Free Property and Casualty Insurance Basics Practice Questions
West Virginia Property & Casualty exam — 93 practice questions.
Subtopics: Premium audit, Valued policy law, Valued policy exception, Valued policy and FAIR Plan, Standard fire policy, Multiple line policies, Fire and marine forms, Suit limitation clauses, Fire insurance defined, Kinds of insurance, Boiler and machinery, Federal flood insurance, Insurable interest, Loss valuation, Coinsurance, Negligence, Damages, Types of loss, Insurer provisions, Other insurance, Liability, Limits of liability, Deductibles, Policy structure, Policy conditions, Actual cash value, Replacement cost, Pair and set clause, Vacancy provision, Mortgagee rights, Appraisal condition, Proof of loss, Salvage and abandonment, Liberalization clause, Assignment condition, Binder, Sublimit, Named perils vs open perils, Burden of proof, Direct vs indirect loss, Comparative negligence, Strict liability, Vicarious liability, Punitive damages, Special vs general damages, Proximate cause, Absolute liability, Hold harmless, Bailee liability, Attractive nuisance, Res ipsa loquitur, Coinsurance calculation, Actual cash value calculation, Split limits application, Underwriting, Credit-based insurance scores, Loss ratio, Insureds, Cancellation, Policy territory, No benefit to bailee, Duty to defend, Claim settlement, Appraisal, Duties after loss, Abandonment, Retrospective rating, Class rating, Judgment rating
Read the Property and Casualty Insurance Basics study guide
Sample questions & answers
1. Many commercial policies are subject to a premium audit because the final premium depends on:
Actual exposures, such as payroll or sales, during the policy period
Premium audits adjust the final premium to the insured's actual exposures, such as payroll or sales, developed during the term.
2. Under West Virginia's valued policy law, when insured real property is a total loss by fire, the insurer is liable for:
The whole amount of insurance stated in the policy on that real property
W. Va. Code 33-17-9 makes fire insurers on West Virginia real property liable, in a total loss, for the whole amount of insurance stated in the policy on that property.
3. Under W. Va. Code 33-17-9, a partial fire loss to insured real property is paid at:
The full amount of the partial loss, up to the policy amount
For a partial loss, the statute makes the insurer liable for the total amount of the partial loss, up to the amount of insurance stated on the real property.
4. West Virginia's valued policy law does NOT apply when:
Two or more insurers cover the same interest
W. Va. Code 33-17-9 states that it does not apply where insurance has been procured from two or more insurers covering the same interest.
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Practice: Property and Casualty Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
