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State Farm Insurance License Exam
1.Abandonment Condition: 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.
2.Accident: A loss that occurs at a specific time and place
3.Actual Cash Value (ACV): Today's replacement cost minus
depreciation. De- preciation from wear and tear, or obsolescence.
4.admitted insurer; authorized insurer: Company that meets a state
insurance department's standards and is allowed to do business in that state. 1 / 3
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5.Adverse Selection: the tendency of insureds with a greater than
average chance of loss to purchase insurance
6.Annual Transit Policy: Nonfiled commercial inland marine
transportation form that insures a property owner's incoming or outgoing shipments of goods during a year
7.Appraisal Clause: A survey of property to determine the insurable
value of the property or the value of the loss sustained.
8.Appraisal Condition: Policy condition that outlines a procedure for
when the insured and insurer disagree on the amount of a loss
9.Assignment: The legal transfer of one's interest in an insurance
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10.Aviation Hull Insurance: Provides coverage for physical damage to
an air- craft.
11.Bailee's Customers Policy: 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.
12.Appurtenant Structures: 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.
13.Assignment Condition: Condition in insurance policies that
specifies that the policy cannot be transferred to another unless the company consents to the transfer in writing.
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