State Farm Insurance License Exam

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State Farm Insurance License Exam

• Abandonment Condition>>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.

• Accident>>A loss that occurs at a specific time and place

• Actual Cash Value (ACV)>>Today's replacement cost minus depreciation.

De- preciation from wear and tear, or obsolescence.

• admitted insurer; authorized insurer>>Company that meets a state

insurance department's standards and is allowed to do business in that state.

• Adverse Selection>>the tendency of insureds with a greater than

average chance of loss to purchase insurance

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• Annual Transit Policy>>Nonfiled commercial inland marine transportation

form that insures a property owner's incoming or outgoing shipments of goods during a year

• Appraisal Clause>>A survey of property to determine the insurable value of

the property or the value of the loss sustained.

• Appraisal Condition>>Policy condition that outlines a procedure for when

the insured and insurer disagree on the amount of a loss

• Assignment>>The legal transfer of one's interest in an insurance policy

to another person.

• Aviation Hull Insurance>>Provides coverage for physical damage to an

air- craft.

• Bailee's Customers Policy>>Nonfiled commercial inland marine form

obtained by a bailee to cover loss or damage to customers' property in the bailee's custody without regard to liability.

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• Appurtenant Structures>>Buildings of lesser value that are on the same

premises as the main building insured under a property policy; they are usually covered by the policy.

• Assignment Condition>>Condition in insurance policies that specifies

that the policy cannot be transferred to another unless the company consents to the transfer in writing.

• Bailee>>A person or organization that has temporary possession of

someone else's personal property.

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