West Virginia Adjuster Practice Test: West Virginia law, Part 2

Correct answer: A. The son is excluded from all liability coverage, including the minimum limits

Section 33-6-31(a) lets an owner who receives a cancellation notice under article 6A, because an insured person violated the law, exclude that person by restrictive endorsement. The endorsement is effective for the total liability coverage under the policy, including the mandatory 17D-4-2 minimums, so the son has no liability coverage under it. The statute adds that the endorsement does not abrogate the family purpose doctrine.

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

Correct answer: D. Bilal's own auto policy is primary and the dealer's policy is secondary

Section 33-6-29(b) extends a West Virginia auto policy to the insured while driving a vehicle loaned by a business that sells, repairs, leases or services vehicles, and makes the driver's own coverage primary and the business's coverage secondary when no separate consideration is paid and the car replaces one being repaired or serviced. The order reverses if the driver is the business's employee acting within the scope of employment (33-6-29(c)).

Reference: W. Va. Code 33-6-29 (as amended by SB 556, effective June 9, 2026)

Correct answer: B. $150

Rule 114 CSR 14-7.3.e allows betterment or depreciation deductions only for parts normally repaired or replaced during the vehicle's useful life, such as tires, and limits the deduction to the share of the part's normal life already used: 30,000 / 50,000 = 60%, and 60% x $250 = $150. The insurer pays the remaining $100, and the calculation must be kept in the claim file.

Reference: 114 CSR 14-7.3.e

Correct answer: C. Use a commissioner-approved used car guide and add sales tax

Section 33-6-33 requires insurers to use the most recent commissioner-approved official used car guide to set the minimum value of a totally lost vehicle and to add, on top of the agreed cash settlement, an amount equal to the consumers sales tax under 11-15-3c(b). Under 114 CSR 14-7.4, downward deviations must be documented, and a salvage deduction requires giving the insured a salvage dealer who will pay that amount.

Reference: W. Va. Code 33-6-33; 114 CSR 14-7.4

Correct answer: A. $180,000

Section 33-17-9, West Virginia's valued policy law, makes an insurer providing fire insurance on real property liable for the whole amount of insurance stated in the policy when the property is a total loss, and for the full partial loss up to that amount otherwise, so Hana receives $180,000. The law does not apply when two or more insurers cover the same interest, or to FAIR plan policies (114 CSR 21-8.2).

Reference: W. Va. Code 33-17-9

Correct answer: D. Notify the fire marshal and furnish pertinent information

Section 15A-10-6(b) requires an insurer that has reason to believe, from its investigation, that a fire was caused by other than accidental means to notify the State Fire Marshal and furnish pertinent information. Under 15A-10-6(a) the fire marshal may also request policy, application, premium and prior claim records. Absent fraud, the insurer is immune for supplying the information, which is held in confidence (15A-10-6(c) and (d)).

Reference: W. Va. Code 15A-10-6

Correct answer: B. It is provided only on her request; no waiver is needed

Section 33-30-6(a) requires every policy insuring a West Virginia structure to include mine subsidence coverage at a separately stated premium unless the insured waives it, except in 15 listed counties, including Wood, where no waiver is needed and coverage is provided only on request. New coverage takes effect on the 30th day after application, the deductible is $250 to $500, and reinsurance is capped at $200,000.

Reference: W. Va. Code 33-30-6 (as amended by HB 5462, effective June 12, 2026)

Correct answer: A. $200,000 on a habitational risk and $500,000 on a commercial risk

Rule 114 CSR 21-9 limits FAIR plan coverage to the reasonable insurable value, capped at $200,000 for one habitational risk and $500,000 for one commercial risk, and covers only fire, lightning, riot, explosion, vehicle, smoke, hail, aircraft and wind. Policies run one year (21-8.3), and the valued policy law in 33-17-9 does not apply to them (21-8.2).

Reference: 114 CSR 21-8 and 21-9; W. Va. Code 33-20A

Correct answer: C. 90 days

Section 33-6-18(b) bars any agent or insurer from issuing a binder covering more than 90 days from its effective date, and a binder ends when the policy is issued. If the policy has not been issued, the binder can be extended beyond 90 days only with the commissioner's written approval or under the commissioner's rules. Binders may be oral or written and include the usual terms of the policy.

Reference: W. Va. Code 33-6-18

Correct answer: D. A bank holding a recorded mortgage on the house

Section 33-6-3 defines insurable interest as any actual, lawful and substantial economic interest in the safety or preservation of the property, measured by how much the insured might be damaged by its loss, and makes property insurance enforceable only for persons with that interest. A mortgagee would lose its security if the house burned. An heir's hope of inheritance, a neighbor's enjoyment and a paid-off seller's past ownership are not such interests.

Reference: W. Va. Code 33-6-3

Correct answer: B. $300,000

Section 33-26-8 caps the West Virginia Insurance Guaranty Association at $300,000 per covered claim other than workers' compensation, which is paid in full, and $10,000 per policy for unearned premium. All claims arising out of or related to bodily injury to one person count as a single claim, so the two claims total $410,000 but are capped at $300,000. Other applicable insurance must be exhausted first (33-26-12).

Reference: W. Va. Code 33-26-8 and 33-26-12

Correct answer: A. File a written report with the Insurance Fraud Unit within 14 days

Section 33-41-5 requires persons engaged in the business of insurance who know or reasonably believe a fraudulent insurance act has been committed to report it, and 114 CSR 71-3 requires a written, signed report to the Insurance Fraud Unit within 14 days of the reporter's determination, on the commissioner's form, describing the parties, the loss and the basis for suspicion. Insurers must also designate one to four fraud contacts (71-2).

Reference: W. Va. Code 33-41-5; 114 CSR 71-2 and 71-3

Correct answer: C. $30,000

Under 55-7-13c(c), a plaintiff's fault bars recovery only if it is greater than the combined fault of all other persons responsible; otherwise recovery is reduced in proportion to the plaintiff's fault. Nadia's 50% is not greater than the other driver's 50%, so she recovers $60,000 x 50% = $30,000. At 51% she would recover nothing. Defendants' liability is generally several only (55-7-13c(a)).

Reference: W. Va. Code 55-7-13a and 55-7-13c

Correct answer: D. Ann is paid for days 4 through 6; Ben is paid for all 9 days

Section 23-4-5 allows no award if disability lasts three days or less. If it lasts longer than three days, benefits begin after the waiting period, and if it lasts longer than seven days from the day the employee leaves work, the first three days are paid as well. Ann's 6 days fall short of the seven-day mark; Ben's 9 days exceed it. Benefits are 66 2/3% of the average weekly wage (23-4-6(b)).

Reference: W. Va. Code 23-4-5 and 23-4-6 (as reenacted by HB 5515, effective June 12, 2026)

Correct answer: B. Six months after the injury

Section 23-4-15(a) requires the application to be filed with the Insurance Commissioner, private carrier or self-insured employer within six months after the injury or death; the limit is jurisdictional, so a late claim is forever barred. Occupational disease claims generally have three years (23-4-15(b) and (c)), and the employer must report an injury to its carrier within five days of the employee's notice (23-4-1b).

Reference: W. Va. Code 23-4-15 and 23-4-1b (as reenacted by HB 5515, effective June 12, 2026)