1 promax - Stuvia US 2025/2026
State Farm Property Questions with Detailed Verified
Answers (100% Correct Answers) /Already Graded A+
In property insurance actual cash value is defined as which of the following
Ans: Replacement cost at the time of the loss, less depreciation
Peril is most easily defined as
Ans: the cause of loss insured against
What is a leading factor in the determination of actual cash value
Ans: replacement cost
Exampromax - Stuvia US
Approved By:
Replacement cost is defined as
Ans: 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
Ans: Specific coverage
Which of the following is used in the formula for calculating the actual
cash value of a property
Ans: replacement cost
What is the purpose of the coinsurance clause found in property insurance
policies?
Ans: Encourage the insured to insure the property closer to its full value
, 2 promax - Stuvia US 2025/2026
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?
Ans: 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
Ans: stated amount
What is stated amount coverage
Ans: In stated amt coverage the value of the insured property is determined
Exampromax - Stuvia US
at the time the policy is written.
Approved By:
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?
Ans: Absolute
What is absolute liability
Ans: 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
State Farm Property Questions with Detailed Verified
Answers (100% Correct Answers) /Already Graded A+
In property insurance actual cash value is defined as which of the following
Ans: Replacement cost at the time of the loss, less depreciation
Peril is most easily defined as
Ans: the cause of loss insured against
What is a leading factor in the determination of actual cash value
Ans: replacement cost
Exampromax - Stuvia US
Approved By:
Replacement cost is defined as
Ans: 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
Ans: Specific coverage
Which of the following is used in the formula for calculating the actual
cash value of a property
Ans: replacement cost
What is the purpose of the coinsurance clause found in property insurance
policies?
Ans: Encourage the insured to insure the property closer to its full value
, 2 promax - Stuvia US 2025/2026
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?
Ans: 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
Ans: stated amount
What is stated amount coverage
Ans: In stated amt coverage the value of the insured property is determined
Exampromax - Stuvia US
at the time the policy is written.
Approved By:
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?
Ans: Absolute
What is absolute liability
Ans: 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
