West Virginia Property and Casualty Law Exam New
2025 Latest Version Best Studying Material with All
Questions and Answers
Which one of the following statements about the standard mortgage clause is CORRECT? -------
---- Correct Answer ------------ The mortgagee may have to pay the premium if the insured fails
to do so.
What is the three basic coverages for medical expense insurance? --------- Correct Answer --------
-- Hospital, surgical, medical
Which of the following would basic medical expense coverage NOT cover? --------- Correct
Answer ---------- Surgeons services
Which of the following terms BEST describes insurance coverages on the lives of a licensed
agent and family members or covering the insurable interest of an agent, family members,
relatives, or the agents employer or employees? --------- Correct Answer ----------- Controlled
business
The bodily injury financial responsibility in West Virginia is? --------- Correct Answer -----------
20/40/10
An insurance company that is incorporated with its capital divided into shares that are owned by
shareholders is? --------- Correct Answer ----------- A stock company
Which of the following is NOT an example of an insurable interest? ----------- Correct Answer --
---------- A woman's interest in property that she hopes her uncle will leave to her in his will
A person becomes seriously ill after eating unrefrigerated raw oysters from a street vendor.
When the vendor is sued for negligence, what defense might best be used? ----------- Correct
Answer ------------ Assumption of risk
Which of the following unendorsed policies provides open perils coverage on Coverage C --
Personal Property ----------- Correct Answer ------------ HO-5
For personal property coverage, who is not insured by a homeowners policy? ----------- Correct
Answer ------------ A nonresident uncle
What is the actual cause of a loss? ----------- Correct Answer ------------ Peril
Which one of the following forms would be most appropriate to protect against a suspension of
business operations for an insured that cannot afford to have its operations interrupted? -----------
Correct Answer ------------ Extra business income insurance
,Which one of the following dwellings would a HO-3 -- Homeowners form cover? -----------
Correct Answer ------------ Single-family home
Fire would be an example of a? ----------- Correct Answer ------------ peril
Which one of the following is NOT a supplementary payment provided in the commercial
general liability policy? ----------- Correct Answer ------------ Medical payments
Part two, employers liability insurance, of a workers' compensation insurance policy includes all
of the following limits of liability EXCEPT? ----------- Correct Answer ------------ For all
compensation paid under benefits required by workers' compensation law
Howard borrows his neighbor's car because his son took his car to college for a week while
moving into the dorm. Under Howard's automobile policy, his neighbors car is considered? ------
----- Correct Answer ------------ A non-owned automobile
All of the following losses or damages would be covered under the commercial property Causes
of Loss -- Broad Form EXCEPT ----------- Correct Answer ------------ earth movement
Which one of the following is NOT a commercial general liability exposure? ----------- Correct
Answer ------------ Operation of automobiles
Which one of the following is NOT an additional coverage found in homeowners policies? -------
---- Correct Answer ------------ Market Valuation
Bailee's customers insurance is purchased by businesses that? ----------- Correct Answer ----------
-- Have customer's property in their possession
An insured buys a business income policy with a maximum policy limit of $100,000 and a 25%
monthly limit of indemnity. How much can the insured collect if the lost income is $40,000 in
the 1st month and $10,000 in the 2nd month? ----------- Correct Answer ------------ $35,000
When the Commissioner has conducted as examination of an insurer or producer, the results
must be made available to the public how many days after the report is completed? -----------
Correct Answer ------------ 90
Which one of the following is NOT an agent responsibility? ----------- Correct Answer ------------
Prepaying the initial premium
Which one of the following items may be covered under Coverage C-- Personal Property of a
homeowners policy? ----------- Correct Answer ------------ Personal property of the insured
located anywhere in the world
Which of the following occurrences would be included under the definition of a personal injury?
----------- Correct Answer ------------ A tenant is evicted by his landlord and sues the landlord for
invasion of privacy and wrongful eviction.
