STATE FARM PROPERTY ACTUAL EXAM 200 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |AGRADE||BRAND NEW!
Which statement describes a peril? - ANSWER: a tornado damaged the insured's
home
a flood is an example of - ANSWER: A peril
Tiffany leaves her car unlocked when she goes shopping. - ANSWER: Morale
Insurance company incorporated in Wisconsin and conducting business in Wisconsin
is known as a domestic company. What kind of company are they considered if they
do business in Minnesota? - ANSWER: Foreign
what is a contractor device for transferring risk from a person, business or
organization to an insurance company? - ANSWER: Insurance
which of the following represents a pure risk? - ANSWER: The chance your house
may burn down
What is a contractor device for transferring risk from a person, business, or
organization to an insurance company? - ANSWER: Insurance
which of the following represents a pure risk? - ANSWER: the chance at your house
may burn down
Suzanne regularly leaves her side door unlocked when she leaves for work period
one afternoon a thief entered her apartment and stole all of her jewelry. What was
the hazard in this example. - ANSWER: the door being unlocked
sometimes an individual or business has an exceptionally large or specialized risk
that no authorized insurers can or will cover. In this case the individual or business
may call? - ANSWER: a non admitted insurance company.
The ABC insurance company is incorporated in Mexico. While doing business in
Texas it is - ANSWER: a alien insurer
the potential for accidents and other losses is called - ANSWER: an exposure
Jennifer and Randy place a bet on the outcome of a basketball game period this is an
example of. - ANSWER: A speculative Risk
An insurance company licensed to do business in a particular state is called -
ANSWER: A certificate of authority
,a loss that occurs as a consequence of a direct loss is called - ANSWER: An Indirect
Loss
which of the following is not a type of hazard - ANSWER: Pure Hazard
An insurance contract is prepared by one party (the insurance company) with little or
no opportunity for the other party (the insured) to bargain. This this characteristic is
called - ANSWER: Adhesion
In insurance, an insured may pay premium for many years without having a loss, or
an insured may suffer a loss and get a larger amount of money from the insurance
company than he has paid in premiums. For this reason, an insurance contract is -
ANSWER: Aleatory
In an insurance contract, the consideration that the insured gives is called - ANSWER:
the premium payment
An agreement between two parties is also called - ANSWER: offer and acceptance
the failure to disclose known facts is - ANSWER: concealment
a statement that is guaranteed to be true is a - ANSWER: Warranty
Allison's auto insurance policy is due on the 10th of each month period ever since
she has had the policy, she has sent the premium in on the 16th of the month period
the insurer has been accepting the premium this way for the past five years period a
new CEO takes over and decides to cancel Allison's policy for a non-payment of
premium. Allison contests this decision and legally gets the policy reinstated. The
decision to reinstate the policy is an example of. - ANSWER: Estoppel
Misrepresentations do not necessarily void insurance contracts period to do so they
must be - ANSWER: Material
Which of the following would not be included on the declarations page of the policy?
- ANSWER: The exclusions in the policy
What type of insurance policy protects the insured from loss caused by damage to
covered property by a covered peril? - ANSWER: Property insurance policy
Which of the following is not a part of the structure of a property or casualty -
ANSWER: Explanations
Which of the following terms describes the person listed first on the declarations
page of a policy when there is more than one named insured? - ANSWER: First Name
Insured
, Greg's policy states that a loss will not be covered unless it occurs within the United
states or Canada. What is the name of this provision in his policy? - ANSWER: the
policy territory provision
when an insured decides to cancel an insurance policy before the expiration date the
unlearned premium is returned on - ANSWER: A short rate basis
Todd and Mary have insurance protection for their home with a policy deductible of
$500. One night the thunderstorm knocks the tree onto their roof and causes $2500
in damage. How much money will the insurance company pay to Todd and Mary to
fix their roof? - ANSWER: $2000
Marcus has two policies that will cover his $20,000 loss period company A will pay
the first $15,000, and Company B pays the remainder. In this example, company A's
policy is considered. - ANSWER: Primary insurance
which provision specifies that an insurance policy may not be transferred to anyone
else without the written consent of the insurer unless the name insured dies. -
ANSWER: Assignment provision
A financial loss resulting directly from a loss to property, such as a house fire or a
diamond ring being stolen, is called. - ANSWER: A direct loss
an insured owns a $200,000 home and ensures it for $100,000. If the insurance
home was completely destroyed by a fire, how much money would the insurance
company pay if the insured has a policy that requires a minimum of 80% coverage? -
ANSWER: $100,000
Which policy ensures a property against all perils specifically listed in the policy? -
ANSWER: named peril policy
when a semi truck hit gregg's house, he and his family had to stay in a nearby hotel
for two weeks while repairs were made. The hotel bill came to $1000 and the cost of
food came to $415 what was the indirect loss? - ANSWER: the hotel bill and cost of
food
the term that describes the absences of both people and property from the premises
is. - ANSWER: vacant
which of the following coverages ensures against all risks of direct physical loss that
are not specifically excluded in the policy? - ANSWER: Special perils
Timothy has an antique boat, and it was recently damaged while on a fishing trip.
The insurance company agreed to repair the boat with less expensive, working
materials. this is an example of which type of claim settlement? - ANSWER:
functional replacement cost
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |AGRADE||BRAND NEW!
