West Virginia Adjuster Laws & Regulations
– FINAL UPDATED ACTUAL Exam
Questions and CORRECT Answers
The ABC Company has a printing press that suffers a total loss. The company paid $25,000 ten
years ago for the press. Actual cash value is $40,000, and the replacement cost is $55,000. The
company has had to cancel several contracts for printing due to the loss of the press and they are
anxious to resume full production. ABC Company is covered under a Business Owner's Policy
(BOP). They will receive the following amount from the insurer:
A. $25,000
B. $55,000
C. $40,000
D. $20,000 - CORRECT ANSWER - B. $55,000
Personal Excess Liability coverage provides which of the following?
A. Identical limits to the underlying policies.
B. The same limits as under primary policies for covered losses.
C. Higher limits.
D. Coordinates limits with other policies. - CORRECT ANSWER - C. Higher limits.
Which of the following does not have an insurable interest in real property?
A. Prior interest
B. Present interest
C. Mortgagee interest
D. Additional interest - CORRECT ANSWER - A. Prior interest
Oliver Dogwood was in an auto accident which destroyed his car. While investigating the
accident, Adjuster Doright found that Mr. Dogwood paid $1,000 for the vehicle. After checking
with others he found the same vehicle with an asking price of $1,700, a retail price of $2,150 and
a dealer price of $1,750. What amount will Mr. Dogwood receive?
,A. $1,950
B. $2,150
C. $1,000
D. $1,700 - CORRECT ANSWER - B. $2,150
Mr. Unlucky had his pickup truck stolen while it was parked in a "No Parking" zone outside his
office. The value of the truck was $18,500. In addition, tools valued at $200, extra tires and
hubcaps for the truck valued at five hundred and fifty dollars and a tarp worth $50 were in the
truck. Mr. Unlucky has a collision deductible of $500 and a comprehensive deductible of $250.
The company will pay what amount?
A. $18,000
B. $18,800
C. $18,250
D. $19,050 - CORRECT ANSWER - B. $18,800
In settling a claim on a dwelling fire policy with a $10,000 loss, the following companies are
involved, Company A - 50%; Company B - 45% and Company C - 5%. What will Company C
pay?
A. $10,000
B. $1,000
C. $4,500
D. $500 - CORRECT ANSWER - D. $500
The ______ states that insurers issuing fire insurance policies on real property in West Virginia
are liable for the whole amount of insurance on the property in case of total loss by fire or as
otherwise stated in the policy.
A. comparative negligence principle
B. valued policy law
C. principle of insurable interest
D. assigned risk principle - CORRECT ANSWER - B. valued policy law
, The primary purpose of the West Virginia Automobile Insurance Plan is to:
A. pay auto liability claims for insolvent insurers.
B. here consumer complaints against insurance companies.
C. protect policyholders against insurer impairments.
D. provide auto liability insurance for individuals unable to obtain it in the normal marketplace. -
CORRECT ANSWER - D. provide auto liability insurance for individuals unable to obtain it
in the normal marketplace.
Coverage provided under West Virginia FAIR Plan may not exceed ________ for any one
habitational risk or commercial risk.
A. $150,000/ $300,000
B. $200,000/ $500,000
C. $100,000/ $400,000
D. $100,000/ $250,000 - CORRECT ANSWER - B. $200,000/ $500,000
A basic Commercial General Liability policy excludes coverage for which of the following?
I. A newly acquired business
II. Property in the insured's care, custody and control
III. An elevator maintenance agreement
A. I only
B. II only
C. III only
D. I, II, and III - CORRECT ANSWER - B. II only
Jim Johnson has an automobile policy with a combined single limit of $50,000. He has an at-
fault accident and incurs the following expenses.
$30,000 bodily injury judgment
$30,000 property damage judgment
$5,000 damage to traffic light
– FINAL UPDATED ACTUAL Exam
Questions and CORRECT Answers
The ABC Company has a printing press that suffers a total loss. The company paid $25,000 ten
years ago for the press. Actual cash value is $40,000, and the replacement cost is $55,000. The
company has had to cancel several contracts for printing due to the loss of the press and they are
anxious to resume full production. ABC Company is covered under a Business Owner's Policy
(BOP). They will receive the following amount from the insurer:
A. $25,000
B. $55,000
C. $40,000
D. $20,000 - CORRECT ANSWER - B. $55,000
Personal Excess Liability coverage provides which of the following?
A. Identical limits to the underlying policies.
B. The same limits as under primary policies for covered losses.
C. Higher limits.
D. Coordinates limits with other policies. - CORRECT ANSWER - C. Higher limits.
Which of the following does not have an insurable interest in real property?
A. Prior interest
B. Present interest
C. Mortgagee interest
D. Additional interest - CORRECT ANSWER - A. Prior interest
Oliver Dogwood was in an auto accident which destroyed his car. While investigating the
accident, Adjuster Doright found that Mr. Dogwood paid $1,000 for the vehicle. After checking
with others he found the same vehicle with an asking price of $1,700, a retail price of $2,150 and
a dealer price of $1,750. What amount will Mr. Dogwood receive?
,A. $1,950
B. $2,150
C. $1,000
D. $1,700 - CORRECT ANSWER - B. $2,150
Mr. Unlucky had his pickup truck stolen while it was parked in a "No Parking" zone outside his
office. The value of the truck was $18,500. In addition, tools valued at $200, extra tires and
hubcaps for the truck valued at five hundred and fifty dollars and a tarp worth $50 were in the
truck. Mr. Unlucky has a collision deductible of $500 and a comprehensive deductible of $250.
The company will pay what amount?
A. $18,000
B. $18,800
C. $18,250
D. $19,050 - CORRECT ANSWER - B. $18,800
In settling a claim on a dwelling fire policy with a $10,000 loss, the following companies are
involved, Company A - 50%; Company B - 45% and Company C - 5%. What will Company C
pay?
A. $10,000
B. $1,000
C. $4,500
D. $500 - CORRECT ANSWER - D. $500
The ______ states that insurers issuing fire insurance policies on real property in West Virginia
are liable for the whole amount of insurance on the property in case of total loss by fire or as
otherwise stated in the policy.
A. comparative negligence principle
B. valued policy law
C. principle of insurable interest
D. assigned risk principle - CORRECT ANSWER - B. valued policy law
, The primary purpose of the West Virginia Automobile Insurance Plan is to:
A. pay auto liability claims for insolvent insurers.
B. here consumer complaints against insurance companies.
C. protect policyholders against insurer impairments.
D. provide auto liability insurance for individuals unable to obtain it in the normal marketplace. -
CORRECT ANSWER - D. provide auto liability insurance for individuals unable to obtain it
in the normal marketplace.
Coverage provided under West Virginia FAIR Plan may not exceed ________ for any one
habitational risk or commercial risk.
A. $150,000/ $300,000
B. $200,000/ $500,000
C. $100,000/ $400,000
D. $100,000/ $250,000 - CORRECT ANSWER - B. $200,000/ $500,000
A basic Commercial General Liability policy excludes coverage for which of the following?
I. A newly acquired business
II. Property in the insured's care, custody and control
III. An elevator maintenance agreement
A. I only
B. II only
C. III only
D. I, II, and III - CORRECT ANSWER - B. II only
Jim Johnson has an automobile policy with a combined single limit of $50,000. He has an at-
fault accident and incurs the following expenses.
$30,000 bodily injury judgment
$30,000 property damage judgment
$5,000 damage to traffic light
