State Farm Newest Version (2026) Actual
Questions and Answers 100% Correct (A+)
• In property insurance actual cash value is defined as which of the following -
✓✓Replacement cost at the time of the loss, less depreciation
• Peril is most easily defined as -✓✓the cause of loss insured against
• What is a leading factor in the determination of actual cash value -
✓✓replacement cost
• Replacement cost is defined as -✓✓full replacement of property at its current
cost, new and without reduction for depreciation
• Property insurance that provides 100k coverage for a building and 50k coverage
for personal property at a single location is called -✓✓Specific coverage
• Which of the following is used in the formula for calculating the actual cash
value of a property -✓✓replacement cost
• What is the purpose of the coinsurance clause found in property insurance
policies? -✓✓Encourage the insured to insure the property closer to its full value
• An insured has a liability policy that sets the amount at 50k for all claims that
arise from a single incident. which type of limit of liability does this insured's
policy have? -✓✓per occurrence
• When the amount of insurance written in a property policy is not subject to any
coinsurance provision and that amount is paid in the event of a covered loss, the
coverage is said to be written as -✓✓stated amount
• What is stated amount coverage -✓✓In stated amt coverage the value of the
insured property is determined at the time the policy is written.
in the event of a loss, that amount is paid without regard to any coinsurance
provision.
Questions and Answers 100% Correct (A+)
• In property insurance actual cash value is defined as which of the following -
✓✓Replacement cost at the time of the loss, less depreciation
• Peril is most easily defined as -✓✓the cause of loss insured against
• What is a leading factor in the determination of actual cash value -
✓✓replacement cost
• Replacement cost is defined as -✓✓full replacement of property at its current
cost, new and without reduction for depreciation
• Property insurance that provides 100k coverage for a building and 50k coverage
for personal property at a single location is called -✓✓Specific coverage
• Which of the following is used in the formula for calculating the actual cash
value of a property -✓✓replacement cost
• What is the purpose of the coinsurance clause found in property insurance
policies? -✓✓Encourage the insured to insure the property closer to its full value
• An insured has a liability policy that sets the amount at 50k for all claims that
arise from a single incident. which type of limit of liability does this insured's
policy have? -✓✓per occurrence
• When the amount of insurance written in a property policy is not subject to any
coinsurance provision and that amount is paid in the event of a covered loss, the
coverage is said to be written as -✓✓stated amount
• What is stated amount coverage -✓✓In stated amt coverage the value of the
insured property is determined at the time the policy is written.
in the event of a loss, that amount is paid without regard to any coinsurance
provision.
