1 | P a g e | © copyright 2024/2025 | Grade A+
State Farm Questions & 100% Correct
Answers
Who owns thier renewals
✓ ~~> Independents
Events that may NOT be recovered by insurance are
✓ ~~> Gambling, investing, market value of home
What underlying coverages typically are required for an umbrella
✓ ~~> Auto and Personal
Conditions that prohibit assignments of the policy
✓ ~~> Transfer of rights and duties
Expectant interest are
✓ ~~> Not insured
Flood, power failure and earth movement are
✓ ~~> Excluded on DP & HO
Master01 | September, 2024/2025 | Latest update
, 2 | P a g e | © copyright 2024/2025 | Grade A+
What are the 3 principle rating factors for personal auto
✓ ~~> 1) safe driving record 2) annual miles driving 3) years of driving
experience
Fail Plan doesn't not encourage
✓ ~~> Competition
Loss exposures that results in a claim for monetary damage due to injury to
another or damage to another's property?
✓ ~~> Liability Loss Exposure
The persons whose property is being insured is the
✓ ~~> Insured
The person seeking for damage is the
✓ ~~> Claimant
When the insurer cancels, the premium is refunded
✓ ~~> Pro-Rata
Representation can qualify as an
Master01 | September, 2024/2025 | Latest update
, 3 | P a g e | © copyright 2024/2025 | Grade A+
✓ ~~> Implied Warranty
Fire Dep. service charge, reason repairs and debris removal are considered
what on an HO?
✓ ~~> Additional Charges
In an HO coverage for fair rental is included in
✓ ~~> Coverage D
How is combined ratio computed?
✓ ~~> Adding Loss + Expense Ratio
Not purchasing collision coverage for your car is an example of risk
✓ ~~> Retention
Not purchasing a motorboat is an example of
✓ ~~> Avoidance/ elimination
Installing sprinkler system in your home is an example of risk
✓ ~~> Reduction
Master01 | September, 2024/2025 | Latest update
State Farm Questions & 100% Correct
Answers
Who owns thier renewals
✓ ~~> Independents
Events that may NOT be recovered by insurance are
✓ ~~> Gambling, investing, market value of home
What underlying coverages typically are required for an umbrella
✓ ~~> Auto and Personal
Conditions that prohibit assignments of the policy
✓ ~~> Transfer of rights and duties
Expectant interest are
✓ ~~> Not insured
Flood, power failure and earth movement are
✓ ~~> Excluded on DP & HO
Master01 | September, 2024/2025 | Latest update
, 2 | P a g e | © copyright 2024/2025 | Grade A+
What are the 3 principle rating factors for personal auto
✓ ~~> 1) safe driving record 2) annual miles driving 3) years of driving
experience
Fail Plan doesn't not encourage
✓ ~~> Competition
Loss exposures that results in a claim for monetary damage due to injury to
another or damage to another's property?
✓ ~~> Liability Loss Exposure
The persons whose property is being insured is the
✓ ~~> Insured
The person seeking for damage is the
✓ ~~> Claimant
When the insurer cancels, the premium is refunded
✓ ~~> Pro-Rata
Representation can qualify as an
Master01 | September, 2024/2025 | Latest update
, 3 | P a g e | © copyright 2024/2025 | Grade A+
✓ ~~> Implied Warranty
Fire Dep. service charge, reason repairs and debris removal are considered
what on an HO?
✓ ~~> Additional Charges
In an HO coverage for fair rental is included in
✓ ~~> Coverage D
How is combined ratio computed?
✓ ~~> Adding Loss + Expense Ratio
Not purchasing collision coverage for your car is an example of risk
✓ ~~> Retention
Not purchasing a motorboat is an example of
✓ ~~> Avoidance/ elimination
Installing sprinkler system in your home is an example of risk
✓ ~~> Reduction
Master01 | September, 2024/2025 | Latest update
