State Farm Property
In property insurance actual cash value is defined as which of the following
Correct Answer: Replacement cost at the time of the loss, less depreciation
Peril is most easily defined as Correct Answer: the cause of loss insured against
What is a leading factor in the determination of actual cash value Correct Answer:
replacement cost
Replacement cost is defined as Correct 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 Correct Answer: Specific
coverage
Which of the following is used in the formula for calculating the actual cash value
of a property Correct Answer: replacement cost
What is the purpose of the coinsurance clause found in property insurance
policies? Correct 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? Correct 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 Correct Answer: stated amount
What is stated amount coverage Correct 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.
In property insurance actual cash value is defined as which of the following
Correct Answer: Replacement cost at the time of the loss, less depreciation
Peril is most easily defined as Correct Answer: the cause of loss insured against
What is a leading factor in the determination of actual cash value Correct Answer:
replacement cost
Replacement cost is defined as Correct 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 Correct Answer: Specific
coverage
Which of the following is used in the formula for calculating the actual cash value
of a property Correct Answer: replacement cost
What is the purpose of the coinsurance clause found in property insurance
policies? Correct 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? Correct 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 Correct Answer: stated amount
What is stated amount coverage Correct 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.
