State Farm Property questions and answers
2026\2027 A+ Grade
In property insurance actual cash value is defined as which of the following
- correct answer Replacement cost at the time of the loss, less depreciation
Peril is most easily defined as
- correct answer the cause of loss insured against
What is a leading factor in the determination of actual cash value
- correct answer replacement cost
Replacement cost is defined as
- correct answer 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
- correct answer Specific coverage
Which of the following is used in the formula for calculating the actual cash value of a property
- correct answer replacement cost
What is the purpose of the coinsurance clause found in property insurance policies?
- correct answer 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?
- correct answer 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
- correct answer stated amount
What is stated amount coverage
- correct answer 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.
However, if the loss is less than the total, the insurer has salvage rights with the insured having first right
of refusal of the salvage.
What type of liability would a person who owns a swimming pool have?
- correct answer Absolute
What is absolute liability
- correct answer Any conduct that is inherently dangerous imposes absolute liability. the claimant does
not have to prove anything
Insurable interest in the property covered in a policy must be proven
- correct answer at the time of loss
Which of the following is NOT an element of negligence
breach, unbroken chain, libel, duty
- correct answer libel
what is libel
- correct answer a type of intentional tort
With respect to the business of insurance, a hazard is
- correct answer any condition or exposure that increases the possibility of loss
2026\2027 A+ Grade
In property insurance actual cash value is defined as which of the following
- correct answer Replacement cost at the time of the loss, less depreciation
Peril is most easily defined as
- correct answer the cause of loss insured against
What is a leading factor in the determination of actual cash value
- correct answer replacement cost
Replacement cost is defined as
- correct answer 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
- correct answer Specific coverage
Which of the following is used in the formula for calculating the actual cash value of a property
- correct answer replacement cost
What is the purpose of the coinsurance clause found in property insurance policies?
- correct answer 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?
- correct answer 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
- correct answer stated amount
What is stated amount coverage
- correct answer 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.
However, if the loss is less than the total, the insurer has salvage rights with the insured having first right
of refusal of the salvage.
What type of liability would a person who owns a swimming pool have?
- correct answer Absolute
What is absolute liability
- correct answer Any conduct that is inherently dangerous imposes absolute liability. the claimant does
not have to prove anything
Insurable interest in the property covered in a policy must be proven
- correct answer at the time of loss
Which of the following is NOT an element of negligence
breach, unbroken chain, libel, duty
- correct answer libel
what is libel
- correct answer a type of intentional tort
With respect to the business of insurance, a hazard is
- correct answer any condition or exposure that increases the possibility of loss
