STATE FARM HOMEOWNER POLICY FP
7955 DEDUCTIBLE FINAL PAPER 2026 TEST
QUESTIONS AND CORRECT ANSWERS
VERIFIED
●● 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
●● 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.
in the event of a loss, that amount is paid without regard to any
coinsurance provision.
7955 DEDUCTIBLE FINAL PAPER 2026 TEST
QUESTIONS AND CORRECT ANSWERS
VERIFIED
●● 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
●● 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.
in the event of a loss, that amount is paid without regard to any
coinsurance provision.
