State Farm Insurance License Exam
1. Abandonment Condition (ANS) 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.
2. Accident (ANS) A loss that occurs at a specific time and place
3. Actual Cash Value (ACV) (ANS) Today's replacement cost minus
depreciation. Depreciation from wear and tear, or obsolescence.
4. admitted insurer; authorized insurer (ANS Company that meets a
state insurance department's standards and is allowed to do business
in that state.
5. Adverse Selection (ANS the tendency of insureds with a greater
than average chance of loss to purchase insurance
6. Annual Transit Policy (ANS Nonfiled commercial inland marine
transportation form that insures a property owner's incoming or
outgoing shipments of goods during a year
7. Appraisal Clause (ANS A survey of property to determine the
insurable value of the property or the value of the loss sustained.
,State Farm Insurance License Exam
8. Appraisal Condition (ANS) Policy condition that outlines a
procedure for when the insured and insurer disagree on the amount
of a loss
9. Assignment (ANS) The legal transfer of one's interest in an
insurance policy to another person.
10. Aviation Hull Insurance (ANS) Provides coverage for physical
damage to an aircraft.
11. Bailee's Customers Policy (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.
12. Appurtenant Structures (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.
13. Assignment Condition (ANS) Condition in insurance policies that
specifies that the policy cannot be transferred to another unless the
company consents to the transfer in writing.
, State Farm Insurance License Exam
14. Bailee (ANS) A person or organization that has temporary
possession of someone else's personal property.
15. Basic Perils in Homeowners Policy (ANS) There are 14 perils.
Fire, lightening, riot, explosion, vehicles, volcanic eruption, civil
commotion, smoke, hail, aircraft, windstorm, vandalism, malicious
mischief, theft.
16. Basic Property Policy Structure (DICEE)
D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
17. Blanket Insurance (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
18. Builders Risk Coverage Form (ANS) Commercial property
coverage forms that covers commercial, residential, or farm buildings
that are under construction or during remodeling.
1. Abandonment Condition (ANS) 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.
2. Accident (ANS) A loss that occurs at a specific time and place
3. Actual Cash Value (ACV) (ANS) Today's replacement cost minus
depreciation. Depreciation from wear and tear, or obsolescence.
4. admitted insurer; authorized insurer (ANS Company that meets a
state insurance department's standards and is allowed to do business
in that state.
5. Adverse Selection (ANS the tendency of insureds with a greater
than average chance of loss to purchase insurance
6. Annual Transit Policy (ANS Nonfiled commercial inland marine
transportation form that insures a property owner's incoming or
outgoing shipments of goods during a year
7. Appraisal Clause (ANS A survey of property to determine the
insurable value of the property or the value of the loss sustained.
,State Farm Insurance License Exam
8. Appraisal Condition (ANS) Policy condition that outlines a
procedure for when the insured and insurer disagree on the amount
of a loss
9. Assignment (ANS) The legal transfer of one's interest in an
insurance policy to another person.
10. Aviation Hull Insurance (ANS) Provides coverage for physical
damage to an aircraft.
11. Bailee's Customers Policy (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.
12. Appurtenant Structures (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.
13. Assignment Condition (ANS) Condition in insurance policies that
specifies that the policy cannot be transferred to another unless the
company consents to the transfer in writing.
, State Farm Insurance License Exam
14. Bailee (ANS) A person or organization that has temporary
possession of someone else's personal property.
15. Basic Perils in Homeowners Policy (ANS) There are 14 perils.
Fire, lightening, riot, explosion, vehicles, volcanic eruption, civil
commotion, smoke, hail, aircraft, windstorm, vandalism, malicious
mischief, theft.
16. Basic Property Policy Structure (DICEE)
D - Declarations
I - Insuring agreement
C - Conditions
E - Exclusions
E - Endorsements
17. Blanket Insurance (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
18. Builders Risk Coverage Form (ANS) Commercial property
coverage forms that covers commercial, residential, or farm buildings
that are under construction or during remodeling.
