State Farm State Test questions with verified detailed
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solutions
Insurance producer - correct answer✔✔An individual or an entity authorized in writing by
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a lawfully qualified insurance compnay to transact, negotiate or effect contracts of
|| || || || || || || || || || || ||
insurance of behalf of that insurance company.
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Resident Producer - correct answer✔✔Any person that lives in kansas and is licensed to
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transact insurance business for at least one insurer.
|| || || || || || ||
A Non-resident producer - correct answer✔✔A producer that lives in some other state;they
|| || || || || || || || || || || || ||
are licensed in their owen home stae and has written permission from the kansas insurance
|| || || || || || || || || || || || || || ||
commisioner to sell in our state. || || || || ||
Commissioner - correct answer✔✔The insurance induster is regulated by the kansas|| || || || || || || || || || ||
insurance commissioner, who is elected by the people to a 4 year term in kansas
|| || || || || || || || || || || || || ||
Purpose of the commissioner - correct answer✔✔The insurance commissioner administers
|| || || || || || || || || ||
or regulates the laws that have been passed by the legislature. The commissioner does not
|| || || || || || || || || || || || || || ||
make or change insurance laws, but instead has the power to make reasonable rules and
|| || || || || || || || || || || || || || ||
regulations to ensure that the laws are beng followed.
|| || || || || || || ||
Redlining - correct answer✔✔the practice of not seeling insurance to those who live in the
|| || || || || || || || || || || || || || ||
low-income, high-crime areas of town and is considered to be a form of unfair
|| || || || || || || || || || || || || ||
discrimination.
Unfair Trade Practices Act - correct answer✔✔a state law that details illegal actions
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performed by producers. if a producer is found guilty of any of the following actions,
|| || || || || || || || || || || || || || ||
, penalties could include licensure suspension or revocation, fines, cease and desist orders
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and redress of injury.
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Fair Credit Reporting Act - correct answer✔✔The kansas property and casualty guarantee
|| || || || || || || || || || || ||
association provide payment for covered claims under certain insurance plicies in the event
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of insolvency of the insurer. All insurance companies holding certificates of authority to
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conduct business in kansas must be members and participate in this program through
|| || || || || || || || || || || || ||
assessments. Each member is assessed a pro-rata share based on net written premiums from
|| || || || || || || || || || || || ||
the previous year. the maximum assessment is 2% of net written premiums.
|| || || || || || || || || || || ||
Peril - correct answer✔✔a specific "cause of loss"
|| || || || || || ||
Direct loss - correct answer✔✔The cost to repair the damaged property. The physical loss to
|| || || || || || || || || || || || || ||
the property, auto, etc. cause by the peril itself. The direct loss is visible physical loss.
|| || || || || || || || || || || || || || || ||
Indirect/consequential loss - correct answer✔✔the financial loss suffered because of the || || || || || || || || || || ||
"loss of use" of the covered property. the loss incurred because of the "loss of use" of the
|| || || || || || || || || || || || || || || || || ||
covered property. such as hotel expenses or rental care expenses.
|| || || || || || || || ||
Exposure - correct answer✔✔The amount of money the insured or compnay could
|| || || || || || || || || || || ||
conceivable incur ||
Catastrophic - correct answer✔✔damage, flood loss and nuclear damage are not covered by
|| || || || || || || || || || || || ||
standard insurance policies because of the hgh exposure to loss if the loss were to occur
|| || || || || || || || || || || || || || ||
Binder - correct answer✔✔Provides immediate, temporary evidence of coverage until the
|| || || || || || || || || || ||
policy is issured || ||
Producer responsibility - correct answer✔✔Producers may be obligated to reimburse their
|| || || || || || || || || || ||
company for their actions. || || ||
|| || || || || || || ||
solutions
Insurance producer - correct answer✔✔An individual or an entity authorized in writing by
|| || || || || || || || || || || || ||
a lawfully qualified insurance compnay to transact, negotiate or effect contracts of
|| || || || || || || || || || || ||
insurance of behalf of that insurance company.
|| || || || || ||
Resident Producer - correct answer✔✔Any person that lives in kansas and is licensed to
|| || || || || || || || || || || || || ||
transact insurance business for at least one insurer.
|| || || || || || ||
A Non-resident producer - correct answer✔✔A producer that lives in some other state;they
|| || || || || || || || || || || || ||
are licensed in their owen home stae and has written permission from the kansas insurance
|| || || || || || || || || || || || || || ||
commisioner to sell in our state. || || || || ||
Commissioner - correct answer✔✔The insurance induster is regulated by the kansas|| || || || || || || || || || ||
insurance commissioner, who is elected by the people to a 4 year term in kansas
|| || || || || || || || || || || || || ||
Purpose of the commissioner - correct answer✔✔The insurance commissioner administers
|| || || || || || || || || ||
or regulates the laws that have been passed by the legislature. The commissioner does not
|| || || || || || || || || || || || || || ||
make or change insurance laws, but instead has the power to make reasonable rules and
|| || || || || || || || || || || || || || ||
regulations to ensure that the laws are beng followed.
|| || || || || || || ||
Redlining - correct answer✔✔the practice of not seeling insurance to those who live in the
|| || || || || || || || || || || || || || ||
low-income, high-crime areas of town and is considered to be a form of unfair
|| || || || || || || || || || || || || ||
discrimination.
Unfair Trade Practices Act - correct answer✔✔a state law that details illegal actions
|| || || || || || || || || || || || ||
performed by producers. if a producer is found guilty of any of the following actions,
|| || || || || || || || || || || || || || ||
, penalties could include licensure suspension or revocation, fines, cease and desist orders
|| || || || || || || || || || || ||
and redress of injury.
|| || ||
Fair Credit Reporting Act - correct answer✔✔The kansas property and casualty guarantee
|| || || || || || || || || || || ||
association provide payment for covered claims under certain insurance plicies in the event
|| || || || || || || || || || || || ||
of insolvency of the insurer. All insurance companies holding certificates of authority to
|| || || || || || || || || || || || ||
conduct business in kansas must be members and participate in this program through
|| || || || || || || || || || || || ||
assessments. Each member is assessed a pro-rata share based on net written premiums from
|| || || || || || || || || || || || ||
the previous year. the maximum assessment is 2% of net written premiums.
|| || || || || || || || || || || ||
Peril - correct answer✔✔a specific "cause of loss"
|| || || || || || ||
Direct loss - correct answer✔✔The cost to repair the damaged property. The physical loss to
|| || || || || || || || || || || || || ||
the property, auto, etc. cause by the peril itself. The direct loss is visible physical loss.
|| || || || || || || || || || || || || || || ||
Indirect/consequential loss - correct answer✔✔the financial loss suffered because of the || || || || || || || || || || ||
"loss of use" of the covered property. the loss incurred because of the "loss of use" of the
|| || || || || || || || || || || || || || || || || ||
covered property. such as hotel expenses or rental care expenses.
|| || || || || || || || ||
Exposure - correct answer✔✔The amount of money the insured or compnay could
|| || || || || || || || || || || ||
conceivable incur ||
Catastrophic - correct answer✔✔damage, flood loss and nuclear damage are not covered by
|| || || || || || || || || || || || ||
standard insurance policies because of the hgh exposure to loss if the loss were to occur
|| || || || || || || || || || || || || || ||
Binder - correct answer✔✔Provides immediate, temporary evidence of coverage until the
|| || || || || || || || || || ||
policy is issured || ||
Producer responsibility - correct answer✔✔Producers may be obligated to reimburse their
|| || || || || || || || || || ||
company for their actions. || || ||
