1
State Farm Property Questions with Answers (100%
Correct Answers)
In property insurance actual cash value is defined as which of the
following— Answer: Replacement cost at the time of the loss, less
depreciation
Peril is most easily defined as— Answer: the cause of loss insured
against
What is a leading factor in the determination of actual cash value—
Answer: replacement cost
Replacement cost is defined as— Answer: full replacement of property
at its current cost, new and without reduction for depreciation
Property insurance that provides 100k coverage for a building and 50k
coverage for personal property at a single location is called— Answer:
Specific coverage
Which of the following is used in the formula for calculating the actual
cash value of a property— Answer: replacement cost
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, 2
What is the purpose of the coinsurance clause found in property
insurance policies?— Answer: Encourage the insured to insure the
property closer to its full value
An insured has a liability policy that sets the amount at 50k for all
claims that arise from a single incident. which type of limit of liability
does this insured's policy have?— Answer: per occurrence
When the amount of insurance written in a property policy is not
subject to any coinsurance provision and that amount is paid in the
event of a covered loss, the coverage is said to be written as— Answer:
stated amount
What is stated amount coverage— Answer: In stated amt coverage the
value of the insured property is determined at the time the policy is
written.
in the event of a loss, that amount is paid without regard to any
coinsurance provision.
© 2025 All rights reserved
State Farm Property Questions with Answers (100%
Correct Answers)
In property insurance actual cash value is defined as which of the
following— Answer: Replacement cost at the time of the loss, less
depreciation
Peril is most easily defined as— Answer: the cause of loss insured
against
What is a leading factor in the determination of actual cash value—
Answer: replacement cost
Replacement cost is defined as— Answer: full replacement of property
at its current cost, new and without reduction for depreciation
Property insurance that provides 100k coverage for a building and 50k
coverage for personal property at a single location is called— Answer:
Specific coverage
Which of the following is used in the formula for calculating the actual
cash value of a property— Answer: replacement cost
© 2025 All rights reserved
, 2
What is the purpose of the coinsurance clause found in property
insurance policies?— Answer: Encourage the insured to insure the
property closer to its full value
An insured has a liability policy that sets the amount at 50k for all
claims that arise from a single incident. which type of limit of liability
does this insured's policy have?— Answer: per occurrence
When the amount of insurance written in a property policy is not
subject to any coinsurance provision and that amount is paid in the
event of a covered loss, the coverage is said to be written as— Answer:
stated amount
What is stated amount coverage— Answer: In stated amt coverage the
value of the insured property is determined at the time the policy is
written.
in the event of a loss, that amount is paid without regard to any
coinsurance provision.
© 2025 All rights reserved
