State Farm Insurance License Exam QUESTIONS LATEST UPDATE.pdf

State Farm Insurance License Exam
QUESTIONS LATEST UPDATE
AbandonmentRConditionR-
RCORRECTRANSWERSARconditionRoftenRcontainedRinRpropertyRinsuranceRpoliciesRthatRstat
esRthatRtheRinsuredRcannotRabandonRdamagedRpropertyRtoRtheRinsurerRandRdemandRto
RbeRreimbursedRforRitsRfullRvalue.



AccidentR-RCORRECTRANSWERSARlossRthatRoccursRatRaRspecificRtimeRandRplace



ActualRCashRValueR(ACV)R-
RCORRECTRANSWERSToday'sRreplacementRcostRminusRdepreciation.RDepreciationRfromRwe
arRandRtear,RorRobsolescence.



admittedRinsurer;RauthorizedRinsurerR-
RCORRECTRANSWERSCompanyRthatRmeetsRaRstateRinsuranceRdepartment'sRstandardsRand
RisRallowedRtoRdoRbusinessRinRthatRstate.



AdverseRSelectionR-
RCORRECTRANSWERStheRtendencyRofRinsuredsRwithRaRgreaterRthanRaverageRchanceRofRlo
ssRtoRpurchaseRinsurance



AnnualRTransitRPolicyR-
RCORRECTRANSWERSNonfiledRcommercialRinlandRmarineRtransportationRformRthatRinsures
RaRpropertyRowner'sRincomingRorRoutgoingRshipmentsRofRgoodsRduringRaRyear



AppraisalRClauseR-
RCORRECTRANSWERSARsurveyRofRpropertyRtoRdetermineRtheRinsurableRvalueRofRtheRprop
ertyRorRtheRvalueRofRtheRlossRsustained.

,AppraisalRConditionR-
RCORRECTRANSWERSPolicyRconditionRthatRoutlinesRaRprocedureRforRwhenRtheRinsuredRan
dRinsurerRdisagreeRonRtheRamountRofRaRloss



AssignmentR-
RCORRECTRANSWERSTheRlegalRtransferRofRone'sRinterestRinRanRinsuranceRpolicyRtoRanoth
erRperson.



AviationRHullRInsuranceR-
RCORRECTRANSWERSProvidesRcoverageRforRphysicalRdamageRtoRanRaircraft.



Bailee'sRCustomersRPolicyR-
RCORRECTRANSWERSNonfiledRcommercialRinlandRmarineRformRobtainedRbyRaRbaileeRtoRc
overRlossRorRdamageRtoRcustomers'RpropertyRinRtheRbailee'sRcustodyRwithoutRregardRtoR
liability.



AppurtenantRStructuresR-
RCORRECTRANSWERSBuildingsRofRlesserRvalueRthatRareRonRtheRsameRpremisesRasRtheRm
ainRbuildingRinsuredRunderRaRpropertyRpolicy;RtheyRareRusuallyRcoveredRbyRtheRpolicy.



AssignmentRConditionR-
RCORRECTRANSWERSConditionRinRinsuranceRpoliciesRthatRspecifiesRthatRtheRpolicyRcannot
RbeRtransferredRtoRanotherRunlessRtheRcompanyRconsentsRtoRtheRtransferRinRwriting.



BaileeR-
RCORRECTRANSWERSARpersonRorRorganizationRthatRhasRtemporaryRpossessionRofRsomeon
eRelse'sRpersonalRproperty.



BasicRPerilsRinRHomeownersRPolicyR-
RCORRECTRANSWERSThereRareR14Rperils.RFire,Rlightening,Rriot,Rexplosion,Rvehicles,Rvolcan

, icReruption,RcivilRcommotion,Rsmoke,Rhail,Raircraft,Rwindstorm,Rvandalism,RmaliciousRmisc
hief,Rtheft.



BasicRPropertyRPolicyRStructureR(DICEE)R-RCORRECTRANSWERSDR-RDeclarations

IR-RInsuringRagreement

CR-RConditions

ER-RExclusions

ER-REndorsements



BlanketRInsuranceR-
RCORRECTRANSWERSTypeRofRinsuranceRpolicyRthatRcoversRmoreRthanRoneRitemRofRprope
rtyRatRaRsingleRlocationRorRoneRorRmoreRitemsRofRpropertyRatRmultipleRlocations



BuildersRRiskRCoverageRFormR-
RCORRECTRANSWERSCommercialRpropertyRcoverageRformsRthatRcoversRcommercial,Rreside
ntial,RorRfarmRbuildingsRthatRareRunderRconstructionRorRduringRremodeling.



CargoRInsuranceR-
RCORRECTRANSWERSTypeRofRoceanRmarineRinsuranceRthatRcoversRgoodsRwhileRtheyRareR
inRtransitRoverRwater.



BinderR-
RCORRECTRANSWERSOralRorRwrittenRstatementRthatRprovidesRimmediateRinsuranceRprotec
tionRforRaRspecifiedRperiod;RdesignedRtoRprovideRtemporaryRcoverageRuntilRaRpolicyRisRis
suedRorRdenied.



BOPR-
RCORRECTRANSWERSPackageRpolicyRdesignedRtoRprovideRbroadRpropertyRandRliabilityRcov
erageRforRsmallRbusinesses;ReligibilityRrequirementsRareRstricterRthanRtheRCPP.