State Farm Property Exam Review 1. In property insurance actual cash value is defined as which of the follow- ing: Replacement cost at the time of the loss, less depreciation 2. Peril is most easily defined as: the cause of loss insured against 3. What is a leading factor in the determination of actual cash value: replace- ment cost 4. Replacement cost is defined as: full replacement of property at its current cost, new and without reduction for depreciation 5. Property insurance that provides 100k coverage for a building and 50k coverage for personal property at a single location is called: Specific coverage 6. Which of the following is used in the formula for calculating the actual cash value of a property: replacement cost 7. What is the purpose of the coinsurance clause found in property insurance policies?: Encourage the insured to insure the property closer to its full value 8. An insured has a liability policy that sets the amount at 50k for all claims that arise from a single incident. which type of

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