STATE FARM INSURANCE LICENSE EXAM 2026 QUESTIONS AND ANSWERS | A+ GRADED |
WITH EXPERT SOLUTIONS
Abandonment Condition - (ANSWER)A condition often contained in property insurance policies that
states that the insured cannot abandon damaged property to the insurer and demand to be reimbursed
for its full value.
Accident - (ANSWER)A loss that occurs at a specific time and place
Actual Cash Value (ACV) - (ANSWER)Today's replacement cost minus depreciation. Depreciation from
wear and tear, or obsolescence.
admitted insurer; authorized insurer - (ANSWER)Company that meets a state insurance department's
standards and is allowed to do business in that state.
Adverse Selection - (ANSWER)the tendency of insureds with a greater than average chance of loss to
purchase insurance
Annual Transit Policy - (ANSWER)Nonfiled commercial inland marine transportation form that insures a
property owner's incoming or outgoing shipments of goods during a year
Appraisal Clause - (ANSWER)A survey of property to determine the insurable value of the property or
the value of the loss sustained.
Appraisal Condition - (ANSWER)Policy condition that outlines a procedure for when the insured and
insurer disagree on the amount of a loss
Assignment - (ANSWER)The legal transfer of one's interest in an insurance policy to another person.
Aviation Hull Insurance - (ANSWER)Provides coverage for physical damage to an aircraft.
Bailee's Customers Policy - (ANSWER)Nonfiled commercial inland marine form obtained by a bailee to
cover loss or damage to customers' property in the bailee's custody without regard to liability.
, STATE FARM INSURANCE LICENSE EXAM 2026 QUESTIONS AND ANSWERS | A+ GRADED |
WITH EXPERT SOLUTIONS
Appurtenant Structures - (ANSWER)Buildings of lesser value that are on the same premises as the main
building insured under a property policy; they are usually covered by the policy.
Assignment Condition - (ANSWER)Condition in insurance policies that specifies that the policy cannot be
transferred to another unless the company consents to the transfer in writing.
Bailee - (ANSWER)A person or organization that has temporary possession of someone else's personal
property.
Basic Perils in Homeowners Policy - (ANSWER)There are 14 perils. Fire, lightening, riot, explosion,
vehicles, volcanic eruption, civil commotion, smoke, hail, aircraft, windstorm, vandalism, malicious
mischief, theft.
Basic Property Policy Structure (DICEE) - (ANSWER)D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
Blanket Insurance - (ANSWER)Type of insurance policy that covers more than one item of property at a
single location or one or more items of property at multiple locations
Builders Risk Coverage Form - (ANSWER)Commercial property coverage forms that covers commercial,
residential, or farm buildings that are under construction or during remodeling.
Cargo Insurance - (ANSWER)Type of ocean marine insurance that covers goods while they are in transit
over water.
Binder - (ANSWER)Oral or written statement that provides immediate insurance protection for a
specified period; designed to provide temporary coverage until a policy is issued or denied.
WITH EXPERT SOLUTIONS
Abandonment Condition - (ANSWER)A condition often contained in property insurance policies that
states that the insured cannot abandon damaged property to the insurer and demand to be reimbursed
for its full value.
Accident - (ANSWER)A loss that occurs at a specific time and place
Actual Cash Value (ACV) - (ANSWER)Today's replacement cost minus depreciation. Depreciation from
wear and tear, or obsolescence.
admitted insurer; authorized insurer - (ANSWER)Company that meets a state insurance department's
standards and is allowed to do business in that state.
Adverse Selection - (ANSWER)the tendency of insureds with a greater than average chance of loss to
purchase insurance
Annual Transit Policy - (ANSWER)Nonfiled commercial inland marine transportation form that insures a
property owner's incoming or outgoing shipments of goods during a year
Appraisal Clause - (ANSWER)A survey of property to determine the insurable value of the property or
the value of the loss sustained.
Appraisal Condition - (ANSWER)Policy condition that outlines a procedure for when the insured and
insurer disagree on the amount of a loss
Assignment - (ANSWER)The legal transfer of one's interest in an insurance policy to another person.
Aviation Hull Insurance - (ANSWER)Provides coverage for physical damage to an aircraft.
Bailee's Customers Policy - (ANSWER)Nonfiled commercial inland marine form obtained by a bailee to
cover loss or damage to customers' property in the bailee's custody without regard to liability.
, STATE FARM INSURANCE LICENSE EXAM 2026 QUESTIONS AND ANSWERS | A+ GRADED |
WITH EXPERT SOLUTIONS
Appurtenant Structures - (ANSWER)Buildings of lesser value that are on the same premises as the main
building insured under a property policy; they are usually covered by the policy.
Assignment Condition - (ANSWER)Condition in insurance policies that specifies that the policy cannot be
transferred to another unless the company consents to the transfer in writing.
Bailee - (ANSWER)A person or organization that has temporary possession of someone else's personal
property.
Basic Perils in Homeowners Policy - (ANSWER)There are 14 perils. Fire, lightening, riot, explosion,
vehicles, volcanic eruption, civil commotion, smoke, hail, aircraft, windstorm, vandalism, malicious
mischief, theft.
Basic Property Policy Structure (DICEE) - (ANSWER)D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
Blanket Insurance - (ANSWER)Type of insurance policy that covers more than one item of property at a
single location or one or more items of property at multiple locations
Builders Risk Coverage Form - (ANSWER)Commercial property coverage forms that covers commercial,
residential, or farm buildings that are under construction or during remodeling.
Cargo Insurance - (ANSWER)Type of ocean marine insurance that covers goods while they are in transit
over water.
Binder - (ANSWER)Oral or written statement that provides immediate insurance protection for a
specified period; designed to provide temporary coverage until a policy is issued or denied.
