©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
West Virginia Adjuster Exam Insurance Questions
with Correct Answers
Which of the following best describes the insurance concept of "exposure"? - Ans:✔✔-The possibility of
damage or loss
Strict liability: - Ans:✔✔-holds a person liable for his actions regardless of how much care he
demonstrates.
John has purchased a homeowners insurance policy with a percentage deductible based on the total
limit of insurance for his home. John insures his home for $600,000, and the policy includes a 3%
deductible. A huge thunderstorm passes through one night and blows the roof off his house. The
insurance company estimates that covered damage totals $80,000. How much indemnification should
John expect for the losses to his roof? - Ans:✔✔-$62,000
Which of the following statements best describes the Law of Large Numbers? - Ans:✔✔-The larger the
number of units insured, the more accurately the insurer can predict the number of claims from that
group.
A passenger on a commercial airline flight was injured when the plane crashed due to a mechanical
problem. In court, the injured passenger's lawyer could invoke the doctrine of: - Ans:✔✔-Res Ipsa
Loquitur.
Page 1/22
, ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
During a violent summer storm in Tulsa, a bolt of lightning hits Mr. Jones' house, damaging a large
portion of the roof. In this case, the insurer would call the lightning bolt a: - Ans:✔✔-a peril. Special
damages are a type of compensatory damages. They award money for tangible, economic losses.
General damages award money for intangible losses.
Jerrod is awarded $4000 in a court case after Ollie accidentally starts a fire and burns down his detached
garage. This award is an example of: - Ans:✔✔-special damages.
Which of the following activities is considered a speculative risk? - Ans:✔✔-Buying a lottery ticket
To meet the 80% level of co-insurance required by his lender, Tom discovers he must insure his home for
at least $320,000. What is the value of Tom's home? - Ans:✔✔-$400,000
Roxanne runs a red light and totals Ben's car in a t-bone collision. Roxanne's auto policy includes liability
coverage with limits of 50/100/25 and Collision coverage with a deductible of $500. Ben's car is worth
$1,800 at the time of the accident, and he files a claim against Roxanne's liability insurance. Bearing in
mind that liability coverage doesn't have a deductible, how much will Roxanne have to pay out-of-pocket
for the damages she caused? - Ans:✔✔-$0
What is the formula for actual cash value? - Ans:✔✔-Replacement cost minus total depreciation
Which of the following is NOT a qualification of an insurable risk? - Ans:✔✔-An insurable risk must have
guaranteed protection from damage.
Page 2/22
, ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
Which of the following incidents would a liability insurance policy cover? - Ans:✔✔-A man slips inside a
grocery store and injures himself.
ABC Masonry, Inc. has an aggregate liability policy with limits of 100,000/300,000. One day, an accident
at a construction site leads to $150,000 in damage to public property. Assuming the cause of loss is
covered under ABC Masonry's liability policy, how will this claim be paid? - Ans:✔✔-The insurer pays
$100,000; the aggregate limit is now $200,000; and ABC Masonry must pay $50,000.
A lightning strike causes one of the storage buildings on John's farm to burn to the ground, aided by the
fuel tanks he kept in the building. John knows he wasn't supposed to store any fuel in the building, so he
keeps that piece of information to himself when he files a claim. John's insurer may deny his claim based
on his: - Ans:✔✔-concealment.
A witness who has had a recorded interview: - Ans:✔✔-must have a chance to correct anything that is
incorrect.
An insurance claim is essentially: - Ans:✔✔-A formal request to settle the damage
Melanie's $300,000 home suffers $90,000 in damage from a fire. The adjuster finds the home's value
since 2008 has depreciated 25%, making the ACV loss $67,500. Although Melanie's policy covers repairs
at their replacement cost, she receives $67,500 at the time of loss. Repairs to her home end up totaling
$79,500. How much, if any, further indemnification may Melanie receive from the loss? - Ans:✔✔-
$12,000
Page 3/22
FIRST PUBLISH OCTOBER 2024
West Virginia Adjuster Exam Insurance Questions
with Correct Answers
Which of the following best describes the insurance concept of "exposure"? - Ans:✔✔-The possibility of
damage or loss
Strict liability: - Ans:✔✔-holds a person liable for his actions regardless of how much care he
demonstrates.
