West Virginia Adjuster Laws &
Regulations - FINAL Questions and
Answers A+ Graded
The .ABC .Company .has .a .printing .press .that .suffers .a .total .loss. .The .company
.paid .$25,000 .ten .years .ago .for .the .press. .Actual .cash .value .is .$40,000, .and .the
.replacement .cost .is .$55,000. .The .company .has .had .to .cancel .several .contracts
.for .printing .due .to .the .loss .of .the .press .and .they .are .anxious .to .resume .full
.production. .ABC .Company .is .covered .under .a .Business .Owner's .Policy .(BOP).
.They .will .receive .the .following .amount .from .the .insurer:
A. .$25,000
B. .$55,000
C. .$40,000
D. .$20,000 .- .CORRECT .ANSWER .-B. .$55,000
Personal .Excess .Liability .coverage .provides .which .of .the .following?
A. .Identical .limits .to .the .underlying .policies.
B. .The .same .limits .as .under .primary .policies .for .covered .losses.
C. .Higher .limits.
D. .Coordinates .limits .with .other .policies. .- .CORRECT .ANSWER .-C. .Higher
.limits.
Which .of .the .following .does .not .have .an .insurable .interest .in .real .property?
A. .Prior .interest
B. .Present .interest
C. .Mortgagee .interest
D. .Additional .interest .- .CORRECT .ANSWER .-A. .Prior .interest
Oliver .Dogwood .was .in .an .auto .accident .which .destroyed .his .car. .While
.investigating .the .accident, .Adjuster .Doright .found .that .Mr. .Dogwood .paid
.$1,000 .for .the .vehicle. .After .checking .with .others .he .found .the .same .vehicle
.with .an .asking .price .of .$1,700, .a .retail .price .of .$2,150 .and .a .dealer .price .of
.$1,750. .What .amount .will .Mr. .Dogwood .receive?
A. .$1,950
B. .$2,150
C. .$1,000
D. .$1,700 .- .CORRECT .ANSWER .-B. .$2,150
Mr. .Unlucky .had .his .pickup .truck .stolen .while .it .was .parked .in .a ."No .Parking"
.zone .outside .his .office. .The .value .of .the .truck .was .$18,500. .In .addition, .tools
.valued .at .$200, .extra .tires .and .hubcaps .for .the .truck .valued .at .five .hundred
.and .fifty .dollars .and .a .tarp .worth .$50 .were .in .the .truck. .Mr. .Unlucky .has .a
, .collision .deductible .of .$500 .and .a .comprehensive .deductible .of .$250. .The
.company .will .pay .what .amount?
A. .$18,000
B. .$18,800
C. .$18,250
D. .$19,050 .- .CORRECT .ANSWER .-B. .$18,800
In .settling .a .claim .on .a .dwelling .fire .policy .with .a .$10,000 .loss, .the .following
.companies .are .involved, .Company .A .- .50%; .Company .B .- .45% .and .Company .C
.- .5%. .What .will .Company .C .pay?
A. .$10,000
B. .$1,000
C. .$4,500
D. .$500 .- .CORRECT .ANSWER .-D. .$500
The .______ .states .that .insurers .issuing .fire .insurance .policies .on .real .property
.in .West .Virginia .are .liable .for .the .whole .amount .of .insurance .on .the .property .in
.case .of .total .loss .by .fire .or .as .otherwise .stated .in .the .policy.
A. .comparative .negligence .principle
B. .valued .policy .law
C. .principle .of .insurable .interest
D. .assigned .risk .principle .- .CORRECT .ANSWER .-B. .valued .policy .law
The .primary .purpose .of .the .West .Virginia .Automobile .Insurance .Plan .is .to:
A. .pay .auto .liability .claims .for .insolvent .insurers.
B. .here .consumer .complaints .against .insurance .companies.
C. .protect .policyholders .against .insurer .impairments.
D. .provide .auto .liability .insurance .for .individuals .unable .to .obtain .it .in .the
.normal .marketplace. .- .CORRECT .ANSWER .-D. .provide .auto .liability .insurance
.for .individuals .unable .to .obtain .it .in .the .normal .marketplace.
Coverage .provided .under .West .Virginia .FAIR .Plan .may .not .exceed .________ .for
.any .one .habitational .risk .or .commercial .risk.
A. .$150,000/ .$300,000
B. .$200,000/ .$500,000
C. .$100,000/ .$400,000
D. .$100,000/ .$250,000 .- .CORRECT .ANSWER .-B. .$200,000/ .$500,000
A .basic .Commercial .General .Liability .policy .excludes .coverage .for .which .of .the
.following?
