State Farm Insurance License Exam Perfectly Solved 2024
Abandonment Condition - CORRECT ANS-A condition often contained in property insurance policies that
states that the insured cannot abandon damaged property to the insurer and demand to be reimbursed
for its full value.
Accident - CORRECT ANS-A loss that occurs at a specific time and place
Actual Cash Value (ACV) - CORRECT ANS-Today's replacement cost minus depreciation. Depreciation
from wear and tear, or obsolescence.
admitted insurer; authorized insurer - CORRECT ANS-Company that meets a state insurance
department's standards and is allowed to do business in that state.
Adverse Selection - CORRECT ANS-the tendency of insureds with a greater than average chance of loss
to purchase insurance
Annual Transit Policy - CORRECT ANS-Nonfiled commercial inland marine transportation form that
insures a property owner's incoming or outgoing shipments of goods during a year
Appraisal Clause - CORRECT ANS-A survey of property to determine the insurable value of the property
or the value of the loss sustained.
Appraisal Condition - CORRECT ANS-Policy condition that outlines a procedure for when the insured and
insurer disagree on the amount of a loss
Assignment - CORRECT ANS-The legal transfer of one's interest in an insurance policy to another person.
Aviation Hull Insurance - CORRECT ANS-Provides coverage for physical damage to an aircraft.
Bailee's Customers Policy - CORRECT ANS-Nonfiled commercial inland marine form obtained by a bailee
to cover loss or damage to customers' property in the bailee's custody without regard to liability.
, Appurtenant Structures - CORRECT ANS-Buildings of lesser value that are on the same premises as the
main building insured under a property policy; they are usually covered by the policy.
Assignment Condition - CORRECT ANS-Condition in insurance policies that specifies that the policy
cannot be transferred to another unless the company consents to the transfer in writing.
Bailee - CORRECT ANS-A person or organization that has temporary possession of someone else's
personal property.
Basic Perils in Homeowners Policy - CORRECT ANS-There are 14 perils. Fire, lightening, riot, explosion,
vehicles, volcanic eruption, civil commotion, smoke, hail, aircraft, windstorm, vandalism, malicious
mischief, theft.
Basic Property Policy Structure (DICEE) - CORRECT ANS-D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
Blanket Insurance - CORRECT ANS-Type of insurance policy that covers more than one item of property
at a single location or one or more items of property at multiple locations
Builders Risk Coverage Form - CORRECT ANS-Commercial property coverage forms that covers
commercial, residential, or farm buildings that are under construction or during remodeling.
Cargo Insurance - CORRECT ANS-Type of ocean marine insurance that covers goods while they are in
transit over water.
Binder - CORRECT ANS-Oral or written statement that provides immediate insurance protection for a
specified period; designed to provide temporary coverage until a policy is issued or denied.
Abandonment Condition - CORRECT ANS-A condition often contained in property insurance policies that
states that the insured cannot abandon damaged property to the insurer and demand to be reimbursed
for its full value.
Accident - CORRECT ANS-A loss that occurs at a specific time and place
Actual Cash Value (ACV) - CORRECT ANS-Today's replacement cost minus depreciation. Depreciation
from wear and tear, or obsolescence.
admitted insurer; authorized insurer - CORRECT ANS-Company that meets a state insurance
department's standards and is allowed to do business in that state.
Adverse Selection - CORRECT ANS-the tendency of insureds with a greater than average chance of loss
to purchase insurance
Annual Transit Policy - CORRECT ANS-Nonfiled commercial inland marine transportation form that
insures a property owner's incoming or outgoing shipments of goods during a year
Appraisal Clause - CORRECT ANS-A survey of property to determine the insurable value of the property
or the value of the loss sustained.
Appraisal Condition - CORRECT ANS-Policy condition that outlines a procedure for when the insured and
insurer disagree on the amount of a loss
Assignment - CORRECT ANS-The legal transfer of one's interest in an insurance policy to another person.
Aviation Hull Insurance - CORRECT ANS-Provides coverage for physical damage to an aircraft.
Bailee's Customers Policy - CORRECT ANS-Nonfiled commercial inland marine form obtained by a bailee
to cover loss or damage to customers' property in the bailee's custody without regard to liability.
, Appurtenant Structures - CORRECT ANS-Buildings of lesser value that are on the same premises as the
main building insured under a property policy; they are usually covered by the policy.
Assignment Condition - CORRECT ANS-Condition in insurance policies that specifies that the policy
cannot be transferred to another unless the company consents to the transfer in writing.
Bailee - CORRECT ANS-A person or organization that has temporary possession of someone else's
personal property.
Basic Perils in Homeowners Policy - CORRECT ANS-There are 14 perils. Fire, lightening, riot, explosion,
vehicles, volcanic eruption, civil commotion, smoke, hail, aircraft, windstorm, vandalism, malicious
mischief, theft.
Basic Property Policy Structure (DICEE) - CORRECT ANS-D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
Blanket Insurance - CORRECT ANS-Type of insurance policy that covers more than one item of property
at a single location or one or more items of property at multiple locations
Builders Risk Coverage Form - CORRECT ANS-Commercial property coverage forms that covers
commercial, residential, or farm buildings that are under construction or during remodeling.
Cargo Insurance - CORRECT ANS-Type of ocean marine insurance that covers goods while they are in
transit over water.
Binder - CORRECT ANS-Oral or written statement that provides immediate insurance protection for a
specified period; designed to provide temporary coverage until a policy is issued or denied.
