West Virginia Adjusters Exam 2025
Questions and Answers
Which of the following is NOT an example of an "indirect loss"? - ANSWER-
During a fire, the fire department hoses down a house to extinguish the flames.
The water damage that results is an indirect loss.
When the settlement difference between an insurer and a claimant is minor: -
ANSWER-it should be settled in favor of the claimant.
Which of the following activities is a speculative risk? - ANSWER-Betting on a
horse race
Which of the following provisions is NOT included in the Legal Action Against
the Insurer clause in an insurance policy? - ANSWER-The insurer will pay to
defend the insured in a lawsuit, up to the policy limit.
Sara's vehicle was stolen and her insurer paid her theft claim for the total value of
the car. A week later, the police found Sara's car and returned it to her. Which of
the following statements is true? - ANSWER-The Recovered Property provision
states that Sara must notify the insurer and either return the settlement payment or
surrender the vehicle to the insurer.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, During a storm, lightning strikes a tree in Norman's back yard, causing it to fall on
his house and damage his roof. In this case, Norman's fallen tree is considered: -
ANSWER-a direct loss.
When an insurer takes no action upon realizing material changes in a contract, this
is called: - ANSWER-an implied waiver.
All of the following statements are true of liability insurance, EXCEPT: -
ANSWER-Liability insurance provides indemnification for the insured.
Robby carpools to school with his friends, and he enjoys racing the other cars on
the road whenever he can. His Dad lectures him about the dangers of speeding,
but Robby thinks his Dad is overreacting. He's been driving for two whole years,
so he knows what he's doing. And besides, they have good insurance, so it
wouldn't be that big of a deal even if Robby did damage his car. In insurance
terms, Robby's behavior is: - ANSWER-a morale hazard.
Jack's home is valued at $950,000. How much insurance does he need to carry on
his home in order to be fully insured under a typical insurance policy? - ANSWER-
$760,000
Bryce's business has a commercial liability policy with a per occurrence limit and an
aggregate limit. The limits in the policy are $100,000/$200,000. What does this
mean? - ANSWER-Bryce's policy will pay up to $100,000 per occurrence, and up
to $200,000 during the whole policy term.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
Questions and Answers
Which of the following is NOT an example of an "indirect loss"? - ANSWER-
During a fire, the fire department hoses down a house to extinguish the flames.
The water damage that results is an indirect loss.
When the settlement difference between an insurer and a claimant is minor: -
ANSWER-it should be settled in favor of the claimant.
Which of the following activities is a speculative risk? - ANSWER-Betting on a
horse race
Which of the following provisions is NOT included in the Legal Action Against
the Insurer clause in an insurance policy? - ANSWER-The insurer will pay to
defend the insured in a lawsuit, up to the policy limit.
Sara's vehicle was stolen and her insurer paid her theft claim for the total value of
the car. A week later, the police found Sara's car and returned it to her. Which of
the following statements is true? - ANSWER-The Recovered Property provision
states that Sara must notify the insurer and either return the settlement payment or
surrender the vehicle to the insurer.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, During a storm, lightning strikes a tree in Norman's back yard, causing it to fall on
his house and damage his roof. In this case, Norman's fallen tree is considered: -
ANSWER-a direct loss.
When an insurer takes no action upon realizing material changes in a contract, this
is called: - ANSWER-an implied waiver.
All of the following statements are true of liability insurance, EXCEPT: -
ANSWER-Liability insurance provides indemnification for the insured.
Robby carpools to school with his friends, and he enjoys racing the other cars on
the road whenever he can. His Dad lectures him about the dangers of speeding,
but Robby thinks his Dad is overreacting. He's been driving for two whole years,
so he knows what he's doing. And besides, they have good insurance, so it
wouldn't be that big of a deal even if Robby did damage his car. In insurance
terms, Robby's behavior is: - ANSWER-a morale hazard.
Jack's home is valued at $950,000. How much insurance does he need to carry on
his home in order to be fully insured under a typical insurance policy? - ANSWER-
$760,000
Bryce's business has a commercial liability policy with a per occurrence limit and an
aggregate limit. The limits in the policy are $100,000/$200,000. What does this
mean? - ANSWER-Bryce's policy will pay up to $100,000 per occurrence, and up
to $200,000 during the whole policy term.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
