State Farm Insurance License Exam 2026 |
100+ Verified Questions with 100% Correct
Answers | Graded A+
Aband0nment C0nditi0n - C0RRECT ANSWER >>>A c0nditi0n 0ften c0ntained in pr0perty
insurance p0licies that states that the insured cann0t aband0n damaged pr0perty t0 the insurer
and demand t0 be reimbursed f0r its full value.
Accident - C0RRECT ANSWER >>>A l0ss that 0ccurs at a specific time and place
Actual Cash Value (ACV) - C0RRECT ANSWER >>>T0day's replacement c0st minus depreciati0n.
Depreciati0n fr0m wear and tear, 0r 0bs0lescence.
admitted insurer; auth0rized insurer - C0RRECT ANSWER >>>C0mpany that meets a state
insurance department's standards and is all0wed t0 d0 business in that state.
Adverse Selecti0n - C0RRECT ANSWER >>>the tendency 0f insureds with a greater than average
chance 0f l0ss t0 purchase insurance
Annual Transit P0licy - C0RRECT ANSWER >>>N0nfiled c0mmercial inland marine
transp0rtati0n f0rm that insures a pr0perty 0wner's inc0ming 0r 0utg0ing shipments 0f g00ds
during a year
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,Appraisal Clause - C0RRECT ANSWER >>>A survey 0f pr0perty t0 determine the insurable
value 0f the pr0perty 0r the value 0f the l0ss sustained.
Appraisal C0nditi0n - C0RRECT ANSWER >>>P0licy c0nditi0n that 0utlines a pr0cedure f0r
when the insured and insurer disagree 0n the am0unt 0f a l0ss
Assignment - C0RRECT ANSWER >>>The legal transfer 0f 0ne's interest in an insurance
p0licy t0 an0ther pers0n.
Aviati0n Hull Insurance - C0RRECT ANSWER >>>Pr0vides c0verage f0r physical damage t0 an
aircraft.
Bailee's Cust0mers P0licy - C0RRECT ANSWER >>>N0nfiled c0mmercial inland marine f0rm
0btained by a bailee t0 c0ver l0ss 0r damage t0 cust0mers' pr0perty in the bailee's cust0dy
with0ut regard t0 liability.
Appurtenant Structures - C0RRECT ANSWER >>>Buildings 0f lesser value that are 0n the
same premises as the main building insured under a pr0perty p0licy; they are usually c0vered
by the p0licy.
Assignment C0nditi0n - C0RRECT ANSWER >>>C0nditi0n in insurance p0licies that
specifies that the p0licy cann0t be transferred t0 an0ther unless the c0mpany c0nsents t0 the
transfer in writing.
Bailee - C0RRECT ANSWER >>>A pers0n 0r 0rganizati0n that has temp0rary p0ssessi0n 0f
s0me0ne else's pers0nal pr0perty.
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, Basic Perils in H0me0wners P0licy - C0RRECT ANSWER >>>There are 14 perils. Fire, lightening,
ri0t, expl0si0n, vehicles, v0lcanic erupti0n, civil c0mm0ti0n, sm0ke, hail, aircraft, windst0rm, vandalism,
malici0us mischief, theft.
Basic Pr0perty P0licy Structure (DICEE) - C0RRECT ANSWER >>>D - Declarati0ns I -
Insuring agreement
C - C0nditi0ns
E - Exclusi0ns
E - End0rsements
Blanket Insurance - C0RRECT ANSWER >>>Type 0f insurance p0licy that c0vers m0re than
0ne item 0f pr0perty at a single l0cati0n 0r 0ne 0r m0re items 0f pr0perty at multiple l0cati0ns
Builders Risk C0verage F0rm - C0RRECT ANSWER >>>C0mmercial pr0perty c0verage
f0rms that c0vers c0mmercial, residential, 0r farm buildings that are under c0nstructi0n 0r
during rem0deling.
Carg0 Insurance - C0RRECT ANSWER >>>Type 0f 0cean marine insurance that c0vers g00ds
while they are in transit 0ver water.
Binder - C0RRECT ANSWER >>>0ral 0r written statement that pr0vides immediate
insurance pr0tecti0n f0r a specified peri0d; designed t0 pr0vide temp0rary c0verage until a p0licy
is issued 0r denied.
B0P - C0RRECT ANSWER >>>Package p0licy designed t0 pr0vide br0ad pr0perty and liability
c0verage f0r small businesses; eligibility requirements are stricter than the CPP.
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100+ Verified Questions with 100% Correct
Answers | Graded A+
Aband0nment C0nditi0n - C0RRECT ANSWER >>>A c0nditi0n 0ften c0ntained in pr0perty
insurance p0licies that states that the insured cann0t aband0n damaged pr0perty t0 the insurer
and demand t0 be reimbursed f0r its full value.
Accident - C0RRECT ANSWER >>>A l0ss that 0ccurs at a specific time and place
Actual Cash Value (ACV) - C0RRECT ANSWER >>>T0day's replacement c0st minus depreciati0n.
Depreciati0n fr0m wear and tear, 0r 0bs0lescence.
admitted insurer; auth0rized insurer - C0RRECT ANSWER >>>C0mpany that meets a state
insurance department's standards and is all0wed t0 d0 business in that state.
Adverse Selecti0n - C0RRECT ANSWER >>>the tendency 0f insureds with a greater than average
chance 0f l0ss t0 purchase insurance
Annual Transit P0licy - C0RRECT ANSWER >>>N0nfiled c0mmercial inland marine
transp0rtati0n f0rm that insures a pr0perty 0wner's inc0ming 0r 0utg0ing shipments 0f g00ds
during a year
1|Page
,Appraisal Clause - C0RRECT ANSWER >>>A survey 0f pr0perty t0 determine the insurable
value 0f the pr0perty 0r the value 0f the l0ss sustained.
Appraisal C0nditi0n - C0RRECT ANSWER >>>P0licy c0nditi0n that 0utlines a pr0cedure f0r
when the insured and insurer disagree 0n the am0unt 0f a l0ss
Assignment - C0RRECT ANSWER >>>The legal transfer 0f 0ne's interest in an insurance
p0licy t0 an0ther pers0n.
Aviati0n Hull Insurance - C0RRECT ANSWER >>>Pr0vides c0verage f0r physical damage t0 an
aircraft.
Bailee's Cust0mers P0licy - C0RRECT ANSWER >>>N0nfiled c0mmercial inland marine f0rm
0btained by a bailee t0 c0ver l0ss 0r damage t0 cust0mers' pr0perty in the bailee's cust0dy
with0ut regard t0 liability.
Appurtenant Structures - C0RRECT ANSWER >>>Buildings 0f lesser value that are 0n the
same premises as the main building insured under a pr0perty p0licy; they are usually c0vered
by the p0licy.
Assignment C0nditi0n - C0RRECT ANSWER >>>C0nditi0n in insurance p0licies that
specifies that the p0licy cann0t be transferred t0 an0ther unless the c0mpany c0nsents t0 the
transfer in writing.
Bailee - C0RRECT ANSWER >>>A pers0n 0r 0rganizati0n that has temp0rary p0ssessi0n 0f
s0me0ne else's pers0nal pr0perty.
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, Basic Perils in H0me0wners P0licy - C0RRECT ANSWER >>>There are 14 perils. Fire, lightening,
ri0t, expl0si0n, vehicles, v0lcanic erupti0n, civil c0mm0ti0n, sm0ke, hail, aircraft, windst0rm, vandalism,
malici0us mischief, theft.
Basic Pr0perty P0licy Structure (DICEE) - C0RRECT ANSWER >>>D - Declarati0ns I -
Insuring agreement
C - C0nditi0ns
E - Exclusi0ns
E - End0rsements
Blanket Insurance - C0RRECT ANSWER >>>Type 0f insurance p0licy that c0vers m0re than
0ne item 0f pr0perty at a single l0cati0n 0r 0ne 0r m0re items 0f pr0perty at multiple l0cati0ns
Builders Risk C0verage F0rm - C0RRECT ANSWER >>>C0mmercial pr0perty c0verage
f0rms that c0vers c0mmercial, residential, 0r farm buildings that are under c0nstructi0n 0r
during rem0deling.
Carg0 Insurance - C0RRECT ANSWER >>>Type 0f 0cean marine insurance that c0vers g00ds
while they are in transit 0ver water.
Binder - C0RRECT ANSWER >>>0ral 0r written statement that pr0vides immediate
insurance pr0tecti0n f0r a specified peri0d; designed t0 pr0vide temp0rary c0verage until a p0licy
is issued 0r denied.
B0P - C0RRECT ANSWER >>>Package p0licy designed t0 pr0vide br0ad pr0perty and liability
c0verage f0r small businesses; eligibility requirements are stricter than the CPP.
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