West Virginia Adjuster Exam Questions and
Correct Answers
Question 1
Which of the following is NOT a valid reason for an insurer to leave mine subsidence
coverage off of a policy?
Correct Answer
The insured's current policy covers less than 80% of the value of the property.
Question 2
West Virginia's approach to Workers' Compensation insurance can be described as
_________ and __________.
Correct Answer
compulsory; competitive
Question 3
How long does an adjuster have to report to the commissioner an administrative
action taken against him in another state or jurisdiction?
Correct Answer
30 days An adjuster must report any administrative action taken against the adjuster
or any criminal prosecution in another state or jurisdiction to the commissioner
within 30 days of the action.
Question 4
Carmen was making $450 per week working in a mitten factory until she lost her
thumb in a work-related accident. Her Workers' Compensation benefits will pay _____
per week for _____ weeks.
Correct Answer
$300; 80
Page 1 of 123
,Question 5
Which of the following is NOT an unfair practice in West Virginia?
Correct Answer
Providing a policyholder's claim history information to the fire marshal after a fire
loss to the insured property
Question 1: In West Virginia, what is the maximum number of working
days an insurer has to acknowledge a claim after receiving notice?
A. 5 working days
B. 10 working days
C. 15 working days
D. 30 working days
CORRECT ANSWER: C. 15 working days
Rationale: Under the West Virginia Unfair Trade Practices Act, an insurer is
required to acknowledge a claim within 15 working days of receiving notice
of the claim.
Question 2: After receiving a properly executed proof of loss, how many
days does a West Virginia insurer have to accept or deny a claim?
A. 15 days
B. 30 days
C. 45 days
D. 60 days
CORRECT ANSWER: B. 30 days
Rationale: West Virginia regulations mandate that once a properly executed
proof of loss is received, the insurer must accept or deny the claim within 30
days.
Question 3: What are the minimum liability insurance limits required for
drivers in West Virginia?
A. $20,000/$40,000/$10,000
B. $25,000/$50,000/$25,000
C. $30,000/$60,000/$25,000
D. $50,000/$100,000/$50,000
CORRECT ANSWER: B. $25,000/$50,000/$25,000
Page 2 of 123
,Rationale: West Virginia law requires all drivers to carry minimum liability
coverage of $25,000 for bodily injury per person, $50,000 for bodily injury
per accident, and $25,000 for property damage.
Question 4: Who is required to hold an independent adjuster license in
West Virginia?
A. A salaried employee of an insurance company adjusting its own claims
B. An individual who adjusts claims for a fee on behalf of an insurer
C. A public adjuster representing only the insured
D. An attorney representing a client in a lawsuit
CORRECT ANSWER: B. An individual who adjusts claims for a fee on behalf
of an insurer
Rationale: Independent adjusters, who handle claims for a fee on behalf of
insurance companies, must be licensed in West Virginia. Staff adjusters
(salaried employees) are generally exempt.
Question 5: Which of the following is considered an unfair claim
settlement practice in West Virginia?
A. Requesting a sworn proof of loss within 60 days
B. Failing to affirm or deny coverage within a reasonable time after proof of
loss
C. Offering to settle a claim for less than the amount a reasonable person
would believe they are entitled to
D. Both B and C
CORRECT ANSWER: D. Both B and C
Rationale: Both failing to affirm or deny coverage within a reasonable time
and lowballing settlements are explicitly defined as unfair claim settlement
practices under state law.
Question 6: In a standard HO-3 policy, Coverage A provides coverage for
what?
A. Personal property
B. Loss of use
C. Dwelling
D. Other structures
CORRECT ANSWER: C. Dwelling
Page 3 of 123
, Rationale: Coverage A in a Homeowners policy specifically covers the
dwelling structure itself against covered perils.
Question 7: Under an HO-3 policy, Coverage B (Other Structures) is
typically set at what percentage of Coverage A?
A. 5%
B. 10%
C. 20%
D. 50%
CORRECT ANSWER: B. 10%
Rationale: Coverage B is automatically set at 10% of the Coverage A
(Dwelling) limit unless otherwise endorsed.
Question 8: Which peril is explicitly excluded from a standard HO-3 policy?
A. Fire
B. Windstorm
C. Flood
D. Lightning
CORRECT ANSWER: C. Flood
Rationale: Flood damage is a standard exclusion in the HO-3 policy and
requires a separate policy, typically through the National Flood Insurance
Program (NFIP).
Question 9: What does Coverage D in a Homeowners policy cover?
A. Medical payments to others
B. Loss of use / Additional living expenses
C. Personal liability
D. Personal property
CORRECT ANSWER: B. Loss of use / Additional living expenses
Rationale: Coverage D provides coverage for Additional Living Expenses
(ALE) and fair rental value if the dwelling becomes uninhabitable due to a
covered loss.
Question 10: In West Virginia, how long does an insurer have to pay a
claim after reaching a settlement agreement?
