State Farm Property Exam 2023-2024 Questions & Answers (Solved)

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1. In property insurance actual cash value is defined as which of the following Answer: Replacement cost at the time of the loss, less depreciation 2. Peril is most easily defined as Answer: the... cause of loss insured against 3. What is a leading factor in the determination of actual cash value Answer: replace-ment cost 4. Replacement cost is defined as Answer: full replacement of property at its currentcost, 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 Answer: Specific coverage 6. Which of the following is used in the formula for calculating the actual cashvalue of a property Answer: replacement cost 7. What isthe purpose of the coinsurance clause found in property insurancepolicies? Answer: Encourage the insured to insure the property closer to its full value [Show More]

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