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State Farm Vocabulary Questions And Answers With Verified Solutions 100% Correct!!!
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State Farm Vocabulary Questions And Answers With Verified Solutions 100% Correct!!!
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State Farm Vocabulary Questions AndAnswers With Verified Solutions 100%
Correct!!!
Abandonment Condition - ANSWER✔✔A condition often contained in property
insurance policies that states that the insured cannot abandon damaged property to
the insurer and demand to be reimbursed for its full value.
Absolute Liability - ANSWER✔✔Type of liability imposed by law on those
participating in certain activities that are considered specially hazardous; a person
involved in such operations may be held liable for the damages of another event
though the individual was not negligent.
Accident - ANSWER✔✔A loss that occurs at a specific time and place
Accounts Receivable Insurance - ANSWER✔✔Filed commercial inland marine
form that insures against loss the insured suffers because of an inability to collect
from customers when when accounts receivable records are damaged or destroyed.
Actual Cash Value (ACV) - ANSWER✔✔The cost to replace an item of property
at the time of loss, less an allowance for depreciation; often used to determine the
amount of reimbursement for a loss.
Additional Coverages - ANSWER✔✔Supplemental insurance coverages that
apply only in certain circumstances, have reduced or separate limits of liability, or
require the insured to meet certain requirements before they are applicable; also
called coverage extensions, other coverages, and extended coverages.
, Additional Insured - ANSWER✔✔An individual or company, in addition to the
insured, who is listed in the declarations; an example is a mortgage company that
has an insurable interest in the property insured.
Additional Insured-Lessor Endorsement - ANSWER✔✔Commercial auto
endorsement used to make leased vehicles considered owned vehicles for coverage
purposes.
Adhesion Contract - ANSWER✔✔A contract where one party has more power
than the other party in drafting the contract; an insurance policy is an adhesion
contract- the insurer is the one with more power.
Adverse Selection - ANSWER✔✔The tendency of insureds with a greater than
average chance of loss to purchase insurance.
Agency - ANSWER✔✔Principles governing the authority of any agent that
represents a principal.
Agent - ANSWER✔✔An individual or organization that legally represents
another; a state-licensed professional who represents the insurance company in the
sale and servicing of insurance; the direct link between the insurance company and
the policy holder.
Aggregate Limit - ANSWER✔✔Type of policy limit found in liability policies that
limits coverage to a specific total amount for all losses occurring within the policy
period.
Agreed Value Condition - ANSWER✔✔Condition found in some property
insurance policies that stipulates a certain value that will meet the coinsurance
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