State Farm Property
In property insurance actual cash value is defined as which of the following Ans- Replacement cost at
the time of the loss, less depreciation
Peril is most easily defined as Ans- the cause of loss insured against
What is a leading factor in the determination of actual cash...
State Farm Property 2022 2023
In property insurance actual cash value is defined as which of the following Ans- Replacement cost at
the time of the loss, less depreciation
Peril is most easily defined as Ans- the cause of loss insured against
What is a leading factor in the determination of actual cash value Ans- replacement cost
Replacement cost is defined as Ans- 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 Ans- Specific coverage
Which of the following is used in the formula for calculating the actual cash value of a property Ans-
replacement cost
What is the purpose of the coinsurance clause found in property insurance policies? Ans- 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? Ans- 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 Ans- stated
amount
What is stated amount coverage Ans- 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? Ans- Absolute
What is absolute liability Ans- 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 Ans- at the time of loss
Which of the following is NOT an element of negligence
breach, unbroken chain, libel, duty Ans- libel
what is libel Ans- a type of intentional tort
With respect to the business of insurance, a hazard is Ans- any condition or exposure that increases the
possibility of loss
What are the four essential elements of all legal contracts Ans- offer and acceptance, consideration,
competent parties, and legal purpose
In forming an insurance contract, when does acceptance usually occur? Ans- when an insurer's
underwriter approves coverage
Who is responsible for filling out a notice of claim form Ans- insured
what is a notice of claim Ans- a form or statement from an insured to an insurer, informing the insurer
that events leading to a possible claim have occurred
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