State Farm Property
1) In property insurance actual cash value is defined as which of the
following: Replacement cost at the time of the loss, less depreciation 2.
Peril is most easily defined as: the cause of loss insured against
2) What is a leading factor in the determination of actual cash value:
replacement cost
3) Replacement cost is defined as: full replacement of property at its current
cost, new and without reduction for depreciation
4) Property insurance that provides 100k coverage for a building and 50k
coverage for personal property at a single location is called: Specific
coverage 6. Which of the following is used in the formula for calculating
the actual cash value of a property: replacement cost
5) What is the purpose of the coinsurance clause found in property
insurance policies?: Encourage the insured to insure the property closer to
its full value
1/7
, State Farm Property
6) 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?: per occurrence
7) 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: stated
amount
8) What is stated amount coverage: In stated amt coverage the value of the
insured property is determined at the time the policy is written.
9) in the event of a loss, that amount is paid without regard to any coinsurance
provision.
10) 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.
11) What type of liability would a person who owns a swimming pool
have?: Absolute
2/7
1) In property insurance actual cash value is defined as which of the
following: Replacement cost at the time of the loss, less depreciation 2.
Peril is most easily defined as: the cause of loss insured against
2) What is a leading factor in the determination of actual cash value:
replacement cost
3) Replacement cost is defined as: full replacement of property at its current
cost, new and without reduction for depreciation
4) Property insurance that provides 100k coverage for a building and 50k
coverage for personal property at a single location is called: Specific
coverage 6. Which of the following is used in the formula for calculating
the actual cash value of a property: replacement cost
5) What is the purpose of the coinsurance clause found in property
insurance policies?: Encourage the insured to insure the property closer to
its full value
1/7
, State Farm Property
6) 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?: per occurrence
7) 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: stated
amount
8) What is stated amount coverage: In stated amt coverage the value of the
insured property is determined at the time the policy is written.
9) in the event of a loss, that amount is paid without regard to any coinsurance
provision.
10) 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.
11) What type of liability would a person who owns a swimming pool
have?: Absolute
2/7
