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Free WV Casualty Practice Questions

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Sample Practice Questions

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

  1. 1A contractor finishes installing a ceiling. Months later, the finished ceiling falls and injures a visitor. Which CGL exposure describes the contractor's potential liability?

    1. A. Premises and operations liability
    2. B. Products and completed operations liability
    3. C. Personal and advertising injury liability
    4. D. Contractual liability assumed by the insured

    Answer: B

    Explanation: "Completed operations covers your potential liability for bodily injury or property damage that arises out of your completed work." The ceiling failure followed completed installation, so the completed-operations CGL exposure is the one tested. Premises operations concerns activity at the site; personal/advertising injury and contractual liability are distinct CGL exposures.

    Reference: California Department of Insurance Commercial Insurance Guide — Commercial Insurance Guide, Commercial General Liability, Products and Completed Operations

  2. 2An insured becomes careless about preventing small losses because insurance will pay for them, but is not acting dishonestly. Which hazard best describes this disregard?

    1. A. Physical hazard arising from a tangible unsafe condition
    2. B. Morale hazard arising from the insured's careless disregard
    3. C. Moral hazard arising from a deliberate dishonest scheme
    4. D. Legal hazard arising from changes in civil liability rules

    Answer: B

    Explanation: "Morale Hazard - negligence or disregard on the part of the insured which could lead to probable loss." Morale hazard is negligence or disregard that raises the prospect of loss, whereas moral hazard concerns personality traits associated with loss, often dishonest behavior.

    Reference: NAIC Glossary of Insurance Terms — Glossary, Morale Hazard

  3. 3An agent needs to confirm the insured business's policy effective dates, selected coverage amounts, and deductible before reviewing a claim. Which policy section normally lists these scheduled facts?

    1. A. The exclusions
    2. B. The declarations
    3. C. The policy conditions
    4. D. The insuring agreement

    Answer: B

    Explanation: "the policy number, effective and expiration dates, premium payable, the amount and types of coverage, and the deductibles." Scheduled effective dates, purchased coverage amounts and deductibles appear on the declarations. Exclusions, conditions and the insuring agreement have different contract roles.

    Reference: California Department of Insurance Commercial Insurance Guide — Commercial Insurance Guide, glossary, Declarations

  4. 4Which official is charged with enforcing West Virginia's insurance chapter?

    1. A. The Secretary of State
    2. B. The Insurance Commissioner
    3. C. The Attorney General
    4. D. The State Treasurer

    Answer: B

    Explanation: West Virginia Code §33-2-3 says the Insurance Commissioner "shall enforce the provisions of this chapter." Therefore the Commissioner is the enforcing official.

    Reference: West Virginia Code | §33-2-3 — §33-2-3

  5. 5A business had an occurrence-form CGL policy in 2025 and a different one in 2026. A customer was injured in 2025 but first made a claim in 2026. Which policy period supplies the occurrence trigger?

    1. A. The 2026 period, because that is when the claim was presented
    2. B. Both periods, because the injury and claim occurred in different years
    3. C. The 2025 period, because that is when the bodily injury occurred
    4. D. Neither period, because reporting followed the injury by a year

    Answer: C

    Explanation: "The trigger for occurrence policies is bodily injury and property damages that occur during the policy period." An occurrence policy is triggered by when the injury occurs, even if the claim arrives later; assuming the injury is otherwise covered, the 2025 period is implicated.

    Reference: NAIC A Regulator's Introduction to the Insurance Industry — A Regulator's Introduction, occurrence versus claims-made policies

  6. 6A warehouse faces uncertain storm damage to inventory. Which set of possible financial outcomes describes the pure risk presented by that event?

    1. A. A gain or a loss from the storm
    2. B. A gain, a loss, or no change
    3. C. A loss or no financial loss
    4. D. A gain or no financial change

    Answer: C

    Explanation: "Pure risk involves no chance of economic gain and uncertainty about whether a financial loss will occur and possibly how much that financial loss will be. Speculative risk involves the chance of gain or loss and, in theory, is not insurable." The storm can cause financial loss or leave the inventory unchanged; it cannot create a gain from the event. That loss-or-no-loss pattern is pure risk, whereas profiles involving gain are speculative possibilities.

