West Virginia Adjuster Exam 8 2025
Questions and Answers
Stephanie lets Chad borrow her truck so he can pick up materials for his home
remodeling project. While backing out of the parking space at the hardware store,
Chad backs into Mary's vehicle and damages her driver's side door. Which
insurance policy would cover the damages caused to Mary's car? - ANSWER-
Stephanie's auto liability insurance
Tom purchases a new car from his local car dealer. He also decides to get
insurance coverage that will pay to repair the car if he were to get into an accident.
This is because Tom wants to protect: - ANSWER-his own financial interest in the
car.
How is concealment distinct from misrepresentation? - ANSWER-Concealment is
deliberately withholding information, while misrepresentation is stating a
falsehood.
Oswald can't afford to take his car to a shop, even though it is falling into
disrepair. The windshield has been cracked for some time, and two of the lights are
broken, not to mention the oil leak he noticed last week. While he is driving on icy
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, roads one day, he loses control and slides into a guardrail, damaging the front
bumper. He is upset by the accident, but then sees an opportunity. He files a claim
for the accident, stating that the windshield, lights, and oil tank were damaged by
the collision. Oswald's actions constitute: - ANSWER-soft fraud.
In an insurance contract, consideration from both parties is comprised of: -
ANSWER-premiums from the insured and the promise to pay from the insurer.
Darren's SUV cost him $28,500 when he bought it new five years ago, but it would
cost $29,600 to replace it today. The vehicle has an annual depreciation of $1,200.
Darren loses control while driving too fast around a bend in the road and flips his
vehicle, totaling it. Assuming Darren's auto insurance policy pays ACV, how much
can he expect to receive in indemnification for this claim? - ANSWER-$23,600
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? - ANSWER-
$760,000 Jack must carry at least $760,000 (80% of the value of his home) in
insurance in order to be fully insured.
Skip's Convenience Store suffers severe fire damage after a gas pump explodes.
The adjuster asks if the emergency shutoff system, which is required by the policy,
was properly maintained and functional at the time of the accident. Skip says "yes,"
even though the system was actually broken at the time. Which of the following
statements is true? - ANSWER-Skip is guilty of misrepresentation and violating a
warranty, so the insurer could deny the claim.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
Questions and Answers
Stephanie lets Chad borrow her truck so he can pick up materials for his home
remodeling project. While backing out of the parking space at the hardware store,
Chad backs into Mary's vehicle and damages her driver's side door. Which
insurance policy would cover the damages caused to Mary's car? - ANSWER-
Stephanie's auto liability insurance
Tom purchases a new car from his local car dealer. He also decides to get
insurance coverage that will pay to repair the car if he were to get into an accident.
This is because Tom wants to protect: - ANSWER-his own financial interest in the
car.
How is concealment distinct from misrepresentation? - ANSWER-Concealment is
deliberately withholding information, while misrepresentation is stating a
falsehood.
Oswald can't afford to take his car to a shop, even though it is falling into
disrepair. The windshield has been cracked for some time, and two of the lights are
broken, not to mention the oil leak he noticed last week. While he is driving on icy
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, roads one day, he loses control and slides into a guardrail, damaging the front
bumper. He is upset by the accident, but then sees an opportunity. He files a claim
for the accident, stating that the windshield, lights, and oil tank were damaged by
the collision. Oswald's actions constitute: - ANSWER-soft fraud.
In an insurance contract, consideration from both parties is comprised of: -
ANSWER-premiums from the insured and the promise to pay from the insurer.
Darren's SUV cost him $28,500 when he bought it new five years ago, but it would
cost $29,600 to replace it today. The vehicle has an annual depreciation of $1,200.
Darren loses control while driving too fast around a bend in the road and flips his
vehicle, totaling it. Assuming Darren's auto insurance policy pays ACV, how much
can he expect to receive in indemnification for this claim? - ANSWER-$23,600
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? - ANSWER-
$760,000 Jack must carry at least $760,000 (80% of the value of his home) in
insurance in order to be fully insured.
Skip's Convenience Store suffers severe fire damage after a gas pump explodes.
The adjuster asks if the emergency shutoff system, which is required by the policy,
was properly maintained and functional at the time of the accident. Skip says "yes,"
even though the system was actually broken at the time. Which of the following
statements is true? - ANSWER-Skip is guilty of misrepresentation and violating a
warranty, so the insurer could deny the claim.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
