West Virginia Adjusters Exam UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Which of the following is NOT an example of an "indirect loss"? - CORRECT ANSWER -
During a fire, the fire department hoses down a house to extinguish the flames. The water
damage that results is an indirect loss.
When the settlement difference between an insurer and a claimant is minor: - CORRECT
ANSWER - it should be settled in favor of the claimant.
Which of the following activities is a speculative risk? - CORRECT ANSWER - Betting on a
horse race
Which of the following provisions is NOT included in the Legal Action Against the Insurer
clause in an insurance policy? - CORRECT ANSWER - The insurer will pay to defend the
insured in a lawsuit, up to the policy limit.
Sara's vehicle was stolen and her insurer paid her theft claim for the total value of the car. A
week later, the police found Sara's car and returned it to her. Which of the following statements
is true? - CORRECT ANSWER - The Recovered Property provision states that Sara must
notify the insurer and either return the settlement payment or surrender the vehicle to the insurer.
During a storm, lightning strikes a tree in Norman's back yard, causing it to fall on his house and
damage his roof. In this case, Norman's fallen tree is considered: - CORRECT ANSWER - a
direct loss.
When an insurer takes no action upon realizing material changes in a contract, this is called: -
CORRECT ANSWER - an implied waiver.
All of the following statements are true of liability insurance, EXCEPT: - CORRECT
ANSWER - Liability insurance provides indemnification for the insured.
, Robby carpools to school with his friends, and he enjoys racing the other cars on the road
whenever he can. His Dad lectures him about the dangers of speeding, but Robby thinks his Dad
is overreacting. He's been driving for two whole years, so he knows what he's doing. And
besides, they have good insurance, so it wouldn't be that big of a deal even if Robby did damage
his car. In insurance terms, Robby's behavior is: - CORRECT ANSWER - a morale hazard.
Jack's home is valued at $950,000. How much insurance does he need to carry on his home in
order to be fully insured under a typical insurance policy? - CORRECT ANSWER - $760,000
Bryce's business has a commercial liability policy with a per occurrence limit and an aggregate
limit. The limits in the policy are $100,000/$200,000. What does this mean? - CORRECT
ANSWER - Bryce's policy will pay up to $100,000 per occurrence, and up to $200,000 during
the whole policy term.
After a fire destroys Gale's kitchen, she files a claim with her insurer and hires a contractor. The
contractor estimates it will take $42,250 to repair the damage, but the adjuster estimates it will
only take $38,340. Which of the following is the best option for the adjuster's response to Gale's
claim? - CORRECT ANSWER - Negotiate a settlement amount with Gale.
Driving home after a 14-hour shift, Sam falls asleep at the wheel and plows into Sandra's home,
causing extensive damage to the East wall and roof. During repairs, the contractor discovers that
the wooden foundation for the porch on the West side of Sandra's home is completely rotted and
must be replaced. The adjuster determines that repairs to the porch will not be covered by the
claim. Why is this? - CORRECT ANSWER - The proximate cause, Sam's car crashing into
the house, was not responsible for the foundation's rot.
Rebecca has Collision coverage in her Personal Auto Policy. After a collision, the adjuster
determines that Rebecca's car is totaled. How much is Rebecca likely to receive from her insurer
(ignoring the deductible)? - CORRECT ANSWER - The actual cash value of her vehicle
Which of the following is TRUE of the Stamp and Coin Collection Personal Articles Floater of
Inland Marine Insurance? - CORRECT ANSWER - Under blanket coverage, the policy will
only pay up to $1,000 for any unscheduled coin collection.
ACTUAL Exam Questions and CORRECT
Answers
Which of the following is NOT an example of an "indirect loss"? - CORRECT ANSWER -
During a fire, the fire department hoses down a house to extinguish the flames. The water
damage that results is an indirect loss.
When the settlement difference between an insurer and a claimant is minor: - CORRECT
ANSWER - it should be settled in favor of the claimant.
Which of the following activities is a speculative risk? - CORRECT ANSWER - Betting on a
horse race
Which of the following provisions is NOT included in the Legal Action Against the Insurer
clause in an insurance policy? - CORRECT ANSWER - The insurer will pay to defend the
insured in a lawsuit, up to the policy limit.
Sara's vehicle was stolen and her insurer paid her theft claim for the total value of the car. A
week later, the police found Sara's car and returned it to her. Which of the following statements
is true? - CORRECT ANSWER - The Recovered Property provision states that Sara must
notify the insurer and either return the settlement payment or surrender the vehicle to the insurer.
During a storm, lightning strikes a tree in Norman's back yard, causing it to fall on his house and
damage his roof. In this case, Norman's fallen tree is considered: - CORRECT ANSWER - a
direct loss.
When an insurer takes no action upon realizing material changes in a contract, this is called: -
CORRECT ANSWER - an implied waiver.
All of the following statements are true of liability insurance, EXCEPT: - CORRECT
ANSWER - Liability insurance provides indemnification for the insured.
, Robby carpools to school with his friends, and he enjoys racing the other cars on the road
whenever he can. His Dad lectures him about the dangers of speeding, but Robby thinks his Dad
is overreacting. He's been driving for two whole years, so he knows what he's doing. And
besides, they have good insurance, so it wouldn't be that big of a deal even if Robby did damage
his car. In insurance terms, Robby's behavior is: - CORRECT ANSWER - a morale hazard.
Jack's home is valued at $950,000. How much insurance does he need to carry on his home in
order to be fully insured under a typical insurance policy? - CORRECT ANSWER - $760,000
Bryce's business has a commercial liability policy with a per occurrence limit and an aggregate
limit. The limits in the policy are $100,000/$200,000. What does this mean? - CORRECT
ANSWER - Bryce's policy will pay up to $100,000 per occurrence, and up to $200,000 during
the whole policy term.
After a fire destroys Gale's kitchen, she files a claim with her insurer and hires a contractor. The
contractor estimates it will take $42,250 to repair the damage, but the adjuster estimates it will
only take $38,340. Which of the following is the best option for the adjuster's response to Gale's
claim? - CORRECT ANSWER - Negotiate a settlement amount with Gale.
Driving home after a 14-hour shift, Sam falls asleep at the wheel and plows into Sandra's home,
causing extensive damage to the East wall and roof. During repairs, the contractor discovers that
the wooden foundation for the porch on the West side of Sandra's home is completely rotted and
must be replaced. The adjuster determines that repairs to the porch will not be covered by the
claim. Why is this? - CORRECT ANSWER - The proximate cause, Sam's car crashing into
the house, was not responsible for the foundation's rot.
Rebecca has Collision coverage in her Personal Auto Policy. After a collision, the adjuster
determines that Rebecca's car is totaled. How much is Rebecca likely to receive from her insurer
(ignoring the deductible)? - CORRECT ANSWER - The actual cash value of her vehicle
Which of the following is TRUE of the Stamp and Coin Collection Personal Articles Floater of
Inland Marine Insurance? - CORRECT ANSWER - Under blanket coverage, the policy will
only pay up to $1,000 for any unscheduled coin collection.
