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WEST VIRGINIA ADJUSTER EXAM INSURANCE QUESTIONS & VERIFIED ANSWERS UPDATED
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WEST VIRGINIA ADJUSTER EXAM INSURANCE QUESTIONS& VERIFIED ANSWERS UPDATED 2024 - 2025
Which,of,the,following,best,describes,the,insurance,concept,of,"exposure"?,,ANS,-
,,The,possibility,of,damage,or,loss
Strict,liability:,,ANS,-,,holds,a,person,liable,for,his,actions,regardless,of,how,much,care,he,demonstrates.
John,has,purchased,a,homeowners,insurance,policy,with,a,percentage,deductible,based,on,the,total,limit
,of,insurance,for,his,home.,John,insures,his,home,for,$600,000,,and,the,policy,includes,a,3%,deductible.,
A,huge,thunderstorm,passes,through,one,night,and,blows,the,roof,off,his,house.,The,insurance,company,
estimates,that,covered,damage,totals,$80,000.,How,much,indemnification,should,John,expect,for,the,los
ses,to,his,roof?,,ANS,-,,$62,000
Which,of,the,following,statements,best,describes,the,Law,of,Large,Numbers?,,ANS,-
,,The,larger,the,number,of,units,insured,,the,more,accurately,the,insurer,can,predict,the,number,of,claim
s,from,that,group.
A,passenger,on,a,commercial,airline,flight,was,injured,when,the,plane,crashed,due,to,a,mechanical,probl
em.,In,court,,the,injured,passenger's,lawyer,could,invoke,the,doctrine,of:,,ANS,-,,Res,Ipsa,Loquitur.
During,a,violent,summer,storm,in,Tulsa,,a,bolt,of,lightning,hits,Mr.,Jones',house,,damaging,a,large,portio
n,of,the,roof.,In,this,case,,the,insurer,would,call,the,lightning,bolt,a:,,ANS,-
,,a,peril.,Special,damages,are,a,type,of,compensatory,damages.,They,award,money,for,tangible,,economi
c,losses.,General,damages,award,money,for,intangible,losses.
Jerrod,is,awarded,$4000,in,a,court,case,after,Ollie,accidentally,starts,a,fire,and,burns,down,his,detached,
garage.,This,award,is,an,example,of:,,ANS,-,,special,damages.
Which,of,the,following,activities,is,considered,a,speculative,risk?,,ANS,-,,Buying,a,lottery,ticket
To,meet,the,80%,level,of,co-
insurance,required,by,his,lender,,Tom,discovers,he,must,insure,his,home,for,at,least,$320,000.,What,is,th
e,value,of,Tom's,home?,,ANS,-,,$400,000
,Roxanne,runs,a,red,light,and,totals,Ben's,car,in,a,t-
bone,collision.,Roxanne's,auto,policy,includes,liability,coverage,with,limits,of,50/100/25,and,Collision,cov
erage,with,a,deductible,of,$500.,Ben's,car,is,worth,$1,800,at,the,time,of,the,accident,,and,he,files,a,claim,
against,Roxanne's,liability,insurance.,Bearing,in,mind,that,liability,coverage,doesn't,have,a,deductible,,ho
w,much,will,Roxanne,have,to,pay,out-of-pocket,for,the,damages,she,caused?,,ANS,-,,$0
What,is,the,formula,for,actual,cash,value?,,ANS,-,,Replacement,cost,minus,total,depreciation
Which,of,the,following,is,NOT,a,qualification,of,an,insurable,risk?,,ANS,-
,,An,insurable,risk,must,have,guaranteed,protection,from,damage.
Which,of,the,following,incidents,would,a,liability,insurance,policy,cover?,,ANS,-
,,A,man,slips,inside,a,grocery,store,and,injures,himself.
