West Virginia Adjuster Exam Insurance Questions
NEWEST 2026-2027 ACTUAL EXAM COMPLETE
130 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ BRAND NEW!!
A homeowner's policy is called a "package" policy because: - CORRECT ANSWER: it bundles
property and liability insurance into one policy.
A lightning strike causes one of the storage buildings on John's farm to burn to the ground, aided
by the fuel tanks he kept in the building. John knows he wasn't supposed to store any fuel in the
building, so he keeps that piece of information to himself when he files a claim. John's insurer
may deny his claim based on his: - CORRECT ANSWER: concealment.
A neighbor stepped on a rusty rake while walking through Jake's backyard, unannounced. He
ends up with a bad case of tetanus and has to stay in the hospital for three days. He files a claim
against Jake, who protests any wrongdoing because he believes his neighbor was trespassing and
should be responsible for his own injury. Jake wants a court of law to settle the dispute. How can
the insurer settle the claim put forth by Jake's neighbor? - CORRECT ANSWER: The insurer can
settle anyway it finds advantageous to its interests. The insurer has the right to settle the claim
any way it finds advantageous to its interests. So, Jake's insurer may pay his neighbor, even
though Jake wants to challenge his neighbor's claim.
A passenger on a commercial airline flight was injured when the plane crashed due to a
mechanical problem. In court, the injured passenger's lawyer could invoke the doctrine of: -
CORRECT ANSWER: Res Ipsa Loquitur.
A typical mobile home policy: - CORRECT ANSWER: settles losses on an actual cash value
basis.
A witness who has had a recorded interview: - CORRECT ANSWER: must have a chance to
correct anything that is incorrect.
,A/An ____________ plays an advisory role in the negotiation process, working from a neutral
position to assist the opposing parties to come to an equitable resolution. - CORRECT
ANSWER: mediator
Abby owns a condo and has a $200,000 HO-6 policy. One afternoon, she finds little bugs
running all over her kitchen. After calling a pest control service, she learns that there is a termite
infestation in the building. How much of the structural damage caused by the termites will be
covered under the policy? - CORRECT ANSWER: None
ABC Masonry, Inc. has an aggregate liability policy with limits of 100,000/300,000. One day, an
accident at a construction site leads to $150,000 in damage to public property. Assuming the
cause of loss is covered under ABC Masonry's liability policy, how will this claim be paid? -
CORRECT ANSWER: The insurer pays $100,000; the aggregate limit is now $200,000; and
ABC Masonry must pay $50,000.
After the collapse of the Smiths' balcony, they find there are many new code requirements than
there must have been when the balcony was originally constructed. Which type of of additional
coverage can help with the added expenses needed to rebuild their balcony to current standards?
- CORRECT ANSWER: Ordinance or Law coverage
After Tom and his neighbor get into a heated argument, Tom destroys his neighbor's A/C
compressor with a baseball bat, causing $2,500 in damages. The next day, Tom realizes his poor
behavior and files a claim with his insurer for his liability in the damages to his neighbor's A/C
unit. Why might Tom's insurer deny his claim? - CORRECT ANSWER: Tom's vandalism was
intentional, and therefore excluded under his liability policy.
Allen is adjusting an auto claim on behalf of ABC Insurance, which has given Allen $5,000 in
draft authority. The total damages in the auto claim come to $7,200. Which of the following is
true? - CORRECT ANSWER: Allen can adjust the claim, but ABC Insurance must write the
settlement check.
An adjuster acts as an agent for the insurer. As such, it is essential that the adjuster understand: -
CORRECT ANSWER: that her words or actions may bind the insurance company.
, An insurance claim is essentially: - CORRECT ANSWER: A formal request to settle the damage
An out-of-control motorist careens off the road and smashes through Sally's front yard and into
her attached garage, taking out several lamp posts, her mailbox, and a small gazebo along the
way. If Sally has a $100,000 homeowner's policy and the replacement costs for the damaged
items were as follows: the lamp posts and mailbox: $700; the gazebo: $2,500; and the garage:
$12,500, what will Sally's Coverage B - Other Structures pay for her losses (assuming no
deductible)? - CORRECT ANSWER: $3,200
An out-of-control motorist careens off the road and smashes through Sally's front yard and into
her attached garage, taking out several lamp posts, her mailbox, and a small gazebo along the
way. Under Sally's homeowners policy, which items might be covered under Coverage B - Other
Structures? - CORRECT ANSWER: The lamp posts, mailbox, and gazebo
An unendorsed DP-1 Basic Form covers what three perils? - CORRECT ANSWER: Fire,
lightning, internal explosion
Anton is purchasing a homeowners policy for his house in the woods. He wants to make sure he
is covered for damage done to his home by wild animals. Which of the following would be his
LEAST expensive option? - CORRECT ANSWER: HO-3 Since damage caused by wild animals
is not an included peril in the Modified Form (HO-8) or the Broad Form (HO-2), Anton will need
an "all-risk" or Special Form policy such as the HO-3 or the HO-5. The least expensive of these
two options is the HO-3.
Barbara is preparing to negotiate an auto claim on behalf of XYZ Insurance. She knows the
circumstances of the loss and has completed the investigation and evaluation. What other piece
of information must Barbara know before entering into negotiation with the claimant? -
CORRECT ANSWER: The maximum amount XYZ Insurance will pay for the claim
Ben built a small shed in the backyard of the house he's renting, to hold his lawn equipment and
other tools. One afternoon, a strong storm brought a tree down on Ben's shed, practically
destroying it. Which type of coverage in Ben's HO-4 policy could indemnify him for the cost of
replacing the shed? - CORRECT ANSWER: Building Additions and Alterations coverage
NEWEST 2026-2027 ACTUAL EXAM COMPLETE
130 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+ BRAND NEW!!
