wv insurance; property & casualty
UPDATED ACTUAL Exam Questions and
CORRECT Answers
a domestic user will be examined by the commissioner at least once every ___ - CORRECT
ANSWER -5 years.
an insurance company owned by its policyholder is known as ___ - CORRECT
ANSWER -mutual insurance company.
an insurance company headquartered in ohio, conducting business with west virginia is know as
___ - CORRECT ANSWER -foreign insurer.
agent wilson strikes a deal with his client: if the client agree to purchase homeowners insurance
from agent wilson, wilson will waive the clients first premium payment. wilson is guilty of ___ -
CORRECT ANSWER -rebating.
insurance policies and forms must be filed with and approved by the commissioner within how
many days? - CORRECT ANSWER -60 days.
the ___ states that insurers issuing fire insurance policies on real property in west virginia are
liable for the limit of insurance on the property in case of total loss by fire or as otherwise stated
in the policy. - CORRECT ANSWER -valued policy law.
an actual lawful, and substantial economic interest in the safety or preservation of property from
loss, destruction, or pecuniary damage or impairment is known as the ___ - CORRECT
ANSWER -principal of insurable interest.
a binder may not cover a period in excess of ___ - CORRECT ANSWER -90 days.
,an insured may purchase optional limits of liability for uninsured motorist coverage in the
amounts of ___ - CORRECT ANSWER -$100,000 | $300,000 | $50,000
an insurer must provide ___ days notice of its intention not to renew an automobile policy. -
CORRECT ANSWER -45 days.
the primary purpose of west virginia automobile insurance plan is to ___ - CORRECT
ANSWER -provide auto liability insurance for individuals unable to obtain it in the normal
marketplaces.
coverage provided under the west virgina FAIR plan may not exceed for any one habitational
risk or commercial risk. - CORRECT ANSWER -$200,000 | $500,000.
if a person is guilty of violating the laws against unfair trade practice and the commissioner
determines that the person knew or reasonably should have known he|she was in violation of the
law, the commissioner may order the person to pay a maximum penalty of ___ for violations in a
6 month period. - CORRECT ANSWER -$100,000.
an alien insurer is one that is found under the laws of ___ - CORRECT ANSWER -any
country other than the united states.
which best defines a hazard? - CORRECT ANSWER -a condition that increases the
chance of a loss.
a family takes their 50horsepower outboard motorboat to the lake on a trailer towed behind their
personal auto. the pleasure boat is appropriately covered for physical damages under which
policy? - CORRECT ANSWER -boatowners insurance.
a companies promise "to pay for damage caused by or resulting from any covered loss" would be
found in what section of a commercial property policy? - CORRECT ANSWER -insuring
agreement.
, example of a business eligible for a businessowner policy? - CORRECT ANSWER -
branch bank.
sue insures a home for $100,000 under a dwelling property board form (DP-2). if a flood occurs
and causes $1000 in damage to the homes contents, how much will her insurance company pay?
- CORRECT ANSWER -$0.
the uncertainty of future outcome. - CORRECT ANSWER -risk.
if a insured's company is damaged by fire because of an adjoining property, and is also covered
under a business insurance company, then the insurance will cover the loss of earnings for a
maximum of ___ - CORRECT ANSWER -4 weeks.
a fire in an insured's restaurant burns the kitchen walls and causes smoke damage to the entire
interior. water used to extinguish the fire causes extensive damage to floors and furnishings. the
water damage is BEST described as ___ - CORRECT ANSWER -a direct loss.
after paying a claim, an insurance company may have the right to pursue legal action against the
negligent party. this right is called ___ - CORRECT ANSWER -subrogation.
which policy is intended to broaden the coverage? - CORRECT ANSWER -umbrella
liability.
a products liability policy would provide coverage for damages that arise from ___ - CORRECT
ANSWER -a bicycle rider is injured when a wheel malfunctions.
which term under the CGL policy includes continuous or repeated exposure to conditions that
may result in bodily injury or damage, neither expectedly inteded by the insured? - CORRECT
ANSWER -an occurrence.
the normal waiting period for coverage under the national flood insurance is ___ - CORRECT
ANSWER -30 days.
