WV Licensing Test Study Questions
2025 with Correct Answers
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
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,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
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,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 policy or endorsement forms are broadened and no additional
premium is required, then all existing similar policies or endorsements will be
construed to include the broadened coverage?
A. Liberalization
B. Assignment
C. Binder
D. Coinsurance - --Answer --A. Liberalization
8. Which of the following provides written evidence of coverage pending the
issuance of a policy?
A. Cause of Loss Form
B. Assignment
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, C. Binder
D. Blanket coverage - --Answer --C. Binder
9. Which of the following is an example of a Loss Evaluation Method?
A. Liberalization
B. Cause of Loss form
C. Stated amount
D. Conditions - --Answer --C. Stated amount
10. The cost of replacement minus depreciation is the definition of:
A. Valued Policy
B. Market Value
C. Replacement Cost
D. Actual Cash Value - --Answer --D. Actual Cash Value
11. Which of the following is a method of requiring the insured to insure at least
80% of the value of the covered commercial property?
A. Cause of Loss Form
B. Standard Mortgage clause
C. Loss Payable clause
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2025 with Correct Answers
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
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,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
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,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 policy or endorsement forms are broadened and no additional
premium is required, then all existing similar policies or endorsements will be
construed to include the broadened coverage?
A. Liberalization
B. Assignment
C. Binder
D. Coinsurance - --Answer --A. Liberalization
8. Which of the following provides written evidence of coverage pending the
issuance of a policy?
A. Cause of Loss Form
B. Assignment
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, C. Binder
D. Blanket coverage - --Answer --C. Binder
9. Which of the following is an example of a Loss Evaluation Method?
A. Liberalization
B. Cause of Loss form
C. Stated amount
D. Conditions - --Answer --C. Stated amount
10. The cost of replacement minus depreciation is the definition of:
A. Valued Policy
B. Market Value
C. Replacement Cost
D. Actual Cash Value - --Answer --D. Actual Cash Value
11. Which of the following is a method of requiring the insured to insure at least
80% of the value of the covered commercial property?
A. Cause of Loss Form
B. Standard Mortgage clause
C. Loss Payable clause
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