I. .A .newly .acquired .business
II. .Property .in .the .insured's .care, .custody .and .control
III. .An .elevator .maintenance .agreement
A. .I .only
B. .II .only
C. .III .only
D. .I, .II, .and .III .- .CORRECT .ANSWER .-B. .II .only
Regulations - FINAL Questions and
Answers A+ Graded
The .ABC .Company .has .a .printing .press .that .suffers .a .total .loss. .The .company
.paid .$25,000 .ten .years .ago .for .the .press. .Actual .cash .value .is .$40,000, .and .the
.replacement .cost .is .$55,000. .The .company .has .had .to .cancel .several .contracts
.for .printing .due .to .the .loss .of .the .press .and .they .are .anxious .to .resume .full
.production. .ABC .Company .is .covered .under .a .Business .Owner's .Policy .(BOP).
.They .will .receive .the .following .amount .from .the .insurer:
A. .$25,000
B. .$55,000
C. .$40,000
D. .$20,000 .- .CORRECT .ANSWER .-B. .$55,000
Personal .Excess .Liability .coverage .provides .which .of .the .following?
A. .Identical .limits .to .the .underlying .policies.
B. .The .same .limits .as .under .primary .policies .for .covered .losses.
C. .Higher .limits.
D. .Coordinates .limits .with .other .policies. .- .CORRECT .ANSWER .-C. .Higher
.limits.
Which .of .the .following .does .not .have .an .insurable .interest .in .real .property?
A. .Prior .interest
B. .Present .interest
C. .Mortgagee .interest
D. .Additional .interest .- .CORRECT .ANSWER .-A. .Prior .interest
Oliver .Dogwood .was .in .an .auto .accident .which .destroyed .his .car. .While
.investigating .the .accident, .Adjuster .Doright .found .that .Mr. .Dogwood .paid
.$1,000 .for .the .vehicle. .After .checking .with .others .he .found .the .same .vehicle
.with .an .asking .price .of .$1,700, .a .retail .price .of .$2,150 .and .a .dealer .price .of
.$1,750. .What .amount .will .Mr. .Dogwood .receive?
A. .$1,950
B. .$2,150
C. .$1,000
D. .$1,700 .- .CORRECT .ANSWER .-B. .$2,150
Mr. .Unlucky .had .his .pickup .truck .stolen .while .it .was .parked .in .a ."No .Parking"
.zone .outside .his .office. .The .value .of .the .truck .was .$18,500. .In .addition, .tools
.valued .at .$200, .extra .tires .and .hubcaps .for .the .truck .valued .at .five .hundred
.and .fifty .dollars .and .a .tarp .worth .$50 .were .in .the .truck. .Mr. .Unlucky .has .a
, .collision .deductible .of .$500 .and .a .comprehensive .deductible .of .$250. .The
.company .will .pay .what .amount?
A. .$18,000
B. .$18,800
C. .$18,250
D. .$19,050 .- .CORRECT .ANSWER .-B. .$18,800
In .settling .a .claim .on .a .dwelling .fire .policy .with .a .$10,000 .loss, .the .following
.companies .are .involved, .Company .A .- .50%; .Company .B .- .45% .and .Company .C
.- .5%. .What .will .Company .C .pay?
A. .$10,000
B. .$1,000
C. .$4,500
D. .$500 .- .CORRECT .ANSWER .-D. .$500
The .______ .states .that .insurers .issuing .fire .insurance .policies .on .real .property
.in .West .Virginia .are .liable .for .the .whole .amount .of .insurance .on .the .property .in
.case .of .total .loss .by .fire .or .as .otherwise .stated .in .the .policy.
A. .comparative .negligence .principle
B. .valued .policy .law
C. .principle .of .insurable .interest
D. .assigned .risk .principle .- .CORRECT .ANSWER .-B. .valued .policy .law
The .primary .purpose .of .the .West .Virginia .Automobile .Insurance .Plan .is .to:
A. .pay .auto .liability .claims .for .insolvent .insurers.
B. .here .consumer .complaints .against .insurance .companies.
C. .protect .policyholders .against .insurer .impairments.
D. .provide .auto .liability .insurance .for .individuals .unable .to .obtain .it .in .the
.normal .marketplace. .- .CORRECT .ANSWER .-D. .provide .auto .liability .insurance
.for .individuals .unable .to .obtain .it .in .the .normal .marketplace.
Coverage .provided .under .West .Virginia .FAIR .Plan .may .not .exceed .________ .for
.any .one .habitational .risk .or .commercial .risk.
A. .$150,000/ .$300,000
B. .$200,000/ .$500,000
C. .$100,000/ .$400,000
D. .$100,000/ .$250,000 .- .CORRECT .ANSWER .-B. .$200,000/ .$500,000
A .basic .Commercial .General .Liability .policy .excludes .coverage .for .which .of .the
.following?
I. .A .newly .acquired .business
II. .Property .in .the .insured's .care, .custody .and .control
III. .An .elevator .maintenance .agreement
A. .I .only
B. .II .only
C. .III .only
D. .I, .II, .and .III .- .CORRECT .ANSWER .-B. .II .only
