State Farm Property Exam Questions with
100% Correct Answers
How long is the waiting period after the application has been accepted before flood coverage goes
into effect?
the waiting period is 30 days as required by the Nation flood insurance program
which of the following Is covered under the camera and musical instruments dealers floater
a customers camera left at a camera shop for repairs
when an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by
the underlying policy, it usually only pays
the access over the self- insured retention
retention is equivalent of a deductible in property insurance
Who would participate in a WYO flood insurance program?
private insures that wish to write and service national flood insurance policies on a no risk bearing
basis
The regular National Flood Insurance Program would insure an eligible single-family dwelling for up to
$250,000
what is not considered a flood
Sewer backup
what best describes a trembling or shaking of the earth that is volcanic or seismic in origin
earthquake
what would be covered by the brand theft endorsement on a dwelling policy
a camera the insured has with him on vacation
what form provided the broadest coverage under an employee theft coverage?
blanket position
covers all employees in all positions on a per employee basis
what would be considered causes for flood conditions covered by the national flood insurance
program?
overflow of inland or tidal waters
unusual and rapid accumulation or runoff of surface waters from any source
a mudflow
All of the above
,the mail coverage form is always written on a reporting form basis; after the end of each reporting
period shown in the declarations reports are due within
30 days
An insured couple owns a pontoon boat. Which situation would NOT be covered by their watercraft
endorsement under their homeowners policy?
a friend rents their boat and runs it into a neighbors dock
no fees allows
what is true regarding single dwellings that are insured to at least 80% of the replacement value
they are automatically provided with replacement cost coverage
which of the following would be covered under the film coverage form
none - (deterioration of a film, exposure of negative film to light, electrical erasure of tape, none of
these
Which coverage would a business owner need in a crime policy to cover money that may be stolen
from a messenger?
outside the premises
Tom's Truck Service's vehicle is stolen. The policyholder may obtain coverage for transportation
expenses subject to which of the following limits?
$20 per day; $600 maximum
example of product liability claim
faulty packaging of cereal caused spoilage that resulted in someone getting sick
product liability covers damage done by the product but not damage to the product
to perform work on customers car, a mechanic in an auto shop put the vehicle on a service hoist. the
hoist collapsed, damaged the vehicle and injuring the mechanic. in regard to the garage coverage
form, which statement is true
the garage coverage form does not cover property damage for a customers vehicle that is on a service
hoist or for bodily injury
which federal act provides benefits to injured civilians who are employed by the federal government
federal employees compensation act
Employment practices liability insurance (EPLI) would not cover claims arising from
deliberate law violation
A plant worker for a chemicals manufacturer was recently diagnosed with a rare blood disease. She
told her doctor that her job required her to handle industrial waste chemicals. Which of the following
types of injuries is covered under the workers compensation policy?
occupational disease caused or aggravated by a condition of employment
, An insured is involved in an auto accident in another state. the state has a financial responsibility law
that specifies limits of liability higher than the limits shown in the declarations. what amount will the
insured's policy pay?
higher limits
a liability policy that provides coverage for a claim for injury or damage if the claim is first reported or
filed against the insured during the policy period is called
claims made form
Coverage A: Bodily Injury and Property Damage in the commercial general liability policy will cover
losses due to the insureds negligence
with respects to commercial auto policies, the garage coverage form provides liability protection for
all of the following except
the insureds business income losses due to personal injury
this situation would not be covered under a professional liability policy
the failure of an attorney to properly defend a client due to his personal dislike of a client
intentional breach of duty would not not be covered
the policyholder can sue the insurer whether or not all conditions and provisions of the policy have
been met
false
the commissioner is placed in office by
a valid certificate of authority is required by the commissioner in order for an insurer to transact
business in Oklahoma. some exceptions apply to insurance transactions for which a certificate of
authority is not required. what is permitted without a certificate of authority?
investigation of claims by an insurer which has relocated in another state
an insurance company is domiciled in Montana and transacts in Wyoming. which term best describes
the insurer's classification in Wyoming?
