WV Licensing Test Study Questions

164 terms by winklek 

Ready to study?
Start with Flashcards

Create a new folder

Advertisement Upgrade to remove ads

1. Methods of risk management include:
A. Transfer
B. Sharing
C. Avoidance
D. All of the above.

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

B. First party

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

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

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
D. The Limitations

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

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

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
C. Binder
D. Blanket coverage

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

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

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
D. Coinsurance clause

D. Coinsurance clause

12. Which of the following is a basis for insuring property that allows the insured to report the value of the building contents to the insurance company on a monthly basis?
A. Blanket Basis
B. Reporting Form
C. Specific Basis
D. Agreed Value

B. Reporting Form

13. Which of the following is NOT a factor in determining negligence on the part of the insured?
A. Legal duty is owed
B. There is a breach of protection
C. Proximate cause
D. Damage

B. There is a breach of protection

14. In liability insurance, policy limits that apply one limit to each person injured, another for bodily injury claims of all persons injured in a single accident, and a separate limit for all property damage arising out of a single accident is:
A. Aggregate limits
B. Split limits
C. Single limit
D. Total limits

B. Split limits

15. An insurance contract that is contingent on an uncertain event is referred to as?
A. Executory
B. Aleatory
C. Contract of adhesion
D. Conditional

B. Aleatory

16. Mr. Jones is involved in an at-fault accident. The other party was also at fault. The method to determine damages due to each party based on a percentage of negligence is known as:
A. Contributory negligence
B. Intervening cause
C. Comparative negligence
D. Assumption of risk

C. Comparative negligence

17. The insured owns a filling station and an employee causes bodily injury to a third party. The insured is held legally liable for the employee's acts. This is called:
A. Contributory negligence
B. Joint and several
C. Contingent liability
D. Vicarious liability

D. Vicarious liability

18. One characteristic of an insurance contract is that both parties must perform certain acts to make the contract legally enforceable. This is called:
A. Personal aspect
B. Aleatory
C. Executory
D. Utmost good faith

C. Executory

19. A church has hired a painting contractor to stain and varnish the woodwork in the building. He leaves the rags and brushes used to apply the painting materials in a small storage area. This is an example of:
A. A peril
B. A hazard
C. Assumption of risk
D. Direct loss

B. A hazard

20. The insurance company is the author of the insurance policy. The insured buys what is offered by the company and accepts it as is. This is called:
A. Executory
B. Conditional
C. Contract of adhesion
D. Aleatory

C. Contract of adhesion

21. The insured is hit in the rear while stopped at a traffic light. The insured's company pays for his repairs then seeks reimbursement from the responsible party. This is described as:
A. Subrogation
B. Reimbursement
C. Arbitration
D. Appeal

A. Subrogation

22. Damage to a windshield by a bird would be covered under:
A. Collision
B. Comprehensive
C. Liability
D. All of the above

B. Comprehensive

23. The personal Auto Policy provides coverage in all of the following locations EXCEPT:
A. Hawaii
B. Mexico
C. Canada
D. Alaska

B. Mexico

24. Mr. Pfister carried 15/30/5 limits on an auto, when he negligently ran into a parked car containing three occupants resulting in the following claims:
Tom- BI-$18,000
PD-$8,000
Dick- BI- $8,000
Harry- BI- $4,000

In addition to these settlement awards, there was $18,000 in legal fees. In response to this accident, Pfister's P.A.P will pay:
A. $32,000
B. $38,000
C. $50,000
D. $68,000

C. $50,000

25. After a loss, the insured must:
A. Notify the company
B. Permit the company to inspect a damaged auto before repairs are started
C. Submit to a physical exam if needed
D. All of the above

D. All of the above

26. All of the following are Physical Damage exclusions EXCEPT:
A. Loss to vehicle used as a livery
B. Damage due to wear and tear
C. Loss to audio tapes
D. Loss to permanently installed car telephone

D. Loss to permanently installed car telephone

27. The insurer will pay transportation expenses under the P.A.P beginning ____ after a theft of the insured's automobile
A. 24 hours
B. 48 hours
C. 72 hours
D. 96 hours

B. 48 hours

28. Under the P.A.P, the insurer will pay for transportation expenses up to which of the following amounts:
A. $10 per day; $300 maximum
B. $20 per day; $500 maximum
C. $15 per day; $300 maximum
D. $20 per day; $600 maximum\

D. $20 per day; $600 maximum\

29. A car, traveling at high speed, skids at a turn and rolls over. The damage incurred would be covered under which of the following personal auto coverages?
A. Collision
B. Comprehensive
C. Uninsured Motorist
D. P.D. liability

A. Collision

30. A stolen car is covered under which of the following personal auto coverages?
A. Collision
B. Comprehensive
C. Uninsured Motorist
D. P.D. liability

