STATE FARM ESTIMATES EXAM PRACTICE PACK
2026 VERIFIED QUESTIONS AND ACCURATE
ANSWERS
◉ 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
2026 VERIFIED QUESTIONS AND ACCURATE
ANSWERS
◉ 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
