West Virginia Adjuster Exam Insurance
Questions And Answers
Which of the following best describes the insurance concept of
"exposure"? - - - correct answer ✅The possibility of damage or loss
Strict liability: - - - correct answer ✅holds a person liable for his
actions regardless of how much care he demonstrates.
John has purchased a homeowners insurance policy with a
percentage deductible based on the total limit of insurance for his
home. John insures his home for $600,000, and the policy includes
a 3% deductible. A huge thunderstorm passes through one night
and blows the roof off his house. The insurance company estimates
that covered damage totals $80,000. How much indemnification
should John expect for the losses to his roof? - - - correct answer
✅$62,000
Which of the following statements best describes the Law of Large
Numbers? - - - correct answer ✅The larger the number of units
insured, the more accurately the insurer can predict the number of
claims from that group.
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.
,West Virginia Adjuster Exam Insurance
Questions And Answers
During a violent summer storm in Tulsa, a bolt of lightning hits Mr.
Jones' house, damaging a large portion of the roof. In this case, the
insurer would call the lightning bolt a: - - - correct answer ✅a peril.
Special damages are a type of compensatory damages. They award
money for tangible, economic losses. General damages award
money for intangible losses.
Jerrod is awarded $4000 in a court case after Ollie accidentally
starts a fire and burns down his detached garage. This award is an
example of: - - - correct answer ✅special damages.
Which of the following activities is considered a speculative risk? - -
- correct answer ✅Buying a lottery ticket
To meet the 80% level of co-insurance required by his lender, Tom
discovers he must insure his home for at least $320,000. What is
the value of Tom's home? - - - correct answer ✅$400,000
Roxanne runs a red light and totals Ben's car in a t-bone collision.
Roxanne's auto policy includes liability coverage with limits of
50/100/25 and Collision coverage with a deductible of $500. Ben's
car is worth $1,800 at the time of the accident, and he files a claim
against Roxanne's liability insurance. Bearing in mind that liability
,West Virginia Adjuster Exam Insurance
Questions And Answers
coverage doesn't have a deductible, how much will Roxanne have
to pay out-of-pocket for the damages she caused? - - - correct
answer ✅$0
What is the formula for actual cash value? - - - correct answer
✅Replacement cost minus total depreciation
Which of the following is NOT a qualification of an insurable risk? - -
- correct answer ✅An insurable risk must have guaranteed
protection from damage.
Which of the following incidents would a liability insurance policy
cover? - - - correct answer ✅A man slips inside a grocery store and
injures himself.
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.
, West Virginia Adjuster Exam Insurance
Questions And Answers
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 witness who has had a recorded interview: - - - correct answer
✅must have a chance to correct anything that is incorrect.
An insurance claim is essentially: - - - correct answer ✅A formal
request to settle the damage
Melanie's $300,000 home suffers $90,000 in damage from a fire.
The adjuster finds the home's value since 2008 has depreciated
25%, making the ACV loss $67,500. Although Melanie's policy
covers repairs at their replacement cost, she receives $67,500 at
the time of loss. Repairs to her home end up totaling $79,500. How
much, if any, further indemnification may Melanie receive from the
loss? - - - correct answer ✅$12,000
Which of the following does not apply to the adjuster's
responsibility of reporting to the principal? - - - correct answer
Questions And Answers
Which of the following best describes the insurance concept of
"exposure"? - - - correct answer ✅The possibility of damage or loss
Strict liability: - - - correct answer ✅holds a person liable for his
actions regardless of how much care he demonstrates.
John has purchased a homeowners insurance policy with a
percentage deductible based on the total limit of insurance for his
home. John insures his home for $600,000, and the policy includes
a 3% deductible. A huge thunderstorm passes through one night
and blows the roof off his house. The insurance company estimates
that covered damage totals $80,000. How much indemnification
should John expect for the losses to his roof? - - - correct answer
✅$62,000
Which of the following statements best describes the Law of Large
Numbers? - - - correct answer ✅The larger the number of units
insured, the more accurately the insurer can predict the number of
claims from that group.
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.
,West Virginia Adjuster Exam Insurance
Questions And Answers
During a violent summer storm in Tulsa, a bolt of lightning hits Mr.
Jones' house, damaging a large portion of the roof. In this case, the
insurer would call the lightning bolt a: - - - correct answer ✅a peril.
Special damages are a type of compensatory damages. They award
money for tangible, economic losses. General damages award
money for intangible losses.
Jerrod is awarded $4000 in a court case after Ollie accidentally
starts a fire and burns down his detached garage. This award is an
example of: - - - correct answer ✅special damages.
Which of the following activities is considered a speculative risk? - -
- correct answer ✅Buying a lottery ticket
To meet the 80% level of co-insurance required by his lender, Tom
discovers he must insure his home for at least $320,000. What is
the value of Tom's home? - - - correct answer ✅$400,000
Roxanne runs a red light and totals Ben's car in a t-bone collision.
Roxanne's auto policy includes liability coverage with limits of
50/100/25 and Collision coverage with a deductible of $500. Ben's
car is worth $1,800 at the time of the accident, and he files a claim
against Roxanne's liability insurance. Bearing in mind that liability
,West Virginia Adjuster Exam Insurance
Questions And Answers
coverage doesn't have a deductible, how much will Roxanne have
to pay out-of-pocket for the damages she caused? - - - correct
answer ✅$0
What is the formula for actual cash value? - - - correct answer
✅Replacement cost minus total depreciation
Which of the following is NOT a qualification of an insurable risk? - -
- correct answer ✅An insurable risk must have guaranteed
protection from damage.
Which of the following incidents would a liability insurance policy
cover? - - - correct answer ✅A man slips inside a grocery store and
injures himself.
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.
, West Virginia Adjuster Exam Insurance
Questions And Answers
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 witness who has had a recorded interview: - - - correct answer
✅must have a chance to correct anything that is incorrect.
An insurance claim is essentially: - - - correct answer ✅A formal
request to settle the damage
Melanie's $300,000 home suffers $90,000 in damage from a fire.
The adjuster finds the home's value since 2008 has depreciated
25%, making the ACV loss $67,500. Although Melanie's policy
covers repairs at their replacement cost, she receives $67,500 at
the time of loss. Repairs to her home end up totaling $79,500. How
much, if any, further indemnification may Melanie receive from the
loss? - - - correct answer ✅$12,000
Which of the following does not apply to the adjuster's
responsibility of reporting to the principal? - - - correct answer