B. Comprehensive

31. As a result of an auto accident, the insured sustains bodily injury worth $50,000. The responsible party carries auto liability insurance in the amount of 15/30/5. The insured's $100,000 underinsurance coverage would pay:
A. $15,000
B. $35,000
C. $50,000
D. $100,000

B. $35,000

32. The purpose of "underinsured motors" coverage is to:
A. Provide coverage for a "hit-and-run" driver.
B. Pay for injuries sustained by insureds who have been injured when the at-fault driver carries auto limits less than the financial responsibility of the state in which the insured was injured.
C. Provide coverage for the insured when the at-fault driver carries less coverage than that needed to pay for the insured's injuries
D. Provide coverage when the at-fault driver's insurance company denies the claim

C. Provide coverage for the insured when the at-fault driver carries less coverage than that needed to pay for the insured's injuries

33. An uninsured motor vehicle includes:
A. An insured vehicle whose insurer denies coverage
B. An insured vehicle whose insurer becomes insolvent
C. A "hit and run" vehicle
D. All of the above

D. All of the above

34. The P.A.P. Medical Payments cover:
A. The insured as driver
B. A passenger
C. The insured as pedestrian
D. All of the above

D. All of the above

35. Under the P.A.P. Medical Payments, the time limit for incurring medical expenses is:
A. 6 months
B. 1 year
C. 2 years
D. 3 years

D. 3 years

36. The P.A.P. liability coverage excludes all of the following EXCEPT:
A. Intentional injury
B. Damage to insured property
C. Damage to property of others in the insured's care
D. Damage to property of others due to the insured's motor vehicle negligence.

D. Damage to property of others due to the insured's motor vehicle negligence.

37. All of the following are considered insured under the P.A.P EXCEPT:
A. Any person using the insured auto
B. A family member using the insured auto
C. Any organization the insured represents
D. Any person using an auto not owned by the insured

D. Any person using an auto not owned by the insured

38. An auto liability policy with split limits of 15/30/5 would pay what maximum amount in the event of a covered bodily injury loss to three people?
A. $5,000
B. $15,000
C. $30,000
D. $45,000

C. $30,000

39. An auto liability policy with split limits of 10/20/5 would pay how much in the event of a $10,000 loss to the other person's damaged vehicle?
A. $0
B. $5,000
C. $10,000
D. $20,000

B. $5,000

40. An auto liability policy with a single limit of $30,000 would pay which of the following amounts in the event of a $10,000 loss to the insured vehicle and a $25,000 bodily injury settlement to a third party?
A. $10,000
B. $25,000
C. $30,000
D. $35,000

B. $25,000

41. Under the P.A.P., a covered auto includes all of the following EXCEPT:
A. Temporary substitute
B. Non-owned auto
C. Private passenger auto listed in the Declarations
D. An owned trailer

B. Non-owned auto

42. Leased vehicles can be covered under the P.A.P. if they are leased for a minimum of:
A. 30 consecutive days
B. 60 consecutive days
C. 6 consecutive months
D. 1 year

C. 6 consecutive months

43. A deer crashes into the side of the insured's car. Which of the following P.A.P. coverages would cover this damage?
A. Property damage liability
B. Collision
C. Uninsured motorist property damage
D. Comprehensive

D. Comprehensive

44. Which of the following would be covered under a PAP?
A. A truck the insured rented that is over 10,000 gross vehicle weight
B. A three wheeled vehicle used in a medical emergency
C. A motor cycle
D. A large rented motor home

B. A three wheeled vehicle used in a medical emergency

45. An uninsured motorist vehicle under the PAP includes all of the following EXCEPT:
A. Hit and run vehicle whose driver cannot be identified
B. A vehicle newly acquired by the named insured
C. A vehicle insured by the company that is insolvent
D. A vehicle to which no liability bond or insurance policy provides coverage at the time of the accident.

B. A vehicle newly acquired by the named insured

46. What is the limit for damage to a non-owned trailer under the PAP?
A. $500
B. $1,000
C. $1,500
D. $2,000

C. $1,500

47. A public adjuster represent the interest of:
A. The insurer
B. The insured
C. The employer
D. The interest of the general public

B. The insured

48. Which of the following is the type of report indicates the initial results of a claim investigation?
A. Field report
B. Interim report
C. Full report
D. None of the above

A. Field report

49. States have adopted statues regarding claims adjusting. To Avoid unfair treatment to a claimant the adjuster must not:
A. Promptly investigate the claim.
B. Follow the laws regarding the number of days in which to commence an investigation
C. Deny the claim until a fair and prompt investigation has commended'
D. Pay the claim within a reasonable number of days after the final proof of loss has been received.

