STATE FARM PROPERTY AND CASUALTY EXAM
QUESTIONS WITH VERIFIED ANSWERS |2026/2027
UPDATE | A+ GRADED
PROPERTY INSURANCE POLICIES:
EXTENDED COVERAGE (E.C.) ENDORSEMENT
perils covered - W.C. Shaver - Answer -perils covered - W.C. Shaver
-windstorm
-civil commotion
-smoke damage
-hail
-aircraft
-vehicle and volcanic
-explosion
-riot
PROPERTY INSURANCE POLICIES:
EXTENDED COVERAGE (E.C.) ENDORSEMENT
perils excluded - Answer --nuclear reaction
-earth movement
-flood, sewer backup and water below the surface
-power interruption away from the premises
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, PACKAGE POLICIES:
coverage A - dwelling - Answer -the dwelling is protected against loss up to a limits of liability
stated in the policy. except for the H.O. 8 modified form, the limits of liability are determined by
the replacement cost of the dwelling
coverage B - other structures - Answer -automatic additional 10% of coverage A, or specified
amount
coverage C - personal property - Answer -automatic additional 50% of coverage A. for an extra
premium charge personal property can be covered for replacement cost. without the extra
premium, personal property is protected against loss up to ACV
coverage D - loss of use - Answer -automatic additional 10% of coverage A on H.O. 1 and H.O.8.
it is 30% of coverage A on all others
coverage E - personal liability coverage - Answer -1. pays all sums for which an insured person
becomes legally liable for bodily injuries and/or property damage caused to third parties on or
away from the insured premises not to exceed the policy limits of liability. minimum limit is
$25,000
2. it does not cover personal injury, liability such as libel, slander, defamation of character,
wrongful entry or eviction, or false arrest or illegal detention
3. an insured is any member of the insured household who is a relative or who is under age 21
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QUESTIONS WITH VERIFIED ANSWERS |2026/2027
UPDATE | A+ GRADED
PROPERTY INSURANCE POLICIES:
EXTENDED COVERAGE (E.C.) ENDORSEMENT
perils covered - W.C. Shaver - Answer -perils covered - W.C. Shaver
-windstorm
-civil commotion
-smoke damage
-hail
-aircraft
-vehicle and volcanic
-explosion
-riot
PROPERTY INSURANCE POLICIES:
EXTENDED COVERAGE (E.C.) ENDORSEMENT
perils excluded - Answer --nuclear reaction
-earth movement
-flood, sewer backup and water below the surface
-power interruption away from the premises
1|Page
, PACKAGE POLICIES:
coverage A - dwelling - Answer -the dwelling is protected against loss up to a limits of liability
stated in the policy. except for the H.O. 8 modified form, the limits of liability are determined by
the replacement cost of the dwelling
coverage B - other structures - Answer -automatic additional 10% of coverage A, or specified
amount
coverage C - personal property - Answer -automatic additional 50% of coverage A. for an extra
premium charge personal property can be covered for replacement cost. without the extra
premium, personal property is protected against loss up to ACV
coverage D - loss of use - Answer -automatic additional 10% of coverage A on H.O. 1 and H.O.8.
it is 30% of coverage A on all others
coverage E - personal liability coverage - Answer -1. pays all sums for which an insured person
becomes legally liable for bodily injuries and/or property damage caused to third parties on or
away from the insured premises not to exceed the policy limits of liability. minimum limit is
$25,000
2. it does not cover personal injury, liability such as libel, slander, defamation of character,
wrongful entry or eviction, or false arrest or illegal detention
3. an insured is any member of the insured household who is a relative or who is under age 21
2|Page