Page 4 of 123
Correct Answers
Question 1
Which of the following is NOT a valid reason for an insurer to leave mine subsidence
coverage off of a policy?
Correct Answer
The insured's current policy covers less than 80% of the value of the property.
Question 2
West Virginia's approach to Workers' Compensation insurance can be described as
_________ and __________.
Correct Answer
compulsory; competitive
Question 3
How long does an adjuster have to report to the commissioner an administrative
action taken against him in another state or jurisdiction?
Correct Answer
30 days An adjuster must report any administrative action taken against the adjuster
or any criminal prosecution in another state or jurisdiction to the commissioner
within 30 days of the action.
Question 4
Carmen was making $450 per week working in a mitten factory until she lost her
thumb in a work-related accident. Her Workers' Compensation benefits will pay _____
per week for _____ weeks.
Correct Answer
$300; 80
Page 1 of 123
,Question 5
Which of the following is NOT an unfair practice in West Virginia?
Correct Answer
Providing a policyholder's claim history information to the fire marshal after a fire
loss to the insured property
Question 1: In West Virginia, what is the maximum number of working
days an insurer has to acknowledge a claim after receiving notice?
A. 5 working days
B. 10 working days
C. 15 working days
D. 30 working days
CORRECT ANSWER: C. 15 working days
Rationale: Under the West Virginia Unfair Trade Practices Act, an insurer is
required to acknowledge a claim within 15 working days of receiving notice
of the claim.
Question 2: After receiving a properly executed proof of loss, how many
days does a West Virginia insurer have to accept or deny a claim?
A. 15 days
B. 30 days
C. 45 days
D. 60 days
CORRECT ANSWER: B. 30 days
Rationale: West Virginia regulations mandate that once a properly executed
proof of loss is received, the insurer must accept or deny the claim within 30
days.
Question 3: What are the minimum liability insurance limits required for
drivers in West Virginia?
A. $20,000/$40,000/$10,000
B. $25,000/$50,000/$25,000
C. $30,000/$60,000/$25,000
D. $50,000/$100,000/$50,000
CORRECT ANSWER: B. $25,000/$50,000/$25,000
Page 2 of 123
,Rationale: West Virginia law requires all drivers to carry minimum liability
coverage of $25,000 for bodily injury per person, $50,000 for bodily injury
per accident, and $25,000 for property damage.
Question 4: Who is required to hold an independent adjuster license in
West Virginia?
A. A salaried employee of an insurance company adjusting its own claims
B. An individual who adjusts claims for a fee on behalf of an insurer
C. A public adjuster representing only the insured
D. An attorney representing a client in a lawsuit
CORRECT ANSWER: B. An individual who adjusts claims for a fee on behalf
of an insurer
Rationale: Independent adjusters, who handle claims for a fee on behalf of
insurance companies, must be licensed in West Virginia. Staff adjusters
(salaried employees) are generally exempt.
Question 5: Which of the following is considered an unfair claim
settlement practice in West Virginia?
A. Requesting a sworn proof of loss within 60 days
B. Failing to affirm or deny coverage within a reasonable time after proof of
loss
C. Offering to settle a claim for less than the amount a reasonable person
would believe they are entitled to
D. Both B and C
CORRECT ANSWER: D. Both B and C
Rationale: Both failing to affirm or deny coverage within a reasonable time
and lowballing settlements are explicitly defined as unfair claim settlement
practices under state law.
Question 6: In a standard HO-3 policy, Coverage A provides coverage for
what?
A. Personal property
B. Loss of use
C. Dwelling
D. Other structures
CORRECT ANSWER: C. Dwelling
Page 3 of 123
, Rationale: Coverage A in a Homeowners policy specifically covers the
dwelling structure itself against covered perils.
Question 7: Under an HO-3 policy, Coverage B (Other Structures) is
typically set at what percentage of Coverage A?
A. 5%
B. 10%
C. 20%
D. 50%
CORRECT ANSWER: B. 10%
Rationale: Coverage B is automatically set at 10% of the Coverage A
(Dwelling) limit unless otherwise endorsed.
Question 8: Which peril is explicitly excluded from a standard HO-3 policy?
A. Fire
B. Windstorm
C. Flood
D. Lightning
CORRECT ANSWER: C. Flood
Rationale: Flood damage is a standard exclusion in the HO-3 policy and
requires a separate policy, typically through the National Flood Insurance
Program (NFIP).
Question 9: What does Coverage D in a Homeowners policy cover?
A. Medical payments to others
B. Loss of use / Additional living expenses
C. Personal liability
D. Personal property
CORRECT ANSWER: B. Loss of use / Additional living expenses
Rationale: Coverage D provides coverage for Additional Living Expenses
(ALE) and fair rental value if the dwelling becomes uninhabitable due to a
covered loss.
Question 10: In West Virginia, how long does an insurer have to pay a
claim after reaching a settlement agreement?
Page 4 of 123