C. Deny the claim until a fair and prompt investigation has commended'

50. Which of the following is not a claim settlement option?
A. Forcing the insured to sue by offering less than the claim is worth
B. Repairing property
C. Replacing with like kind and quality
D. Replace with new

A. Forcing the insured to sue by offering less than the claim is worth

51. The giving up of a known right is called:
A. Estoppel
B. Violation of policy conditions
C. Rebating
D. Waiver

D. Waiver

52. An innocent party relies on certain statements made by the adjuster and is damaged as a result. The guilty party may be legally prohibited from asserting that the fact does not exist because of:
A. Waiver
B. Estoppel
C. Duties of the adjuster
D. Law of contract

B. Estoppel

53. Should an insured fail to report a claim in a timely fashion the adjuster will usually
A. Deny the claim.
B. Send the insured a reservation of rights letter
C. Cease investigating.
D. Seek the advise of the company' s attorney

B. Send the insured a reservation of rights letter

54. A company adjuster primarily represents the interests of:
A. The insured
B. The claimant
C. The insurer
D. The public

C. The insurer

55. An adjuster's license will usually be revoked for which of the following reasons:
A. Denying claims that are not covered
B. Failing to report a change of address
C. Having been convicted of a misdemeanor
D. Having been convicted of a felony

D. Having been convicted of a felony

56. The insured has been involved in an automobile accident and has sustained bodily injuries and damage to the insured vehicle. The adjuster will usually:
A. Withhold any payment until all the bills have been reviewed for payment
B. Pay to repair the vehicle and pay the medical bills later
C. Pay for the repair of the vehicle and require a release for all claims.
D. Pay to repair the damage to the vehicle and obtain a partial release and settle the medical payments later and then seek a final release.

D. Pay to repair the damage to the vehicle and obtain a partial release and settle the medical payments later and then seek a final release.

57. Mr. Jones has damaged his vehicle by striking a tree. He can:
A. Take the car to a repair garage recommended by the insurer
B. Take the car to a garage of his/her choice
C. Accept the payment based on the adjuster's estimate.
D. All of the above.

D. All of the above.

58. In case of a total loss to a vehicle the adjuster will pay the insured/claimant which of the following?
A. The cost to replace the vehicle with like kind and quality if a current year model.
B. Use the most recent publication of an "Official Used Car Guide".
C. If not listed in the "guide", obtain quotations from automobile dealers.
D. All of the above depending on the circumstances

D. All of the above depending on the circumstances

59. Which of the following is NOT a claim settlement option for liability claims?
A. Lost wages
B. Excessive amounts claims
C. Loss of use
D. Disfigurement

B. Excessive amounts claims

60. Which of the following results in immediate payment when the claimant signs a release relinquishing his or her right to sue?
A. Scheduled Payment Release
B. Full Release Settlement
C. Advanced Payment
D. Structured Settlement

B. Full Release Settlement

61. Which of the following relieves the financial burden on the claimant by making certain payments to the claimant even before the claim can be negotiated?
A. No Release or Walk-Away
B. Rehabilitation
C. Advanced Payment
D. Open-Ended Release

C. Advanced Payment

62. In case of suspected arson, what is an adjuster required to do?
A. Notify the insured
B. Notify the insured and the insurer
C. Make proper documentation in a written report
D. Notify the fire marshal

D. Notify the fire marshal

63. Farmer Brown returned from the fields to find his barn engulfed in flames. His son described how a tornado had blown down one wall of the barn, overturning a lamp. Debris was strewn over a widespread section of the farm. The proximate cause of the total loss to the barn was:
A. The fire
B. The tornado
C. Faulty wiring
D. The lack of a fire hydrant on the farm.

B. The tornado

64. The qualifications for licensing of adjusters in West Virginia include all of the following EXCEPT:
A. The applicant must be a least 21 years of age
B. The applicant is a resident of West Virginia
C. The applicant must satisfy the Commissioner that he or she is trustworthy
D. The applicant must satisfy the Commissioner that he or she is competent.

A. The applicant must be a least 21 years of age

65. A binder may not cover a period of excess of
A. 90 days
B. 60 days
C. 30 days
D. 15 days

A. 90 days

66. The west Virginia Property and Casualty Insurance Guaranty Association will not pay a covered claim in excess of
A. $500,000
B. $200,000
C. $100,000
D. $300,000

D. $300,000

67. Mine subsidence insurance
A. May be waived by an insured
B. Will only be provided if requested by the insured in certain counties
C. Covers loss due to earthquakes and landslides
D. Both A and B

D. Both A and B

68. On an automobile policy application, an applicant states that she has had no accidents in the past 3 years. This statement is known as which of the following, if any?
A. A representation
B. A warranty
C. A concealment
D. None of the above

A. A representation

69. Statements made by the insured stating that a property is in good condition is an example of what?
A. Warranty
B. Declaration
C. Representation
D. Condition

