correct answersthe tendency of insureds with a greater than average chance of loss to purchase insurance Annual Transit Policy correct answersNonfiled commercial inland marine transportation form that insures a property owner's incoming or outgoing shipments of goods during a year Appraisal Clause correct answersA survey of property to determine the insurable value of the property or the value of the loss sustained. Appraisal Condition correct answersPolicy condition that outlines a procedure for when the insured and insurer disagree on the amount of a loss Assignment correct answersThe legal transfer of one's interest in an insurance policy to another person. Aviation Hull Insurance correct answersProvides coverage for physical damage to an aircraft.