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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