State Farm Property Questions and Answers (Verified
Answers)
In property insurance actual cash value is defined as which of the following
Replacement cost at the time of the loss, less depreciation
Peril is most easily defined as
the cause of loss insured against
What is a leading factor in the determination of actual cash value
replacement cost
Replacement cost is defined as
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
Specific coverage
Which of the following is used in the formula for calculating the actual cash value
of a property
replacement cost
What is the purpose of the coinsurance clause found in property insurance
policies?
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?
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
stated amount
What is stated amount coverage
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.
However, if the loss is less than the total, the insurer has salvage rights with the insured
having first right of refusal of the salvage.
What type of liability would a person who owns a swimming pool have?
Absolute
What is absolute liability
Any conduct that is inherently dangerous imposes absolute liability. the claimant does
not have to prove anything
Insurable interest in the property covered in a policy must be proven
at the time of loss
Answers)
In property insurance actual cash value is defined as which of the following
Replacement cost at the time of the loss, less depreciation
Peril is most easily defined as
the cause of loss insured against
What is a leading factor in the determination of actual cash value
replacement cost
Replacement cost is defined as
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
Specific coverage
Which of the following is used in the formula for calculating the actual cash value
of a property
replacement cost
What is the purpose of the coinsurance clause found in property insurance
policies?
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?
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
stated amount
What is stated amount coverage
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.
However, if the loss is less than the total, the insurer has salvage rights with the insured
having first right of refusal of the salvage.
What type of liability would a person who owns a swimming pool have?
Absolute
What is absolute liability
Any conduct that is inherently dangerous imposes absolute liability. the claimant does
not have to prove anything
Insurable interest in the property covered in a policy must be proven
at the time of loss