John has purchased a homeowners insurance policy with a percentage deductible based on the total
limit of insurance for his home. John insures his home for $600,000, and the policy includes a 3%
deductible. A huge thunderstorm passes through one night and blows the roof off his house. The
insurance company estimates that covered damage totals $80,000. How much indemnification should
John expect for the losses to his roof? - Ans:✔✔-$62,000
Which of the following statements best describes the Law of Large Numbers? - Ans:✔✔-The larger the
number of units insured, the more accurately the insurer can predict the number of claims from that
group.
A passenger on a commercial airline flight was injured when the plane crashed due to a mechanical
problem. In court, the injured passenger's lawyer could invoke the doctrine of: - Ans:✔✔-Res Ipsa
Loquitur.
Page 1/22
, ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
During a violent summer storm in Tulsa, a bolt of lightning hits Mr. Jones' house, damaging a large
portion of the roof. In this case, the insurer would call the lightning bolt a: - Ans:✔✔-a peril. Special
damages are a type of compensatory damages. They award money for tangible, economic losses.
General damages award money for intangible losses.
Jerrod is awarded $4000 in a court case after Ollie accidentally starts a fire and burns down his detached
garage. This award is an example of: - Ans:✔✔-special damages.
Which of the following activities is considered a speculative risk? - Ans:✔✔-Buying a lottery ticket
To meet the 80% level of co-insurance required by his lender, Tom discovers he must insure his home for
at least $320,000. What is the value of Tom's home? - Ans:✔✔-$400,000
Roxanne runs a red light and totals Ben's car in a t-bone collision. Roxanne's auto policy includes liability
coverage with limits of 50/100/25 and Collision coverage with a deductible of $500. Ben's car is worth
$1,800 at the time of the accident, and he files a claim against Roxanne's liability insurance. Bearing in
mind that liability coverage doesn't have a deductible, how much will Roxanne have to pay out-of-pocket
for the damages she caused? - Ans:✔✔-$0
What is the formula for actual cash value? - Ans:✔✔-Replacement cost minus total depreciation
Which of the following is NOT a qualification of an insurable risk? - Ans:✔✔-An insurable risk must have
guaranteed protection from damage.
Page 2/22
, ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
Which of the following incidents would a liability insurance policy cover? - Ans:✔✔-A man slips inside a
grocery store and injures himself.
ABC Masonry, Inc. has an aggregate liability policy with limits of 100,000/300,000. One day, an accident
at a construction site leads to $150,000 in damage to public property. Assuming the cause of loss is
covered under ABC Masonry's liability policy, how will this claim be paid? - Ans:✔✔-The insurer pays
$100,000; the aggregate limit is now $200,000; and ABC Masonry must pay $50,000.
A lightning strike causes one of the storage buildings on John's farm to burn to the ground, aided by the
fuel tanks he kept in the building. John knows he wasn't supposed to store any fuel in the building, so he
keeps that piece of information to himself when he files a claim. John's insurer may deny his claim based
on his: - Ans:✔✔-concealment.
A witness who has had a recorded interview: - Ans:✔✔-must have a chance to correct anything that is
incorrect.
An insurance claim is essentially: - Ans:✔✔-A formal request to settle the damage
Melanie's $300,000 home suffers $90,000 in damage from a fire. The adjuster finds the home's value
since 2008 has depreciated 25%, making the ACV loss $67,500. Although Melanie's policy covers repairs
at their replacement cost, she receives $67,500 at the time of loss. Repairs to her home end up totaling
$79,500. How much, if any, further indemnification may Melanie receive from the loss? - Ans:✔✔-
$12,000
Page 3/22
