WV Insurance Exam Study Guide.

WV Insurance Exam Study Guide solutions If insurance fails to notify the mortgage that the policy is canceled and there is a fire loss, what could the mortgage company collect? - ANS; Up to the policy limit Which amount would be paid on a Total Loss Vehicle? - ANS; Official Used Car Guide Amount Can an adjuster give legal advice? - ANS; No A stolen vehicle is recovered with $1800 in damages to the vehicle. How much will be paid on the claim? - ANS; Add up all permanently installed equipment and deduct the deductible When can an adjuster speak with a claimant represented by counsel (an attorney)? - ANS; Never, unless counsel gives consent What does Section II of the Homeowner's Policy cover? - ANS; Liability Who does the FAIR plan cover? - ANS; Under the FAIR (Fair Access to Insurance Requirements) Plan, no application for insurance can be rejected simply because of environmental hazards that are beyond the control of the insured. What are mobile home claims settled at (what value)? - ANS; Replacement cost When can an insurance company take salvage? - ANS; When they have paid for it What is an adjuster supposed to do if a Fire Marshal determined arson was the cause of the fire? - ANS; The company must release information and cooperate with any official authorizations to request such information (material documents). What is an insurance company required to do if arson is suspected? - ANS; They must notify the Fire Marshal and provide pertinent information acquired during its investigation and cooperate with the courts and administrative agencies of the State What does boat liability EXCLUDE? - ANS; Coverage does not extend to any craft used in any form of business (including collection of goods), crafts rented to others or those that include a captain or crew (Commercial Liability). Neither does coverage app ly to air -propelled craft, experimental craft, flare craft, hover craft, modified craft, or submarines. What are West Virginia Minimum Limits? - ANS; 25/50/25 What is excess liability? - ANS; Provides coverage in excess, with higher limits, than the primary policy What is a company adjuster? - ANS; A company adjuster is an adjuster representing the interests of the insurer, including independent contractors and salaried employees of the insurer. What is a home state? - ANS; The state in which the adjuster lives What is an example of a representation? - ANS; An application/applicant makes a statement about the good condition of a home/car. What is the Guest Passenger Law? - ANS; No insurer may issue any policy of bodily injury or property damage liability insurance which exclude coverage to the owner or operator of a motor vehicle on account of bodily injury or property damage to any guest or invitee who is a passenger in such motor vehicle. What is the insurer's Right to Refuse Coverage for Mine Subsidence? - ANS; On a structure evidencing unrepaired subsidence damage An insurance company notifies the insured that their $100k Homeowner's Policy was cancelled. They fail to notify the mortgagee of the cancellation. There is a fire loss of $100k. What could the mortgage company collect? - ANS; The mortgagee would be entitled to their financial interests up to the limit of insurance. The qualifications for licensing of adjusters in West Virginia include all of the following EXCEPT: - ANS; The applicant must be over the age of 21 A public adjuster must maintain files for how many years? - ANS; 5 years The insurer has how many days to inspect damages prior to repair? - ANS; 7 days What is an example of an indirect loss? - ANS; Electrical outage to a freezer causes all the food to thaw and spoil An adjuster must notify the commissioner of a change of address within? - ANS; 30 days The ABC Printing Company has a printing press that suffers a total loss. The company paid $25,000 ten years ago for the press. ACV is $40,000 and the replacement cost is $55,000. The company has had to cancel several contracts for printing due to the loss