WV Licensing Test Study Questions

1. Methods of risk management include: A. Transfer B. Sharing C. Avoidance D. All of the above. - Answer- D. All of the above. 2. An insured has suffered a fire loss to his/her dwelling. This insured is which party to the claim? A. Third party B. First party C. Second party D. Loss payee - Answer- B. First party 3. Mr. Jones, a pedestrian, was injured by Mr. Smith while driving his vehicle. Mr. Smith is insured by I Am Bogus Insurance Company. The insurance company would be which party to the claim? A. First party since they are the one that has to pay B. The second party C. The third party D. Guarantor - Answer- B. The second party 4. Which of the following is NOT included in the Declarations section of an insurance contract? A. The identity of the named insured B. The policy period C. The covered perils D. The policy premium - Answer- C. The covered perils 5. Which of the following is the section of an insurance contract that contains the provisions, rules of conduct, duties and obligations of the parties? A. The Insuring Agreement B. The Conditions C. The Exclusions D. The Limitations - Answer- B. The Conditions 6. A loss that is a direct consequence of a particular peril is called a(n): A. Indirect loss B. Peril C. Hazard D. Direct loss - Answer- D. Direct loss 7. Which of the following is a clause in property and casualty contracts which states that if p