STATE FARM PROPERTY ACTUAL EXAM
SCRIPT 2026 AUTHENTIC QUESTIONS AND
SOLUTIONS FULL REVIEW GRADED A+
⩥ subrogation.
Answer: the insurer's right, assumed from the insured, to recover
payment from a third party that is legally responsible for the loss. the
transfer of rights that allows the insurer to recover its losses after it
hasindemnified the policyholder. only applies up to the amount paid by
insurer.
⩥ insurable interest.
Answer: direct financial interest in protecting a unit
⩥ lender interest.
Answer: the lenders financial stake in an insured item
⩥ lender interest provisions.
Answer: protect lender interest by allowing the lender certain rights in
the policy.
⩥ the conditions page in an insurance contract may allow a lender all of
the following provisions except.
,Answer: allowing the lender to cancel the insurance policy at any time
⩥ lender interest deals with.
Answer: insurance payouts to the bank that has a financial interest in a
damged home
⩥ sally throws a cigarette butt into neals dumpster starting a fire on
neals property that costs him ten grand neal files a claim with his insurer.
the insurer pays neal and then demands ten Gs from little miss sally to
pay the loss she caused what givs the insurer the right to collect payment
from sally.
Answer: subrogation
⩥ when damages or losses fall under the terms of an insurance contract.
Answer: the policyholder has an immediate right to claim payment
according to the terms of the policy
⩥ valuation.
Answer: the process of estimating what an item is worth
⩥ actual cash value.
Answer: a valuation method that takes into account an items
depreciation. replacement cost minus accumulated depreciation.
,⩥ replacement cost.
Answer: a method of valuation based on the cost of replacing an item at
current market prices, regardless of depreciation.
⩥ depreciation.
Answer: an items estimated loss of value due to wear, tear and age
⩥ valued policy.
Answer: a valuation method that assigns a set value to each insured item
⩥ annual depreciation.
Answer: replacement cost divided by the items useful life
⩥ accumulated depreciation.
Answer: the items annual depreciation multiplied by its age
⩥ replacement cost.
Answer: cost to replace an item at todays market value
⩥ actual cash value.
Answer: replacement cost minus accumulated
, ⩥ while making a right hand turn from the right lane ben is sideswiped
by Roxanne, which totals the car he bought 6 years ago for 15,000
dollars assuming the car depreciates at a rate of 1100 a year how much
can ben expect to be indemnified by roxannes insurance policy.
Answer: 8400
⩥ kevin plays in a brass band using two rare antique alexander tubas.
since they are no longer produced the value of the tubas is difficult to
determine. which type of policy would best indemnify kevin in the event
that his tubas were ever damaged, lost or stolen.
Answer: agreed value policy
⩥ joes driveway has a very steep grade and several sharp turns. in
addition the driveway becomes muddy during rains. to an insurance
company joes driveway might best be described as.
Answer: hazard
⩥ which of the following statements most accurately describes the law
of large numbers.
Answer: the larger the number of units insured the more accurately the
insurer can predict the number of claims from that group
⩥ which of the following is not a benefit of a co-insurance clause?.
Answer: co-insurance reduces the risk of damage to a home
SCRIPT 2026 AUTHENTIC QUESTIONS AND
SOLUTIONS FULL REVIEW GRADED A+
⩥ subrogation.
Answer: the insurer's right, assumed from the insured, to recover
payment from a third party that is legally responsible for the loss. the
transfer of rights that allows the insurer to recover its losses after it
hasindemnified the policyholder. only applies up to the amount paid by
insurer.
⩥ insurable interest.
Answer: direct financial interest in protecting a unit
⩥ lender interest.
Answer: the lenders financial stake in an insured item
⩥ lender interest provisions.
Answer: protect lender interest by allowing the lender certain rights in
the policy.
⩥ the conditions page in an insurance contract may allow a lender all of
the following provisions except.
,Answer: allowing the lender to cancel the insurance policy at any time
⩥ lender interest deals with.
Answer: insurance payouts to the bank that has a financial interest in a
damged home
⩥ sally throws a cigarette butt into neals dumpster starting a fire on
neals property that costs him ten grand neal files a claim with his insurer.
the insurer pays neal and then demands ten Gs from little miss sally to
pay the loss she caused what givs the insurer the right to collect payment
from sally.
Answer: subrogation
⩥ when damages or losses fall under the terms of an insurance contract.
Answer: the policyholder has an immediate right to claim payment
according to the terms of the policy
⩥ valuation.
Answer: the process of estimating what an item is worth
⩥ actual cash value.
Answer: a valuation method that takes into account an items
depreciation. replacement cost minus accumulated depreciation.
,⩥ replacement cost.
Answer: a method of valuation based on the cost of replacing an item at
current market prices, regardless of depreciation.
⩥ depreciation.
Answer: an items estimated loss of value due to wear, tear and age
⩥ valued policy.
Answer: a valuation method that assigns a set value to each insured item
⩥ annual depreciation.
Answer: replacement cost divided by the items useful life
⩥ accumulated depreciation.
Answer: the items annual depreciation multiplied by its age
⩥ replacement cost.
Answer: cost to replace an item at todays market value
⩥ actual cash value.
Answer: replacement cost minus accumulated
, ⩥ while making a right hand turn from the right lane ben is sideswiped
by Roxanne, which totals the car he bought 6 years ago for 15,000
dollars assuming the car depreciates at a rate of 1100 a year how much
can ben expect to be indemnified by roxannes insurance policy.
Answer: 8400
⩥ kevin plays in a brass band using two rare antique alexander tubas.
since they are no longer produced the value of the tubas is difficult to
determine. which type of policy would best indemnify kevin in the event
that his tubas were ever damaged, lost or stolen.
Answer: agreed value policy
⩥ joes driveway has a very steep grade and several sharp turns. in
addition the driveway becomes muddy during rains. to an insurance
company joes driveway might best be described as.
Answer: hazard
⩥ which of the following statements most accurately describes the law
of large numbers.
Answer: the larger the number of units insured the more accurately the
insurer can predict the number of claims from that group
⩥ which of the following is not a benefit of a co-insurance clause?.
Answer: co-insurance reduces the risk of damage to a home