    Reference: NAIC A Regulator's Introduction to the Insurance Industry — A Regulator's Introduction, pure and speculative risk

  7. 7A claim examiner must determine whether a policy initially grants coverage for a particular person, property, or peril before considering restrictions. Which contract section describes that coverage grant?

    1. A. The policy definitions
    2. B. The policy conditions
    3. C. The exclusions
    4. D. The insuring agreement

    Answer: D

    Explanation: "The portion of an insurance contract that describes what is covered." The insuring agreement grants coverage by describing what is covered. Definitions explain policy terms, conditions establish duties, and exclusions restrict the grant.

    Reference: California Department of Insurance Commercial Insurance Guide — Commercial Insurance Guide, glossary, Insuring Agreement

  8. 8During an insurance investigation, which power may the West Virginia Insurance Commissioner exercise?

    1. A. Issue a criminal sentence
    2. B. Rewrite a private policy retroactively
    3. C. Administer oaths and issue subpoenas
    4. D. Set municipal tax rates

    Answer: C

    Explanation: Section 33-2-4 authorizes the Commissioner to "administer oaths and affirmations" and compel attendance through subpoenas. It does not confer judicial sentencing or taxing power.

    Reference: West Virginia Code | §33-2-4 — §33-2-4

  9. 9A claims-made liability policy runs through 2026 and has a January 1, 2024 retroactive date. A negligent act occurred in 2023, and the claim was first made and reported in 2026. How does the retroactive date affect this claim?

    1. A. The claim is barred by the retroactive date despite being made during the policy period
    2. B. The claim is covered because first notice was given during the policy period
    3. C. The claim is covered because the wrongful act happened before the policy expired
    4. D. The claim is barred only if notice is given after the policy period expires

    Answer: A

    Explanation: "provided the losscausing event occurred after the retroactive date (if any) stated in the" The loss-causing event precedes the retroactive date, so timely claim reporting alone does not satisfy the claims-made coverage conditions.

    Reference: NAIC A Regulator's Introduction to the Insurance Industry — A Regulator's Introduction, claims-made coverage and retroactive date

  10. 10A business has a covered property loss of $15,000. Its policy provides full indemnification for that loss, with no deductible or limiting clause. What payment restores the business's prior financial position without profit?

    1. A. $15,000
    2. B. $10,000
    3. C. $20,000
    4. D. $25,000

    Answer: A

    Explanation: "Under the principle of indemnity, insureds should not profit from a covered loss but should be restored to no better than their financial position prior to the loss" Full indemnity for a $15,000 covered loss is $15,000 under the stated no-deductible and no-limitation facts. A lower amount leaves the insured short; a higher amount creates gain.

    Reference: NAIC A Regulator's Introduction to the Insurance Industry — A Regulator's Introduction, principle of indemnity

Topics in this practice bank

These topics describe the available practice for WV Casualty. Review the examination outline and its sources for scope and allocation details.

