State Farm Property Test 100

State Farm Property Test | 100% CORRECT ANSWER s

Question : In property insurance actual cash value is defined

as which of the following

CORRECT ANSWER : Replacement cost at the time of the

loss, less depreciation

Question : Peril is most easily defined as

CORRECT ANSWER : the cause of loss insured against

Question : What is a leading factor in the determination of

actual cash value

CORRECT ANSWER : replacement cost

Question : Replacement cost is defined as

CORRECT ANSWER : full replacement of property at its

current cost, new and without reduction for depreciation

Question : Property insurance that provides 100k coverage for

a building and 50k coverage for personal property at a single location is called

CORRECT ANSWER : Specific coverage

Question : Which of the following is used in the formula for

calculating the actual cash value of a property

CORRECT ANSWER : replacement cost

Question : What is the purpose of the coinsurance clause

found in property insurance policies?

CORRECT ANSWER : Encourage the insured to insure the

property closer to its full value

Question : 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?

CORRECT ANSWER : per occurrence

Question : 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

CORRECT ANSWER : stated amount

Question : What is stated amount coverage

CORRECT 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.

Question : What type of liability would a person who owns a

swimming pool have?

CORRECT ANSWER : Absolute

Question : What is absolute liability

CORRECT ANSWER : Any conduct that is inherently

dangerous imposes absolute liability. the claimant does not have to prove anything

Question : Insurable interest in the property covered in a

policy must be proven

CORRECT ANSWER : at the time of loss

Question : Which of the following is NOT an element of

negligence breach, unbroken chain, libel, duty

CORRECT ANSWER : libel

Question : what is libel

CORRECT ANSWER : a type of intentional tort

Question : With respect to the business of insurance, a hazard

is

CORRECT ANSWER : any condition or exposure that

increases the possibility of loss