C. Representation

70. What are the minimum auto liability amounts you must have in the state of West Virginia?
A. 20,000/ 50,000/ 10,000
B. 20,000/ 40,000/ 10,000
C. 20,000/ 30,000/ 10,000
D. 20,000/ 20,000/ 10,000

B. 20,000/ 40,000/ 10,000

71. A tornado blows over a wall of a barn which, in turn, knocks over a lamp and starts a fire. What is the indirect cause?
A. Tornado
B. Smoke
C. Fire
D. Water Damage

C. Fire

72. Each fire insurance company must report to the state fire marshal a loss in excess of _____ within ____.
A. $20,000/ 6 months
B. $5,000/ 3 months
C. $1,500/ 10 days
D. $500/ 1 week

C. $1,500/ 10 days

73. Which of the following would be required to secure an adjuster license under West Virginia law?
A. An attorney at law who investigates and settles claims incidental to an attorney/client relationship.
B. A person who adjusts life insurance claims
C. A person who investigates and settles a claim for an individual with a financial interest in the claim.
D. A salaried employee whose primary duties are clerical or administrative duties.

C. A person who investigates and settles a claim for an individual with a financial interest in the claim.

74. A public adjuster represents the interest of whom?
A. The interest of the insurer
B. The interest of the insured
C. The interest of his employer
D. The interest of the public

B. The interest of the insured

75. A public adjuster must maintain files for how many years?
A. 2
B. 3
C. 4
D. 5

B. 3

76. Which of the following would be considered an unfair claim settlement practice?
A. Denying the claim after a reasonable investigation
B. Provide prompt settlement of a claim in which liability is reasonably clear
C. Making claim payment to the insured and not stating under which coverage the payments were made.
D. Acknowledging and acting promptly on communications with respect to a covered claim.

C. Making claim payment to the insured and not stating under which coverage the payments were made.

77. The insurer has how many days from receipt of a claim to investigate the claim?
A. 7 working days
B. 15 working days
C. 30 working days
D. 45 working days

B. 15 working days

78. Which of the following does not have an insurable interest in a property?
A. Prior ownership
B. Current ownership
C. Lawful interest
D. Substantial economic interest

A. Prior ownership

79. What is a binder?
A. A contract of temporary insurance covering a period of 120 days
B. A contract of temporary insurance made orally or in writing
C. A contract of temporary life insurance
D. A contract of temporary insurance which can be canceled after 2 years.

B. A contract of temporary insurance made orally or in writing

80. Under what circumstances will an insurer not provide mine subsidence coverage?
A. If there is no existing damage to a structure
B. If there is evidence of prior subsidence structure damage
C. If a structure is deemed strong by a contractor
D. None of the above

B. If there is evidence of prior subsidence structure damage

81. The "FAIR Plan" was designed to do what?
A. Provide coverage to those properties that are sub-standard
B. Provide coverage to those properties not insurable in the standard market
C. To spread the risk among companies that provide property insurance
D. Offer competitively priced insurance to the poor and uninsurable

B. Provide coverage to those properties not insurable in the standard market

82. The insurer has how many days to inspect damages prior to repair?
A. 5 working days
B. 7 working days
C. 15 working days
D. 30 working days

B. 7 working days

83. The guest passenger law states:
A. No insurer may issue a policy for bodily injury or property damage which excludes a passenger at any time.
B. No insurers may issue a policy for bodily injury (BI) and property damage (PD) which excludes a passenger without a written waiver from the insured.
C. No insurer may issue a policy for BI and PD which provides coverage to a passenger at any time.
D. No insurer may issue a policy to a guest passenger under any circumstance

A. No insurer may issue a policy for bodily injury or property damage which excludes a passenger at any time.

84. The West Virginia Guaranty Association does what?
A. Pays claims of insolvent life insurance company
B. Provides payment for workers compensation claims
C. Provides payment of covered claims because of the insolvency of an insurer
D. Pays claims of an insolvent insurer in excess of the applicable limits of coverage

C. Provides payment of covered claims because of the insolvency of an insurer

85. Which of the following is an indirect loss from a covered peril?
A. Water damage to the basement caused by the fire department
B. Grease fire in the kitchen, causes smoke damage to curtains in the living room.
C. Electrical outage to a freezer causes all of the food to thaw and spoil
D. All of the above

C. Electrical outage to a freezer causes all of the food to thaw and spoil

86. An adjuster must notify the Commissioner of a change of address within:
A. 30 days
B. 10 days
C. 15 days
D. 20 days

A. 30 days

87. The ABC Company has a printing press that suffers a total loss The company paid $25,000 ten years ago to the press. ACV is $40,000 and the replacement cost if $55,000. The company has had to cancel several contracts for printing due to the loss of the press and they are anxious to resume full production. ABC Company is covered under a Business Owner's Policy (BOP). They will receive the following amount from the insurer:
A. $25,000
B. $55,000
C. $40,000
D. $20,000