, Which of the following is NOT one of the requirements for a loss to be paid under the uninsured
motorists coverage of the personal auto policy? ----------- Correct Answer ------------ Loss
involves property damage to insured auto
Which of the following is a contract bond? ----------- Correct Answer ------------ Performance
bond
All of the following are covered as business personal property EXCEPT? ----------- Correct
Answer ------------ accounts receivable
The Inside the Premises -- Robbery or safe Burglary of Other Property insuring agreement in the
commercial crime policy covers which one of the following perils? ----------- Correct Answer ----
-------- Burglary by a security guard while a store is closed
The insured has a named peril policy that covers hail, fire, wind, and lightning. Which one of the
following events would be covered? ----------- Correct Answer ------------ A roof that is damaged
in an electrical storm
An insured fails to pay his homeowners insurance premium. The mortgagee becomes aware of
this fact and remits the premium to the insurance company. Shortly thereafter, the insured sets
fire to his home in an attempt to receive payment for the loss. Any loss payment settlement
would be made to? ----------- Correct Answer ------------ The mortgagee
Which one of the following best describes a short-rate cancellation? ----------- Correct Answer ---
--------- Upon cancellation, the insurer keeps all earned premium plus overhead expenses
incurred
Which of the following is NOT a type of surety bond? ----------- Correct Answer ------------
Collateral
Bill and Marge suffer the following losses as the result of a severe storm: $3,900 wind damage to
their roof; $1,000 loss of income because a boarder in their house had to move; $1,250 in repair
costs to prevent further loss to covered property; and $500 in medical expenses when Marge was
hit by part of the falling roof. How much will their HO-3 policy pay for these losses, assuming
all losses are within the applicable policy limits and ignoring any deductible that may apply? ----
------- Correct Answer ------------ $6,150
Ralph is a conductor employed by American Cross-Country Railway System. He routinely
travels from Chicago to Los Angeles, and was injured falling from a train platform while helping
passengers. Which of the following provides bodily injury coverage for Ralph? ----------- Correct
Answer ------------ The Federal Employers' Liability Act
A contract in which one insurer cedes all or part of a risk to another insurer is known as? ---------
-- Correct Answer ------------ Reinsurance
2025 Latest Version Best Studying Material with All
Questions and Answers
Which one of the following statements about the standard mortgage clause is CORRECT? -------
---- Correct Answer ------------ The mortgagee may have to pay the premium if the insured fails
to do so.
What is the three basic coverages for medical expense insurance? --------- Correct Answer --------
-- Hospital, surgical, medical
Which of the following would basic medical expense coverage NOT cover? --------- Correct
Answer ---------- Surgeons services
Which of the following terms BEST describes insurance coverages on the lives of a licensed
agent and family members or covering the insurable interest of an agent, family members,
relatives, or the agents employer or employees? --------- Correct Answer ----------- Controlled
business
The bodily injury financial responsibility in West Virginia is? --------- Correct Answer -----------
20/40/10
An insurance company that is incorporated with its capital divided into shares that are owned by
shareholders is? --------- Correct Answer ----------- A stock company
Which of the following is NOT an example of an insurable interest? ----------- Correct Answer --
---------- A woman's interest in property that she hopes her uncle will leave to her in his will
A person becomes seriously ill after eating unrefrigerated raw oysters from a street vendor.
