Exam (elaborations)
STATE FARM PROPERTY EXAM
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STATE FARM PROPERTY EXAM ...
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STATE FARM PROPERTY EXAM 2024-2025In property insurance, real cash value is defined as which of the following:
ANSWER Replacement cost at the time of loss, less depreciation.
Peril is most easily described as—ANSWER the cause of loss insured against.
What is a leading factor in determining actual cash value? ANSWER replacement
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 known as ANSWER-specific coverage.
Which of the following is utilized in the method for assessing the actual cash worth
of a property? Answer: replacement cost.
What is the purpose of the coinsurance provision in property insurance policies? -
ANSWER Encourage the insured to insure the property near its full value.
An insured has a liability policy that caps the amount at $50,000 for all claims
arising from a single incident. What kind of limit of liability does this insured's
policy have? - Answer for each occurrence
When the amount of insurance written in a property policy is not subject to any
coinsurance clause and is paid in the event of a covered loss, the coverage is said to
be written as - ANSWER specified amount.
, What is the advertised amount of coverage - ANSWER In specified amount of
coverage, the insured property's value is determined at the time the policy is
written.
In the case of a loss, the whole amount is paid regardless of any coinsurance
provision.
However, if the loss is less than the amount, the insurer has salvage rights, and the
insured gets first refusal.
What kind of liability does someone who owns a swimming pool have? - The
answer is absolute.
What is absolute liability? - ANSWER Any intrinsically harmful conduct carries
absolute culpability. The claimant does not need to prove anything.
The insurable interest in the property covered by a policy must be established at the
time of loss.
Which of the following is not an aspect of negligence?
breach, unbroken chain, libel, duty—ANSWER libel.
What is libel? - A sort of deliberate tort.
In the insurance industry, a hazard is defined as any circumstance or exposure that
increases the risk of loss.
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