WV PROPERTY AND CASUALTY
EXAM QUESTIONS AND ANSWERS A+
PASS
In addition to other penalties, a person who violates a surplus lines law in WV will be
subject to a civil penalty of up to what amount for each subsequent offenses? -
ANSWERS$20,000
Jennifer obtains a loan from Country Bank, using her house as security. Which
statement is true about the bank's requirement that she insure her house through an
insurer of the bank's choice? - ANSWERSThe borrower chooses the insurer, though the
lender may disapprove if it has a reasonable basis for doing so.
Jane sells insurance policies only by telephone. She is required to complete six hours of
continuing education to renew her license. How many of the six hours must she earn in
courses on producer ethics? - ANSWERS3
Which statement is true about a producer's practice of giving small gifts to prospective
clients with respect to the anti-rebating provisions of the Insurance Code? -
ANSWERSGiving a gift to a prospective purchaser does not violate anti-rebating
provisions if the gift is valued at $25 or less
Which of the following property insurance policy provisions describes the circumstances
under which policy ownership may be possibly transferred to another party? -
ANSWERSAssignment provision
Jeff has violated a cease and desist order of the WV Insurance Commissioner. What is
the maximum fine? - ANSWERS$10,000
A policyholder who obtains a recovery from the WV Insurance Guaranty Association
automatically assigns his or her rights under the policy to - ANSWERSWV Insurance
Guaranty Association
Which type of agent authority is not explicitly covered in an agency agreement but is
commonly understood to be a part of a producer's job? - ANSWERSImplied Authority
Even if the cause of loss is covered, an insurance policy can stipulate that to be eligible
for claim settlement a loss must be reported to the insurer within 20 days of the date of
loss, because insurance policies are: - ANSWERSConditional Contracts
Betty is an insurance producer who would like to represent a particular insurer. For her
to do so, which of the following must occur? - ANSWERSThe insurer must appoint Betty
, Don is a contract farmer who owns several pieces of farm equipment and works for
several farmers. He has a mobile agricultural machinery and equipment coverage form
for this purpose. This form covers all of the following farm equipment EXCEPT: -
ANSWERSIrrigation equipment listed with limited insurance
An insurer must file new policy forms for noncommercial lines with the Commissioner at
least how many days before it intends to use them? - ANSWERS60 days
If the WV Guaranty Association wants to amend its plan of operation and submits the
amendment to the commissioner for approval, when may the amendment take effect? -
ANSWERSUpon the Commissioner's written approval
Larry submitted a claim under his homeowners insurance policy. The insurance
company has the burden of proof to show that the loss is excluded; otherwise, it must
pay Larry's claim. On what type of perils is Larry's policy based? - ANSWERSOpen
perils
Chad's home suffered severe water damage while he was negotiating its sale. The real
estate sales contract had only been signed by chad at the time the damage occurred.
Who will be able to collect insurance to repair the property? - ANSWERSOnly Chad, the
current owner
Ace Real Estate is considering a businessowners policy for an office building that has
eight stories and is less than 100,000 square feet. Its agent will advise Ace that: -
ANSWERSAce is ineligible because the building is taller than six stories
What do a direct writer and an exclusive agent have in common? - ANSWERSThey
both only represent one insurer
An insurance agent in WV may not knowingly transact any insurance business with an -
ANSWERSInsolvent insurer
All of the following parties can be protected by a property or casualty insurance policy
without the need for a special endorsement EXCEPT: - ANSWERSBailees
All of the following may have an insurable interest in certain property EXCEPT: -
ANSWERSReal estate agent who sold the property
Campbell Construction Company builds foundations for a variety of building structures.
It uses heavy equipment to move earth and mix and transport cement. Aside from
commercial auto insurance, what type of Inland Marine coverage would cover the
equipment? - ANSWERSContractors Equipment Floater
EXAM QUESTIONS AND ANSWERS A+
PASS
In addition to other penalties, a person who violates a surplus lines law in WV will be
subject to a civil penalty of up to what amount for each subsequent offenses? -
ANSWERS$20,000
Jennifer obtains a loan from Country Bank, using her house as security. Which
statement is true about the bank's requirement that she insure her house through an
insurer of the bank's choice? - ANSWERSThe borrower chooses the insurer, though the
lender may disapprove if it has a reasonable basis for doing so.
Jane sells insurance policies only by telephone. She is required to complete six hours of
continuing education to renew her license. How many of the six hours must she earn in
courses on producer ethics? - ANSWERS3
Which statement is true about a producer's practice of giving small gifts to prospective
clients with respect to the anti-rebating provisions of the Insurance Code? -
ANSWERSGiving a gift to a prospective purchaser does not violate anti-rebating
provisions if the gift is valued at $25 or less
Which of the following property insurance policy provisions describes the circumstances
under which policy ownership may be possibly transferred to another party? -
ANSWERSAssignment provision
Jeff has violated a cease and desist order of the WV Insurance Commissioner. What is
the maximum fine? - ANSWERS$10,000
A policyholder who obtains a recovery from the WV Insurance Guaranty Association
automatically assigns his or her rights under the policy to - ANSWERSWV Insurance
Guaranty Association
Which type of agent authority is not explicitly covered in an agency agreement but is
commonly understood to be a part of a producer's job? - ANSWERSImplied Authority
Even if the cause of loss is covered, an insurance policy can stipulate that to be eligible
for claim settlement a loss must be reported to the insurer within 20 days of the date of
loss, because insurance policies are: - ANSWERSConditional Contracts
Betty is an insurance producer who would like to represent a particular insurer. For her
to do so, which of the following must occur? - ANSWERSThe insurer must appoint Betty
, Don is a contract farmer who owns several pieces of farm equipment and works for
several farmers. He has a mobile agricultural machinery and equipment coverage form
for this purpose. This form covers all of the following farm equipment EXCEPT: -
ANSWERSIrrigation equipment listed with limited insurance
An insurer must file new policy forms for noncommercial lines with the Commissioner at
least how many days before it intends to use them? - ANSWERS60 days
If the WV Guaranty Association wants to amend its plan of operation and submits the
amendment to the commissioner for approval, when may the amendment take effect? -
ANSWERSUpon the Commissioner's written approval
Larry submitted a claim under his homeowners insurance policy. The insurance
company has the burden of proof to show that the loss is excluded; otherwise, it must
pay Larry's claim. On what type of perils is Larry's policy based? - ANSWERSOpen
perils
Chad's home suffered severe water damage while he was negotiating its sale. The real
estate sales contract had only been signed by chad at the time the damage occurred.
Who will be able to collect insurance to repair the property? - ANSWERSOnly Chad, the
current owner
Ace Real Estate is considering a businessowners policy for an office building that has
eight stories and is less than 100,000 square feet. Its agent will advise Ace that: -
ANSWERSAce is ineligible because the building is taller than six stories
What do a direct writer and an exclusive agent have in common? - ANSWERSThey
both only represent one insurer
An insurance agent in WV may not knowingly transact any insurance business with an -
ANSWERSInsolvent insurer
All of the following parties can be protected by a property or casualty insurance policy
without the need for a special endorsement EXCEPT: - ANSWERSBailees
All of the following may have an insurable interest in certain property EXCEPT: -
ANSWERSReal estate agent who sold the property
Campbell Construction Company builds foundations for a variety of building structures.
It uses heavy equipment to move earth and mix and transport cement. Aside from
commercial auto insurance, what type of Inland Marine coverage would cover the
equipment? - ANSWERSContractors Equipment Floater
