Property and Casualty State Farm Exam
Questions and Answers
Warranties (GI) - Answers -Statements made in an application for insurance or material
stipulations in the policy that are guaranteed as true in all respects.
Waiver (GI) - Answers -The voluntary abandonment of a known or legal right or
advantage.
Agent (IL) - Answers -An insurance licensed producer appointed by an insurer to
represent that company to present policies on its behalf.
Agent Residence (IL) - Answers -Resident Agent - producer who resides and is licensed
in this state.
Non Resident Agent - producer who resides and is licensed in any other state.
Assigned Risk Plan (IL) - Answers -A state required plan where all insurers must
participate, providing auto insurance for those persons not able to obtain insurance
through normal channels.
Burglary (IL) - Answers -The taking of property from inside the premises by a person
unlawfully entering or leaving the premises as evidenced by visible signs of forcible
entry or exit.
Construction (frame) (PI) - Answers -A structure with walls and interior structural
components made of wood or other combustible materials.
Personal Auto Policy
Raising Factors
(Most Common) (CI) - Answers -Liability - age, sex, marital status, driving record,
vehicle use, annual mileage, territory of garage, and liability limits selected.
Physical Damage - all of the above, plus, year, make and model of the insured vehicle,
deductible selected.
Personal Auto Policy
Parts A-F
(CI) - Answers -A - Liability Coverage
B - Medical Payments Coverage
C - Uninsured and underinsured motorists coverage
D - Coverage for damage to your auto
E - Duties after an accident or loss
,F - General Provisions
Workers Compensation
Benefits
(CI) - Answers -- Medical benefits
- Disability income benefits
- Rehabilitation benefits
- Death and survivor benefits (funeral expenses)
Workers Compensation
Types of Laws
(CI) - Answers -Compulsory - Employers required to provide Workers' Compensation
benefits to employees or demonstrate the ability to provide.
Elective - Employers have choice to accept or reject Workers' Compensation laws.
Monopolistic - Workers Compensation insurance only available through state fund.
Competitive - Workers' Compensation insurance available through private insurers.
Personal Articles Floater (PI) - Answers -Used to insure 'individual' personal property on
an itemized or scheduled basis.
Coverage is worldwide.
Personal Articles Floater
(Examples)
(PI) - Answers -- Personal jewelry floater
- Personal effects floater (items worn by travelers)
- Fine arts floater (paintings, manuscripts, antiques)
- Camera floater
- Musical instrument Floater
Personal Watercraft Insurance
(PI) - Answers -Boatowners Policy- similar to HO, covers boats that can be towed,
property & liability.
Outboard Motorboat Policy - inland marine form, covers outboard motors and boats,
direct property loss only.
Yacht Policy - ocean marine form, larger vessels, property & liability.
Truckers Coverage Form
(CI) - Answers -For those firms or persons that are in the business of transporting goods
or commodities for another
Section I- Covered Autos
Section II - Liability Cov
Section III- Trailer Interchange Coverage - covers trailer that ind does not own but has
in his possession along with a written Trailer Interchange Agreement
Section IV - Physical Damage Coverage
Section V- Truckers Conditions
Section VI- Definitions
, Ocean Marine Insurance
(PI) - Answers -Protect against losses to property while being chipped by ocean, or
inland waterways.
Unregulated in regard to forms and rates
Ocean Marine Policy
(PI) - Answers -- Hull Insurance - ship itself
- Cargo Insurance - goods being shipped
- Freight Insurance - freight charges and import duties
-General Average - loss is apportioned or shared among all
- Particular Average - loss affects only a particular interest
- Collision/Running down clause - collision with another vessel
- Inchmaree Clause - burst boiler, broken propeller, crew navigation errors
Ocean Marine Policy
(PI) - Answers -Written "full value" ad will become void if certain implied warranties are
violated:
Legality-legal goods
Seaworthiness - seaworthy ship/competent crew
No Deviation in Voyage - sail the course filed with the insurer.
Nationwide Marine Definition
(PI) - Answers -Six broad classes of property that may be insured under a marine
contract:
*Imports
*Exports
*Domestic Shipments
*Instrumentalities of Transportation or Communication (bridges, tunnels, towers)
*Personal Property Floater Risks
*Commercial Property Floater Risks
Commercial Inland Marine Coverage
Forms and Floaters
(PI) - Answers -- Accounts Receivable Coverage Form (C)
- Bailees Custoemrs Form (U)
- Commercial Articles Coverage Form (C)
- Contractors Equipment Floater (U)
- Electronic Data Processing Floater (U)
- Equipment Dealers Coverage Form (C)
- Installation Floater (U)
- Jewelers Block Coverage Form (C)
- Valuable Papers and Records Coverage Form (C)
Guarantee Association
Questions and Answers
Warranties (GI) - Answers -Statements made in an application for insurance or material
stipulations in the policy that are guaranteed as true in all respects.
