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State Farm Insurance License Exam
Questions and Correct Answers/ Latest
Update / Already Graded
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
Actual Cash Value (ACV)
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 st ate.
Adverse Selection
All rights reserved © 2025/ 2026 |
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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
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.
Aviation Hull Insurance
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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
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.
All rights reserved © 2025/ 2026 |
State Farm Insurance License Exam
Questions and Correct Answers/ Latest
Update / Already Graded
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
Actual Cash Value (ACV)
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 st ate.
Adverse Selection
All rights reserved © 2025/ 2026 |
, Page |2
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
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.
Aviation Hull Insurance
All rights reserved © 2025/ 2026 |
, Page |3
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
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.
All rights reserved © 2025/ 2026 |
