State Farm Insurance License Exam with
complete solution Guaranteed success
2025/26 100% PASS
Abandonment Condition - Correct Answers A condition often contained in property insurance policies
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
that states that the insured cannot abandon damaged property to the insurer and demand to be
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
reimbursed for its full value.
II! II! II! II! II!
II! Accident - Correct Answers A loss that occurs at a specific time and place
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Actual Cash Value (ACV) - Correct Answers Today's replacement cost minus depreciation. Depreciation
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! from wear and tear, or obsolescence.
II! II! II! II! II!
II! admitted insurer; authorized insurer - Correct Answers Company that meets a state insurance
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! department's standards and is allowed to do business in that state. II! II! II! II! II! II! II! II! II! II!
II! Adverse Selection - Correct Answers the tendency of insureds with a greater than average chance of loss
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! to purchase insurance
II! II!
II! Annual Transit Policy - Correct Answers Nonfiled commercial inland marine transportation form that
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! insures a property owner's incoming or outgoing shipments of goods during a year
II! II! II! II! II! II! II! II! II! II! II! II!
II! Appraisal Clause - Correct Answers A survey of property to determine the insurable value of the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! property or the value of the loss sustained.
II! II! II! II! II! II! II!
II! Appraisal Condition - Correct Answers Policy condition that outlines a procedure for when the insured
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! and insurer disagree on the amount of a loss
II! II! II! II! II! II! II! II!
II! Assignment - Correct Answers The legal transfer of one's interest in an insurance policy to another
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! person.
, II! Aviation Hull Insurance - Correct Answers Provides coverage for physical damage to an aircraft.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Bailee's Customers Policy - Correct Answers Nonfiled commercial inland marine form obtained by a
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! bailee to cover loss or damage to customers' property in the bailee's custody without regard to liability.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Appurtenant Structures - Correct Answers Buildings of lesser value that are on the same premises as the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! main building insured under a property policy; they are usually covered by the policy.
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Assignment Condition - Correct Answers Condition in insurance policies that specifies that the policy
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! cannot be transferred to another unless the company consents to the transfer in writing.
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Bailee - Correct Answers A person or organization that has temporary possession of someone else's
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! personal property. II!
II! Basic Perils in Homeowners Policy - Correct Answers There are 14 perils. Fire, lightening, riot, explosion,
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! vehicles, volcanic eruption, civil commotion, smoke, hail, aircraft, windstorm, vandalism, malicious
II! II! II! II! II! II! II! II! II! II!
II! mischief, theft. II!
II! Basic Property Policy Structure (DICEE) - Correct Answers D - Declarations
II! II! II! II! II! II! II! II! II! II! II! II! II!
I - Insuring agreement
II! II! II!
C - ConditionsII! II!
E - Exclusions
II! II!
E - Endorsements
II! II!
II! Blanket Insurance - Correct Answers Type of insurance policy that covers more than one item of
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! property at a single location or one or more items of property at multiple locations
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Builders Risk Coverage Form - Correct Answers Commercial property coverage forms that covers
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! commercial, residential, or farm buildings that are under construction or during remodeling.
II! II! II! II! II! II! II! II! II! II! II!
complete solution Guaranteed success
2025/26 100% PASS
Abandonment Condition - Correct Answers A condition often contained in property insurance policies
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
that states that the insured cannot abandon damaged property to the insurer and demand to be
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
reimbursed for its full value.
II! II! II! II! II!
II! Accident - Correct Answers A loss that occurs at a specific time and place
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Actual Cash Value (ACV) - Correct Answers Today's replacement cost minus depreciation. Depreciation
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! from wear and tear, or obsolescence.
II! II! II! II! II!
II! admitted insurer; authorized insurer - Correct Answers Company that meets a state insurance
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! department's standards and is allowed to do business in that state. II! II! II! II! II! II! II! II! II! II!
II! Adverse Selection - Correct Answers the tendency of insureds with a greater than average chance of loss
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! to purchase insurance
II! II!
II! Annual Transit Policy - Correct Answers Nonfiled commercial inland marine transportation form that
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! insures a property owner's incoming or outgoing shipments of goods during a year
II! II! II! II! II! II! II! II! II! II! II! II!
II! Appraisal Clause - Correct Answers A survey of property to determine the insurable value of the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! property or the value of the loss sustained.
II! II! II! II! II! II! II!
II! Appraisal Condition - Correct Answers Policy condition that outlines a procedure for when the insured
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! and insurer disagree on the amount of a loss
II! II! II! II! II! II! II! II!
II! Assignment - Correct Answers The legal transfer of one's interest in an insurance policy to another
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! person.
, II! Aviation Hull Insurance - Correct Answers Provides coverage for physical damage to an aircraft.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Bailee's Customers Policy - Correct Answers Nonfiled commercial inland marine form obtained by a
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! bailee to cover loss or damage to customers' property in the bailee's custody without regard to liability.
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Appurtenant Structures - Correct Answers Buildings of lesser value that are on the same premises as the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! main building insured under a property policy; they are usually covered by the policy.
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Assignment Condition - Correct Answers Condition in insurance policies that specifies that the policy
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! cannot be transferred to another unless the company consents to the transfer in writing.
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Bailee - Correct Answers A person or organization that has temporary possession of someone else's
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! personal property. II!
II! Basic Perils in Homeowners Policy - Correct Answers There are 14 perils. Fire, lightening, riot, explosion,
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! vehicles, volcanic eruption, civil commotion, smoke, hail, aircraft, windstorm, vandalism, malicious
II! II! II! II! II! II! II! II! II! II!
II! mischief, theft. II!
II! Basic Property Policy Structure (DICEE) - Correct Answers D - Declarations
II! II! II! II! II! II! II! II! II! II! II! II! II!
I - Insuring agreement
II! II! II!
C - ConditionsII! II!
E - Exclusions
II! II!
E - Endorsements
II! II!
II! Blanket Insurance - Correct Answers Type of insurance policy that covers more than one item of
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! property at a single location or one or more items of property at multiple locations
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Builders Risk Coverage Form - Correct Answers Commercial property coverage forms that covers
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! commercial, residential, or farm buildings that are under construction or during remodeling.
II! II! II! II! II! II! II! II! II! II! II!