Foreign
A foreign insurer is domiciled in one state and transacts insurance in another. A domestic insurer
transacts insurance in the domicile state (in this case, Montana). An alien insurer is domiciled in one
country and transacts insurance in another.
before an insurer pays fees or commissions to an agent, which of the following must happen
the commissioner must approve the agents appointment.
surplus lines insurances usually involves insurance for which type of individual
high risk individuals
100% Correct Answers
How long is the waiting period after the application has been accepted before flood coverage goes
into effect?
the waiting period is 30 days as required by the Nation flood insurance program
which of the following Is covered under the camera and musical instruments dealers floater
a customers camera left at a camera shop for repairs
when an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by
the underlying policy, it usually only pays
the access over the self- insured retention
retention is equivalent of a deductible in property insurance
Who would participate in a WYO flood insurance program?
private insures that wish to write and service national flood insurance policies on a no risk bearing
basis
The regular National Flood Insurance Program would insure an eligible single-family dwelling for up to
$250,000
what is not considered a flood
Sewer backup
what best describes a trembling or shaking of the earth that is volcanic or seismic in origin
earthquake
what would be covered by the brand theft endorsement on a dwelling policy
a camera the insured has with him on vacation
what form provided the broadest coverage under an employee theft coverage?
blanket position
covers all employees in all positions on a per employee basis
what would be considered causes for flood conditions covered by the national flood insurance
program?
overflow of inland or tidal waters
unusual and rapid accumulation or runoff of surface waters from any source
a mudflow
All of the above
,the mail coverage form is always written on a reporting form basis; after the end of each reporting
period shown in the declarations reports are due within
30 days
An insured couple owns a pontoon boat. Which situation would NOT be covered by their watercraft
endorsement under their homeowners policy?
a friend rents their boat and runs it into a neighbors dock
no fees allows
what is true regarding single dwellings that are insured to at least 80% of the replacement value
they are automatically provided with replacement cost coverage
which of the following would be covered under the film coverage form
none - (deterioration of a film, exposure of negative film to light, electrical erasure of tape, none of
these
Which coverage would a business owner need in a crime policy to cover money that may be stolen
from a messenger?
outside the premises
Tom's Truck Service's vehicle is stolen. The policyholder may obtain coverage for transportation
expenses subject to which of the following limits?
$20 per day; $600 maximum
example of product liability claim
faulty packaging of cereal caused spoilage that resulted in someone getting sick
product liability covers damage done by the product but not damage to the product
to perform work on customers car, a mechanic in an auto shop put the vehicle on a service hoist. the
hoist collapsed, damaged the vehicle and injuring the mechanic. in regard to the garage coverage
form, which statement is true
the garage coverage form does not cover property damage for a customers vehicle that is on a service
hoist or for bodily injury
which federal act provides benefits to injured civilians who are employed by the federal government
federal employees compensation act
Employment practices liability insurance (EPLI) would not cover claims arising from
deliberate law violation
A plant worker for a chemicals manufacturer was recently diagnosed with a rare blood disease. She
told her doctor that her job required her to handle industrial waste chemicals. Which of the following
types of injuries is covered under the workers compensation policy?
occupational disease caused or aggravated by a condition of employment
, An insured is involved in an auto accident in another state. the state has a financial responsibility law
that specifies limits of liability higher than the limits shown in the declarations. what amount will the
insured's policy pay?
higher limits
a liability policy that provides coverage for a claim for injury or damage if the claim is first reported or
filed against the insured during the policy period is called
claims made form
Coverage A: Bodily Injury and Property Damage in the commercial general liability policy will cover
losses due to the insureds negligence
with respects to commercial auto policies, the garage coverage form provides liability protection for
all of the following except
the insureds business income losses due to personal injury
this situation would not be covered under a professional liability policy
the failure of an attorney to properly defend a client due to his personal dislike of a client
intentional breach of duty would not not be covered
the policyholder can sue the insurer whether or not all conditions and provisions of the policy have
been met
false
the commissioner is placed in office by
a valid certificate of authority is required by the commissioner in order for an insurer to transact
business in Oklahoma. some exceptions apply to insurance transactions for which a certificate of
authority is not required. what is permitted without a certificate of authority?
investigation of claims by an insurer which has relocated in another state
an insurance company is domiciled in Montana and transacts in Wyoming. which term best describes
the insurer's classification in Wyoming?
Foreign
A foreign insurer is domiciled in one state and transacts insurance in another. A domestic insurer
transacts insurance in the domicile state (in this case, Montana). An alien insurer is domiciled in one
country and transacts insurance in another.
before an insurer pays fees or commissions to an agent, which of the following must happen
the commissioner must approve the agents appointment.
surplus lines insurances usually involves insurance for which type of individual
high risk individuals
