WV Property and Casualty Licensing
Exam
all of the following statements are true when an insurance company cancels a standard
commercial package policy, EXCEPT:
the insurer is not permitted to cancel a cpp midterm.
any uep is returned to the insured on a prorata basis.
a 30 day notice to the insured is required for any reason approved in the policy for
cancellation.
the cancellation notice to the insured must be in writing. - correct answer-the insurer is not
permitted to cancel a cpp midterm.
an "admitted insurer" in WV is:
any insurer licensed to conduct business within the borders of the US, it's territories ad
possessions.
any insurer formed under the laws of WV.
any insurer licensed to conduct business within the state.
any incorporated insurer with capital owned by the state of WV. - correct answer-any insurer
licensed to conduct business within the state.
coverage E under the farm forms covers which of the following?:
unscheduled personal property
scheduled personal property
scheduled real property coverage
blanket real property coverage - correct answer-scheduled personal property
due to inflation guard percentage, the building coverage under a businessowners policy will:
decrease by 2% each year as the building depreciates.
increase by 8% per year, unless another amount is shown in the declarations.
decreased by 8% per year as the building depreciates.
increased by 4% per year, unless another amount is shown in the declarations. - correct
answer-increase by 8% per year, unless another amount is shown in the declarations.
how are losses settled under a typical inland marine policy?:
actual cash value
replacement cost
functional replacement cost
cost to repair only basis - correct answer-actual cash value
, in WV, the board of insurance education sets the requirements for prelicensing and continue
education. this board is comprised of the insurance commissioner and six members who are
represented by: - correct answer-two p & c agents, one health agent, one representative
from a domestic company, and one representative from a foreign company
medical payments coverage under the farmowners policy covers which of the following?:
injuries sustained by an invitee.
injuries sustained by a farm employee.
injuries sustained by the insured.
injuries sustained by a tenant living in the insured's dwelling. - correct answer-injuries
sustained by an invitee.
minimum automobile liability limits that must be carried in WV are:
20/40/10
20/20/10
25/50/25
40/20/10 - correct answer-25/50/25
Pete is covered under a personal auto policy with indemnify insurance when his car is
stolen. Six months pass, Pete's car is never found and the policy period with indemnify
expires. he decides to purchase another personal auto policy with fiduciary insurance, inc.
He is covered under the policy with fiduciary for about three months, When his stolen auto
Mobile is found with only minor physical damage. How will this claim be handled?: - correct
answer-the indemnify insurance will pay the claim
rachel's home is worth $525,000. she has the home covered under a $500,00 homeowners
policy with a 1.5% deductible. when rachel's husband sets their kitchen on fire while frying a
turkey, he accidentally causes $36,000 in damages. how much can rachel and her husband
expect to receive in their settlement?:
$28,500
$28,125
$35,460
$35,125 - correct answer-$28,500
some items covered under the ISO standardized businessowners policy have a theft limit.
which of the following items does not have a specific theft limitation?:
furs and fur garments.
jewelry, watches, watch movements, pearls, jewels, precious and semi-precious stones,
bullion, gold, silver, platinum and other precious alloys or metals.
tobacco products.
patterns, dies, molds. - correct answer-tobacco products.
the base deductible of 5% under the earthquake endorsement can be converted to a specific
dollar amount by:
