West Virginia Adjuster Practice Test

Correct answer: C. Property and casualty only

Section 33-12B-7(b) limits a public adjuster license to the property and casualty line, which fits the definition: public adjusters handle first-party claims on the insured's real or personal property. Company and independent adjusters, by contrast, may qualify under 33-12B-7(a) for property and casualty, workers' compensation, crop, or any combination of the three.

Reference: W. Va. Code 33-12B-7 (HB 4502, effective July 1, 2021); 114 CSR 25-5

Correct answer: A. Independent adjuster with the property and casualty line

Section 33-12B-1(e) defines an independent adjuster as a person who contracts for compensation with insurers or self-insurers, whose tax treatment by the insurer is that of an independent contractor, and who investigates, negotiates or settles claims for them. A company adjuster is a staff employee paid by the insurer, and a public adjuster works for the insured. Working through a firm does not remove the license requirement in 33-12B-2.

Reference: W. Va. Code 33-12B-1(c), (e) and 33-12B-2

Correct answer: D. He is exempt, but the commissioner regulates his handling of West Virginia claims

Section 33-12B-3(a)(15) exempts company adjusters employed by an insurer outside West Virginia who adjust solely by telephone, fax, mail and email and never physically enter the state. The proviso keeps them subject to the commissioner's jurisdiction for West Virginia claims, and the commissioner may require continuing education, up to the 24 hours in 33-12B-13, to correct claim handling deficiencies.

Reference: W. Va. Code 33-12B-3(a)(15); 114 CSR 25-3.2.16 and 25-3.5

Correct answer: B. Completing an approved prelicensing course

Section 33-12B-5(a) requires a resident applicant to be 18 or older, a West Virginia resident or eligible to designate the state as home state, trustworthy and competent, free of grounds for discipline, to pass the written examination for each line sought and to pay the fees. The Pearson VUE handbook confirms that prelicensing education is not required of adjusters, unlike producer candidates, who must present a course completion certificate.

Reference: W. Va. Code 33-12B-5(a); Pearson VUE West Virginia Insurance Candidate Handbook (September 2026), Adjuster License

Correct answer: C. Seven more times; eight failures bar further attempts

Section 33-12B-5(b)(4) limits an applicant who initially fails to seven additional attempts, and 114 CSR 25-6.2.5 adds that an individual who fails the examination eight times is permanently barred from retaking it. Each new attempt requires reapplying and paying the fees again, and Pearson VUE requires a 24-hour wait before a new reservation. No remedial course is required.

Reference: W. Va. Code 33-12B-5(b)(3) and (4); 114 CSR 25-6.2.4 and 6.2.5 (effective April 8, 2026)

Correct answer: A. Apply within 90 days of establishing legal residence in West Virginia

Section 33-12B-5(b)(6) lets an adjuster licensed in another jurisdiction who moves to West Virginia skip the prelicensing examination for lines previously held, provided the resident application is made within 90 days of establishing legal residence; 114 CSR 25-6.2.6.b repeats the 90-day window. A West Virginia nonresident licensee who later moves into the state faces the same 90-day deadline under 33-12B-9(c).

Reference: W. Va. Code 33-12B-5(b)(6); 114 CSR 25-6.2.6

Correct answer: D. He must be fingerprinted and complete West Virginia CE as a home state licensee

Under 33-12B-1(d), a person whose residence state does not license that adjuster type designates as home state a state where he holds the license, and 33-12B-5(a)(2) lets him qualify if eligible to designate West Virginia. Section 33-12B-6 requires fingerprints for an initial home state license, and the OIC applies the CE requirement of 33-12B-13 to nonresidents who designate West Virginia as their home state.

Reference: W. Va. Code 33-12B-1(d), 33-12B-5(a)(2), 33-12B-6; WV OIC Adjuster Licensing FAQs (HB 4502)

Correct answer: B. $25 for an individual and $200 for a business entity

Section 33-12B-8 sets $25 per year for an individual adjuster license, $200 per year for a business entity adjuster license and $25 for a temporary emergency adjuster license. Because the OIC issues individual licenses for two years, renewing in the licensee's birth month, the Pearson VUE handbook lists the individual license fee as $50 per license term.