UPDATED ACTUAL Exam Questions and
CORRECT Answers
a domestic user will be examined by the commissioner at least once every ___ - CORRECT
ANSWER -5 years.
an insurance company owned by its policyholder is known as ___ - CORRECT
ANSWER -mutual insurance company.
an insurance company headquartered in ohio, conducting business with west virginia is know as
___ - CORRECT ANSWER -foreign insurer.
agent wilson strikes a deal with his client: if the client agree to purchase homeowners insurance
from agent wilson, wilson will waive the clients first premium payment. wilson is guilty of ___ -
CORRECT ANSWER -rebating.
insurance policies and forms must be filed with and approved by the commissioner within how
many days? - CORRECT ANSWER -60 days.
the ___ states that insurers issuing fire insurance policies on real property in west virginia are
liable for the limit of insurance on the property in case of total loss by fire or as otherwise stated
in the policy. - CORRECT ANSWER -valued policy law.
an actual lawful, and substantial economic interest in the safety or preservation of property from
loss, destruction, or pecuniary damage or impairment is known as the ___ - CORRECT
ANSWER -principal of insurable interest.
a binder may not cover a period in excess of ___ - CORRECT ANSWER -90 days.
,an insured may purchase optional limits of liability for uninsured motorist coverage in the
amounts of ___ - CORRECT ANSWER -$100,000 | $300,000 | $50,000
an insurer must provide ___ days notice of its intention not to renew an automobile policy. -
CORRECT ANSWER -45 days.
the primary purpose of west virginia automobile insurance plan is to ___ - CORRECT
ANSWER -provide auto liability insurance for individuals unable to obtain it in the normal
marketplaces.
coverage provided under the west virgina FAIR plan may not exceed for any one habitational
risk or commercial risk. - CORRECT ANSWER -$200,000 | $500,000.
if a person is guilty of violating the laws against unfair trade practice and the commissioner
determines that the person knew or reasonably should have known he|she was in violation of the
law, the commissioner may order the person to pay a maximum penalty of ___ for violations in a
6 month period. - CORRECT ANSWER -$100,000.
an alien insurer is one that is found under the laws of ___ - CORRECT ANSWER -any
country other than the united states.
which best defines a hazard? - CORRECT ANSWER -a condition that increases the
chance of a loss.
a family takes their 50horsepower outboard motorboat to the lake on a trailer towed behind their
personal auto. the pleasure boat is appropriately covered for physical damages under which
policy? - CORRECT ANSWER -boatowners insurance.
a companies promise "to pay for damage caused by or resulting from any covered loss" would be
found in what section of a commercial property policy? - CORRECT ANSWER -insuring
agreement.
, example of a business eligible for a businessowner policy? - CORRECT ANSWER -
branch bank.
sue insures a home for $100,000 under a dwelling property board form (DP-2). if a flood occurs
and causes $1000 in damage to the homes contents, how much will her insurance company pay?
- CORRECT ANSWER -$0.
the uncertainty of future outcome. - CORRECT ANSWER -risk.
if a insured's company is damaged by fire because of an adjoining property, and is also covered
under a business insurance company, then the insurance will cover the loss of earnings for a
maximum of ___ - CORRECT ANSWER -4 weeks.
a fire in an insured's restaurant burns the kitchen walls and causes smoke damage to the entire
interior. water used to extinguish the fire causes extensive damage to floors and furnishings. the
water damage is BEST described as ___ - CORRECT ANSWER -a direct loss.
after paying a claim, an insurance company may have the right to pursue legal action against the
negligent party. this right is called ___ - CORRECT ANSWER -subrogation.
which policy is intended to broaden the coverage? - CORRECT ANSWER -umbrella
liability.
a products liability policy would provide coverage for damages that arise from ___ - CORRECT
ANSWER -a bicycle rider is injured when a wheel malfunctions.
which term under the CGL policy includes continuous or repeated exposure to conditions that
may result in bodily injury or damage, neither expectedly inteded by the insured? - CORRECT
ANSWER -an occurrence.
the normal waiting period for coverage under the national flood insurance is ___ - CORRECT
ANSWER -30 days.
