STATE FARM PROPERTY ACTUAL TEST
PAPER 2026 QUESTIONS AND CORRECT
ANSWERS GRADED A+
⩥ jim is out hunting on his property when he hears some movement in
the brush. assuming its a turkey jim begins to raise his shotgun when it
fires unexpectedly, shooting jim in the foot. upon further inspection it is
determined that there was a defect with the guns safety and trigger
mechanism causing it to fire when it moved the claim would fall under.
Answer: product liability
⩥ vicarious liability ___________ negligence.
Answer: transfers
⩥ liability policy limits.
Answer: maximum payout for each policy
⩥ single limit.
Answer: a fixed limit for each type of damage
⩥ split limit.
Answer: three different limits:
-maximum paid for bodily injury of one person
,-maximum paid for bodily injury of multiple persons
-maximum paid for property damage
⩥ aggregate limit.
Answer: two limits:
-maximum payout per occurrence
-maximum payout per policy period
⩥ what applies to liability insurance
Answer: a liability insurance policy indemnifies a third party
⩥ sam is a claimant seeking damages from xyz insurance. the xyz
adjuster comes to meet with sam to hear the circumstances of her injury.
the adjuster determines that sam played an active role in her own injuries
and therefore xyz insurance will pay her nothing at all for her injuries
what defense is the adjuster using
Answer: contributory negligence
⩥ while visiting greg jane asks to borrow his car to pick a few things up
from the store. while driving into the parking lot jane his a concrete
barrier causing 3500 in damage to the front end of gregs car. gregs car is
covered because
Answer: jane was a permissive user.
, ⩥ one December morning alex arrives at his business to find freshly
fallen snow on his property. he decides not to shovel his walkway and
sidewalk because it looks very pure. ten minutes later an old lady comes
by slips on the snow and falls breaking her hip what type of insurance
might help pay for her injury
Answer: public liability insurance
⩥ coming home one night jeff runs a red light and crashes into a car
injuring all three passengers: clair, jon and rick. calir suffered 25,000 in
injuries jon 45000 and rick suffered the most at 62000. assuming jeffs
liability policy limits are set at 50/150/75 how much if any will jeff be
required to pay for the passengers injuries
Answer: 12,000$
⩥ `james owns a small masonry business. his fleet of cement trucks are
covered by a commercial liability policy with the following aggregate
limits: 150,000/500,000$. while at a job site one of the trucks chutes
cannot reach the foundation to pour so the operator adds two extra
chutes extending its lengt. the chute collapses under the weight of the
additional concrete injuring one of the job site worker to the tune of
35000. the loss is covered by the policy and james insurer pays the
claim. what will the new limits be for the remainder of the term?
Answer: $150,000/$465,000
⩥ statutory law
Answer: based on written legislated laws
PAPER 2026 QUESTIONS AND CORRECT
ANSWERS GRADED A+
⩥ jim is out hunting on his property when he hears some movement in
the brush. assuming its a turkey jim begins to raise his shotgun when it
fires unexpectedly, shooting jim in the foot. upon further inspection it is
determined that there was a defect with the guns safety and trigger
mechanism causing it to fire when it moved the claim would fall under.
Answer: product liability
⩥ vicarious liability ___________ negligence.
Answer: transfers
⩥ liability policy limits.
Answer: maximum payout for each policy
⩥ single limit.
Answer: a fixed limit for each type of damage
⩥ split limit.
Answer: three different limits:
-maximum paid for bodily injury of one person
,-maximum paid for bodily injury of multiple persons
-maximum paid for property damage
⩥ aggregate limit.
Answer: two limits:
-maximum payout per occurrence
-maximum payout per policy period
⩥ what applies to liability insurance
Answer: a liability insurance policy indemnifies a third party
⩥ sam is a claimant seeking damages from xyz insurance. the xyz
adjuster comes to meet with sam to hear the circumstances of her injury.
the adjuster determines that sam played an active role in her own injuries
and therefore xyz insurance will pay her nothing at all for her injuries
what defense is the adjuster using
Answer: contributory negligence
⩥ while visiting greg jane asks to borrow his car to pick a few things up
from the store. while driving into the parking lot jane his a concrete
barrier causing 3500 in damage to the front end of gregs car. gregs car is
covered because
Answer: jane was a permissive user.
, ⩥ one December morning alex arrives at his business to find freshly
fallen snow on his property. he decides not to shovel his walkway and
sidewalk because it looks very pure. ten minutes later an old lady comes
by slips on the snow and falls breaking her hip what type of insurance
might help pay for her injury
Answer: public liability insurance
⩥ coming home one night jeff runs a red light and crashes into a car
injuring all three passengers: clair, jon and rick. calir suffered 25,000 in
injuries jon 45000 and rick suffered the most at 62000. assuming jeffs
liability policy limits are set at 50/150/75 how much if any will jeff be
required to pay for the passengers injuries
Answer: 12,000$
⩥ `james owns a small masonry business. his fleet of cement trucks are
covered by a commercial liability policy with the following aggregate
limits: 150,000/500,000$. while at a job site one of the trucks chutes
cannot reach the foundation to pour so the operator adds two extra
chutes extending its lengt. the chute collapses under the weight of the
additional concrete injuring one of the job site worker to the tune of
35000. the loss is covered by the policy and james insurer pays the
claim. what will the new limits be for the remainder of the term?
Answer: $150,000/$465,000
⩥ statutory law
Answer: based on written legislated laws
