West Virginia Adjusters Exam 2 2025
Questions and Answers
Chris and Matt are playing a friendly game of one-on-one basketball in Matt's
driveway. When Chris goes up for a slam dunk, Matt accidentally trips him while
attempting to block the shot. Chris lands hard and tears the ACL in his left knee.
Matt's homeowners liability insurance will cover Chris' medical bills because: -
ANSWER-Matt's actions were unintentional, but negligent.
Which of the following statements about insurance is FALSE? - ANSWER-If the
policy limit is greater than the value of the insured item, the claimant may profit
from a total loss.
Which of the following statements applies to actual cash value? - ANSWER-Actual
cash value generally reflects the fair market value of an item.
Policy rescission means: - ANSWER-declaring that the policy was never a valid
agreement.
Skip's Convenience Store suffers severe fire damage after a gas pump explodes.
The adjuster asks if the emergency shutoff system, which is required by the policy,
was properly maintained and functional at the time of the accident. Skip says "yes,"
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, even though the system was actually broken at the time. Which of the following
statements is true? - ANSWER-Skip is guilty of misrepresentation and violating a
warranty, so the insurer could deny the claim.
A(n) ________ is a bilateral statement that must be signed by the policyholder. It
says that the insurer may continue to investigate a claim or defend the policyholder
in court, but that it still keeps its right to deny coverage. - ANSWER-non-waiver
agreement
All of the following scenarios may be covered under a liability insurance policy,
except: - ANSWER-A homeowner's son breaks her window with a baseball while
playing in the back yard.
Melinda's home sustained $6,500 in damage when Jared ran into it with his truck.
Melinda received $6,500 from her insurance company, and Jared also paid her
$5,000. Melinda has now profited from this loss and is in violation of: - ANSWER-
the principle of indemnity.
Darren's SUV cost him $28,500 when he bought it new five years ago, but it would
cost $29,600 to replace it today. The vehicle has an annual depreciation of $1,200.
Darren loses control while driving too fast around a bend in the road and flips his
vehicle, totaling it. Assuming Darren's auto insurance policy pays ACV, how much
can he expect to receive in indemnification for this claim? - ANSWER-$23,600
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
Questions and Answers
Chris and Matt are playing a friendly game of one-on-one basketball in Matt's
driveway. When Chris goes up for a slam dunk, Matt accidentally trips him while
attempting to block the shot. Chris lands hard and tears the ACL in his left knee.
Matt's homeowners liability insurance will cover Chris' medical bills because: -
ANSWER-Matt's actions were unintentional, but negligent.
Which of the following statements about insurance is FALSE? - ANSWER-If the
policy limit is greater than the value of the insured item, the claimant may profit
from a total loss.
Which of the following statements applies to actual cash value? - ANSWER-Actual
cash value generally reflects the fair market value of an item.
Policy rescission means: - ANSWER-declaring that the policy was never a valid
agreement.
Skip's Convenience Store suffers severe fire damage after a gas pump explodes.
The adjuster asks if the emergency shutoff system, which is required by the policy,
was properly maintained and functional at the time of the accident. Skip says "yes,"
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, even though the system was actually broken at the time. Which of the following
statements is true? - ANSWER-Skip is guilty of misrepresentation and violating a
warranty, so the insurer could deny the claim.
A(n) ________ is a bilateral statement that must be signed by the policyholder. It
says that the insurer may continue to investigate a claim or defend the policyholder
in court, but that it still keeps its right to deny coverage. - ANSWER-non-waiver
agreement
All of the following scenarios may be covered under a liability insurance policy,
except: - ANSWER-A homeowner's son breaks her window with a baseball while
playing in the back yard.
Melinda's home sustained $6,500 in damage when Jared ran into it with his truck.
Melinda received $6,500 from her insurance company, and Jared also paid her
$5,000. Melinda has now profited from this loss and is in violation of: - ANSWER-
the principle of indemnity.
Darren's SUV cost him $28,500 when he bought it new five years ago, but it would
cost $29,600 to replace it today. The vehicle has an annual depreciation of $1,200.
Darren loses control while driving too fast around a bend in the road and flips his
vehicle, totaling it. Assuming Darren's auto insurance policy pays ACV, how much
can he expect to receive in indemnification for this claim? - ANSWER-$23,600
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
