State Farm| 141 QUESTIOINS| 8 PAGES| GRADED A
Which must have an appointment? Consultant/producer/insured Correct Answer: Producer
Define Pure Risk Correct Answer: Chance of loss with no possibility of gain
The Law of Large Numbers says? Correct Answer: Losses become more predictable as the number of
insureds increases
A broker represents? Correct Answer: Insured
A Producer Represents? Correct Answer: Insurer
Insurance is regulated at which level? State or Federal Correct Answer: State
A peril is? Correct Answer: Cause of loss
Limit of liability is? Correct Answer: Maximum policy will pay for a loss
All - Risk Correct Answer: Covers all perils but those listed in exclusions
What is a Hazard? Correct Answer: Any factor that increases the chance of a loss occurring
What is a; rider, endorsement or extension? Correct Answer: An addition to the policy
What is inherent vice? Correct Answer: Natural deterioration, exclusion
If Insurer cancels, the Insured is entitled to? Correct Answer: Pr-rata fund
If the Insured cancels, the Insurer is entitled to? Correct Answer: Short rate fund
Conditions Section of the policy contains? Correct Answer: Insured's Obligations,
Declarations section of the policy lists? Correct Answer: Information unique to the Insured's policy
Insuring Agreements section contains? Correct Answer: Contains the Insurer's obligations, type of
insurance provided
What is Consideration? Correct Answer: The item of value that each party brings to the contract
What is ACV equation? Correct Answer: Replacement cost minus physical depreciation
Right of salvage gives the right to who? Correct Answer: Gives the right to the Insurer
Replacement cost pays? Correct Answer: The insured in full
HO 1 Correct Answer: Basic coverage
, HO 2 Correct Answer: Broad form on both Buildings and personal property
HO3 Correct Answer: Special-Buildings Broad Personal property
HO 4 Correct Answer: Renters. (tenants)
HO 5 Correct Answer: Special- structures and personal property
HO 6 Correct Answer: Condominium or Cooperative owners. Minimum of $5,000 for structural damage
HO 8 Correct Answer: (HO1) Insures the structure for ACV
Section 2 of HO policy covers? Correct Answer: Personal Liability
Indirect Loss? Correct Answer: Loss of use. Loss of income
Direct Loss? Correct Answer: Physical damage
Law of Large numbers determines? Correct Answer: Premiums based on historical loss figures
Basic form policy covers? Correct Answer: Fire; Lightning; Rioting; Explosions; Wind and Hail; Smoke;
Sprinkler leakage; Sinkhole; Volcano; Vehicles or Aircraft; Vandalism
Basic coverage Acronym? Correct Answer: Football Lovers Relish Every Win! Score Score Score, victory
Victory Victory
Broad form covers Basic 11 and? Correct Answer: Water Damage; Weight of snow ice and sleet; Falling
objects; Glass; Collapse
Broad coverage acronym? Correct Answer: Willy Wonka's Fabulously good Chocolate
PAP Correct Answer: Personal Auto Policy
CGL Correct Answer: Commercial General Liability
E&O Correct Answer: Errors & Omissions
How many days do you have to file a proof of loss form? Correct Answer: 60
BPP Correct Answer: Building and personal property
What does the Principal do? (Bonds) Correct Answer: Perform for obligee
Obligee Correct Answer: Party municipal is obligated
Arbitration provision/appraisal provision Correct Answer: Specifies how the parties can resolve
payment disputes w/o court
Which must have an appointment? Consultant/producer/insured Correct Answer: Producer
Define Pure Risk Correct Answer: Chance of loss with no possibility of gain
The Law of Large Numbers says? Correct Answer: Losses become more predictable as the number of
insureds increases
A broker represents? Correct Answer: Insured
A Producer Represents? Correct Answer: Insurer
Insurance is regulated at which level? State or Federal Correct Answer: State
A peril is? Correct Answer: Cause of loss
Limit of liability is? Correct Answer: Maximum policy will pay for a loss
All - Risk Correct Answer: Covers all perils but those listed in exclusions
What is a Hazard? Correct Answer: Any factor that increases the chance of a loss occurring
What is a; rider, endorsement or extension? Correct Answer: An addition to the policy
What is inherent vice? Correct Answer: Natural deterioration, exclusion
If Insurer cancels, the Insured is entitled to? Correct Answer: Pr-rata fund
If the Insured cancels, the Insurer is entitled to? Correct Answer: Short rate fund
Conditions Section of the policy contains? Correct Answer: Insured's Obligations,
Declarations section of the policy lists? Correct Answer: Information unique to the Insured's policy
Insuring Agreements section contains? Correct Answer: Contains the Insurer's obligations, type of
insurance provided
What is Consideration? Correct Answer: The item of value that each party brings to the contract
What is ACV equation? Correct Answer: Replacement cost minus physical depreciation
Right of salvage gives the right to who? Correct Answer: Gives the right to the Insurer
Replacement cost pays? Correct Answer: The insured in full
HO 1 Correct Answer: Basic coverage
, HO 2 Correct Answer: Broad form on both Buildings and personal property
HO3 Correct Answer: Special-Buildings Broad Personal property
HO 4 Correct Answer: Renters. (tenants)
HO 5 Correct Answer: Special- structures and personal property
HO 6 Correct Answer: Condominium or Cooperative owners. Minimum of $5,000 for structural damage
HO 8 Correct Answer: (HO1) Insures the structure for ACV
Section 2 of HO policy covers? Correct Answer: Personal Liability
Indirect Loss? Correct Answer: Loss of use. Loss of income
Direct Loss? Correct Answer: Physical damage
Law of Large numbers determines? Correct Answer: Premiums based on historical loss figures
Basic form policy covers? Correct Answer: Fire; Lightning; Rioting; Explosions; Wind and Hail; Smoke;
Sprinkler leakage; Sinkhole; Volcano; Vehicles or Aircraft; Vandalism
Basic coverage Acronym? Correct Answer: Football Lovers Relish Every Win! Score Score Score, victory
Victory Victory
Broad form covers Basic 11 and? Correct Answer: Water Damage; Weight of snow ice and sleet; Falling
objects; Glass; Collapse
Broad coverage acronym? Correct Answer: Willy Wonka's Fabulously good Chocolate
PAP Correct Answer: Personal Auto Policy
CGL Correct Answer: Commercial General Liability
E&O Correct Answer: Errors & Omissions
How many days do you have to file a proof of loss form? Correct Answer: 60
BPP Correct Answer: Building and personal property
What does the Principal do? (Bonds) Correct Answer: Perform for obligee
Obligee Correct Answer: Party municipal is obligated
Arbitration provision/appraisal provision Correct Answer: Specifies how the parties can resolve
payment disputes w/o court
