State Farm Property EXAM 2023 QUESTIONS
AND CORRECTS ANSWERS VERIFIED BY
EXPERTS
a commercial property special form covers property in transit up to - Ans 5k
A homeowner sells his house to a friend. the friend wants to keep the homeowners current policy in effect. under the assignment provision which of the following is most likely? - Ans the homeowner will need to get written consent from the insurer before the policy can be reassigned
A person who is not named as an insured on the dec page of a policy but is protected by the policy is known as the - Ans additional insured
All of the following are conditions commonly found in the insurance policy EXCEPT - Ans insuring agreement
An insured has a liability policy that sets the amount at 50k for all claims that arise from a single incident. which type of limit of liability does this insured's policy have? - Ans per occurrence
An insurer neglects to pay for legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated - Ans consideration
Before an insurer will pay any loss under a policy, what is usually required from the insured? - Ans proof of loss
If a property is covered by comp a for 20k and comp b covers the same property for 40k, how much will comp a pay on a 24k loss? - Ans 8000
pro rata liability applies
each policy pays a percentage of the loss based on the percentage of coverage that policy provides.
comp a carries 1/3 of the total coverage (20k + 40k = 60k) Therefore 1/3 of the 24k loss is 8,000
If more than one person has an insurable interest in the property covered under a dwelling policy - Ans The insurer will be liable for only the insured's interest in the damaged property
In forming an insurance contract, when does acceptance usually occur? - Ans when an insurer's underwriter approves coverage
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