State Farm Insurance License Exam With Correct Answers(Graded A+)

State Farm Insurance License Exam
With Correct Answers(Graded A+)




A condition often contained in property insurance policies that states that the insured cannot abandon
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damaged property to the insurer and demand to be reimbursed for its full value. - correct answers
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Abandonment Condition n




A loss that occurs at a specific time and place - correct answers Accident
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Today's replacement cost minus depreciation. Depreciation from wear and tear, or obsolescence. - correct
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answers Actual Cash Value (ACV)
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Company that meets a state insurance department's standards and is allowed to do business in that state. -
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correct answers admitted insurer; authorized insurer
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the tendency of insureds with a greater than average chance of loss to purchase insurance - correct answers
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Adverse Selection n




Nonfiled commercial inland marine transportation form that insures a property owner's incoming or
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outgoing shipments of goods during a year - correct answers Annual Transit Policy
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A survey of property to determine the insurable value of the property or the value of the loss sustained. -
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correct answers Appraisal Clause
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, Policy condition that outlines a procedure for when the insured and insurer disagree on the amount of a loss -
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correct answers Appraisal Condition n n n




The legal transfer of one's interest in an insurance policy to another person. - correct answers Assignment
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Provides coverage for physical damage to an aircraft. - correct answers Aviation Hull Insurance
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Nonfiled commercial inland marine form obtained by a bailee to cover loss or damage to customers' property
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in the bailee's custody without regard to liability. - correct answers Bailee's Customers Policy
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Buildings of lesser value that are on the same premises as the main building insured under a property policy;
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they are usually covered by the policy. - correct answers Appurtenant Structures
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Condition in insurance policies that specifies that the policy cannot be transferred to another unless the
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company consents to the transfer in writing. - correct answers Assignment Condition
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A person or organization that has temporary possession of someone else's personal property. - correct
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answers Bailee n




There are 14 perils. Fire, lightening, riot, explosion, vehicles, volcanic eruption, civil commotion, smoke, hail,
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aircraft, windstorm, vandalism, malicious mischief, theft. - correct answers Basic Perils in Homeowners Policy
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D - Declarations
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I - Insuring agreement
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C - Conditions
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E - Exclusions
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E - Endorsements - correct answers Basic Property Policy Structure (DICEE)
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Type of insurance policy that covers more than one item of property at a single location or one or more items
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of property at multiple locations - correct answers Blanket Insurance
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