State Farm Exam Guide with Correct Answers

Who owns their renewals - Answers-Independents Events that may NOT be recovered by insurance are - Answers-Gambling, investing, market value of home What underlying coverages typically are required for an umbrella - Answers-Auto and Personal Conditions that prohibit assignments of the policy - Answers-Transfer of rights and duties Expectant interest are - Answers-Not insured Flood, power failure and earth movement are - Answers-Excluded on DP & HO What are the 3 principle rating factors for personal auto - Answers-1) safe driving record 2) annual miles driving 3) years of driving experience Fail Plan doesn't not encourage - Answers-Competition Loss exposures that results in a claim for monetary damage due to injury to another or damage to another's property? - Answers-Liability Loss Exposure The persons whose property is being insured is the - Answers-Insured The person seeking for damage is the - Answers-Claimant When the insurer cancels, the premium is refunded - Answers-Pro-Rata Representation can qualify as an - Answers-Implied Warranty Fire Dep. service charge, reason repairs and debris removal are considered what on an HO? - Answers-Additional Charges In an HO coverage for fair rental is included in - Answers-Coverage D How is combined ratio computed? - Answers-Adding Loss + Expense Ratio Not purchasing collision coverage for your car is an example of risk - Answers-Retention Not purchasing a motorboat is an example of - Answers-Avoidance/ elimination