State Farm Property Exam
2023-2024 Questions & Answers (Solved)
- In property insurance actual cash value is defined as which of
the following
Answer: Replacement cost at the time of the loss, less
depreciation
- Peril is most easily defined as
Answer: the cause of loss insured against
- What is a leading factor in the determination of actual cash value
Answer: replace- ment cost
- Replacement cost is defined as
Answer: full replacement of property at its current cost, new and
without reduction for depreciation
- Property insurance that provides 100k coverage for a building
and 50k coverage for personal property at a single location is called
Answer: Specific coverage
- Which of the following is used in the formula for calculating the
actual cash value of a property
Answer: replacement cost
- / 2
- What is the purpose of the coinsurance clause found in property
insurance policies?
Answer: Encourage the insured to insure the property closer to its
full value
- 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?
Answer: per occurrence
- When the amount of insurance written in a property policy is not
subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written as
Answer: stated amount
- What is stated amount coverage
Answer: In stated amt coverage the value of the insured property
is determined at the time the policy is written.in the event of a loss, that amount is paid without regard to any coinsurance provision.However, if the loss is less than the total, the insurer has salvage rights with the insured having first right of refusal of the salvage.
- What type of liability would a person who owns a swimming
pool have?
Answer: Absolute
- What is absolute liability
- / 2
Answer: Any conduct that is inherently dangerous imposes