State Farm Insurance License Exam With complete
solu on Rated A+ 2025/2026 NEW!! UPDATED
Abandonment Condi on - Ans A condi on o en 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.
Accident - Ans A loss that occurs at a specific me and place
Actual Cash Value (ACV) - Ans Today's replacement cost minus deprecia on. Deprecia on from
wear and tear, or obsolescence.
admi%ed insurer; authorized insurer - Ans Company that meets a state insurance department's
standards and is allowed to do business in that state.
Adverse Selec on - Ans the tendency of insureds with a greater than average chance of loss to
purchase insurance
Annual Transit Policy - Ans Nonfiled commercial inland marine transporta on form that insures
a property owner's incoming or outgoing shipments of goods during a year
Appraisal Clause - Ans A survey of property to determine the insurable value of the property or
the value of the loss sustained.
Appraisal Condi on - Ans Policy condi on that outlines a procedure for when the insured and
insurer disagree on the amount of a loss
Assignment - Ans The legal transfer of one's interest in an insurance policy to another person.
, Avia on Hull Insurance - Ans Provides coverage for physical damage to an aircra .
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.
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.
Assignment Condi on - Ans Condi on in insurance policies that specifies that the policy cannot
be transferred to another unless the company consents to the transfer in wri ng.
Bailee - Ans A person or organiza on that has temporary possession of someone else's
personal property.
Basic Perils in Homeowners Policy - Ans There are 14 perils. Fire, lightening, riot, explosion,
vehicles, volcanic erup on, civil commo on, smoke, hail, aircra , windstorm, vandalism,
malicious mischief, the .
Basic Property Policy Structure (DICEE) - Ans D - Declara ons
I - Insuring agreement
C - Condi ons
E - Exclusions
E - Endorsements
Blanket Insurance - Ans Type of insurance policy that covers more than one item of property at
a single loca on or one or more items of property at mul ple loca ons
solu on Rated A+ 2025/2026 NEW!! UPDATED
Abandonment Condi on - Ans A condi on o en 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.
Accident - Ans A loss that occurs at a specific me and place
Actual Cash Value (ACV) - Ans Today's replacement cost minus deprecia on. Deprecia on from
wear and tear, or obsolescence.
admi%ed insurer; authorized insurer - Ans Company that meets a state insurance department's
standards and is allowed to do business in that state.
Adverse Selec on - Ans the tendency of insureds with a greater than average chance of loss to
purchase insurance
Annual Transit Policy - Ans Nonfiled commercial inland marine transporta on form that insures
a property owner's incoming or outgoing shipments of goods during a year
Appraisal Clause - Ans A survey of property to determine the insurable value of the property or
the value of the loss sustained.
Appraisal Condi on - Ans Policy condi on that outlines a procedure for when the insured and
insurer disagree on the amount of a loss
Assignment - Ans The legal transfer of one's interest in an insurance policy to another person.
, Avia on Hull Insurance - Ans Provides coverage for physical damage to an aircra .
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.
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.
Assignment Condi on - Ans Condi on in insurance policies that specifies that the policy cannot
be transferred to another unless the company consents to the transfer in wri ng.
Bailee - Ans A person or organiza on that has temporary possession of someone else's
personal property.
Basic Perils in Homeowners Policy - Ans There are 14 perils. Fire, lightening, riot, explosion,
vehicles, volcanic erup on, civil commo on, smoke, hail, aircra , windstorm, vandalism,
malicious mischief, the .
Basic Property Policy Structure (DICEE) - Ans D - Declara ons
I - Insuring agreement
C - Condi ons
E - Exclusions
E - Endorsements
Blanket Insurance - Ans Type of insurance policy that covers more than one item of property at
a single loca on or one or more items of property at mul ple loca ons
