State Farm Insurance License Exam Latest 2023
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Abandonment Condition - Ans 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.
Absolute Liability - Ans Type of liability imposed by law on those participating in certain activities that are considered especially hazardous; a person involved in such operations may be held liable for the damages of another even though the individual was not negligent
Accident - Ans A loss that occurs at a specific time and place
Actual Cash Value (ACV) - Ans Today's replacement cost minus depreciation.Depreciation from wear and tear, or obsolescence.
Additional Coverage; Coverage Extensions; Extended Coverages; Other Coverages - Ans Supplement insurance coverage that apply only in certain circumstances, have reduced or separate limits of liability, or require the insured to meet certain requirements before they are applicable
admitted insurer; authorized insurer - Ans Company that meets a state insurance department's standards and is allowed to do business in that state.
Adverse Selection - Ans the tendency of insureds with a greater than average chance of loss to purchase insurance
Advertising Injury - Ans Coverage in the CGL that covers losses caused by oral or written material that slanders or libels, violates privacy rights or infringes on copyrights, titles or slogans.
Aggregate Limit - Ans Type of policy limit found in liability policies that limits coverage to a specified total amount for all losses occurring within the policy period
Annual Transit Policy - Ans Nonfiled commercial inland marine transportation 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 Condition - Ans Policy condition that outlines a procedure for when the insured and insurer disagree on the amount of a loss
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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.
Assigned Risk Plan; Automobile Insurance Plan - Ans A state-sponsored plan that provides automobile insurance to those who are uninsurable under standard auto insurance policies.
Assignment - Ans The legal transfer of one's interest in an insurance policy to another person.
Assignment Condition - Ans Condition in insurance policies that specifies that the policy cannot be transferred to another unless the company consents to the transfer in writing.
Assumption Risk - Ans Defense against liability based on the common law principle that a person who knowingly exposes themselves to danger or injury takes on the risk of loss and cannot hold another person responsible for the loss.
Aviation Hull Insurance - Ans Provides coverage for physical damage to an aircraft.
Bailee - Ans A person or organization that has temporary possession of someone else's personal property.
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.
Basic Perils in Homeowners Policy - Ans 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) - Ans D - Declarations I - Insuring agreement C - Conditions E - Exclusions E - Endorsements
Bid Bond - Ans Type of surety bond that if a contractor's price is accepted, the contractor will enter into a contract and provide the required performance bond.
Binder - Ans Oral or written statement that provides immediate insurance protection for a specified period; designed to provide temporary coverage until a policy is issued or denied.
Blanket Insurance - Ans 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
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