Reference: W. Va. Code 33-12B-8; 114 CSR 25-7.1; Pearson VUE West Virginia Insurance Candidate Handbook (September 2026)

Correct answer: A. 24 hours every two years, including 3 hours of ethics

Section 33-12B-13(e) requires at least 24 hours of approved continuing education, 3 of them in ethics, reported biennially with the license renewal cycle. It applies to company, independent and public adjusters, but not to licensees licensed less than one full year before the biennium ends or to nonresidents who met substantially similar home state CE in a state that credits West Virginia residents on the same basis.

Reference: W. Va. Code 33-12B-13(b), (c) and (e) (as amended by HB 2682, 2021)

Correct answer: C. 6 hours

Rosa needs 24 hours, so she has 33 minus 24, or 9, excess hours. Section 33-12B-13(h) lets adjusters who exceed the biennial minimum carry over a maximum of six credit hours, and only into the next reporting period. Answering 9 ignores the cap, and answering 0 ignores the carryover rule. Separately, 33-12B-13(g) allows up to 2 hours for approved professional association membership.

Reference: W. Va. Code 33-12B-13(e), (g) and (h)

Correct answer: B. The insurer must tell the commissioner within 5 days; licenses last up to 90 days

Section 33-12B-4(b) lets otherwise qualified adjusters act as emergency company or independent adjusters if the insurer notifies the commissioner within five days of the declared emergency with each person's name, address, NPN and related details. Under 33-12B-4(c) the emergency license lasts no more than 90 days unless the commissioner extends it, and 33-12B-8 sets the fee at $25. Insurers are accountable for these adjusters (114 CSR 25-4.9).

Reference: W. Va. Code 33-12B-4; 114 CSR 25-4

Correct answer: D. Report within 30 days of the initial pretrial hearing

Section 33-12B-10a(b) requires an adjuster to report any criminal prosecution in any jurisdiction within 30 days of the initial pretrial hearing date, with the initial complaint, the hearing order and other relevant documents. Under 33-12B-10a(a), administrative actions taken in another jurisdiction or by another state agency must be reported within 30 days of final disposition. Waiting for a conviction or for renewal misses the deadline.

Reference: W. Va. Code 33-12B-10a

Correct answer: A. Deal with the claimant directly only if the attorney consents

Under 114 CSR 25-9.1.1, a company or independent adjuster may not give legal advice and may not deal directly with a policyholder or claimant who is represented by counsel without the consent of that counsel. The claimant starting the call does not change the rule. Section 9 also requires the adjuster to identify his or her employer and bars a financial interest in the adjustment or salvage without written authority from the principal.

Reference: 114 CSR 25-9 (effective April 8, 2026)

Correct answer: C. She may hold both licenses but cannot act for both on this claim

Section 33-12B-2(d) allows an individual to be licensed concurrently as a company, independent and public adjuster, but not to represent the interests of both the insured and the insurer on the same claim; 114 CSR 25-5.2 and 25-10.2.3 repeat the rule. No consent form cures the conflict, and holding both licenses is lawful, so surrendering one is unnecessary.

Reference: W. Va. Code 33-12B-2(d); 114 CSR 25-5.2 and 25-10.2.3

Correct answer: B. 3 business days, by written notice to the adjuster

The required disclosure in 114 CSR 25-11.6.8 gives the insured the right to rescind within three business days after signing, in writing delivered to the public adjuster at the contract address; a letter postmarked within the period counts. Under 25-11.6.9, anything of value the insured gave must be returned within 15 business days. The separate 10-day option in 25-15.4 applies to contracts signed within 48 hours of the loss.

Reference: 114 CSR 25-11.6.8, 25-11.6.9 and 25-15.4 (effective April 8, 2026)

Correct answer: D. $8,400

In a catastrophe, 114 CSR 25-12.4 caps a public adjuster's compensation at 10% of the insurance settlement or proceeds: $84,000 x 10% = $8,400. The same rule bars demanding or accepting any fee, retainer or deposit before the claim is settled. Outside a catastrophe the fee must still be reasonable (25-12.1) and, if a percentage, stated exactly in the contract (25-11.2.1).