A homeowner's policy is called a "package" policy because: - CORRECT ANSWER: it bundles
property and liability insurance into one policy.
A lightning strike causes one of the storage buildings on John's farm to burn to the ground, aided
by the fuel tanks he kept in the building. John knows he wasn't supposed to store any fuel in the
building, so he keeps that piece of information to himself when he files a claim. John's insurer
may deny his claim based on his: - CORRECT ANSWER: concealment.
A neighbor stepped on a rusty rake while walking through Jake's backyard, unannounced. He
ends up with a bad case of tetanus and has to stay in the hospital for three days. He files a claim
against Jake, who protests any wrongdoing because he believes his neighbor was trespassing and
should be responsible for his own injury. Jake wants a court of law to settle the dispute. How can
the insurer settle the claim put forth by Jake's neighbor? - CORRECT ANSWER: The insurer can
settle anyway it finds advantageous to its interests. The insurer has the right to settle the claim
any way it finds advantageous to its interests. So, Jake's insurer may pay his neighbor, even
though Jake wants to challenge his neighbor's claim.
A passenger on a commercial airline flight was injured when the plane crashed due to a
mechanical problem. In court, the injured passenger's lawyer could invoke the doctrine of: -
CORRECT ANSWER: Res Ipsa Loquitur.
A typical mobile home policy: - CORRECT ANSWER: settles losses on an actual cash value
basis.
A witness who has had a recorded interview: - CORRECT ANSWER: must have a chance to
correct anything that is incorrect.
,A/An ____________ plays an advisory role in the negotiation process, working from a neutral
position to assist the opposing parties to come to an equitable resolution. - CORRECT
ANSWER: mediator
Abby owns a condo and has a $200,000 HO-6 policy. One afternoon, she finds little bugs
running all over her kitchen. After calling a pest control service, she learns that there is a termite
infestation in the building. How much of the structural damage caused by the termites will be
covered under the policy? - CORRECT ANSWER: None
ABC Masonry, Inc. has an aggregate liability policy with limits of 100,000/300,000. One day, an
accident at a construction site leads to $150,000 in damage to public property. Assuming the
cause of loss is covered under ABC Masonry's liability policy, how will this claim be paid? -
CORRECT ANSWER: The insurer pays $100,000; the aggregate limit is now $200,000; and
ABC Masonry must pay $50,000.
After the collapse of the Smiths' balcony, they find there are many new code requirements than
there must have been when the balcony was originally constructed. Which type of of additional
coverage can help with the added expenses needed to rebuild their balcony to current standards?
- CORRECT ANSWER: Ordinance or Law coverage
After Tom and his neighbor get into a heated argument, Tom destroys his neighbor's A/C
compressor with a baseball bat, causing $2,500 in damages. The next day, Tom realizes his poor
behavior and files a claim with his insurer for his liability in the damages to his neighbor's A/C
unit. Why might Tom's insurer deny his claim? - CORRECT ANSWER: Tom's vandalism was
intentional, and therefore excluded under his liability policy.
Allen is adjusting an auto claim on behalf of ABC Insurance, which has given Allen $5,000 in
draft authority. The total damages in the auto claim come to $7,200. Which of the following is
true? - CORRECT ANSWER: Allen can adjust the claim, but ABC Insurance must write the
settlement check.
An adjuster acts as an agent for the insurer. As such, it is essential that the adjuster understand: -
CORRECT ANSWER: that her words or actions may bind the insurance company.
, An insurance claim is essentially: - CORRECT ANSWER: A formal request to settle the damage
An out-of-control motorist careens off the road and smashes through Sally's front yard and into
her attached garage, taking out several lamp posts, her mailbox, and a small gazebo along the
way. If Sally has a $100,000 homeowner's policy and the replacement costs for the damaged
items were as follows: the lamp posts and mailbox: $700; the gazebo: $2,500; and the garage:
$12,500, what will Sally's Coverage B - Other Structures pay for her losses (assuming no
deductible)? - CORRECT ANSWER: $3,200
An out-of-control motorist careens off the road and smashes through Sally's front yard and into
her attached garage, taking out several lamp posts, her mailbox, and a small gazebo along the
way. Under Sally's homeowners policy, which items might be covered under Coverage B - Other
Structures? - CORRECT ANSWER: The lamp posts, mailbox, and gazebo
An unendorsed DP-1 Basic Form covers what three perils? - CORRECT ANSWER: Fire,
lightning, internal explosion
Anton is purchasing a homeowners policy for his house in the woods. He wants to make sure he
is covered for damage done to his home by wild animals. Which of the following would be his
LEAST expensive option? - CORRECT ANSWER: HO-3 Since damage caused by wild animals
is not an included peril in the Modified Form (HO-8) or the Broad Form (HO-2), Anton will need
an "all-risk" or Special Form policy such as the HO-3 or the HO-5. The least expensive of these
two options is the HO-3.
Barbara is preparing to negotiate an auto claim on behalf of XYZ Insurance. She knows the
circumstances of the loss and has completed the investigation and evaluation. What other piece
of information must Barbara know before entering into negotiation with the claimant? -
CORRECT ANSWER: The maximum amount XYZ Insurance will pay for the claim
Ben built a small shed in the backyard of the house he's renting, to hold his lawn equipment and
other tools. One afternoon, a strong storm brought a tree down on Ben's shed, practically
destroying it. Which type of coverage in Ben's HO-4 policy could indemnify him for the cost of
replacing the shed? - CORRECT ANSWER: Building Additions and Alterations coverage
