STATE FARM PROPERTY EXAM QUESTIONS
STATE FARM PROPERTY EXAM QUESTIONS AND
ANSWERS GRADED A+ LATEST UPDATE.
Gaming ANS >> Gaming is a manipulation the solicitation and submission of applications to obtain
compensation and or agent incentives. This type of activity is not in the best interest of the company of
its policyholders and is strictly prohibited.
Tie in sales ANS >> A practice requiring a customer to purchase one product or service in order to
qualify for a different product or service.
Rebating ANS >> Rebating is offering a prospect or customer a special incentive to purchase or continue
a policy. This practice is illegal in most states and is against State Farm policy even in states where it is
allowed.
Unapproved vendor ANS >> Any vendor that does not have an agreement in place with state farm, or
services received from an approved vendor that are outside the scope of the vendors agreement with SF.
Unauthorized Vendor ANS >> A specific Vendor that State Farm has identified as not authorized to be
used by SF or Sf agents due to the potential risks posed to SF by engagement with the vendor. Agents
,STATE FARM PROPERTY EXAM QUESTIONS
should not use an unauthorized vendor. If an agent uses an unauthorized vendor his could impact the
relationship.
Demonstrations ANS >> shows guaranteed premiums for a term policy. In addition, it will include
guaranteed cash values.
Illustrations ANS >> used as a tool to educate the customer concerning the features and provisions of
policy options.
Submission of an application for an insurance policy is best described as? ANS >> offer
Information used in underwriting a policy for an insured, is made available to in insured because of
which of these? ANS >> Financial Services Modernization Act
What must be done to renew your Insurance License? ANS >> 12 Hours of Continuing Education within
2 Years
Which of the following is not a characteristic of a Mutual Insurance Company? ANS >> A policyholder is
a voting member on the Board of Directors
Property insurance policies that apply coverage only to perils that are stated in the policy, are considered
to be written on? ANS >> A named peril basis
A physical hazard describes which of the following? ANS >> The storage of flammables near a furnace
When a producer collects a premium on an insurance contract and deposits that in a trust account for
the insurer. This makes the producer a? ANS >> Broker
In Property and Casualty Insurance, when a form is attached to further define certain policy provisions or
conditions, or adds additional coverage, it is known as? ANS >> An endorsement
,STATE FARM PROPERTY EXAM QUESTIONS
Alpha Insurance Company does business in all fifty states, however its home office is located in Rhode
Island. To their business in California, Alpha Insurance Company is? ANS >> Foreign
Agent Z is trying to sell a client a policy. Afraid of losing his sale he offers to give the client 10% of his
commissions if the client will buy the policy. That agent would be guilty of which unfair trade practice?
ANS >> Rebating
When does the Texas Property and Casualty Insurance Guarantee Association pay covered claims? ANS
>> When an Admitted Insurer becomes insolvent
Before issuing a non-resident license, the Department must find that the applicant? ANS >> Has not
committed an act for which a license may be denied
All of the following are hazards for insurance underwriting, EXCEPT? ANS >> Incidental
A person can purchase an insurance policy to cover losses from all the following, EXCEPT? ANS >> An
operation of drug smuggling
Which risk management option, best describes insurance? ANS >> Transfer risk
Which of the following acts does not constitute Transacting Insurance? ANS >> Making phone calls to
set up appointments
A binder would be which of these? ANS >> Temporary proof of insurance
The standardized policy structure for insurance policies does not include which of the following? ANS
>> Duties
The Department of Insurance requires all of these for Licensing, EXCEPT? ANS >> High School Diploma
or GED
, STATE FARM PROPERTY EXAM QUESTIONS
The commissioner of Insurance can do which of these? ANS >> Set continuing education requirements
in Texas
The Commissioner of insurance is responsible for all of the following, EXCEPT? ANS >> Make insurance
laws when appropriate
The section of a property policy that specifies the obligations and duties of the insured and the insurer is
the? ANS >> Conditions
Which of the following is NOT found in a property insurance binder? ANS >> Amount of premium
The Texas Property and Casualty Insurance Guaranty Association pays covered claims against which of
the following? ANS >> Insolvent insurers
A claimant told their insurer they were sure that a certain piece of property was in the building that
burned. Made a? ANS >> Warranty
M hit F with his personal auto causing damages. F filed on his own policy and his insurer paid the
damages. F's insurer will go after M and M's insurer for the paid damages. This is called? ANS >>
Subrogation
If an Agent makes incomplete comparisons of policies, that Agent would be guilty of? ANS >> Unfair
Comparisons
Which License is required for a person who supervises others for an Insurance Company? ANS >>
Managing General Agent
___________ insurance is used to provide coverage when insurance is not available from an admitted
carrier. ANS >> Surplus
The named insured is found in what section of a property policy? ANS >> Declarations
STATE FARM PROPERTY EXAM QUESTIONS AND
ANSWERS GRADED A+ LATEST UPDATE.