Waiver (GI) - Answers -The voluntary abandonment of a known or legal right or
advantage.
Agent (IL) - Answers -An insurance licensed producer appointed by an insurer to
represent that company to present policies on its behalf.
Agent Residence (IL) - Answers -Resident Agent - producer who resides and is licensed
in this state.
Non Resident Agent - producer who resides and is licensed in any other state.
Assigned Risk Plan (IL) - Answers -A state required plan where all insurers must
participate, providing auto insurance for those persons not able to obtain insurance
through normal channels.
Burglary (IL) - Answers -The taking of property from inside the premises by a person
unlawfully entering or leaving the premises as evidenced by visible signs of forcible
entry or exit.
Construction (frame) (PI) - Answers -A structure with walls and interior structural
components made of wood or other combustible materials.
Personal Auto Policy
Raising Factors
(Most Common) (CI) - Answers -Liability - age, sex, marital status, driving record,
vehicle use, annual mileage, territory of garage, and liability limits selected.
Physical Damage - all of the above, plus, year, make and model of the insured vehicle,
deductible selected.
Personal Auto Policy
Parts A-F
(CI) - Answers -A - Liability Coverage
B - Medical Payments Coverage
C - Uninsured and underinsured motorists coverage
D - Coverage for damage to your auto
E - Duties after an accident or loss
,F - General Provisions
Workers Compensation
Benefits
(CI) - Answers -- Medical benefits
- Disability income benefits
- Rehabilitation benefits
- Death and survivor benefits (funeral expenses)
Workers Compensation
Types of Laws
(CI) - Answers -Compulsory - Employers required to provide Workers' Compensation
benefits to employees or demonstrate the ability to provide.
Elective - Employers have choice to accept or reject Workers' Compensation laws.
Monopolistic - Workers Compensation insurance only available through state fund.
Competitive - Workers' Compensation insurance available through private insurers.
Personal Articles Floater (PI) - Answers -Used to insure 'individual' personal property on
an itemized or scheduled basis.
Coverage is worldwide.
Personal Articles Floater
(Examples)
(PI) - Answers -- Personal jewelry floater
- Personal effects floater (items worn by travelers)
- Fine arts floater (paintings, manuscripts, antiques)
- Camera floater
- Musical instrument Floater
Personal Watercraft Insurance
(PI) - Answers -Boatowners Policy- similar to HO, covers boats that can be towed,
property & liability.
Outboard Motorboat Policy - inland marine form, covers outboard motors and boats,
direct property loss only.
Yacht Policy - ocean marine form, larger vessels, property & liability.
Truckers Coverage Form
(CI) - Answers -For those firms or persons that are in the business of transporting goods
or commodities for another
Section I- Covered Autos
Section II - Liability Cov
Section III- Trailer Interchange Coverage - covers trailer that ind does not own but has
in his possession along with a written Trailer Interchange Agreement
Section IV - Physical Damage Coverage
Section V- Truckers Conditions
Section VI- Definitions
, Ocean Marine Insurance
(PI) - Answers -Protect against losses to property while being chipped by ocean, or
inland waterways.
Unregulated in regard to forms and rates
Ocean Marine Policy
(PI) - Answers -- Hull Insurance - ship itself
- Cargo Insurance - goods being shipped
- Freight Insurance - freight charges and import duties
-General Average - loss is apportioned or shared among all
- Particular Average - loss affects only a particular interest
- Collision/Running down clause - collision with another vessel
- Inchmaree Clause - burst boiler, broken propeller, crew navigation errors
Ocean Marine Policy
(PI) - Answers -Written "full value" ad will become void if certain implied warranties are
violated:
Legality-legal goods
Seaworthiness - seaworthy ship/competent crew
No Deviation in Voyage - sail the course filed with the insurer.
Nationwide Marine Definition
(PI) - Answers -Six broad classes of property that may be insured under a marine
contract:
*Imports
*Exports
*Domestic Shipments
*Instrumentalities of Transportation or Communication (bridges, tunnels, towers)
*Personal Property Floater Risks
*Commercial Property Floater Risks
Commercial Inland Marine Coverage
Forms and Floaters
(PI) - Answers -- Accounts Receivable Coverage Form (C)
- Bailees Custoemrs Form (U)
- Commercial Articles Coverage Form (C)
- Contractors Equipment Floater (U)
- Electronic Data Processing Floater (U)
- Equipment Dealers Coverage Form (C)
- Installation Floater (U)
- Jewelers Block Coverage Form (C)
- Valuable Papers and Records Coverage Form (C)
Guarantee Association
