STATE FARM PROPERTY AND
CASUALTY EXAM
duties of the insured - Answers -1. pay the premium
2. take all reasonable means to save and protect the property from loss
3. give the insurance company immediate notice of loss
4. give the insurance company proof of loss within 60 days of the loss
5. separate the damaged property from the undamaged property and allow the
insurance company to inspect the undamaged property as well as the insured's books
and records
6. the insured cannot sue the insurance company unless all of these requirements have
been satisfied and then he/she must sue within 12 months of the loss
duties of the insurance company - Answers -1. must indemnify the insured within 60
days of proof of loss
2. may either pay the appraised ACV of the loss or repair or replace the damaged
property
3. if the insured and insurance company disagree as the ACV of the loss and the
damaged property cannot be repaired or replaced, they each can select an appraiser. if
the appraisers disagree, they select an umpire appraiser who will make the final
determination
the subrogation clause - Answers -states that the insurance company can require the
insured to assign (transfer) to it any legal rights which the insured has against third
parties to the insurance company at the time of loss
assignment clause - Answers -1. transfer of a policy to another person
2. assignment clause of property insurance policy says no assignment of the policy is
valid unless signed by an officer of the insurance company
the other insurance clause - Answers -states that the insurance company can either
prohibit other insurance or can limit the amount of other insurance by adding an
endorsement to the policy
pro rata liability clause - Answers -1. applies when there are concurrent policies.
concurrent insurance is when 2 or more policies cover the same property. it is
sometimes done when insuring high value property. the policies should be identical in
all respects except face amounts
2. says that no insurance company shall be responsible for any more than its pro rata
share of the loss
CASUALTY EXAM
duties of the insured - Answers -1. pay the premium
2. take all reasonable means to save and protect the property from loss
3. give the insurance company immediate notice of loss
4. give the insurance company proof of loss within 60 days of the loss
5. separate the damaged property from the undamaged property and allow the
insurance company to inspect the undamaged property as well as the insured's books
and records
6. the insured cannot sue the insurance company unless all of these requirements have
been satisfied and then he/she must sue within 12 months of the loss
duties of the insurance company - Answers -1. must indemnify the insured within 60
days of proof of loss
2. may either pay the appraised ACV of the loss or repair or replace the damaged
property
3. if the insured and insurance company disagree as the ACV of the loss and the
damaged property cannot be repaired or replaced, they each can select an appraiser. if
the appraisers disagree, they select an umpire appraiser who will make the final
determination
the subrogation clause - Answers -states that the insurance company can require the
insured to assign (transfer) to it any legal rights which the insured has against third
parties to the insurance company at the time of loss
assignment clause - Answers -1. transfer of a policy to another person
2. assignment clause of property insurance policy says no assignment of the policy is
valid unless signed by an officer of the insurance company
the other insurance clause - Answers -states that the insurance company can either
prohibit other insurance or can limit the amount of other insurance by adding an
endorsement to the policy
pro rata liability clause - Answers -1. applies when there are concurrent policies.
concurrent insurance is when 2 or more policies cover the same property. it is
sometimes done when insuring high value property. the policies should be identical in
all respects except face amounts
2. says that no insurance company shall be responsible for any more than its pro rata
share of the loss
