STATE FARM EXAM 2024-2025
ACV - Answer today's replacement cost minus depreciation.
REPLACEMENT COST: ANSWER WITHOUT SUBTRACTING
DEPRECIATION
FUNCTIONAL REPLACEMENT COST - ALSO KNOWN AS REPAIR COST.
Answer the agreed-upon value before any loss occurs.
THREE COMMON METHODS USED IN PROPERTY INSURANCE TO
MINIMIZE CLAIMS: ANSWER EXCLUSIONS, DEDUCTIBLES, AND
COINSURANCE.
EXCLUSIONS: ANSWER EVENTS AND PROPERTIES THAT ARE NOT
COVERED.
DEDUCTIBLES: ANSWER RETAIN RISK. Minimizes the use of the policy and
helps to eliminate small claims.
COINSURANCE - REWARD POLICYHOLDERS WHO PURCHASE
ADEQUATE AMOUNTS OF COVERAGE WHILE PUNISHING THOSE WHO
DO NOT.
COINSURANCE: ANSWER DID/SHOULD TIMES LOSS MINUS
DEDUCTIBLE
HOMEOWNERS: ANSWER WILL COVER YOUR PERSONAL PROPERTY
ANYWHERE IN THE WORLD.
ACV - Answer today's replacement cost minus depreciation.
REPLACEMENT COST: ANSWER WITHOUT SUBTRACTING
DEPRECIATION
FUNCTIONAL REPLACEMENT COST - ALSO KNOWN AS REPAIR COST.
Answer the agreed-upon value before any loss occurs.
THREE COMMON METHODS USED IN PROPERTY INSURANCE TO
MINIMIZE CLAIMS: ANSWER EXCLUSIONS, DEDUCTIBLES, AND
COINSURANCE.
EXCLUSIONS: ANSWER EVENTS AND PROPERTIES THAT ARE NOT
COVERED.
DEDUCTIBLES: ANSWER RETAIN RISK. Minimizes the use of the policy and
helps to eliminate small claims.
COINSURANCE - REWARD POLICYHOLDERS WHO PURCHASE
ADEQUATE AMOUNTS OF COVERAGE WHILE PUNISHING THOSE WHO
DO NOT.
COINSURANCE: ANSWER DID/SHOULD TIMES LOSS MINUS
DEDUCTIBLE
HOMEOWNERS: ANSWER WILL COVER YOUR PERSONAL PROPERTY
ANYWHERE IN THE WORLD.
