state farm property and casualty exam questions with correct answers

state farm property and casualty exam questions with correct answers salvage - Answer--salvage is when an insurance company pays a claim, and then the insurance company has the right to assume ownership of the damaged property to repair it and sell it to recover part or all of the loss -salvage value is the amount for which the insurance is able to sell the damaged property and the amount of loss the insurance company is able to recover abandonment clause - Answer-provides that no property can be abandoned to the insurance company without its consent vacancy and unoccupancy clause - Answer-1. usually found only in policies covering commercial (business) property 2. if included, it states that coverage is terminated after the insured property has been left vacant or unoccupied for 60 consecutive days -vacant: either completely empty or empty to the point where the insured can no longer engage in the purpose for which the property is insured -unoccupied: means there are furnishings in the building. but nobody living in it or working in it the vacancy and unoccupancy permit - Answer-an extra endorsement for an extra premium charge. it extends coverage beyond 60 days of vacancy or unoccupancy property excluded - Answer--the standard fire policy excludes types of property that are mostly indirect value 1. money 2. accounts (including bookkeeping records) 3. valuable papers a. securities certificates b. legal documents c. manuscripts (such as blueprints)