B. $55,000

88. Personal Excess Liability coverage provides which of the following?
A. Identical limits to the underlying policies
B. The same limits as under primary policies for covered losses.
C. Higher limits
D. Coordinates limits with other policies

C. Higher limits

89. Which of the following does not have an insurable interest in real property?
A. Prior interest
B. Present interest
C. Mortgagee interest
D. Additional interest

A. Prior interest

90. Oliver Dogwood was in an auto accident which destroyed his car. While investigating the accident, Adjuster Doright found that Mr. Dogwood paid $1,000 for the vehicle. After checking with others he found the same vehicle with an asking price of $1,700, a retail price of $2,150 and a dealer price of $1,750. What amount will Mr. Dogwood receive?
A. $1,950
B. $2,150
C. $1,000
D. $1,700

B. $2,150

91. Mr. Un Lucky had his pickup truck stolen while it was parked in a "No Parking" zone outside his office. The value of the truck was $18,500. In addition, tools valued at $200, extra tires and hubcaps for the truck valued at $550 and a tarp worth $50 were in the truck. Mr. Un Lucky has a collision deductible of $500 and a comprehensive deductible of $250. The company will pay what amount?
A. $18,000
B. $18,800
C. $18,250
D. $19,050

B. $18,800

92. In settling a claim on a dwelling fire policy with a $10,000 loss, the following companies are involved, Company A- 50%, Company B-45%, Company C-5%. What will Company C pay?
A. $10,000
B. $1,000
C. $4,500
D. $500

D. $500

93. The ______States that insurers issuing fire insurance policies on real property in West Virginia are liable for the whole amount of insurance on the property in case of total loss by fire or as otherwise stated in the policy.
A. Comparative negligence principle
B. Values policy law
C. Principle of insurable interest
D. Assigned risk principle

B. Values policy law

94. The primary purpose of the West Virginia Automobile Insurance Plan is to:
A. Pay auto liability claims for solvent insurers
B. Hear consumer complaints against insurance companies
C. Protect policyholders against insurer impairments
D. Provide auto liability insurance for individuals unable to obtain it in the normal marketplace.

D. Provide auto liability insurance for individuals unable to obtain it in the normal marketplace.

95. Coverage provided under the West Virginia FAIR Plan may not exceed ____ for any one habitational risk or commercial risk.
A. $150,000/ $300,000
B. $100,000/ $300,000
C. $200,000/ $400,000
D. $100,000/ $250,000

B. $100,000/ $300,000

96. A basic Commercial General Liability policy excludes coverage for which of the following?
I. A newly acquired business
II. Property in the insured's care, custody and control
III. An elevator maintenance agreement

A. I only
B. II only
C. III only
D. I, II, and III

B. II only

97. Jim Johnson has an automobile policy with a combined single limit of $50,000. He has an at-fault accident and incurs the following expenses.
$30,000 bodily injury judgment
$30,000 property damage judgment
$5,000 damage to traffic light
$6,000 attorney's fees for his defense
$300 in premiums for appeal bond
$75 in bail bond premiums for related traffic violations

Which of the following is the maximum amount his insurance company will pay?
A. $50,000
B. $56,375
C. $65,000
D. $71,375

B. $56,375

98. Cars driven by Due Trent and Jim Higgins were involved in an automobile accident. Ms. Trent's car was a total loss, and she obtained a settlement of $25,000 for her injuries. Scott Finley, Ms. Trent's passenger, was injured and incurred $6,000 in medical expenses. Mr. Higgins, the responsible party, carries Bodily Injury coverage with limits of $15,000 per person and $30,000 per accident, and Property Damage coverage of $5,000. His policy will pay a maximum of which of the following amounts?
A. $26,000
B. $29,000
C. $35,000
D. $39,000

A. $26,000

99. Betty Jones claims that the bicycle manufacture last year by Darryl Lanier's firm was the cause of her daughter's accident. Which of the following coverages would have provided protection for Mr. Lanier?
A. Commercial General Liability
B. Owners and Contractors Protective Liability
C. Workers compensation
D. Contractual Liability

A. Commercial General Liability

100. Marsha moves into her new house built by Ace Construction. After six weeks, she realizes that the house is poorly constructed and not what she paid for. Her resultant action against Ace would be covered by the following:
A. Products and Completed Operations liability
B. Owners and Contractors Protective liability
C. All of the above
D. None of the above

D. None of the above

101. You're at a party and you run out of sugar. Your car is at the front of the driveway so you borrow a friend's car which is parked at the end of the driveway nearest the street. From a coverage perspective, this car is known as a:
A. Owned auto
B. Non-owned auto
C. Temporary substitute
D. All of the above

