STATE FARM PROPERTY AND CASUALTY Questions & 100% Correct Answers

duties of the insured ~~> 1. pay the premium 2. take all reasonable means to save and protect the property from loss 3. give the insurance company immediate notice of loss 4. give the insurance company proof of loss within 60 days of the loss 5. separate the damaged property from the undamaged property and allow the insurance company to inspect the undamaged property as well as the insured's books and records 6. the insured cannot sue the insurance company unless all of these requirements have been satisfied and then he/she must sue within 12 months of the loss duties of the insurance company ~~> 1. must indemnify the insured within 60 days of proof of loss 2. may either pay the appraised ACV of the loss or repair or replace the damaged property 3. if the insured and insurance company disagree as the ACV of the loss and the damaged property cannot be repaired or replaced, they each can 2 | P a g e | © copyright 2024/2025 | Grade A+ Master01 | September, 2024/2025 | Latest update select an appraiser. if the appraisers disagree, they select an umpire appraiser who will make the final determination the subrogation clause ~~> states that the insurance company can require the insured to assign (transfer) to it any legal rights which the insured has against third parties to the insurance company at the time of loss assignment clause ~~> 1. transfer of a policy to another person 2. assignment clause of property insurance policy says no assignment of the policy is valid unless signed by an officer of the insurance company the other insurance clause ~~> states that the insurance company can either prohibit other insurance or can limit the amount of other insurance by adding an endorsement to the policy pro rata liability clause 3 | P a g e | © copyright 2024/2025 | Grade A+ Master01 | September, 2024/2025 | Latest update ~~> 1. applies when there are concurrent policies. concurrent insurance is when 2 or more policies cover the same property. it is sometimes done when insuring high value property. the policies should be identical in all respects except face amounts 2. says that no insurance company shall be responsible for any more than its pro rata share of the loss mortgagee rights ~~> -if a mortgagee (lender) is named on the declarations page, it acquires 3 rights in the policy: 1. 10 days notice of cancellation 2. to have the loss paid to the mortgagee 3. to provide proof of loss should the insured fail to