ABC,Masonry,,Inc.,has,an,aggregate,liability,policy,with,limits,of,100,000/300,000.,One,day,,an,accident,a
t,a,construction,site,leads,to,$150,000,in,damage,to,public,property.,Assuming,the,cause,of,loss,is,covere
d,under,ABC,Masonry's,liability,policy,,how,will,this,claim,be,paid?,,ANS,-
,,The,insurer,pays,$100,000;,the,aggregate,limit,is,now,$200,000;,and,ABC,Masonry,must,pay,$50,000.
A,lightning,strike,causes,one,of,the,storage,buildings,on,John's,farm,to,burn,to,the,ground,,aided,by,the,f
uel,tanks,he,kept,in,the,building.,John,knows,he,wasn't,supposed,to,store,any,fuel,in,the,building,,so,he,k
eeps,that,piece,of,information,to,himself,when,he,files,a,claim.,John's,insurer,may,deny,his,claim,based,o
n,his:,,ANS,-,,concealment.
A,witness,who,has,had,a,recorded,interview:,,ANS,-
,,must,have,a,chance,to,correct,anything,that,is,incorrect.
An,insurance,claim,is,essentially:,,ANS,-,,A,formal,request,to,settle,the,damage
Melanie's,$300,000,home,suffers,$90,000,in,damage,from,a,fire.,The,adjuster,finds,the,home's,value,sinc
e,2008,has,depreciated,25%,,making,the,ACV,loss,$67,500.,Although,Melanie's,policy,covers,repairs,at,th
eir,replacement,cost,,she,receives,$67,500,at,the,time,of,loss.,Repairs,to,her,home,end,up,totaling,$79,5
00.,How,much,,if,any,,further,indemnification,may,Melanie,receive,from,the,loss?,,ANS,-,,$12,000
, Which,of,the,following,does,not,apply,to,the,adjuster's,responsibility,of,reporting,to,the,principal?,,ANS,-
,,The,reports,should,include,advice,on,how,to,get,out,of,paying,covered,claims.
A/An,____________,plays,an,advisory,role,in,the,negotiation,process,,working,from,a,neutral,position,to,
assist,the,opposing,parties,to,come,to,an,equitable,resolution.,,ANS,-,,mediator
Which,of,these,is,NOT,an,essential,detail,for,an,adjuster,to,include,in,a,loss,report?,,ANS,-
,,The,policy,premium.,That's,right!,The,policy,premium,(as,long,as,it,has,been,paid,according,to,the,contr
act),has,no,bearing,on,how,the,policy,will,respond,to,a,claim,,so,it,is,not,an,important,detail,for,an,adjust
er,to,include,in,a,loss,report.
What,do,you,call,a,self-employed,adjuster,who,works,as,a,contractor,for,insurers,or,claims-
handling,companies?,,ANS,-,,Independent,adjuster
Which,of,the,following,is,NOT,one,of,the,typical,duties,of,the,insured,after,a,loss?,,ANS,-
,,Provide,a,loss,estimate,from,an,appraiser.
In,a,declaratory,judgment,action:,,ANS,-,,the,court,decides,the,legal,rights,of,both,parties.
Which,of,the,following,is,NOT,a,characteristic,of,a,full,release,settlement?,,ANS,-
,,The,insurer,pays,for,certain,future,"incidentals",related,to,the,claim.
Which,of,the,following,statements,is,TRUE,of,a,claim,dispute,litigated,in,a,state,that,follows,the,doctrine,
of,Contributory,Negligence?,,ANS,-
,,If,the,plaintiff,is,found,to,be,at,all,negligent,,she,will,receive,no,settlement.
Allen,is,adjusting,an,auto,claim,on,behalf,of,ABC,Insurance,,which,has,given,Allen,$5,000,in,draft,authorit
y.,The,total,damages,in,the,auto,claim,come,to,$7,200.,Which,of,the,following,is,true?,,ANS,-
,,Allen,can,adjust,the,claim,,but,ABC,Insurance,must,write,the,settlement,check.
An,adjuster,acts,as,an,agent,for,the,insurer.,As,such,,it,is,essential,that,the,adjuster,understand:,,ANS,-
,,that,her,words,or,actions,may,bind,the,insurance,company.
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