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Exam (elaborations)

State Farm Auto Insurance Exam: Study Guide & Practice Test 2024

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Prepare for your State Farm Auto Insurance licensing exam. Get a complete study guide with practice questions, policy types, and state-specific regulations for Property & Casualty (P&C) insurance.

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November 20, 2025
Number of pages
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Written in
2025/2026
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State Farm Auto Exam (Latest 2025)

Competitive Bids .....ANSWER.....The competitive bid process

requires that two or more repairers submit competitive estimates

or

"bids" for a specific repair job. The amount of the low, complete

bid is generally considered to

be the "competitive" price and is used as the basis for settlement.

In all cases, the vehicle owner

selects the facility that will perform repairs.

PCPs .....ANSWER.....State Farm uses a continuous

survey that gives repairers the opportunity to provide

information

online. The repairer information is used to determine labor rates

and material pricing levels that

, Page 2 of 12


reflect prevailing prices in that area. PCPs are determined by

analyzing information provided by

repairers that meet the Equipment/Capabilities Criteria listed on

the Repair Facility Survey form

Select Service Program .....ANSWER.....In some market areas,

repairers have been selected to participate in State Farm's

Select Service

Program. The program is designed to enhance claim service,

increase efficiency, and afford

customers an opportunity to select qualified repairers to inspect

and estimate vehicle damage

Paintless Dent repair .....ANSWER.....Paintless Dent Repair (PDR)

is an industry recognized repair process that involves the removal

of
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