B. Non-owned auto

102. Coverage for personal property usually kept at an insured's lake bungalow would be covered under the Homeowners Policy on the insured's principal dwelling for:
A. Nothing
B. $1,000
C. 10% of Coverage C
D. The larger of answers B or C

D. The larger of answers B or C

103. All of the following are additional coverages under the Homeowners Program except:
A. Debris Removal
B. Reasonable Repairs
C. Special Damages
D. Loss assessment

C. Special Damages

104. Under the Homeowners Program, the following watercraft loss would be excluded:
A. Damage caused by the 75 H.P. outboard owned by the insured to another watercraft
B. Damage caused by an inboard owned by the insured to another watercraft
C. Damage caused by a 40-foot sailboat rented to the insured
D. All of the above.

D. All of the above.

105. The commercial Building and personal property Coverage Form:
A. Describes the property to the insured
B. Delineates the perils to be insured
C. Describes the exclusions to coverage.
D. Does all of the above.

A. Describes the property to the insured

106. Under the Commercial Building and Personal Property Coverage From, the Valuable Papers Extension applies to:
A. Restoring lost information
B. Replacing antique goods
C. Replacing the original while the duplicate is being used
D. All of the above

A. Restoring lost information

107. An insured purchased a ten year old building for $50,000 tht would cost $100,000 to rebuild today. If the physical value of the building has depreciated $2,000 each year, the building's present actual case value is
A. $100,000
B. $80,000
C. $50,000
D. $30,000

B. $80,000

108. Which of the following types of property would be included under Coverage A of a Building and Personal Property Coverage Form?
I. A central air-conditioning system
II. Wall-to-wall carpeting
III. A permanently installed intercom system

A. II only
B. I and III only
C. II and III only
D. I, Ii, and III

D. I, Ii, and III

109. Under a Personal Articles Floater, a pair of antique salt and pepper shakers is insured for $1,000. When one of the shakers is broken, the remaining shaker is worth only $200. How much will the insured receive for the loss before the deductible is applied?
A. $1,000
B. $800
C. $500
D. $200

B. $800

110. Under a mobile home policy, how is the mobile home itself covered in case of a total loss?
A. Purchase Price Basis
B. Actual Cash Value Basis
C. Replacement Cost Basis
D. Stated Amount Basis

C. Replacement Cost Basis

111. Under a watercraft policy, which of the following would be covered?
I. Bodily Injury
II. Property Damage
III. Medical Payments to Others

A. I and II
B. II and III only
C. I, II and III
D. I, and III

C. I, II and III

112. A tornado blows over a wall of a barn which, in turn, knocks over a lamp and starts a fire. What is the proximate cause of loss?
A. Tornado
B. Smoke
C. Fire
D. Water Damage

A. Tornado

1. An item is covered on a personal articles floater. Under which of the following circumstances would the item be covered?
A. Wear and tear
B. Inherent vice
C. Breakage
D. Deterioration

C. Breakage

114. What is the personal excess liability coverage designed to do?
A. Provides coverage in excess, with higher limits, than the primary policy
B. Provides coverage to you under a workers compensation claim.
C. Provides coverage for intentional acts
D. Provides coverage for all acts

A. Provides coverage in excess, with higher limits, than the primary policy

115. Under the fire prevention and casualty act, what is an adjuster required to do?
A. Notify the appropriate insurance company of a possible intentional fire loss
B. Provide information to any interested third party
C. Notify the state fire Marshall of a possible arson loss.
D. Advise the insured of their rights and responsibilities.

C. Notify the state fire Marshall of a possible arson loss.

116. Which of the following amounts would be paid on a covered auto suffering a total loss?
 Purchase price of vehicle-- $1,000.00
 Amount similar autos sell for at a local dealer -- $1,500.00
 Current NADA price guide -- $1,250.00
 Amount offered to the insured last week by an potential buyer -- $2,995.00

A. $1,000 plus applicable taxes
B. $1,500 plus applicable taxes
C. $1,250 plus applicable taxes
D. $2,995 plus applicable taxes

C. $1,250 plus applicable taxes

117. Mr. Smith is in an accident with Ms. Jones. Mr. Smith is totally at fault. After Mr. Smith's limits of liability injury coverage are exhausted, Ms. Jones files suit against Mr. Smith and is able to collect damages based on what?
A. Subrogation
B. Comparative Negligence
C. Legal liability
D. Bodily Injury

C. Legal liability

118. Two persons are involved in an auto accident. Each person is 50% liable for damages to the other person. What amount of damages will they collect?
A. Neither insurance company will pay for damages
B. Each person will collect half of their damages
C. Each person collects 100% of their damages
D. Only one insurance company will pay the full amount of damages.

