State Farm Insurance License Practice Exam

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Study for the State Farm Insurance License Exam. Engage with flashcards and multiple-choice questions, each offering hints and explanations. Be fully prepared for your insurance licensing exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What must an insured do if property is recovered after receiving a loss payment?

Notify the police
Notify the insurance company
Sell the property immediately
Keep both the property and settlement

The correct answer is: Notify the insurance company

When property is recovered after the insured has already received a loss payment, it is essential for the insured to notify the insurance company. This ensures that the insurer is aware of the recovery, as it may affect the policyholder's coverage and any future claims. The insurance company often has specific protocols regarding recovered property, which could involve adjusting the loss payment or reinstating the insured value of the item. By notifying the insurance company, the insured fulfills their responsibility to keep the insurer informed of any significant changes that may affect the claim or the insurance policy. This is crucial for maintaining transparency and ensuring that both parties are aligned on the status of the insured property.