  • TYPES OF POLICIES, BONDS, AND RELATED TERMS
    • A. Commercial general liability
    • A. Commercial general liability / 1. Exposures
    • A. Commercial general liability / 1. Exposures / a. Premises and Operations
    • A. Commercial general liability / 1. Exposures / b. Products and Completed Operations
    • A. Commercial general liability / 2. Coverage
    • A. Commercial general liability / 2. Coverage / a. Coverage A: Bodily Injury and Property Damage Liability (Occurrence, Claims made including Retroactive Date)
    • A. Commercial general liability / 2. Coverage / b. Coverage B: Personal Injury and Advertising Injury
    • A. Commercial general liability / 2. Coverage / c. Coverage C: Medical Payments
    • A. Commercial general liability / 2. Coverage / d. Supplemental Payments
    • A. Commercial general liability / 2. Coverage / e. Who is an insured
    • A. Commercial general liability / 2. Coverage / f. First named insured
    • A. Commercial general liability / 2. Coverage / g. Limits (Per occurrence, Annual Aggregate)
    • A. Commercial general liability / 2. Coverage / h. Damage to Property of Others
    • B. Automobile: personal auto and business auto
    • B. Automobile: personal auto and business auto / 1. Liability
    • B. Automobile: personal auto and business auto / 1. Liability / a. Bodily Injury
    • B. Automobile: personal auto and business auto / 1. Liability / b. Property Damage
    • B. Automobile: personal auto and business auto / 1. Liability / c. Split Limits
    • B. Automobile: personal auto and business auto / 1. Liability / d. Combined Single Limit
    • B. Automobile: personal auto and business auto / 2. Medical Payments
    • B. Automobile: personal auto and business auto / 3. Physical Damage (collision; other than collision; specified perils)
    • B. Automobile: personal auto and business auto / 4. Uninsured motorists
    • B. Automobile: personal auto and business auto / 5. Underinsured motorists
    • B. Automobile: personal auto and business auto / 6. Who is an insured
    • B. Automobile: personal auto and business auto / 7. Types of Auto
    • B. Automobile: personal auto and business auto / 7. Types of Auto / a. Owned
    • B. Automobile: personal auto and business auto / 7. Types of Auto / b. Non-owned
    • B. Automobile: personal auto and business auto / 7. Types of Auto / c. Hired
    • B. Automobile: personal auto and business auto / 7. Types of Auto / d. Temporary Substitute
    • B. Automobile: personal auto and business auto / 7. Types of Auto / e. Newly Acquired Autos
    • B. Automobile: personal auto and business auto / 7. Types of Auto / f. Transportation Expense and Rental Reimbursement Expense
    • B. Automobile: personal auto and business auto / 8. Auto Dealers Coverage Form, including Garagekeepers Insurance
    • B. Automobile: personal auto and business auto / 9. Exclusions
    • B. Automobile: personal auto and business auto / 10. Individual Named Insured and Drive Other Car (DOC)
    • B. Automobile: personal auto and business auto / 11. Mobile equipment
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.)
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 1. Standard policy concepts
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 1. Standard policy concepts / a. Who is an employee/employer
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 1. Standard policy concepts / b. Compensation
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 2. Work-related vs. non-work-related
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 3. Other states’ insurance
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 4. Employers Liability
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 5. Exclusive remedy
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 6. Premium Determination
    • D. Crime
    • D. Crime / 1. Employee Dishonesty
    • D. Crime / 2. Theft
    • D. Crime / 3. Robbery
    • D. Crime / 4. Burglary
    • D. Crime / 5. Forgery and Alteration
    • D. Crime / 6. Mysterious disappearance
    • E. Bonds
    • E. Bonds / 1. Surety
    • E. Bonds / 2. Fidelity
    • F. Professional liability
    • F. Professional liability / 1. Errors and Omissions
    • F. Professional liability / 2. Medical Malpractice
    • F. Professional liability / 3. Directors and Officers (D&O)
    • F. Professional liability / 4. Employment Practices Liability (EPLI)
    • F. Professional liability / 5. Cyber liability and data breach, funds transfer
    • F. Professional liability / 6. Liquor liability
    • G. Umbrella/Excess Liability
    • H. Business Owners Policy (BOP)
  • INSURANCE TERMS AND RELATED CONCEPTS
    • A. Risk
    • B. Hazards
    • B. Hazards / 1. Moral
    • B. Hazards / 2. Morale
    • B. Hazards / 3. Physical
    • C. Indemnity
    • D. Insurable interest