Reference: 114 CSR 25-12 and 25-11.2 (effective April 8, 2026)

Correct answer: A. Reasonable pay for time and expenses, not a percentage

If the insurer pays or commits in writing to pay the policy limit no later than 72 hours after the loss is reported, 114 CSR 25-11.3 bars a commission based on a percentage of the payment. The adjuster must tell the insured the recovery may not increase and is entitled only to reasonable compensation based on time spent and expenses incurred. The 10% cap in 25-12.4 applies only to catastrophes.

Reference: 114 CSR 25-11.3 (effective April 8, 2026)

Correct answer: C. Often enough to indicate a general business practice

Section 33-11-4(9) prohibits any person from committing or performing the listed acts with such frequency as to indicate a general business practice. The list includes refusing to pay without a reasonable investigation, failing to affirm or deny coverage within a reasonable time after proof of loss, and not attempting in good faith to settle when liability is reasonably clear. The detailed deadlines appear in 114 CSR 14.

Reference: W. Va. Code 33-11-4(9)

Correct answer: D. Within 15 working days, unless paid in full by then

Rule 114 CSR 14-5.1 requires acknowledgment within 15 working days of notification unless full payment is made within that time; a non-written acknowledgment must be noted and dated in the claim file, and notice to the insurer's agent counts as notice to the insurer. Replies to other pertinent claimant communications and to commissioner inquiries are also due within 15 working days (14-5.2 and 14-5.3).

Reference: 114 CSR 14-5 (Unfair Trade Practices rule, effective April 24, 2006)

Correct answer: B. Deny in writing or make a written offer in 10 working days

Rule 114 CSR 14-6.3 requires the insurer, within 10 working days of completing its investigation, to deny the claim in writing or make a written offer, subject to policy limits. A denial must cite the specific policy provision relied on (14-6.5). Status letters under 14-6.7 apply while an investigation is still incomplete, and once a settlement is agreed it must be paid within 15 working days (14-6.11).

Reference: 114 CSR 14-6.3, 6.5, 6.7 and 6.11

Correct answer: A. Written notice within 15 working days after day 30, then every 45 days

If an insurer needs more than 30 calendar days from receipt of a first-party proof of loss (or a third-party notice of claim) to decide, 114 CSR 14-6.7 requires written notice within 15 working days after the 30-day period expires and again every 45 calendar days until the investigation is complete, each stating why more time is needed. Only a reasonable, documented basis to suspect fraud relieves the insurer of these letters.

Reference: 114 CSR 14-6.7

Correct answer: C. At least 60 days before it expires

Rule 114 CSR 14-6.12 bars negotiating with a claimant who is neither an attorney nor represented by one without written notice that a statute of limitations or policy time limit may affect the claimant's rights. The notice is due at least 60 days before the deadline for third-party claimants and at least 30 days before it for first-party claimants, so 30 days would be right only if Omar were claiming under his own policy.

Reference: 114 CSR 14-6.12

Correct answer: D. An administrative complaint filed with the commissioner

Section 33-11-4a bars third-party claimants from bringing a private cause of action for unfair claims settlement practices; their sole remedy for those practices or a bad faith settlement is an administrative complaint with the commissioner, filed as soon as practicable and no later than one year after discovery of the practice. Theo may still pursue his underlying injury claim against the driver.

Reference: W. Va. Code 33-11-4a

Correct answer: B. $25,000 per person, $50,000 per accident, $25,000 property damage

Since January 1, 2016, 17D-4-2 has required proof of financial responsibility of at least $25,000 for bodily injury to one person, $50,000 for bodily injury to two or more persons in one accident and $25,000 for property damage. The older 20/40/10 limits applied before 2016. Under 33-6-31(b), uninsured motorist coverage must be included at no less than these limits.

Reference: W. Va. Code 17D-4-2; 33-6-31(b)

Correct answer: C. $4,550

Section 33-6-31(b) requires uninsured motorist coverage for bodily injury and property damage at least equal to the 17D-4-2 minimums, but lets the endorsement exclude the first $300 of property damage caused by an uninsured motorist: $4,850 minus $300 = $4,550. The $4,350 and $4,600 answers apply $500 and $250 amounts the statute does not use. The insurer is then subrogated against the uninsured driver.

Reference: W. Va. Code 33-6-31(b)