,West Virginia Adjuster Exam Practice Test
Multiple-Choice Questions with Rationales
SECTION 1: LICENSING AND REGULATION (Questions
1–30)
1. What is the primary purpose of an insurance adjuster?
A. Sell insurance policies to the public
B. Prevent insured losses from occurring
C. Investigate and settle claims on behalf of the insurer
D. Advise policyholders on financial planning
Correct Answer: C
Rationale: The adjuster's primary role is to investigate, evaluate, and settle
claims on behalf of the insurance company. Selling policies is the role of an
agent or producer. Loss prevention is risk management, and financial
planning is unrelated to adjusting.
2. What is the definition of a public adjuster?
A. An adjuster who works for the insurance company
B. An adjuster who works for the insured
,C. An adjuster employed by the state government
D. An adjuster who handles only workers' compensation claims
Correct Answer: B
Rationale: A public adjuster represents the interests of the insured
(policyholder), not the insurance company . Company adjusters work for
insurers, and state adjusters work for government entities.
3. Under West Virginia House Bill 5505, what are the current
minimum auto liability limits effective January 1, 2026?
A. $20,000 / $40,000 / $10,000
B. $25,000 / $50,000 / $25,000
C. ***$100,000 / $300,000 / $100,000***
D. $50,000 / $100,000 / $50,000
Correct Answer: C
Rationale: House Bill 5505 increased West Virginia's minimum auto liability
limits to 100/300/100 effective for policies written after January 1, 2026 .
Options A and B are legacy limits; option D is a fabricated amount.
4. Subrogation occurs when:
A. The insurer steps into the position of the insured and may collect
from the responsible party for damages
B. The insured transfers the policy to another person
C. The insurer cancels the policy for non-payment
D. The insured and insurer agree to settle for less than policy limits
Correct Answer: A
Rationale: Subrogation allows the insurer to pursue recovery from a third
, party responsible for the loss after paying the claim . This prevents the
insured from collecting twice and allows the insurer to recoup costs.
5. What are the basic qualifications for a resident adjuster
license in West Virginia?
A. Age 18 or older, resident of WV or eligible to designate WV as home
state, trustworthy and competent
B. Age 21 or older and a resident of WV
C. Age 18 or older and employed by an insurance company
D. Age 25 or older with 5 years of experience
Correct Answer: A
Rationale: W.Va . Code §33-12B-5 requires applicants to be at least 18 years
old, be a resident of WV or eligible to designate WV as home state, be
trustworthy and competent, and pass the required examination .
6. How many attempts does an applicant have to pass the
West Virginia adjuster examination?
A. 3 attempts
B. 5 attempts
C. 7 additional attempts (8 total)
D. Unlimited attempts
Correct Answer: C
Rationale: An individual who initially fails to pass the examination is limited
to seven additional attempts. An individual who fails eight times is forever
barred from retaking the examination .
Multiple-Choice Questions with Rationales
SECTION 1: LICENSING AND REGULATION (Questions
1–30)
1. What is the primary purpose of an insurance adjuster?
A. Sell insurance policies to the public
B. Prevent insured losses from occurring
C. Investigate and settle claims on behalf of the insurer
D. Advise policyholders on financial planning
Correct Answer: C
Rationale: The adjuster's primary role is to investigate, evaluate, and settle
claims on behalf of the insurance company. Selling policies is the role of an
agent or producer. Loss prevention is risk management, and financial
planning is unrelated to adjusting.
2. What is the definition of a public adjuster?
A. An adjuster who works for the insurance company
B. An adjuster who works for the insured
,C. An adjuster employed by the state government
D. An adjuster who handles only workers' compensation claims
Correct Answer: B
Rationale: A public adjuster represents the interests of the insured
(policyholder), not the insurance company . Company adjusters work for
insurers, and state adjusters work for government entities.
3. Under West Virginia House Bill 5505, what are the current
minimum auto liability limits effective January 1, 2026?
A. $20,000 / $40,000 / $10,000
B. $25,000 / $50,000 / $25,000
C. ***$100,000 / $300,000 / $100,000***
D. $50,000 / $100,000 / $50,000
Correct Answer: C
Rationale: House Bill 5505 increased West Virginia's minimum auto liability
limits to 100/300/100 effective for policies written after January 1, 2026 .
Options A and B are legacy limits; option D is a fabricated amount.
4. Subrogation occurs when:
A. The insurer steps into the position of the insured and may collect
from the responsible party for damages
B. The insured transfers the policy to another person
C. The insurer cancels the policy for non-payment
D. The insured and insurer agree to settle for less than policy limits
Correct Answer: A
Rationale: Subrogation allows the insurer to pursue recovery from a third
, party responsible for the loss after paying the claim . This prevents the
insured from collecting twice and allows the insurer to recoup costs.
5. What are the basic qualifications for a resident adjuster
license in West Virginia?
A. Age 18 or older, resident of WV or eligible to designate WV as home
state, trustworthy and competent
B. Age 21 or older and a resident of WV
C. Age 18 or older and employed by an insurance company
D. Age 25 or older with 5 years of experience
Correct Answer: A
Rationale: W.Va . Code §33-12B-5 requires applicants to be at least 18 years
old, be a resident of WV or eligible to designate WV as home state, be
trustworthy and competent, and pass the required examination .
6. How many attempts does an applicant have to pass the
West Virginia adjuster examination?
A. 3 attempts
B. 5 attempts
C. 7 additional attempts (8 total)
D. Unlimited attempts
Correct Answer: C
Rationale: An individual who initially fails to pass the examination is limited
to seven additional attempts. An individual who fails eight times is forever
barred from retaking the examination .