    • E. Loss valuation
    • E. Loss valuation / 1. Actual cash value
    • E. Loss valuation / 2. Replacement cost
    • E. Loss valuation / 3. Market value
    • E. Loss valuation / 4. Stated/agreed value
    • E. Loss valuation / 5. Salvage value
    • F. Negligence
    • G. Liability
    • H. Occurrence
    • I. Binders
    • J. Warranties
    • K. Representations
    • L. Concealment
    • M. Deposit Premium/Audit
    • N. Certificate of Insurance
    • O. Law of Large Numbers
    • P. Pure vs. Speculative Risk
    • Q. Endorsements
    • R. Damages
    • R. Damages / 1. Compensatory
    • R. Damages / 1. Compensatory / a. General
    • R. Damages / 1. Compensatory / b. Special
    • R. Damages / 2. Punitive
    • S. Compliance with provisions of Fair Credit Reporting Act
  • POLICY PROVISIONS
    • A. Declarations
    • B. Insuring agreement
    • C. Conditions
    • D. Exclusions and Limitations
    • E. Definition of the insured
    • F. Duties of the insured after a loss
    • G. Cancellation and nonrenewal provisions
    • H. Supplementary payments
    • I. Proof of loss
    • J. Notice of claim
    • K. Other insurance
    • L. Subrogation
    • M. Loss settlement provisions including consent to settle a loss
    • N. Terrorism Risk Insurance Act (TRIA)
  • WEST VIRGINIA LAWS AND RULES PERTINENT TO CASUALTY INSURANCE
    • A. Insurance Commissioner Act
    • A. Insurance Commissioner Act / 1. Broad powers
    • A. Insurance Commissioner Act / 2. Examination of records
    • A. Insurance Commissioner Act / 3. Notice and Conduct of hearing
    • A. Insurance Commissioner Act / 4. Penalties
    • B. Definitions, Restrictions, and Responsibilities
    • B. Definitions, Restrictions, and Responsibilities / 1. Licensed and unlicensed companies
    • B. Definitions, Restrictions, and Responsibilities / 2. Domestic, foreign, alien, nonadmitted and unauthorized companies
    • B. Definitions, Restrictions, and Responsibilities / 3. Stock and mutual companies
    • B. Definitions, Restrictions, and Responsibilities / 4. Selling, soliciting, and negotiating insurance
    • B. Definitions, Restrictions, and Responsibilities / 5. Producer
    • B. Definitions, Restrictions, and Responsibilities / 6. Surplus lines / Nonadmitted Insurance Act
    • B. Definitions, Restrictions, and Responsibilities / 7. Valued policy law
    • B. Definitions, Restrictions, and Responsibilities / 8. Comparative negligence
    • C. Licensing
    • C. Licensing / 1. Purpose/Requirements
    • C. Licensing / 2. Qualifications
    • C. Licensing / 2. Qualifications / a. Producer
    • C. Licensing / 2. Qualifications / b. Nonresident licensing
    • C. Licensing / 2. Qualifications / c. Company requirements
    • C. Licensing / 2. Qualifications / d. Fingerprinting
    • C. Licensing / 3. Termination of license
    • C. Licensing / 3. Termination of license / a. Expiration
    • C. Licensing / 3. Termination of license / b. Revocation and suspension
    • C. Licensing / 3. Termination of license / c. Nonrenewal
    • C. Licensing / 4. Limitation of license
    • C. Licensing / 5. Appointment
    • C. Licensing / 6. Educational requirements
    • C. Licensing / 6. Educational requirements / a. Continuing education
    • C. Licensing / 7. Mandatory reporting requirements
    • C. Licensing / 7. Mandatory reporting requirements / a. Criminal prosecution and administrative action
    • C. Licensing / 7. Mandatory reporting requirements / b. Fraud
    • D. Unfair Trade Practices
    • D. Unfair Trade Practices / 1. Unfair claims methods and practices
    • D. Unfair Trade Practices / 2. Excessive charges
    • D. Unfair Trade Practices / 3. Rebating
    • D. Unfair Trade Practices / 4. Coercion
    • D. Unfair Trade Practices / 5. Misrepresentation
    • D. Unfair Trade Practices / 6. Defamation
    • D. Unfair Trade Practices / 7. Advertising
    • D. Unfair Trade Practices / 8. Unfair discrimination
    • D. Unfair Trade Practices / 9. Penalties
    • E. Binders
    • F. Approval of Rates and Forms
    • G. Compensation of Licensees
    • G. Compensation of Licensees / 1. Payment of commissions
    • H. Automobile Insurance
    • H. Automobile Insurance / 1. Provisions
    • H. Automobile Insurance / 1. Provisions / a. Coverage
    • H. Automobile Insurance / 1. Provisions / b. Uninsured motorists
    • H. Automobile Insurance / 1. Provisions / c. Underinsured motorists
    • H. Automobile Insurance / 2. Financial responsibility and required minimum liability limits
    • H. Automobile Insurance / 3. Renewal, nonrenewal, and cancellation
    • H. Automobile Insurance / 4. West Virginia Automobile Insurance Plan (Assigned Risk)
    • I. Malpractice Policies
    • J. Workers’ Compensation
    • K. West Virginia Insurance Guaranty Association

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