West Virginia Adjuster Exam Practice Test | Property & Casualty License Review Bank

West Virginia Adjuster Exam

,West Virginia Adjuster Exam



West Virginia Adjuster Exam

Which of the following best describes the insurance concept of "exposure"?
- CORRECT ANSWER The possibility of damage or loss

QUESTION : Strict liability: - CORRECT ANSWER holds a person
liable for his actions regardless of how much care he demonstrates.

QUESTION : John has purchased a homeowners insurance policy with a
percentage deductible based on the total limit of insurance for his home.
John insures his home for $600,000, and the policy includes a 3%
deductible. A huge thunderstorm passes through one night and blows the
roof off his house. The insurance company estimates that covered damage
totals $80,000. How much indemnification should John expect for the
losses to his roof? - CORRECT ANSWER $62,000

QUESTION : Which of the following statements best describes the Law of
Large Numbers? - CORRECT ANSWER The larger the number of
units insured, the more accurately the insurer can predict the number of
claims from that group.

QUESTION : A passenger on a commercial airline flight was injured when
the plane crashed due to a mechanical problem. In court, the injured
passenger's lawyer could invoke the doctrine of: - CORRECT ANSWER
Res Ipsa Loquitur.

QUESTION : During a violent summer storm in Tulsa, a bolt of lightning
hits Mr. Jones' house, damaging a large portion of the roof. In this case, the
insurer would call the lightning bolt a: - CORRECT ANSWER a peril.
Special damages are a type of compensatory damages. They award
money for tangible, economic losses. General damages award money for
intangible losses.

,West Virginia Adjuster Exam

QUESTION : Jerrod is awarded $4000 in a court case after Ollie
accidentally starts a fire and burns down his detached garage. This award
is an example of: - CORRECT ANSWER special damages.

QUESTION : Which of the following activities is considered a speculative
risk? - CORRECT ANSWER Buying a lottery ticket

QUESTION : To meet the 80% level of co-insurance required by his
lender, Tom discovers he must insure his home for at least $320,000. What
is the value of Tom's home? - CORRECT ANSWER $400,000

QUESTION : Roxanne runs a red light and totals Ben's car in a t-bone
collision. Roxanne's auto policy includes liability coverage with limits of
50/100/25 and Collision coverage with a deductible of $500. Ben's car is
worth $1,800 at the time of the accident, and he files a claim against
Roxanne's liability insurance. Bearing in mind that liability coverage doesn't
have a deductible, how much will Roxanne have to pay out-of-pocket for
the damages she caused? - CORRECT ANSWER $0

QUESTION : What is the formula for actual cash value? - CORRECT
ANSWER Replacement cost minus total depreciation

QUESTION : Which of the following is NOT a qualification of an insurable
risk? - CORRECT ANSWER An insurable risk must have guaranteed
protection from damage.

QUESTION : Which of the following incidents would a liability insurance
policy cover? - CORRECT ANSWER A man slips inside a grocery
store and injures himself.

QUESTION : ABC Masonry, Inc. has an aggregate liability policy with
limits of 100,000/300,000. One day, an accident at a construction site leads
to $150,000 in damage to public property. Assuming the cause of loss is
covered under ABC Masonry's liability policy, how will this claim be paid? -
CORRECT ANSWER The insurer pays $100,000; the aggregate limit
is now $200,000; and ABC Masonry must pay $50,000.

, West Virginia Adjuster Exam

QUESTION : A lightning strike causes one of the storage buildings on
John's farm to burn to the ground, aided by the fuel tanks he kept in the
building. John knows he wasn't supposed to store any fuel in the building,
so he keeps that piece of information to himself when he files a claim.
John's insurer may deny his claim based on his: - CORRECT ANSWER
concealment.

QUESTION : A witness who has had a recorded interview: - CORRECT
ANSWER must have a chance to correct anything that is incorrect.

QUESTION : An insurance claim is essentially: - CORRECT ANSWER
A formal request to settle the damage

QUESTION : Melanie's $300,000 home suffers $90,000 in damage from a
fire. The adjuster finds the home's value since 2008 has depreciated 25%,
making the ACV loss $67,500. Although Melanie's policy covers repairs at
their replacement cost, she receives $67,500 at the time of loss. Repairs to
her home end up totaling $79,500. How much, if any, further
indemnification may Melanie receive from the loss? - CORRECT
ANSWER $12,000

QUESTION : Which of the following does not apply to the adjuster's
responsibility of reporting to the principal? - CORRECT ANSWER The
reports should include advice on how to get out of paying covered claims.

QUESTION : A/An ____________ plays an advisory role in the
negotiation process, working from a neutral position to assist the opposing
parties to come to an equitable resolution. - CORRECT ANSWER
mediator

QUESTION : Which of these is NOT an essential detail for an adjuster to
include in a loss report? - CORRECT ANSWER The policy premium.
That's right! The policy premium (as long as it has been paid according to
the contract) has no bearing on how the policy will respond to a claim, so it
is not an important detail for an adjuster to include in a loss report.