Page 1 of 9
State Farm Property Exam BUNDLE (Latest 2025)
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
, Page 2 of 9
Which of the following is used in the formula for calculating the
actual cash value of a property .....ANSWER.....replacement cost
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.
State Farm Property Exam BUNDLE (Latest 2025)
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
, Page 2 of 9
Which of the following is used in the formula for calculating the
actual cash value of a property .....ANSWER.....replacement cost
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.
