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STATE FARM PROPERTY AND CASUALTY Questions
with Detailed Verified Answers (100% Correct
Answers) /Already Graded A+
duties of the insured - ..(ANSWER)...1. pay the premium
2. take all reasonable means to save and protect the property from loss
3. give the insurance company immediate notice of loss
4. give the insurance company proof of loss within 60 days of the loss
5. separate the damaged property from the undamaged property and allow the
insurance company to inspect the undamaged property as well as the insured's
books and records
6. the insured cannot sue the insurance company unless all of these requirements
have been satisfied and then he/she must sue within 12 months of the loss
duties of the insurance company - ..(ANSWER)...1. must indemnify the insured
within 60 days of proof of loss
2. may either pay the appraised ACV of the loss or repair or replace the damaged
property
3. if the insured and insurance company disagree as the ACV of the loss and the
damaged property cannot be repaired or replaced, they each can select an
appraiser. if the appraisers disagree, they select an umpire appraiser who will
make the final determination
the subrogation clause - ..(ANSWER)...states that the insurance company can
require the insured to assign (transfer) to it any legal rights which the insured has
against third parties to the insurance company at the time of loss
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assignment clause - ..(ANSWER)...1. transfer of a policy to another person
2. assignment clause of property insurance policy says no assignment of the policy
is valid unless signed by an officer of the insurance company
the other insurance clause - ..(ANSWER)...states that the insurance company can
either prohibit other insurance or can limit the amount of other insurance by
adding an endorsement to the policy
pro rata liability clause - ..(ANSWER)...1. applies when there are concurrent
policies. concurrent insurance is when 2 or more policies cover the same
property. it is sometimes done when insuring high value property. the policies
should be identical in all respects except face amounts
2. says that no insurance company shall be responsible for any more than its pro
rata share of the loss
mortgagee rights - ..(ANSWER)...-if a mortgagee (lender) is named on the
declarations page, it acquires 3 rights in the policy:
1. 10 days notice of cancellation
2. to have the loss paid to the mortgagee
3. to provide proof of loss should the insured fail to
salvage - ..(ANSWER)...-salvage is when an insurance company pays a claim, and
then the insurance company has the right to assume ownership of the damaged
property to repair it and sell it to recover part or all of the loss
STATE FARM PROPERTY AND CASUALTY Questions
with Detailed Verified Answers (100% Correct
Answers) /Already Graded A+
duties of the insured - ..(ANSWER)...1. pay the premium
2. take all reasonable means to save and protect the property from loss
3. give the insurance company immediate notice of loss
4. give the insurance company proof of loss within 60 days of the loss
5. separate the damaged property from the undamaged property and allow the
insurance company to inspect the undamaged property as well as the insured's
books and records
6. the insured cannot sue the insurance company unless all of these requirements
have been satisfied and then he/she must sue within 12 months of the loss
duties of the insurance company - ..(ANSWER)...1. must indemnify the insured
within 60 days of proof of loss
2. may either pay the appraised ACV of the loss or repair or replace the damaged
property
3. if the insured and insurance company disagree as the ACV of the loss and the
damaged property cannot be repaired or replaced, they each can select an
appraiser. if the appraisers disagree, they select an umpire appraiser who will
make the final determination
the subrogation clause - ..(ANSWER)...states that the insurance company can
require the insured to assign (transfer) to it any legal rights which the insured has
against third parties to the insurance company at the time of loss
, 2|Page
assignment clause - ..(ANSWER)...1. transfer of a policy to another person
2. assignment clause of property insurance policy says no assignment of the policy
is valid unless signed by an officer of the insurance company
the other insurance clause - ..(ANSWER)...states that the insurance company can
either prohibit other insurance or can limit the amount of other insurance by
adding an endorsement to the policy
pro rata liability clause - ..(ANSWER)...1. applies when there are concurrent
policies. concurrent insurance is when 2 or more policies cover the same
property. it is sometimes done when insuring high value property. the policies
should be identical in all respects except face amounts
2. says that no insurance company shall be responsible for any more than its pro
rata share of the loss
mortgagee rights - ..(ANSWER)...-if a mortgagee (lender) is named on the
declarations page, it acquires 3 rights in the policy:
1. 10 days notice of cancellation
2. to have the loss paid to the mortgagee
3. to provide proof of loss should the insured fail to
salvage - ..(ANSWER)...-salvage is when an insurance company pays a claim, and
then the insurance company has the right to assume ownership of the damaged
property to repair it and sell it to recover part or all of the loss