When the vendor is sued for negligence, what defense might best be used? ----------- Correct
Answer ------------ Assumption of risk
Which of the following unendorsed policies provides open perils coverage on Coverage C --
Personal Property ----------- Correct Answer ------------ HO-5
For personal property coverage, who is not insured by a homeowners policy? ----------- Correct
Answer ------------ A nonresident uncle
What is the actual cause of a loss? ----------- Correct Answer ------------ Peril
Which one of the following forms would be most appropriate to protect against a suspension of
business operations for an insured that cannot afford to have its operations interrupted? -----------
Correct Answer ------------ Extra business income insurance
,Which one of the following dwellings would a HO-3 -- Homeowners form cover? -----------
Correct Answer ------------ Single-family home
Fire would be an example of a? ----------- Correct Answer ------------ peril
Which one of the following is NOT a supplementary payment provided in the commercial
general liability policy? ----------- Correct Answer ------------ Medical payments
Part two, employers liability insurance, of a workers' compensation insurance policy includes all
of the following limits of liability EXCEPT? ----------- Correct Answer ------------ For all
compensation paid under benefits required by workers' compensation law
Howard borrows his neighbor's car because his son took his car to college for a week while
moving into the dorm. Under Howard's automobile policy, his neighbors car is considered? ------
----- Correct Answer ------------ A non-owned automobile
All of the following losses or damages would be covered under the commercial property Causes
of Loss -- Broad Form EXCEPT ----------- Correct Answer ------------ earth movement
Which one of the following is NOT a commercial general liability exposure? ----------- Correct
Answer ------------ Operation of automobiles
Which one of the following is NOT an additional coverage found in homeowners policies? -------
---- Correct Answer ------------ Market Valuation
Bailee's customers insurance is purchased by businesses that? ----------- Correct Answer ----------
-- Have customer's property in their possession
An insured buys a business income policy with a maximum policy limit of $100,000 and a 25%
monthly limit of indemnity. How much can the insured collect if the lost income is $40,000 in
the 1st month and $10,000 in the 2nd month? ----------- Correct Answer ------------ $35,000
When the Commissioner has conducted as examination of an insurer or producer, the results
must be made available to the public how many days after the report is completed? -----------
Correct Answer ------------ 90
Which one of the following is NOT an agent responsibility? ----------- Correct Answer ------------
Prepaying the initial premium
Which one of the following items may be covered under Coverage C-- Personal Property of a
homeowners policy? ----------- Correct Answer ------------ Personal property of the insured
located anywhere in the world
Which of the following occurrences would be included under the definition of a personal injury?
----------- Correct Answer ------------ A tenant is evicted by his landlord and sues the landlord for
invasion of privacy and wrongful eviction.
, Which of the following is NOT one of the requirements for a loss to be paid under the uninsured
motorists coverage of the personal auto policy? ----------- Correct Answer ------------ Loss
involves property damage to insured auto
Which of the following is a contract bond? ----------- Correct Answer ------------ Performance
bond
All of the following are covered as business personal property EXCEPT? ----------- Correct
Answer ------------ accounts receivable
The Inside the Premises -- Robbery or safe Burglary of Other Property insuring agreement in the
commercial crime policy covers which one of the following perils? ----------- Correct Answer ----
-------- Burglary by a security guard while a store is closed
The insured has a named peril policy that covers hail, fire, wind, and lightning. Which one of the
following events would be covered? ----------- Correct Answer ------------ A roof that is damaged
in an electrical storm
An insured fails to pay his homeowners insurance premium. The mortgagee becomes aware of
this fact and remits the premium to the insurance company. Shortly thereafter, the insured sets
fire to his home in an attempt to receive payment for the loss. Any loss payment settlement
would be made to? ----------- Correct Answer ------------ The mortgagee
Which one of the following best describes a short-rate cancellation? ----------- Correct Answer ---
--------- Upon cancellation, the insurer keeps all earned premium plus overhead expenses
incurred
Which of the following is NOT a type of surety bond? ----------- Correct Answer ------------
Collateral
Bill and Marge suffer the following losses as the result of a severe storm: $3,900 wind damage to
their roof; $1,000 loss of income because a boarder in their house had to move; $1,250 in repair
costs to prevent further loss to covered property; and $500 in medical expenses when Marge was
hit by part of the falling roof. How much will their HO-3 policy pay for these losses, assuming
all losses are within the applicable policy limits and ignoring any deductible that may apply? ----
------- Correct Answer ------------ $6,150
Ralph is a conductor employed by American Cross-Country Railway System. He routinely
travels from Chicago to Los Angeles, and was injured falling from a train platform while helping
passengers. Which of the following provides bodily injury coverage for Ralph? ----------- Correct
Answer ------------ The Federal Employers' Liability Act
A contract in which one insurer cedes all or part of a risk to another insurer is known as? ---------
-- Correct Answer ------------ Reinsurance
