State Farm Insurance License Exam Test Questions With Correct Answers 2023 (Already Graded A+)

State Farm Insurance License Exam Test Questions With Correct Answers 2023 (Already Graded A+) Appurtenant Structures - Answer 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 - Answer Condition in insurance policies that specifies that the policy cannot be transferred to another unless the company consents to the transfer in writing. Bailee - Answer A person or organization that has temporary possession of someone else's personal property. State Farm Insurance License Exam 2023 With Correct Answers Basic Perils in Homeowners Policy - Answer There are 14 perils. Fire, lightening, riot, explosion, vehicles, volcanic eruption, civil commotion, smoke, hail, aircraft, windstorm, vandalism, malicious mischief, theft. Basic Property Policy Structure (DICEE) - Answer D - Declarations I - Insuring agreement C - Conditions E - Exclusions E - Endorsements Blanket Insurance - Answer 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 - Answer Commercial property coverage forms that covers commercial, residential, or farm buildings that are under construction or during remodeling. Cargo Insurance - Answer Type of ocean marine insurance that covers goods while they are in transit over water. Binder - Answer Oral or written statement that provides immediate insurance protection for a specified period; designed to provide temporary coverage until a policy is issued or denied. BOP - Answer Package policy designed to provide broad property and liability coverage for small businesses; eligibility requirements are stricter than the CPP. Business Income Policy - Answer Pays for loss of income that the insured sustains due to a direct physical loss from a covered peril that forces the insured to suspend operations until the property can be repaired, rebuilt, or replaced with reasonable speed; available with or without extra expense coverage. Causes of Loss Form - Answer Separate form used with the commercial property coverage part of the commercial package policy that lists covered perils and exclusions. Several different versions provide increasingly broader coverage from basic to broad to special. Condominium Association Coverage Form - Answer Commercial Property coverage form that covers the buildings in a condominium complex. Does not cover condominium owner's personal property. Coverage D on a HO Policy - Loss of Use - Answer If property loss makes the residence premises uninhabitable, the additional living expenses are covered; or if a covered loss to the insured's property makes a part of the residence premises uninhabitable that is rented to others or held for rental by the insured, this coverage will pay the fair rental value. State Farm Insurance License Exam 2023 With Correct Answers coverages excluded on dwelling policy - Answer Theft, vandalism, and malicious mischief excluded on basic policy. Liability excluded on all policies. Coverage B of homeowners policy - Answer Other structures; covers building and structures on the premises other than the dwelling set apart by a clear space from the dwelling; 10% of Coverage A. Coverage D on a dwelling policy - Answer Fair rental value is covered on a dwelling policy. Coverage limit on money in HO - Answer $200 limit on personal property with special limits Coinsurance Clause on Property - Answer Insurance carried/Insurance required X amount of loss Coverage F on homeowners policy - Answer Medical payments to others; pays all necessary medical expenses for up to three years after an accident. Deductible - Answer The amount of expenses that must be paid out of pocket before an insurer will pay any expenses from a covered loss. Direct Loss - Answer Financial loss resulting directly from a loss to property Equipment Breakdown Coverage; boiler and machinery coverage - Answer Part of the commercial package policy that covers a loss due to breakdown of business equipment due to direct or indirect loss. Excess Insurance - Answer When two or more policies or coverage apply to the same loss, the one that applies only after the limits of the primary coverage have been exhausted. Difference in Conditions Insurance (DIC) - Answer Type of commercial property policy that covers most insurable perils but excludes basic fire and extended coverage perils. Eligible for Dwelling Policy - Answer Provides coverage for the following: -Up to five boarders -Up to four apartments -Mobile home -Residence rented to others -Vacation home -Townhouse/rowhouse -Home under construction Estoppel - Answer Principle that states that if one intentionally or unintentionally creates the impression that a certain fact exists, and an innocent party relies on that