State Farm Property 2024
In property insurance actual cash value is defined as which of the following -correct ans-Replacement
cost at the time of the loss, less depreciation
Peril is most easily defined as -correct ans-the cause of loss insured against
What is a leading factor in the determination of actual cash value -correct ans-replacement cost
Replacement cost is defined as -correct ans-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 ans-Specific coverage
Which of the following is used in the formula for calculating the actual cash value of a property -correct
ans-replacement cost
What is the purpose of the coinsurance clause found in property insurance policies? -correct ans-
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 ans-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 ans-
stated amount
What is stated amount coverage -correct ans-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? -correct ans-Absolute
What is absolute liability -correct ans-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 -correct ans-at the time of loss
Which of the following is NOT an element of negligence
breach, unbroken chain, libel, duty -correct ans-libel
what is libel -correct ans-a type of intentional tort
With respect to the business of insurance, a hazard is -correct ans-any condition or exposure that
increases the possibility of loss
What are the four essential elements of all legal contracts -correct ans-offer and acceptance,
consideration, competent parties, and legal purpose
In forming an insurance contract, when does acceptance usually occur? -correct ans-when an insurer's
underwriter approves coverage
Who is responsible for filling out a notice of claim form -correct ans-insured
what is a notice of claim -correct ans-a form or statement from an insured to an insurer, informing the
insurer that events leading to a possible claim have occurred
In property insurance actual cash value is defined as which of the following -correct ans-Replacement
cost at the time of the loss, less depreciation
Peril is most easily defined as -correct ans-the cause of loss insured against
What is a leading factor in the determination of actual cash value -correct ans-replacement cost
Replacement cost is defined as -correct ans-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 ans-Specific coverage
Which of the following is used in the formula for calculating the actual cash value of a property -correct
ans-replacement cost
What is the purpose of the coinsurance clause found in property insurance policies? -correct ans-
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 ans-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 ans-
stated amount
What is stated amount coverage -correct ans-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? -correct ans-Absolute
What is absolute liability -correct ans-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 -correct ans-at the time of loss
Which of the following is NOT an element of negligence
breach, unbroken chain, libel, duty -correct ans-libel
what is libel -correct ans-a type of intentional tort
With respect to the business of insurance, a hazard is -correct ans-any condition or exposure that
increases the possibility of loss
What are the four essential elements of all legal contracts -correct ans-offer and acceptance,
consideration, competent parties, and legal purpose
In forming an insurance contract, when does acceptance usually occur? -correct ans-when an insurer's
underwriter approves coverage
Who is responsible for filling out a notice of claim form -correct ans-insured
what is a notice of claim -correct ans-a form or statement from an insured to an insurer, informing the
insurer that events leading to a possible claim have occurred
