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State Farm Property 2024 Exam Review: Questions and Answers for 100% Pass, Exams of Credit and Risk Management

Wisconsin Lutheran College (WLC)Credit and Risk Management

A comprehensive review of key concepts and questions related to property insurance, including definitions of actual cash value, peril, replacement cost, coinsurance, liability limits, stated amount coverage, absolute liability, insurable interest, negligence, hazards, insurance contracts, notice of claim, pro rata liability, policy structure, endorsements, cancellation, misrepresentation, replacement cost coverage, insurable interest, national flood insurance, property in transit, additional insured, policy conditions, insuring agreement, and proof of loss. The detailed questions and answers cover a wide range of topics essential for passing the state farm property 2024 exam. This resource can be highly valuable for students preparing for insurance licensing exams, as well as insurance professionals seeking to enhance their knowledge and skills in property insurance.

Typology: Exams

2024/2025

Available from 09/21/2024

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State Farm Property 2024 Exam Review
Questions and Answers 100% Pass
In property insurance actual cash value is defined as which of the
following - Answer>> Replacement cost at the time of the loss,
less depreciation
Peril is most easily defined as - Answer>> the cause of loss
insured against
What is a leading factor in the determination of 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 called -
Answer>> Specific coverage
Which of the following is used in the formula for calculating the
actual cash value of a property - Answer>> replacement cost
What is the purpose of the coinsurance clause found in property
insurance policies? - 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? - Answer>> per
occurrence
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State Farm Property 2024 Exam Review

Questions and Answers 100% Pass

In property insurance actual cash value is defined as which of the following - Answer>> Replacement cost at the time of the loss, less depreciation Peril is most easily defined as - Answer>> the cause of loss insured against What is a leading factor in the determination of 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 called - Answer>> Specific coverage Which of the following is used in the formula for calculating the actual cash value of a property - Answer>> replacement cost What is the purpose of the coinsurance clause found in property insurance policies? - 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? - 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 - Answer>> stated amount What is stated amount coverage - 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? - Answer>> Absolute What is absolute liability - 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 - Answer>> at the time of loss Which of the following is NOT an element of negligence breach, unbroken chain, libel, duty - Answer>> libel what is libel - Answer>> a type of intentional tort With respect to the business of insurance, a hazard is - Answer>> any condition or exposure that increases the possibility of loss

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? - Answer>> the homeowner will need to get written consent from the insurer before the policy can be reassigned What is consideration? - Answer>> something of value that is transferred between the two parties to form a legal contract What are endorsements - 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 - Answer>> cancellation When would a misrepresentation on the insurance app be considered fraud? - Answer>> if it is intentional and material What is true about single dwellings that are insured to at least 80% of the replacement value - 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 - 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? - Answer>> 1201 am the day after the application and premium payment are mailed

a commercial property special form covers property in transit up to - Answer>> 5k when a regular bill of lading is issued, who will be responsible for the invoice cost of any damaged property - Answer>> The carrier A person who is not named as an insured on the dec page of a policy but is protected by the policy is known as the - Answer>> additional insured The policy conditions define - Answer>> how parties to the contract must act following a loss The part of the insurance contract that describes the covered perils and the nature of the coverage of the contractual agreement between the insurer and the insured is called the - Answer>> insuring agreement What is the insuring agreement - Answer>> is the part of the policy structure that describes the insured perils and the method of indemnification Before an insurer will pay any loss under a policy, what is usually required from the insured? - Answer>> proof of loss All of the following are conditions commonly found in the insurance policy EXCEPT - Answer>> insuring agreement In return for premium, an insurance company - Answer>> be fair in underwriting and pay covered losses