State Farm

STATE FARM QUESTIONS WITH 100% CORRECT ANSWERS Who owns thier renewals - correct answer Independents Events that may NOT be recovered by insurance are - correct answer Gambling, investing, market value of home What underlying coverages typically are required for an umbrella - correct answer Auto and Personal Conditions that prohibit assignments of the policy - correct answer Transfer of rights and duties Expectant interest are - correct answer Not insured Flood, power failure and earth movement are - correct answer Excluded on DP & HO What are the 3 principle rating factors for personal auto - correct answer 1) safe driving record 2) annual miles driving 3) years of driving experience Fail Plan doesn't not encourage - correct answer Competition Loss exposures that results in a claim for monetary damage due to injury to another or damage to another's property? - correct answer Liability Loss Exposure The persons whose property is being insured is the - correct answer Insured The person seeking for damage is the - correct answer Claimant When the insurer cancels, the premium is refunded - correct answer Pro-Rata Representation can qualify as an - correct answer Implied Warranty Fire Dep. service charge, reason repairs and debris removal are considered what on an HO? - correct answer Additional Charges In an HO coverage for fair rental is included in - correct answer Coverage D How is combined ratio computed? - correct answer Adding Loss + Expense Ratio Not purchasing collision coverage for your car is an example of risk - correct answer Retention Not purchasing a motorboat is an example of - correct answer Avoidance/ elimination Installing sprinkler system in your home is an example of risk - correct answer Reduction Purchasing homeowners policy is an expanse of risk - correct answer Transfer Source of investment funds, payments for losses, reduction in financial uncertainty are considered - correct answer Benefits of Insurance Unintentional or intentional concealment allows the insured or insurer to - correct answer Rescind Personal auto policy medical pay,nets limiters are - correct answer Per person Personal auto liability and insured motorist limits are - correct answer Per occurrence Perils for inland marine are - correct answer Open Perils Ho medical pay,eggs coverage F does not apply to _____ or _______ acts - correct answer Jet Ski / intentional The intent to do or not to do something that materially affects the risk is a - correct answer Warranty Landslide, mine subsidence and earth tremors caused by a volcanic eruption are considered - correct answer Earth Movement This perilous not covered by personal lines and is also NOt considered earth movement - correct answer Sinkhole collapse Managing General Agents can do anything an insurer can do except - correct answer Settle claims In addition to common declarations and at least 2 coverage parts a commercial modular package policy must also include common - correct answer Conditions The mandatory coverages of a business owners policy include business income coverage, extra expense coverage, property coverage and professional liability coverage. True or False - correct answer False; professional liability not covered An unendorsed commercial property coverage for with no optional coverage will settle buildings - correct answer Actual Cash Value Business Owners Policy allow the insured to have full control of which coverages are included, is designed for large business, and covers only business property of the insured. True or False - correct answer False; all false A Business owners' policy differs from a CPP in that it settles ________ without any requirements for __________. - correct answer Replacement/ coinsurance A characteristic of a surety bond is that the obliged is liable to the surety for losses paid by the surety. True or False - correct answer False; the opposite Surety bonds differ from an insurance policy is that the coverage is indefinite, there are