State Farm Property 2022 Questions And Answers 100% Correct
In property insurance actual cash value is defined as which of the following - CORRECT
... [Show More] ANSWER -Replacement cost at the time of the loss, less depreciation
Peril is most easily defined as - CORRECT ANSWER -the cause of loss insured against
What is a leading factor in the determination of actual cash value - CORRECT ANSWER -replacement cost
Replacement cost is defined as - CORRECT 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 - CORRECT ANSWER -Specific coverage
Which of the following is used in the formula for calculating the actual cash value of a property - CORRECT ANSWER -replacement cost
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
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
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
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.
What type of liability would a person who owns a swimming pool have? - CORRECT ANSWER -Absolute
What is absolute liability - CORRECT ANSWER -Any conduct that is inherently dangerous imposes absolute liability. the claimant does not have to prove anything
Insurable interest in the property covered in a policy must be proven - CORRECT ANSWER -at the time of loss
Which of the following is NOT an element of negligence
breach, unbroken chain, libel, duty - CORRECT ANSWER -libel
what is libel - CORRECT ANSWER -a type of intentional tort
With respect to the business of insurance, a hazard is - CORRECT ANSWER -any condition or exposure that increases the possibility of loss
What are the four essential elements of all legal contracts - CORRECT ANSWER -offer and acceptance, consideration, competent parties, and legal purpose
In forming an insurance contract, when does acceptance usually occur? - CORRECT ANSWER -when an insurer's underwriter approves coverage
Who is responsible for filling out a notice of claim form - CORRECT ANSWER -insured
what is a notice of claim - CORRECT ANSWER -a form or statement from an insured to an insurer, informing the insurer that events leading to a possible claim have occurred
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? - CORRECT ANSWER -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
In the event of a loss covered by the policy, if the insurer requests a signed sworn proof of loss, the named insured is required to submit it within - CORRECT ANSWER -a specified time
What are considered parts of the policy structure - CORRECT ANSWER -conditions, exclusions, insuring clause
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? - CORRECT ANSWER -the homeowner will need to get written consent from the insurer before the policy can be reassigned
What is consideration? - CORRECT ANSWER -something of value that is transferred between the two parties to form a legal contract
What are endorsements - CORRECT ANSWER -change the policy's original terms, conditions, or coverages. endorsements can add or delete coverage or merely correct items such as the insured's name and address etc
Termination of an inforce insurance policy prior to the expiration date shown in the policy is known as - CORRECT ANSWER -cancellation
When would a misrepresentation on the insurance app be considered fraud? - CORRECT ANSWER -if it is intentional and material
What is true about single dwellings that are insured to at least 80% of the replacement value - CORRECT ANSWER -they are automatically provided with replacement cost coverage
If more than one person has an insurable interest in the property covered under a dwelling policy - CORRECT ANSWER -The insurer will be liable for only the insured's interest in the damaged property
Johanna purchased a national flood insurance policy 10 days after her community entered an emergency program. when would her coverage be effective? - CORRECT ANSWER -1201 am the day after the application and premium payment are mailed
a commercial property special form covers property in [Show Less]