Free WV Adjuster Practice Questions

Sample Practice Questions

Try these 10 sample questions from the WV Adjuster practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1Which description identifies a West Virginia company adjuster?

   1. A. A staff employee paid by an insurance company who investigates, negotiates, or settles claims
   2. B. A contractor paid by insureds to negotiate first-party property claims
   3. C. A contractor retained by several insurers and treated as self-employed for tax purposes
   4. D. An investigator who gathers fraud facts but makes no coverage or payment decision

   Answer: A

   Explanation: A company adjuster is "a staff employee of an insurance company" who is paid by that company and adjusts claims. The other choices describe a public adjuster, an independent adjuster, or an exempt fraud investigator.

   Reference: Wv Rule 114 25 (2026) — 114CSR25 §2.4

2. 2A business building sustains direct physical damage from a cause of loss that is not listed among basic or broad form perils and is not excluded. Which commercial property cause-of-loss form is designed to respond on that basis?

   1. A. The basic cause-of-loss form
   2. B. The broad cause-of-loss form
   3. C. The special cause-of-loss form
   4. D. The named-perils cause-of-loss form

   Answer: C

   Explanation: The NAIC describes the special form as including "all other direct physical losses except conditions specifically excluded and listed in the policy." The described loss fits that open-peril structure; basic and broad forms rely on listed perils.

   Reference: NAIC Small Business Insurance — What is business property insurance? / three types of business property insurance

3. 3An owner has a dwelling fire form and asks whether the form itself also protects household contents and personal liability. Which description matches the form?

   1. A. Dwelling and contents, without personal liability
   2. B. Dwelling and personal liability, without contents
   3. C. Dwelling only, without contents or personal liability
   4. D. Contents and personal liability, without dwelling

   Answer: C

   Explanation: The NAIC guide says, "The Dwelling Fire Form covers only your dwelling. It does not cover your personal property, personal liability or medical payments." The form protects the dwelling but does not itself extend to the other two interests in the question.

   Reference: NAIC A Consumer's Guide to Home Insurance — p. 2, Types of Policies / Dwelling Fire Form

4. 4An insured pleasure boat strikes another owner's dock. The boatowners claim includes damage to the insured boat, its motor and trailer, and to the dock. Which damaged property represents the policy's liability interest rather than its first-party property interest?

   1. A. The other owner's dock damaged by the insured boat
   2. B. The insured boat's hull damaged in the collision
   3. C. The insured boat's motor damaged in the collision
   4. D. The insured boat's trailer damaged in the collision

   Answer: A

   Explanation: NAIC describes Boatowners/Personal Watercraft insurance as covering "damage to pleasure boats, motors, trailers, boating equipment, and personal watercraft as well as bodily injury and property damage liability to others." The other owner's dock is another person's property and falls on the liability side. The insured hull, motor and trailer are first-party boat property, not third-party liability.

   Reference: NAIC Glossary of Insurance Terms — Boatowners/Personal Watercraft

5. 5Which conduct is a fraudulent insurance act when done knowingly and with intent to defraud?

   1. A. Presenting false information material to a claim for policy payment or benefit
   2. B. Presenting accurate information material to a disputed coverage position
   3. C. Presenting an estimate that differs from the insurer's independent estimate
   4. D. Presenting a claim after obtaining advice from an independent adjuster

   Answer: A

   Explanation: The definition covers false information material to "a claim for payment or benefit pursuant to an insurance policy or reinsurance contract."

   Reference: §33-41 — Section 33-41-2(e)(1)(C)

6. 6Which person fits West Virginia's definition of an independent adjuster?

   1. A. A salaried insurer employee who investigates, negotiates, or settles claims only for that employer
   2. B. A contractor who adjusts property, casualty, or workers' compensation claims for insurers or self-insurers
   3. C. A representative retained and compensated by an insured to negotiate a first-party property claim
   4. D. A licensed producer who services policies but has no authority to determine claims

   Answer: B

   Explanation: The definition covers a contractor who "investigates, negotiates, or settles property, casualty, or workers’ compensation claims for insurers or self-insurers."

   Reference: Wv Rule 114 25 (2026) — 114CSR25 §2.7

7. 7A customer is injured after slipping in a retailer's store and sues the retailer for bodily injury. Which commercial coverage should the adjuster examine for the retailer's liability?

   1. A. Commercial auto liability insurance
   2. B. Commercial general liability insurance
   3. C. Workers' compensation insurance
   4. D. Employment practices liability insurance

   Answer: B

   Explanation: The NAIC explains, "If someone falls while visiting your business, or if a customer is hurt by a product you sell, you can be held responsible." It identifies business liability, or CGL, for that exposure. The customer is not an employee, the injury did not arise from vehicle operation, and the claim is not an employment practice.

   Reference: NAIC Small Business Insurance — What's general liability insurance?

8. 8A homeowners claim involves direct property damage from a peril the policy does not specifically exclude. Which homeowners form provides the described all-perils-except-exclusions structure?

   1. A. The Basic Form
   2. B. The Broad Form
   3. C. The Modified Coverage Form
   4. D. The Special Form

   Answer: D

   Explanation: The NAIC states, "The Special Form is the most popular of all homeowners forms. It insures your property against all perils, except those the policy specifically names as not covered." The special form uses that exclusion-based structure; the other named forms insure listed perils.

   Reference: NAIC A Consumer's Guide to Home Insurance — p. 2, Types of Policies / Special Form

9. 9A homeowner purchases an NFIP Building Property form but also wants flood coverage for household furniture. What additional coverage should the homeowner obtain for those contents?

   1. A. A larger Building Property limit alone
   2. B. A separate Personal Property coverage
   3. C. An Increased Cost of Compliance limit
   4. D. A homeowners dwelling-only coverage

   Answer: B

   Explanation: NAIC explains, "Under the NFIP, personal property inside your home is not covered under the Building Property coverage form. However, coverage is available up to $100,000 for an additional premium." Therefore the homeowner needs separate contents or Personal Property coverage; increasing the building limit does not add furniture.

   Reference: NAIC Flood Insurance — Know Your Flood Policies / Homeowners Content

10. 10Which item is not a statement under West Virginia's insurance-fraud definition?

    1. A. An oral report to an insurer
    2. B. A proof of loss
    3. C. An invoice
    4. D. An uncommunicated private thought

    Answer: D

    Explanation: A statement is "any written or oral representation" and expressly includes oral reports, proofs of loss, and invoices. An uncommunicated thought is not a representation made to anyone.

    Reference: §33-41 — Section 33-41-2(l)