State Farm Exam

STATE FARM EXAM 2024 WITH 100% CORRECT ANSWERS Which statement describes a peril? - correct answer a tornado damaged the insured's home a flood is an example of - correct answer A peril Tiffany leaves her car unlocked when she goes shopping. - correct answer Morale Insurance company incorporated in Wisconsin and conducting business in Wisconsin is known as a domestic company. What kind of company are they considered if they do business in Minnesota? - correct answer Foreign what is a contractor device for transferring risk from a person, business or organization to an insurance company? - correct answer Insurance which of the following represents a pure risk? - correct answer The chance your house may burn down What is a contractor device for transferring risk from a person, business, or organization to an insurance company? - correct answer Insurance which of the following represents a pure risk? - correct answer the chance at your house may burn down Suzanne regularly leaves her side door unlocked when she leaves for work period one afternoon a thief entered her apartment and stole all of her jewelry. What was the hazard in this example. - correct answer the door being unlocked sometimes an individual or business has an exceptionally large or specialized risk that no authorized insurers can or will cover. In this case the individual or business may call? - correct answer a non admitted insurance company. The ABC insurance company is incorporated in Mexico. While doing business in Texas it is - correct answer a alien insurer the potential for accidents and other losses is called - correct answer an exposure Jennifer and Randy place a bet on the outcome of a basketball game period this is an example of. - correct answer A speculative Risk An insurance company licensed to do business in a particular state is called - correct answer A certificate of authority a loss that occurs as a consequence of a direct loss is called - correct answer An Indirect Loss which of the following is not a type of hazard - correct answer Pure Hazard An insurance contract is prepared by one party (the insurance company) with little or no opportunity for the other party (the insured) to bargain. This this characteristic is called - correct answer Adhesion In insurance, an insured may pay premium for many years without having a loss, or an insured may suffer a loss and get a larger amount of money from the insurance company than he has paid in premiums. For this reason, an insurance contract is - correct answer Aleatory In an insurance contract, the consideration that the insured gives is called - correct answer the premium payment An agreement between two parties is also called - correct answer offer and acceptance the failure to disclose known facts is - correct answer concealment a statement that is guaranteed to be true is a - correct answer Warranty Allison's auto insurance policy is due on the 10th of each month period ever since she has had the policy, she has sent the premium in on the 16th of the month period the insurer has been accepting the premium this way for the past five years period a new CEO takes over and decides to cancel Allison's policy for a non-payment of premium. Allison contests this decision and legally gets the policy reinstated. The decision to reinstate the policy is an example of. - correct answer Estoppel Misrepresentations do not necessarily void insurance contracts period to do so they must be - correct answer Material Which of the following would not be included on the declarations page of the policy? - correct answer The exclusions in the policy What type of insurance policy protects the insured from loss caused by damage to covered property by a covered peril? - correct answer Property insurance policy Which of the following is not a part of the structure of a property or casualty - correct answer Explanations Which of the following terms describes the person listed first on the declarations page of a policy when there is more than one named insured? - correct answer First Name Insured Greg's policy states that a loss will not be covered unless it occurs within the United states or Canada. What is the name of this provision in his policy? - correct answer the policy territory provision when an insured decides to cancel an insurance policy before the expiration date the unlearned premium is returned on - correct answer A short rate basis Todd and Mary have insurance protection for their home with a policy deductible of $500. One night the thunderstorm knocks the tree onto their roof and causes $2500 in damage. How much money will the insurance company pay to Todd and Mary to fix their roof? - correct answer $2000 Marcus has two policies that will cover his $20,000 loss period company A will pay the first $15,000, and Company B pays the remainder. In this example, company A's policy is considered. - correct answer Primary insurance which provision specifies that an insurance policy may not be transferred to anyone else without the written consent of the insurer unless the name insured dies. - correct answer Assignment provision A financial loss resulting directly from a loss to property, such as a house fire or a diamond ring being stolen, is called. - correct answer A direct loss an insured owns a $200,000 home and ensures it for $100,000. If the insurance home was completely destroyed by a fire, how much money would the insurance company pay if the insured has a policy that requires a minimum of 80% coverage? - correct answer $100,000