WV Adjuster Test Questions and Answers

WV Adjuster Test Questions and Answers What is the definition of a public adjuster? - Ans:-An adjuster who works for the insured If an insurance company is fined (max $1000) by commissioner, how many days do they have to pay or appeal the fine? - Ans:-30 Days Subrogation occurs when? - Ans:-The insurer steps into the position of the insured and may collect from the responsible party for damages What is the purpose of excess insurance? - Ans:-To provide additional liability coverage above and beyond that which is provided by the primary policy How is the value of personal property determined when using ACV? - Ans:-Replacement cost less depreciation How long does an insurance company have to furnish the insurance commissioner with a complete written response to an inquiry other than a notice of 3rd party administrative complaints? - Ans:-15 days Which of the following options correctly states the effect of WVs modified comparative negligence law in a situation in which each is equally liable (each party of 50% liable) - Ans:-Neither party collects from the other ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 2/13 Driver B loses control of his vehicle and strikes Driver A. Under what theory does Driver A collect damages from Driver B? - Ans:-Legal Liability There are 3 home owners policies in effect, which all apply to a single loss. The policies provide the following amounts of coverage. Company A 50,000 Company B 40,000 Company C 10,000 The insured suffered a $10,000 loss to his home. What amount will Company C pay? - Ans:-$1,000 How long does an insurance company have to give a 3rd party claimant, who is not an attorney, nor represented by an attorney, written notice that the claimants rights may be affected by a statue of limitations or a policy or contract time limit? - Ans:-60 Days An insured has his vehicle stolen. When recovered there was $2,000 damage, due to collision and $450 in stolen hubcaps. There is a $200 collision deductible and a $100 comprehensive deductible. What is the maximum amount the insured will pay? - Ans:-Add up all the damages and then subtract the comprehensive deductible. What is the purpose of WVs guaranty association? - Ans:-To pay claims when the insurer has become insolvent ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 3/13 In a homeowners policy, what coverages are included in Section 1 & 2? - Ans:-Dwelling & Personal Property, and BI Liability & Medical Payments What is the purpose of WVs Essential Insurance Act "Fair Plan"? - Ans:-To provide homeowners and business owners, who would not otherwise be able to get insurance from the normal insurance marketplace, the ability to obtain insurance What is the law regarding as it relates to the insureds liability? - Ans:-It is forbidden to exclude liability coverage for the guest passenger, under any circumstances How much time does an insurer have to inspect? - Ans:-7 days Under the fire prevention act, what must an adjuster do whenever arson is suspected? - Ans:-Notify the state fire marshall What does an adjuster do when a state fire marshall requests information? - Ans:-Provide the fire marshall with all the information you have How long does an insurance company have to provide to every first party claimant, or to the claimants authorized representative notification of all items, statements, forms, if any which the insurer reasonably believes will be required of such claimant? - Ans:-15 days ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 4/13 A business owners policy is obtained in the amount of $100,000. 10 day later there is a total loss. Replacement cost value is $125,000, ACV is $90,000. What amount does the insurer pay? - Ans:- $100,000 There's a building and property policy with a "special cause of loss" form. Which of the following is covered? - Ans:-Drain back up Which of the following is not covered under a water craft policy? - Ans:-Jewlery that is on the boat Who does not need to be licensed in WV? - Ans:-Adminisitrative support person who performs clerical duties. How long does an insurance company have to notify the claimant in writing if more than 30 calendar days from the date that a proof of loss from a first party claimant or notice of claim from a third party claimant is received are needed to determine whether a claim should