State Farm Insurance License Exam 117 QUESTIONS AND
CORRECT DETAILED ANSWERS AGRADE
RATED
Abandonment Condition - ANSWER✔✔A 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.Accident - ANSWER✔✔A loss that occurs at a specific time and place Actual Cash Value (ACV) - ANSWER✔✔Today's replacement cost minus depreciation.Depreciation from wear and tear, or obsolescence.admitted insurer; authorized insurer - ANSWER✔✔Company that meets a state insurance department's standards and is allowed to do business in that state.Adverse Selection - ANSWER✔✔the tendency of insureds with a greater than average chance of loss to purchase insurance Annual Transit Policy - ANSWER✔✔Nonfiled commercial inland marine transportation form that insures a property owner's incoming or outgoing shipments of goods during a year Appraisal Clause - ANSWER✔✔A survey of property to determine the insurable value of the property or the value of the loss sustained.Appraisal Condition - ANSWER✔✔Policy condition that outlines a procedure for when the insured and insurer disagree on the amount of a loss Assignment - ANSWER✔✔The legal transfer of one's interest in an insurance policy to another person. 1 / 2
Aviation Hull Insurance - ANSWER✔✔Provides coverage for physical damage to an aircraft.Bailee's Customers Policy - ANSWER✔✔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 - ANSWER✔✔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 Condition - ANSWER✔✔Condition in insurance policies that specifies that the policy cannot be transferred to another unless the company consents to the transfer in writing.Bailee - ANSWER✔✔A person or organization that has temporary possession of someone else's personal property.Basic Perils in Homeowners Policy - ANSWER✔✔There are 14 perils. Fire, lightening, riot, explosion, vehicles, volcanic eruption, civil commotion, smoke, hail, aircraft, windstorm, vandalism, malicious mischief, theft.Basic Property Policy Structure (DICEE) - ANSWER✔✔D - Declarations I - Insuring agreement C - Conditions E - Exclusions E - Endorsements Blanket Insurance - ANSWER✔✔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 Builders Risk Coverage Form - ANSWER✔✔Commercial property coverage forms that covers commercial, residential, or farm buildings that are under construction or during remodeling.Cargo Insurance - ANSWER✔✔Type of ocean marine insurance that covers goods while they are in transit over water.
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