A. Neither insurance company will pay for damages

119. The XYZ Company has insurance coverage with the following companies. In case of a $10,000 loss, how much will Company C pay?
 Insurance Company A -- $50,000
 Insurance Company B -- $40,000
 Insurance Company C -- $10,000
A. $10,000
B. $1,000
C. $20,000
D. None

B. $1,000

120. The ABC printing company has a policy covering their printing press at replacement cost. The press has a current value of $35,000. It has a replacement cost of $50,000 and an actual cash value of $15,000. What will they recover in case of a total loss to the press?
A. $15,000
B. $50,000
C. $35,000
D. Nothing

B. $50,000

121. Which of the following would be considered an owned covered auto under the personal auto policy?
A. Vehicle used to transport people back and forth to the airport for a fee
B. The insureds three wheel, all terrain vehicle not being used in an emergency
C. A replacement vehicle purchased a week ago but that has not been reported to the insurance company
D. Company vehicle being used by the insured with the owner's permission

C. A replacement vehicle purchased a week ago but that has not been reported to the insurance company

122. Which of the following would be covered under the products completed operations portion of a commercial general liability policy?
A. Product falls off a shelf and injures a customer
B. Employee demonstrating a product injures customer
C. Customer injures their hand on a rented vending machine
D. A child is injured when a wheel falls off a bicycle that was assembled at the store

D. A child is injured when a wheel falls off a bicycle that was assembled at the store

123. Which of the following would be considered robbery?
A. Money stolen from an open safe
B. Stealing items from a store that is open for business
C. Attempting to obtain someone's valuables by coercion or force
D. Breaking into a locked warehouse

C. Attempting to obtain someone's valuables by coercion or force

124. What does surety bond do?
A. Protects the surety under the bond
B. Guarantor (surety) insures the performance of the principal under the bond.
C. Requires the obligee to perform under the bond if the principal defaults.
D. Protects the principal under the bond.

B. Guarantor (surety) insures the performance of the principal under the bond.

125. An insurance company notifies the insured that their $100,000 homeowners policy is being cancelled. They fail to notify the mortgagee of the cancellation. The mortgagee has a $40,000 interest in the property. In case of a total loss the property, what could the mortgagee collect?
A. $100,000
B. $40,000
C. Nothing
D. $60,000

B. $40,000

126. Which of the following is covered under a dwelling property form?
A. Theft of a personal property from the covered dwelling
B. Fire damage to a detached garage
C. Defend the insured against any lawsuits
D. None of the above

B. Fire damage to a detached garage

127. Which of the following is a covered water peril?
A. A backup of a drain
B. A tidal spray
C. Breakage of pipes
D. All of the above

C. Breakage of pipes

128. Drive 1 and Driver 2 are in an accident. Driver 2 has damage of the following:
 Property Damage -- $1,000
 Rental Car Expense -- $500
 Emergency Room Expense -- $400
 Lost Wages -- $300
The extent of the bodily injury will not be known for 6 months. You are acting as an adjuster on the claim. How would you pay for the damages for Driver 2?
A. Pay all damage to date, provide a full and final release has been signed by Driver 2
B. Pay nothing until total of all damages have been determined
C. Pay the property damage and rental car expense and settle the bodily injury at a later time
D. None of the above.

C. Pay the property damage and rental car expense and settle the bodily injury at a later time

129. You are in an auto accident with another person who has liability coverage of $20,000/$40,000/$10,000. You exhaust their limits of liability. Under which section of your policy are you entitled to recover more damages?
A. Uninsured
B. Underinsured
C. Bodily Injury
D. Personal Injury Protection (PIP)

B. Underinsured

130. After the fire marshal detects arson, what is the next step in the investigation?
A. Further inspect the premises
B. Request lab analysis of the incendiary
C. Request the insurance company to provide any required documents or material
D. Advise the insurance company to deny the claim.

C. Request the insurance company to provide any required documents or material

131. If the insurance company has paid a claim, what is known as the right of recovery?
A. Arbitration
B. Subrogation
C. Reservation of rights
D. Salvage

B. Subrogation

132. What does Section II of the homeowner policy cover? What is the best answer?
A. First aid expense
B. Damage to property of others
C. Liability
D. Attorney's fees

C. Liability

133. Two insurance companies cannot agree under which policy a claim should be paid. After exhausting all efforts, what is next?
A. Arbitration
B. Appraisal
C. Suit
D. Subrogation

A. Arbitration

134. When the insured and the insurer cannot agree on the value of the damaged property, what recourse is available to resolve the dispute?
A. Suit
B. Arbitration
C. Appraisal
D. Subrogation

C. Appraisal

135. How is personal property covered on an unendorsed HO policy?
A. Market value
B. Replacement cost
C. Actual cash value
D. Functional replacement cost

C. Actual cash value

136. What is the fine that the can be levied against an adjuster by the Insurance Commissioner?
A. $50.00
B. $100.00
C. $1,000.00
D. $5,000.00