Which statement describes a peril? - ANSWER: a tornado damaged the insured's
home
a flood is an example of - ANSWER: A peril
Tiffany leaves her car unlocked when she goes shopping. - ANSWER: Morale
Insurance company incorporated in Wisconsin and conducting business in Wisconsin
is known as a domestic company. What kind of company are they considered if they
do business in Minnesota? - ANSWER: Foreign
what is a contractor device for transferring risk from a person, business or
organization to an insurance company? - ANSWER: Insurance
which of the following represents a pure risk? - ANSWER: The chance your house
may burn down
What is a contractor device for transferring risk from a person, business, or
organization to an insurance company? - ANSWER: Insurance
which of the following represents a pure risk? - ANSWER: the chance at your house
may burn down
Suzanne regularly leaves her side door unlocked when she leaves for work period
one afternoon a thief entered her apartment and stole all of her jewelry. What was
the hazard in this example. - ANSWER: the door being unlocked
sometimes an individual or business has an exceptionally large or specialized risk
that no authorized insurers can or will cover. In this case the individual or business
may call? - ANSWER: a non admitted insurance company.
The ABC insurance company is incorporated in Mexico. While doing business in
Texas it is - ANSWER: a alien insurer
the potential for accidents and other losses is called - ANSWER: an exposure
Jennifer and Randy place a bet on the outcome of a basketball game period this is an
example of. - ANSWER: A speculative Risk
An insurance company licensed to do business in a particular state is called -
ANSWER: A certificate of authority
,a loss that occurs as a consequence of a direct loss is called - ANSWER: An Indirect
Loss
which of the following is not a type of hazard - ANSWER: Pure Hazard
An insurance contract is prepared by one party (the insurance company) with little or
no opportunity for the other party (the insured) to bargain. This this characteristic is
called - ANSWER: Adhesion
In insurance, an insured may pay premium for many years without having a loss, or
an insured may suffer a loss and get a larger amount of money from the insurance
company than he has paid in premiums. For this reason, an insurance contract is -
ANSWER: Aleatory
In an insurance contract, the consideration that the insured gives is called - ANSWER:
the premium payment
An agreement between two parties is also called - ANSWER: offer and acceptance
the failure to disclose known facts is - ANSWER: concealment
a statement that is guaranteed to be true is a - ANSWER: Warranty
Allison's auto insurance policy is due on the 10th of each month period ever since
she has had the policy, she has sent the premium in on the 16th of the month period
the insurer has been accepting the premium this way for the past five years period a
new CEO takes over and decides to cancel Allison's policy for a non-payment of
premium. Allison contests this decision and legally gets the policy reinstated. The
decision to reinstate the policy is an example of. - ANSWER: Estoppel
Misrepresentations do not necessarily void insurance contracts period to do so they
must be - ANSWER: Material
Which of the following would not be included on the declarations page of the policy?
- ANSWER: The exclusions in the policy
What type of insurance policy protects the insured from loss caused by damage to
covered property by a covered peril? - ANSWER: Property insurance policy
Which of the following is not a part of the structure of a property or casualty -
ANSWER: Explanations
Which of the following terms describes the person listed first on the declarations
page of a policy when there is more than one named insured? - ANSWER: First Name
Insured
, Greg's policy states that a loss will not be covered unless it occurs within the United
states or Canada. What is the name of this provision in his policy? - ANSWER: the
policy territory provision
when an insured decides to cancel an insurance policy before the expiration date the
unlearned premium is returned on - ANSWER: A short rate basis
Todd and Mary have insurance protection for their home with a policy deductible of
$500. One night the thunderstorm knocks the tree onto their roof and causes $2500
in damage. How much money will the insurance company pay to Todd and Mary to
fix their roof? - ANSWER: $2000
Marcus has two policies that will cover his $20,000 loss period company A will pay
the first $15,000, and Company B pays the remainder. In this example, company A's
policy is considered. - ANSWER: Primary insurance
which provision specifies that an insurance policy may not be transferred to anyone
else without the written consent of the insurer unless the name insured dies. -
ANSWER: Assignment provision
A financial loss resulting directly from a loss to property, such as a house fire or a
diamond ring being stolen, is called. - ANSWER: A direct loss
an insured owns a $200,000 home and ensures it for $100,000. If the insurance
home was completely destroyed by a fire, how much money would the insurance
company pay if the insured has a policy that requires a minimum of 80% coverage? -
ANSWER: $100,000
Which policy ensures a property against all perils specifically listed in the policy? -
ANSWER: named peril policy
when a semi truck hit gregg's house, he and his family had to stay in a nearby hotel
for two weeks while repairs were made. The hotel bill came to $1000 and the cost of
food came to $415 what was the indirect loss? - ANSWER: the hotel bill and cost of
food
the term that describes the absences of both people and property from the premises
is. - ANSWER: vacant
which of the following coverages ensures against all risks of direct physical loss that
are not specifically excluded in the policy? - ANSWER: Special perils
Timothy has an antique boat, and it was recently damaged while on a fishing trip.
The insurance company agreed to repair the boat with less expensive, working
materials. this is an example of which type of claim settlement? - ANSWER:
functional replacement cost
