STATE FARM INSURACE LICENSE EXAM 120+ QUESTIONS AND CORRECT ANSWERS 2023

STATE FARM INSURACE LICENSE EXAM 120+ QUESTIONS AND CORRECT ANSWERS 2023 State Farm Insurance License Exam 1. Abandonment Condition: 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. 2. Accident: A loss that occurs at a specific time and place 3. Actual Cash Value (ACV): Today's replacement cost minus depreciation. Depreciation from wear and tear, or obsolescence. 4. admitted insurer; authorized insurer: Company that meets a state insurance department's standards and is allowed to do business in that state. 5. Adverse Selection: the tendency of insureds with a greater than average chance of loss to purchase insurance 6. Annual Transit Policy: Nonfiled commercial inland marine transportation form that insures a property owner's incoming or outgoing shipments of goods during a year 7. Appraisal Clause: A survey of property to determine the insurable value of the property or the value of the loss sustained. 8. Appraisal Condition: Policy condition that outlines a procedure for when the insured and insurer disagree on the amount of a loss 9. Assignment: The legal transfer of one's interest in an insurance policy to another person. 10. Aviation Hull Insurance: Provides coverage for physical damage to an aircraft. 11. Bailee's Customers Policy: 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. 12. Appurtenant Structures: Buildings of lesser value that are on the same premis- es as the main building insured under a property policy; they are usually covered by the policy. 13. Assignment Condition: Condition in insurance policies that specifies that the policy cannot be transferred to another unless the company consents to the transfer in writing. 14. Bailee: A person or organization that has temporary possession of someone else's personal property. 15. Basic Perils in Homeowners Policy: There are 14 perils. Fire, lightening, riot, explosion, vehicles, volcanic er