State Farm Insurance License Exam
Questions And Answers
Abandonment Condition - - correct answer ✅A condition often
contained in property insurance policies that states that the insured
cannot abandon damaged property to the insurer and demand to be
reimbursed for its full value.
Accident - - correct answer ✅A loss that occurs at a specific time and
place
Actual Cash Value (ACV) - - correct answer ✅Today's replacement cost
minus depreciation. Depreciation from wear and tear, or obsolescence.
admitted insurer; authorized insurer - - correct answer ✅Company that
meets a state insurance department's standards and is allowed to do
business in that state.
Adverse Selection - - correct answer ✅the tendency of insureds with a
greater than average chance of loss to purchase insurance
Annual Transit Policy - - correct answer ✅Nonfiled commercial inland
marine transportation form that insures a property owner's incoming or
outgoing shipments of goods during a year
,State Farm Insurance License Exam
Questions And Answers
Appraisal Clause - - correct answer ✅A survey of property to
determine the insurable value of the property or the value of the loss
sustained.
Appraisal Condition - - correct answer ✅Policy condition that outlines
a procedure for when the insured and insurer disagree on the amount
of a loss
Assignment - - correct answer ✅The legal transfer of one's interest in
an insurance policy to another person.
Aviation Hull Insurance - - correct answer ✅Provides coverage for
physical damage to an aircraft.
Bailee's Customers Policy - - correct answer ✅Nonfiled commercial
inland marine form obtained by a bailee to cover loss or damage to
customers' property in the bailee's custody without regard to liability.
Appurtenant Structures - - correct answer ✅Buildings of lesser value
that are on the same premises as the main building insured under a
property policy; they are usually covered by the policy.
, State Farm Insurance License Exam
Questions And Answers
Assignment Condition - - correct answer ✅Condition in insurance
policies that specifies that the policy cannot be transferred to another
unless the company consents to the transfer in writing.
Bailee - - correct answer ✅A person or organization that has
temporary possession of someone else's personal property.
Basic Perils in Homeowners Policy - - correct answer ✅There are 14
perils. Fire, lightening, riot, explosion, vehicles, volcanic eruption, civil
commotion, smoke, hail, aircraft, windstorm, vandalism, malicious
mischief, theft.
Basic Property Policy Structure (DICEE) - - correct answer ✅D -
Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
Blanket Insurance - - correct answer ✅Type of insurance policy that
covers more than one item of property at a single location or one or
more items of property at multiple locations
Questions And Answers
Abandonment Condition - - correct answer ✅A condition often
contained in property insurance policies that states that the insured
cannot abandon damaged property to the insurer and demand to be
reimbursed for its full value.
Accident - - correct answer ✅A loss that occurs at a specific time and
place
Actual Cash Value (ACV) - - correct answer ✅Today's replacement cost
minus depreciation. Depreciation from wear and tear, or obsolescence.
admitted insurer; authorized insurer - - correct answer ✅Company that
meets a state insurance department's standards and is allowed to do
business in that state.
Adverse Selection - - correct answer ✅the tendency of insureds with a
greater than average chance of loss to purchase insurance
Annual Transit Policy - - correct answer ✅Nonfiled commercial inland
marine transportation form that insures a property owner's incoming or
outgoing shipments of goods during a year
,State Farm Insurance License Exam
Questions And Answers
Appraisal Clause - - correct answer ✅A survey of property to
determine the insurable value of the property or the value of the loss
sustained.
Appraisal Condition - - correct answer ✅Policy condition that outlines
a procedure for when the insured and insurer disagree on the amount
of a loss
Assignment - - correct answer ✅The legal transfer of one's interest in
an insurance policy to another person.
Aviation Hull Insurance - - correct answer ✅Provides coverage for
physical damage to an aircraft.
Bailee's Customers Policy - - correct answer ✅Nonfiled commercial
inland marine form obtained by a bailee to cover loss or damage to
customers' property in the bailee's custody without regard to liability.
Appurtenant Structures - - correct answer ✅Buildings of lesser value
that are on the same premises as the main building insured under a
property policy; they are usually covered by the policy.
, State Farm Insurance License Exam
Questions And Answers
Assignment Condition - - correct answer ✅Condition in insurance
policies that specifies that the policy cannot be transferred to another
unless the company consents to the transfer in writing.
Bailee - - correct answer ✅A person or organization that has
temporary possession of someone else's personal property.
Basic Perils in Homeowners Policy - - correct answer ✅There are 14
perils. Fire, lightening, riot, explosion, vehicles, volcanic eruption, civil
commotion, smoke, hail, aircraft, windstorm, vandalism, malicious
mischief, theft.
Basic Property Policy Structure (DICEE) - - correct answer ✅D -
Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
Blanket Insurance - - correct answer ✅Type of insurance policy that
covers more than one item of property at a single location or one or
more items of property at multiple locations
