STATE FARM Questions & 100% Correct
Answers
ACV
✓ ~~> TODAYS REPLACEMENT COST MINUS DEPRECIATION
REPLACEMENT COST
✓ ~~> WITHOUT SUBTRACTING DEPRECIATION
FUNCTIONAL REPLACEMENT COST
✓ ~~> SOMETIMES CALLED REPAIR COST
AGREED VALUE
✓ ~~> AGREED VALUE BEFORE LOSS OCCURS
THREE COMMON METHODS USED IN PROPERTY INSURANCE TO MINIMIZE
CLAIMS
✓ ~~> EXCLUSIONS, DEDUCTIBLES, COINSURANCE
EXCLUSIONS
Master01 | September, 2024/2025 | Latest update
, 2 | P a g e | © copyright 2024/2025 | Grade A+
✓ ~~> EVENTS AND PROPERTIES THAT ARE NOT COVERED
DEDUCTIBLES
✓ ~~> RETAIN RISK. MINIMIZES THE USAGE OF THE POLICY AND HELPS
ELIMINATE SMALL CLAIMS
COINSURANCE
✓ ~~> REWARD POLICYOWNERS WHO BUY ADEQUATE AMOUNTS OF
COVERAGE AND PUNISHING THOSE WHO DO NOT.
COINSURANCE
✓ ~~> DID/SHOULD TIMES LOSS MINUS DEDUCTIBLE
HOMEOWNERS
✓ ~~> WILL COVER YOUR PERSONAL PROPERTY ANYWHERE IN THE
WORLD.
COMMERCIAL PROPERTY
✓ ~~> COVERS BUSINESS PERSONAL PROPERTY ON PREMISES OR WITHIN
100 FEET OF PREMISES
Master01 | September, 2024/2025 | Latest update