Gaming ANS >> Gaming is a manipulation the solicitation and submission of applications to obtain
compensation and or agent incentives. This type of activity is not in the best interest of the company of
its policyholders and is strictly prohibited.
Tie in sales ANS >> A practice requiring a customer to purchase one product or service in order to
qualify for a different product or service.
Rebating ANS >> Rebating is offering a prospect or customer a special incentive to purchase or continue
a policy. This practice is illegal in most states and is against State Farm policy even in states where it is
allowed.
Unapproved vendor ANS >> Any vendor that does not have an agreement in place with state farm, or
services received from an approved vendor that are outside the scope of the vendors agreement with SF.
Unauthorized Vendor ANS >> A specific Vendor that State Farm has identified as not authorized to be
used by SF or Sf agents due to the potential risks posed to SF by engagement with the vendor. Agents
,STATE FARM PROPERTY EXAM QUESTIONS
should not use an unauthorized vendor. If an agent uses an unauthorized vendor his could impact the
relationship.
Demonstrations ANS >> shows guaranteed premiums for a term policy. In addition, it will include
guaranteed cash values.
Illustrations ANS >> used as a tool to educate the customer concerning the features and provisions of
policy options.
Submission of an application for an insurance policy is best described as? ANS >> offer
Information used in underwriting a policy for an insured, is made available to in insured because of
which of these? ANS >> Financial Services Modernization Act
What must be done to renew your Insurance License? ANS >> 12 Hours of Continuing Education within
2 Years
Which of the following is not a characteristic of a Mutual Insurance Company? ANS >> A policyholder is
a voting member on the Board of Directors
Property insurance policies that apply coverage only to perils that are stated in the policy, are considered
to be written on? ANS >> A named peril basis
A physical hazard describes which of the following? ANS >> The storage of flammables near a furnace
When a producer collects a premium on an insurance contract and deposits that in a trust account for
the insurer. This makes the producer a? ANS >> Broker
In Property and Casualty Insurance, when a form is attached to further define certain policy provisions or
conditions, or adds additional coverage, it is known as? ANS >> An endorsement
,STATE FARM PROPERTY EXAM QUESTIONS
Alpha Insurance Company does business in all fifty states, however its home office is located in Rhode
Island. To their business in California, Alpha Insurance Company is? ANS >> Foreign
Agent Z is trying to sell a client a policy. Afraid of losing his sale he offers to give the client 10% of his
commissions if the client will buy the policy. That agent would be guilty of which unfair trade practice?
ANS >> Rebating
When does the Texas Property and Casualty Insurance Guarantee Association pay covered claims? ANS
>> When an Admitted Insurer becomes insolvent
Before issuing a non-resident license, the Department must find that the applicant? ANS >> Has not
committed an act for which a license may be denied
All of the following are hazards for insurance underwriting, EXCEPT? ANS >> Incidental
A person can purchase an insurance policy to cover losses from all the following, EXCEPT? ANS >> An
operation of drug smuggling
Which risk management option, best describes insurance? ANS >> Transfer risk
Which of the following acts does not constitute Transacting Insurance? ANS >> Making phone calls to
set up appointments
A binder would be which of these? ANS >> Temporary proof of insurance
The standardized policy structure for insurance policies does not include which of the following? ANS
>> Duties
The Department of Insurance requires all of these for Licensing, EXCEPT? ANS >> High School Diploma
or GED
, STATE FARM PROPERTY EXAM QUESTIONS
The commissioner of Insurance can do which of these? ANS >> Set continuing education requirements
in Texas
The Commissioner of insurance is responsible for all of the following, EXCEPT? ANS >> Make insurance
laws when appropriate
The section of a property policy that specifies the obligations and duties of the insured and the insurer is
the? ANS >> Conditions
Which of the following is NOT found in a property insurance binder? ANS >> Amount of premium
The Texas Property and Casualty Insurance Guaranty Association pays covered claims against which of
the following? ANS >> Insolvent insurers
A claimant told their insurer they were sure that a certain piece of property was in the building that
burned. Made a? ANS >> Warranty
M hit F with his personal auto causing damages. F filed on his own policy and his insurer paid the
damages. F's insurer will go after M and M's insurer for the paid damages. This is called? ANS >>
Subrogation
If an Agent makes incomplete comparisons of policies, that Agent would be guilty of? ANS >> Unfair
Comparisons
Which License is required for a person who supervises others for an Insurance Company? ANS >>
Managing General Agent
___________ insurance is used to provide coverage when insurance is not available from an admitted
carrier. ANS >> Surplus
The named insured is found in what section of a property policy? ANS >> Declarations
