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WV Licensing Test Study Questions
Questions and Correct Answers/ Latest
Update / Already Graded
1. Methods of risk management include:
A. Transfer
B. Sharing
C. Avoidance
D. All of the above.
Ans: 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
Ans: B. First party
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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
Ans: 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
Ans: 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
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B. The Conditions
C. The Exclusions
D. The Limitations
Ans: 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
Ans: 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
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Ans: 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
Ans: 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
Ans: C. Stated amount
10. The cost of replacement minus depreciation is the definition of:
A. Valued Policy
B. Market Value
All rights reserved © 2025/ 2026 |
WV Licensing Test Study Questions
Questions and Correct Answers/ Latest
Update / Already Graded
1. Methods of risk management include:
A. Transfer
B. Sharing
C. Avoidance
D. All of the above.
Ans: 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
Ans: B. First party
All rights reserved © 2025/ 2026 |
, Page |2
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
Ans: 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
Ans: 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
All rights reserved © 2025/ 2026 |
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B. The Conditions
C. The Exclusions
D. The Limitations
Ans: 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
Ans: 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
All rights reserved © 2025/ 2026 |
, Page |4
Ans: 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
Ans: 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
Ans: C. Stated amount
10. The cost of replacement minus depreciation is the definition of:
A. Valued Policy
B. Market Value
All rights reserved © 2025/ 2026 |
