State Farm Insurance License 117 Exam Questions with 100% Correct Answers | Verified | Updated 2024

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. Accident - ️️A loss that occurs at a specific time and place Actual Cash Value (ACV) - ️️Today's replacement cost minus depreciation. Depreciation from wear and tear, or obsolescence. admitted insurer; authorized insurer - ️️Company that meets a state insurance department's standards and is allowed to do business in that state. Adverse Selection - ️️the tendency of insureds with a greater than average chance of loss to purchase insurance Annual Transit Policy - ️️Nonfiled commercial inland marine transportation form that insures a property owner's incoming or outgoing shipments of goods during a year Appraisal Clause - ️️A survey of property to determine the insurable value of the property or the value of the loss sustained. Appraisal Condition - ️️Policy condition that outlines a procedure for when the insured and insurer disagree on the amount of a loss Assignment - ️️The legal transfer of one's interest in an insurance policy to another person.