State Farm Casualty Exam Questions with Correct Answers 2023/2024 UPDATE

State Farm Casualty To be issued a business entity producer license by the commissioner the business entity must have how many partners or officers licensed as producers ANSWER- atleast 1 The occurence form trigger is based on which of the following? ANSWER- the date where injury and damage occur How are surety bonds different from insurance? ANSWER- Surety bonds guarantee specific duties or obligations will be fulfilled and insurance pays for losses What is the deductible of a personal liability umbrella policy called? ANSWER- The SIR - self insured retention What is self insured retention ANSWER- SIR is an initial part of a loss the insured pays before the umbrella pays if no other policy covers the loss Which of the following is a common exclusion found in part D coverage for damage to your auto of a PAP? ANSWER- mechanical breakdown Damage due to wear and tear, freezing, mechanical or electrical break down, and road damage to tires is a common exclusion to the physical damage coverage section. The risk of loss may be classified as ANSWER- pure risk and speculative risk What is an insuring agreemet? ANSWER- insurance company's promise to pay What is additional supplementary coverage ANSWER- additional amount of coverage for specific losses An insured's building has an actual cash value of 200k and he has insured the property for 120k with an 80% coinsurance clause. A 40k loss occurs. How much will the policy pay? ANSWER- 30,000 Inland marine coverage ANSWER- property insurance for property in transit over land, certain types of moveable property, instrumentalities of transportation and piers, instrumentalities of communication and legal liability exposures of bailees When Jane and her insurer could not agree on the amount of liability loss after her accident, the settlement was submitted to someone whose decision was then binding on both parties. What condition did Jane use? ANSWER- Arbitration An insured is at fault in an auto accident, damaging the insured's own car. The damage to the car is covered by ANSWER- the insured's collision coverage