State Farm Property Exam Questions with Correct Answers

State Farm Property Exam Questions with Correct Answers Which of the following is used in the formula for calculating the actual cash value of a property - Answer-replacement cost What is the purpose of the coinsurance clause found in property insurance policies? - Answer-Encourage the insured to insure the property closer to its full value An insured has a liability policy that sets the amount at 50k for all claims that arise from a single incident. which type of limit of liability does this insured's policy have? - Answer-per occurrence When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written as - Answer-stated amount What is stated amount coverage - Answer-In stated amt coverage the value of the insured property is determined at the time the policy is written. in the event of a loss, that amount is paid without regard to any coinsurance provision. However, if the loss is less than the total, the insurer has salvage rights with the insured having first right of refusal of the salvage