Free WV-ADJ Practice Questions

Question 1

After a restaurant fire, the insurer and owner agree that $28,000 is payable for damaged kitchen equipment. All requirements for that payment have been met. Lost-income figures remain disputed, and paying for the equipment would not prejudice either party's position on that dispute. The owner refuses to sign a release covering the entire loss. How should the adjuster handle the equipment payment?

Accepted Answer

Pay the agreed equipment amount without requiring settlement of the income claim.

Answer

Hold it until the owner signs a release resolving both the equipment and income claims.

Answer

Refer both components to appraisal before making any payment.

Answer

Treat it as an advance repayable if the parties cannot agree on the income claim.

Question 2

While avoiding a deer on a rural road, a driver swerves into a guardrail. The vehicle never touches the deer, and all claimed damage comes from the guardrail impact. The policy covers collision and other-than-collision losses, with direct animal contact assigned to other-than-collision coverage. Which coverage classification applies?

Accepted Answer

Collision, because the vehicle struck the guardrail.

Answer

Other than collision, because an animal set the event in motion.

Answer

Both coverages, because avoidance and impact were separate causes of loss.

Answer

Other than collision, because the driver did not intend to strike an object.

Question 3

At a water-damaged house, an adjuster sees standing water around the basement's electrical panel. Electrical service has not been disconnected, and reaching the panel requires entering the water. The owner wants appliance serial numbers photographed before cleanup starts. What takes priority over documenting the damaged appliances?

Accepted Answer

Keep people out until qualified personnel disconnect the power and verify that the affected equipment is de-energized.

Answer

Have the owner turn off the basement breakers before the adjuster starts documenting the loss.

Answer

Wear ordinary rubber boots and keep the camera above the water during a brief inspection.

Answer

Ask the restoration crew to pump out the basement before arranging an electrical safety assessment.

Question 4

A machine shop's movable equipment has a replacement cost of $600,000 and a used-equipment market value of $420,000. Its $360,000 equipment limit is subject to 80% coinsurance using replacement cost. The policy applies the coinsurance adjustment before a $2,000 deductible. A covered fire causes $96,000 in equipment damage, and all replacement-cost payment conditions are satisfied. How much is payable?

Accepted Answer

$70,000

Answer

$55,600

Answer

$70,500

Answer

$94,000

Question 5

An insured has $100,000 of uninsured motorist bodily-injury coverage but validly rejected underinsured motorist coverage. A negligent driver carrying West Virginia's minimum required liability limits causes the insured $70,000 in bodily-injury damages. That driver's solvent insurer accepts coverage and pays its full $25,000 per-person limit. The insured seeks the unpaid balance under UM coverage. Which conclusion is supported?

Accepted Answer

UM does not pay this shortfall; the at-fault driver was insured.

Answer

UM pays the balance because the liability insurer has exhausted its available per-person limit.

Answer

UIM pays the statutory minimum despite the rejection.

Answer

UM pays after the insured obtains a judgment establishing damages above the liability limit.

Question 6

A shopper trips over her own untied shoelace in a store and incurs $900 in medical expenses. The investigation finds no negligence by the store. Its CGL policy includes Coverage C medical payments with a $5,000 per-person limit. The shopper and expenses satisfy all Coverage C conditions, and no exclusion applies. The adjuster's coverage decision should be:

Accepted Answer

Pay the eligible expenses under Coverage C without requiring proof of store negligence.

Answer

Decline payment because the investigation did not establish the store's legal liability for the fall.

Answer

Withhold payment until the shopper releases any liability claim.

Answer

Pay under Coverage A because any accidental customer injury qualifies as a covered occurrence.

Question 7

A covered fire completely destroys an owner-occupied West Virginia dwelling insured for $240,000. One voluntary-market insurer covers the owner's entire interest, and no other insurer covers that same interest. The dwelling's preloss actual cash value was $190,000; rebuilding would cost $275,000. No deductible or additional coverage applies. What amount governs the dwelling settlement under West Virginia's valued policy law?

Accepted Answer

$240,000, the amount of insurance on the dwelling.

Answer

$190,000, the dwelling's preloss actual cash value.

Answer

$275,000, the current cost to rebuild the dwelling.

Answer

$190,000 initially, with any further payment dependent on rebuilding.

Question 8

Heavy runoff temporarily inundates 1.3 acres of normally dry land, including an insured home and the neighboring property. Water enters the home's aboveground living area and damages the walls. An NFIP Dwelling Form policy with building and contents coverage was already in force. The family also submits hotel bills incurred during repairs. Which coverage assessment is accurate?

Accepted Answer

The event meets the flood definition, but the NFIP policy does not cover the hotel bills.

Answer

The event fails the flood definition because the inundated area is smaller than two acres.

Answer

Both the wall damage and hotel bills are payable because the flood made the home uninhabitable.

Answer

The wall damage is payable, and the hotel bills may use any unspent contents coverage limit.

Question 9

A collision file contains this scheduling note: "Repairable loss; coverage confirmed; vehicle available immediately. Inspect on the ninth working day after notice, within the general 15-working-day investigation period." The insurer requires inspection before repairs. Which instruction should replace the note under West Virginia's automobile-claim rule?

Accepted Answer

Inspect the vehicle, begin negotiations, and make a good-faith offer within seven working days after notice.

Answer

Keep the ninth-day appointment, provided the insurer acknowledges the claim within 15 working days.

Answer

Inspect and make the initial offer within ten working days after receiving notice of the loss.

Answer

Complete the inspection within seven calendar days, then allow 15 working days to begin negotiations.

Question 10

A West Virginia permanent total disability (PTD) review contains two figures: prior permanent partial disability awards totaling 58%, and reevaluated whole-body medical impairment of 42%. All compensable injuries occurred after 2003; there are no scheduled losses or automatically qualifying injuries. The worker treats the award total as proof that the medical threshold is met. How should the two figures be interpreted?

Accepted Answer

Prior awards satisfy eligibility to apply, but the reevaluated impairment is below the medical threshold.

Answer

The 58% prior-award total also establishes the required whole-body medical impairment.

Answer

The 42% impairment permits a PTD award whenever the worker cannot return to the former job.

Answer

The two figures must be combined to decide whether the worker satisfies the statutory PTD presumption threshold.

Free WV-ADJ Practice Questions

Domain 1: WEST VIRGINIA LAWS AND RULES PERTINENT TO ADJUSTERS

Question 1

Question 2

Question 3

Question 4

Question 5

Domain 2: COMMERCIAL LINES COVERAGE

Question 6

Domain 3: PERSONAL LINES COVERAGE

Question 7

Domain 4: MISCELLANEOUS COVERAGE

Question 8

Domain 5: INSURANCE TERMS AND CONCEPTS

Question 9

Question 10

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