State Farm Property Exam Questions with
100% Correct Answers
Who owns thier renewals
Independents
Events that may NOT be recovered by insurance are
Gambling, investing, market value of home
What underlying coverages typically are required for an umbrella
Auto and Personal
Conditions that prohibit assignments of the policy
Transfer of rights and duties
Expectant interest are
Not insured
Flood, power failure and earth movement are
Excluded on DP & HO
What are the 3 principle rating factors for personal auto
1) safe driving record 2) annual miles driving 3) years of driving experience
Fail Plan doesn't not encourage
Competition
Loss exposures that results in a claim for monetary damage due to injury to another or damage to
another's property?
Liability Loss Exposure
The persons whose property is being insured is the
Insured
The person seeking for damage is the
Claimant
When the insurer cancels, the premium is refunded
Pro-Rata
Representation can qualify as an
Implied Warranty
Fire Dep. service charge, reason repairs and debris removal are considered what on an HO?
, Additional Charges
In an HO coverage for fair rental is included in
Coverage D
How is combined ratio computed?
Adding Loss + Expense Ratio
Not purchasing collision coverage for your car is an example of risk
Retention
Not purchasing a motorboat is an example of
Avoidance/ elimination
Installing sprinkler system in your home is an example of risk
Reduction
Purchasing homeowners policy is an expanse of risk
Transfer
Source of investment funds, payments for losses, reduction in financial uncertainty are considered
Benefits of Insurance
Unintentional or intentional concealment allows the insured or insurer to
Rescind
Personal auto policy medical pay,nets limiters are
Per person
Personal auto liability and insured motorist limits are
Per occurrence
Perils for inland marine are
Open Perils
Ho medical pay,eggs coverage F does not apply to _____ or _______ acts
Jet Ski / intentional
The intent to do or not to do something that materially affects the risk is a
Warranty
Landslide, mine subsidence and earth tremors caused by a volcanic eruption are considered
Earth Movement
100% Correct Answers
Who owns thier renewals
Independents
Events that may NOT be recovered by insurance are
Gambling, investing, market value of home
What underlying coverages typically are required for an umbrella
Auto and Personal
Conditions that prohibit assignments of the policy
Transfer of rights and duties
Expectant interest are
Not insured
Flood, power failure and earth movement are
Excluded on DP & HO
What are the 3 principle rating factors for personal auto
1) safe driving record 2) annual miles driving 3) years of driving experience
Fail Plan doesn't not encourage
Competition
Loss exposures that results in a claim for monetary damage due to injury to another or damage to
another's property?
Liability Loss Exposure
The persons whose property is being insured is the
Insured
The person seeking for damage is the
Claimant
When the insurer cancels, the premium is refunded
Pro-Rata
Representation can qualify as an
Implied Warranty
Fire Dep. service charge, reason repairs and debris removal are considered what on an HO?
, Additional Charges
In an HO coverage for fair rental is included in
Coverage D
How is combined ratio computed?
Adding Loss + Expense Ratio
Not purchasing collision coverage for your car is an example of risk
Retention
Not purchasing a motorboat is an example of
Avoidance/ elimination
Installing sprinkler system in your home is an example of risk
Reduction
Purchasing homeowners policy is an expanse of risk
Transfer
Source of investment funds, payments for losses, reduction in financial uncertainty are considered
Benefits of Insurance
Unintentional or intentional concealment allows the insured or insurer to
Rescind
Personal auto policy medical pay,nets limiters are
Per person
Personal auto liability and insured motorist limits are
Per occurrence
Perils for inland marine are
Open Perils
Ho medical pay,eggs coverage F does not apply to _____ or _______ acts
Jet Ski / intentional
The intent to do or not to do something that materially affects the risk is a
Warranty
Landslide, mine subsidence and earth tremors caused by a volcanic eruption are considered
Earth Movement
