1 promax - Stuvia US 2025/2026
State Farm Insurance License Exam Questions with
Detailed Verified Answers (100% Correct Answers)
/Already Graded A+
Abandonment Condition
Ans: A condition often contained in property insurance policies that states
that the insured cannot abandon damaged property to the insurer and
demand to be reimbursed for its full value.
Accident
Ans: A loss that occurs at a specific time and place
Exampromax - Stuvia US
Actual Cash Value (ACV)
Approved By:
Ans: Today's replacement cost minus depreciation. Depreciation from
wear and tear, or obsolescence.
admitted insurer; authorized insurer
Ans: Company that meets a state insurance department's standards and is
allowed to do business in that state.
Adverse Selection
Ans: the tendency of insureds with a greater than average chance of loss to
purchase insurance
Annual Transit Policy
Ans: Nonfiled commercial inland marine transportation form that insures a
property owner's incoming or outgoing shipments of goods during a year
Appraisal Clause
, 2 promax - Stuvia US 2025/2026
Ans: A survey of property to determine the insurable value of the property
or the value of the loss sustained.
Appraisal Condition
Ans: Policy condition that outlines a procedure for when the insured and
insurer disagree on the amount of a loss
Assignment
Ans: The legal transfer of one's interest in an insurance policy to another
person.
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Aviation Hull Insurance
Approved By:
Ans: Provides coverage for physical damage to an aircraft.
Bailee's Customers Policy
Ans: Nonfiled commercial inland marine form obtained by a bailee to
cover loss or damage to customers' property in the bailee's custody without
regard to liability.
Appurtenant Structures
Ans: Buildings of lesser value that are on the same premises as the main
building insured under a property policy; they are usually covered by the
policy.
Assignment Condition
, 3 promax - Stuvia US 2025/2026
Ans: Condition in insurance policies that specifies that the policy cannot be
transferred to another unless the company consents to the transfer in
writing.
Bailee
Ans: A person or organization that has temporary possession of someone
else's personal property.
Basic Perils in Homeowners Policy
Ans: There are 14 perils. Fire, lightening, riot, explosion, vehicles, volcanic
eruption, civil commotion, smoke, hail, aircraft, windstorm, vandalism,
Exampromax - Stuvia US
malicious mischief, theft.
Approved By:
Basic Property Policy Structure (DICEE)
Ans: D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
Blanket Insurance
Ans: Type of insurance policy that covers more than one item of property
at a single location or one or more items of property at multiple locations
Builders Risk Coverage Form
State Farm Insurance License Exam Questions with
Detailed Verified Answers (100% Correct Answers)
/Already Graded A+
Abandonment Condition
Ans: A condition often contained in property insurance policies that states
that the insured cannot abandon damaged property to the insurer and
demand to be reimbursed for its full value.
Accident
Ans: A loss that occurs at a specific time and place
Exampromax - Stuvia US
Actual Cash Value (ACV)
Approved By:
Ans: Today's replacement cost minus depreciation. Depreciation from
wear and tear, or obsolescence.
admitted insurer; authorized insurer
Ans: Company that meets a state insurance department's standards and is
allowed to do business in that state.
Adverse Selection
Ans: the tendency of insureds with a greater than average chance of loss to
purchase insurance
Annual Transit Policy
Ans: Nonfiled commercial inland marine transportation form that insures a
property owner's incoming or outgoing shipments of goods during a year
Appraisal Clause
, 2 promax - Stuvia US 2025/2026
Ans: A survey of property to determine the insurable value of the property
or the value of the loss sustained.
Appraisal Condition
Ans: Policy condition that outlines a procedure for when the insured and
insurer disagree on the amount of a loss
Assignment
Ans: The legal transfer of one's interest in an insurance policy to another
person.
Exampromax - Stuvia US
Aviation Hull Insurance
Approved By:
Ans: Provides coverage for physical damage to an aircraft.
Bailee's Customers Policy
Ans: Nonfiled commercial inland marine form obtained by a bailee to
cover loss or damage to customers' property in the bailee's custody without
regard to liability.
Appurtenant Structures
Ans: Buildings of lesser value that are on the same premises as the main
building insured under a property policy; they are usually covered by the
policy.
Assignment Condition
, 3 promax - Stuvia US 2025/2026
Ans: Condition in insurance policies that specifies that the policy cannot be
transferred to another unless the company consents to the transfer in
writing.
Bailee
Ans: A person or organization that has temporary possession of someone
else's personal property.
Basic Perils in Homeowners Policy
Ans: There are 14 perils. Fire, lightening, riot, explosion, vehicles, volcanic
eruption, civil commotion, smoke, hail, aircraft, windstorm, vandalism,
Exampromax - Stuvia US
malicious mischief, theft.
Approved By:
Basic Property Policy Structure (DICEE)
Ans: D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
Blanket Insurance
Ans: Type of insurance policy that covers more than one item of property
at a single location or one or more items of property at multiple locations
Builders Risk Coverage Form