C. $1,000.00

137. An insurance policy is purchased on a building in the amount of $100,000. A fire occurs and the loss is $125,000 to replace the building. What will the policy pay on the loss?
A. $100,000
B. $125,000
C. $80,000
D. $120,000

A. $100,000

138. Each adjuster must file with the Commissioner all of the following information EXCEPT:
A. Home address
B. PO box number of the business if street address is not numbered
C. Phone number
D. Business address

C. Phone number

139. What is not covered by an unendorsed HO policy?
A. Fire
B. Lightning
C. Theft
D. Flood

D. Flood

140. Which of the following do not require an adjuster's license?
A. A company adjuster
B. A public adjuster
C. A person who adjusts life and health claims
D. A staff adjuster

C. A person who adjusts life and health claims

141. An adjuster is required to send ___ advance notice to a first party claimant not represented by an attorney in advance of the expiration date of the statute of limitations.
A. 60 days
B. 45 days
C. 30 days
D. 90 days

C. 30 days

142. Mr. Smith and Mr. Jones are named insureds under a property insurance policy. Mr. Smith is not listed on the deed of trust filed with the county, but he does have a financial interest in the property. They have a tenant in their building. In case of a covered loss, who would not be covered?
A. Mr. Smith
B. Mr. Jones
C. The tenant
D. Neither Mr. Smith nor the tenant

C. The tenant

143. Registration of catastrophic or emergency adjusters must be by letter to the Commissioner by the supervising adjuster or insurance company within ___ of the date of which the nonlicensed person begins adjusting activity in connection with the catastrophic or emergency situation
A. 48 hours
B. 20 days
C. 6 months
D. 7 days

B. 20 days

144. If a nonresident adjuster wishes to become a resident adjuster he or she must apply to become one within ____ of establishing legal residency in West Virginia.
A. 2 weeks
B. 20 days
C. 6 months
D. 90 days

D. 90 days

145. Sally had her 2012 Land Rover stolen while it was left unattended (after hours) in a bar parking lot. Is there coverage for this loss? If so....the vehicle was valued at $67,000. Inside her vehicle Renee had her personal laptop valued at $1200, an extra set of vehicle keys valued at $800, a gym bag containing $250 worth of clothing items, and pair of sunglasses worth $100. Her FTC deductible is $500; her COLL deductible is $1000.
If this loss is covered, how much will the insurance company pay out?
A. Nothing- not a covered loss
B. $69,350
C. $67,800
D. $67,300
E. $66,300

D. $67,300

146. Jim was driving his 2010 Honda Accord and was struck by our insured Kelly, who was driving her 2007 Toyota Camry. Both vehicles were deemed total losses and Kelly was found to be at fault. Jim's Accord was valued at $11,250. Kelly's Camry was valued at $6500. Kelly's deductible is $500. Jim had a passenger in his vehicle who sustained injuries, and incurred $3000 of medical expenses. Jim incurred $17,000 of medical expenses of his injuries. Kelly's BI coverage carries limits of $15,000 per person and $30,000 per accident, and PD limits of $7,000. What is the max payout for this loss to the claimants?
A. $18,250
B. $24,500
C. $25,000
D. $27,250

C. $25,000

147. Colleen is driving on the freeway in her 1989 Nissan Sentra while reading a map. She loses control of the vehicle and it rolls over in the middle lane of the freeway and catches on fire. Under what coverage would this loss be paid if it is covered? This vehicle is valued at $1800. Her FTC deductible is $250 and her COLL deductible is $500. How much will the insurance company pay if covered?
A. $1550
B. $1300
C. $1800
D. Not a covered loss since the driver was reading a map at the time of the accident

B. $1300

148. George, our insured, walks outside of his business and notices his 2011 Chevy Avalanche is consumed in fire. He parked the vehicle in a tow-away zone while he went inside just 20 minutes before. Is this loss covered and if so, under which coverage? His vehicle is valued at $34,500. He had the following items in his vehicle at the time of loss" a cell phone valued at $600, his work computer valued at $1800, his personal computer valued at $1300, his wallet and contents valued at $40, and his wife's briefcase valued at $250. The insured's 6 month premium is $675, his COLL deductible is $500 and his FTC deductible is $250, his HO's deductible is $750. You are his auto adjuster, if covered, how much would you issue payment for?
A. $37,460
B. $37,210
C. $34,250
D. $33,500
E. Not covered as he was parked in a tow away zone.

C. $34,250

149. The insured is hit in the rear while stopped at a traffic light. The insured's company pays for his repairs, and then seeks reimbursement from the responsible party. What is this process called?
A. Subrogation
B. Reimbursement
C. Appeal
D. Arbitration

A. Subrogation

See More

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set