STATE FARM PROPERTY -

STATE FARM PROPERTY -

QUESTIONS AND CORRECT DETAILED ANSWERS

(VERIFIED ANSWERS) |AGRADE||BRAND NEW!

The extra expense coverage form provides? - ANSWER- Coverage that will permit the insured to continue in business without interruption following a property damage loss.

How long does a producer have after writing a fire insurance policy to have a building inspected? - ANSWER- 90 Days

The Federal Fair Credit Reporting Act - ANSWER- Regulates consumer reports

Type of insurance used to cover goods for one specific trip? - ANSWER- Trip transit

In a Dwelling policy, this would be considered covered - ANSWER- Rented to a neighbor for use as a private garage

In Dwelling policies, automatic increase in insurance is - ANSWER- Coverage by endorsement

Events in which a person has both the chance of winning or losing are classified as

• ANSWER- Speculative risk

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? - ANSWER- Consideration

On DP-3 (Dwelling Property Special Form Policy), the coverage provided for personal property is. - ANSWER- The same as provided on the DP-2 Broad Form

This is a FALSE statement regarding fire department service charge additional coverage under the businessowners policy. - ANSWER- The coverage limits pay in place of the limit of insurance shown in the declarations.

What is NOT found in an insurance policy? - ANSWER- Insuring agreement

A policy condition that stipulates how the amount of damaged or lost property will be determined if the insured and the principal do not agree on the value of a property loss is known as? - ANSWER- Appraisal

Losses caused by vandalism and malicious mischief are excluded under a homeowners policy if the dwelling had been vacant for more than? - ANSWER- 60 days

What is the limit for the forgery or alteration coverage in the businessowners policy? - ANSWER- $2,500

Other structures are covered for what amount under the Coverage B - Other Structures of a homeowner's policy? - ANSWER- 10% of Coverage A

Under business policy section I, if an insurer wants to renew a policy for nonpayment of premium, how many days before the expiration date must the insurer notify the mortgageholder? - ANSWER- 10 Days

According to the loss payment condition in HO policies, losses must be paid within how many days of the insurer receiving proof of loss? - ANSWER- 60 Days

How many years of a loss may an insured bring a lawsuit against an insurer, according to the dwelling policy? - ANSWER- 2 Years

How long is a waiting period upon purchase of flood coverage through NFIP? - ANSWER- 30 Days

Which of Dwelling coverage forms would pay replacement cost for the Dwelling?

• ANSWER- DP-2 and DP-3

In which of the following types of property valuation will the policy pay the full value as specified on the policy schedule, regardless of the insured property's appreciation or depreciation. - ANSWER- Agreed Value

Which is true concerning the builders rick coverage form is correct? - ANSWER- It may be written on a reporting form for the completed value of the structure

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 Abandonment

What is the relinquishing of insured property into the hands of another, or into the possession of no one in particular?

Incidental What is something occurring as a minor accompaniment to something else?

Incidental occupancy what is minor uses that are accessory to or support the predominant occupancy (e.g., a piano teacher giving lessons in her home)

Inherent vice What is an internal cause of property loss or damage

due to the very nature of the insured property (ex:

metal rusting or produce spoiling)

Mercantile What is relating to trade or commerce; commercial

Monoline What is a policy that covers one type of insurance?

(ex: workers compensation or commercial auto)

Dwelling property policy What policy was developed by the ISO to be used primarily as a property coverage form? Three separate coverage forms available under the

dwelling program: basic, broad, and special form

coverage.

DP 00 01 or DP1 / named peril What is the form number and peril type(s) for Basic?