WVPCI - West Virginia Property and Casualty Insurance

Question 21: A claims adjuster at an insurer determines that a recent claim was likely fraudulent, triggering the mandatory reporting obligation that applies to anyone in the business of insurance under West Virginia's fraud statute. Which of the following states how quickly the adjuster must report the matter to the Fraud Unit?

within five days of the determination

within thirty days of the determination

within fourteen days of the determination

within sixty days of the determination

Question 22: A producer sold a multi-year policy while licensed, then let the license lapse before the policy's second renewal came due, and now the insurer questions whether it may pay a deferred commission on that later renewal. Which of the following states the test West Virginia law applies to that payment?

whether licensed at the time paid

commissions are barred once a license lapses

whether the insurer agrees to waive licensing

whether licensed at the original sale

Question 23: An examiner documents exactly one isolated instance of a claims adjuster misrepresenting a policy provision to a claimant, with no other similar conduct anywhere else in the insurer's files. Which of the following correctly states whether that single isolated instance satisfies the general unfair-trade-practices definition, which requires a certain frequency?

no, frequency showing a general practice

yes, one instance always qualifies

yes, but only for adjusters, not insurers

no, unless the claimant complains in writing

Question 24: A policyholder complains about one specific instance of an insurer's slow claim handling, and the insurer argues the complaint should be dismissed because a single incident cannot show a pattern under the general unfair-trade-practices statute. Which of the following states how West Virginia's separate claims-handling rule treats that single incident?

it applies only after repeated incidents

it applies without any frequency requirement

it never applies to a single claim

it applies only if the claimant sues

Question 25: A producer wants to give a promotional item to a prospective client while discussing a policy, and asks the compliance department whether West Virginia's rebating rule allows that gift regardless of whether the prospect ends up purchasing anything. Which of the following states the dollar threshold that safe harbor allows?

ten dollars or less

fifty dollars or less

twenty-five dollars or less

one hundred dollars or less

Question 26: A property owner wants to insure a building against fire loss, and the producer must confirm the client holds insurable interest before binding coverage. Under West Virginia law, which description correctly states the standard an applicant must meet before an insurer may issue a valid property policy?

Mere expectation of future ownership rights

Any sentimental attachment to the property

Legal title alone regardless of economic risk

A lawful and substantial economic interest

Question 27: An applicant asks the producer to bind coverage immediately over the phone rather than waiting on a written document, and the producer wonders whether West Virginia law allows a binder to be created that way. Which statement correctly describes the permissible form of a binder?

Binders may be oral or written

Binders must always be in writing

Only the Commissioner may issue binders

Binders require the insured's notarized signature

Question 28: An insurer files a new noncommercial homeowner's policy form with the Commissioner sixty days before it intends to use the form, and no objection is raised during that window. Which outcome correctly describes what happens to that form under West Virginia's forms-filing statute?

The form is automatically rejected

The form is deemed approved

The insurer must still wait one year

The form needs no filing at all

Question 29: An insurer submits a revised rate filing to the Commissioner for a line of property coverage and wants to know how long it must wait before the new rates may take effect absent any objection. Which statement correctly describes the waiting period that applies to that rate filing?

An immediate effective date upon filing

A one-hundred-eighty-day waiting period always

A sixty-day waiting period with a deemer

No waiting period for any rate filing

Question 30: A new driver shopping for the cheapest legal automobile policy asks the producer what the absolute minimum liability limits are that West Virginia law compels every owner of a registered vehicle to carry. Which set of limits correctly states the current compulsory minimums for bodily injury and property damage?

Twenty, forty, and ten thousand

Fifteen, thirty, and ten thousand

Fifty, one hundred, and fifty thousand

Twenty-five, fifty, and twenty-five thousand

Question 31: A policyholder asks the producer whether she can simply decline uninsured motorist coverage altogether on her new automobile policy the way she might decline a comprehensive optional endorsement. Which statement correctly describes the status of uninsured motorist coverage at the minimum limits under West Virginia law?

It is mandatory and cannot be declined

It is optional, subject to written rejection

It applies only to commercial vehicles

It exists only as an added rider

Question 32: An insurer decides to cancel a policyholder's automobile policy mid-term for a permissible statutory reason and must send written notice before the cancellation actually takes effect. Which notice period correctly states how far in advance West Virginia law requires that cancellation notice to be sent?

Ten days before the effective date

Thirty days before the effective date

Sixty days before the effective date

Five days before the effective date

Question 33: An insurer decides not to renew a policyholder's automobile policy at the end of the current term and must send advance written notice of that decision. Which notice period correctly states how far ahead West Virginia law requires that nonrenewal notice to be sent for an automobile policy?

Thirty days before expiration

Ninety days before expiration

Forty-five days before expiration

Fifteen days before expiration

Question 34: A property owner in an urban neighborhood struggles to find a standard-market insurer willing to write fire coverage on an older commercial building and asks the producer about the state's residual market option. Which statement correctly describes the coverage the FAIR plan provides under West Virginia law?

Only comprehensive automobile liability coverage

Only workers' compensation coverage

Only professional malpractice coverage

Fire and extended coverage, habitational or commercial

Question 35: A licensed workers' compensation insurer becomes insolvent while a covered employee's ongoing benefit claim is still open, and the guaranty association steps in to continue paying that claim. Which statement correctly describes the limit that applies to an ordinary workers' compensation claim under the guaranty association?

Paid in full, with no cap

Capped at three hundred thousand dollars

Capped at ten thousand dollars

Capped the same as other claims

Question 36: An insurer issuing a homeowner's policy in a county far from the state's historic coal-mining region must decide whether mine subsidence coverage attaches automatically or only if the applicant affirmatively requests it. Which statement correctly describes the general default rule and its named exception under West Virginia law?

Never included anywhere without a special request

Included unless waived, except in named counties

Always included with no waiver possible

Included only in the largest cities

Question 37: A study guide lists five lettered items under West Virginia's malpractice cancellation statute, but an instructor points out that only four of those items actually function as a true ground for cancellation. Which statement correctly explains how many genuine cancellation grounds the malpractice statute contains?

Five grounds, all listed equally

Three grounds, with two alternatives

Four grounds; the fifth is a sanction

Six grounds, including two procedural ones

Question 38: A malpractice insurer decides not to renew a physician's professional liability policy at the end of the current term and must give notice of that decision well ahead of the expiration date. Which notice period correctly states how far in advance West Virginia requires malpractice nonrenewal notice to be sent?

Forty-five days before expiration

Thirty days before expiration

Fifteen days before expiration

Ninety days before expiration

Question 39: A group of similarly situated professionals forms a risk retention group to self-insure their shared liability exposure, and one member asks whether the group can also write property coverage on their office buildings. Which statement correctly describes the scope of coverage a risk retention group may provide?

Liability coverage only, not property coverage

Both liability and property coverage equally

Property coverage only, never liability

Any line of coverage the members choose

Question 40: A trade association wants to form a purchasing group so its member businesses can jointly negotiate and buy liability coverage from a commercial insurer at more favorable group terms. Which statement correctly describes the role a purchasing group actually plays under the risk retention framework?

It underwrites and issues its own policies

It purchases coverage; it never insures

It functions exactly like a licensed insurer

It assumes the insurer's financial risk directly

WVPCI West Virginia Property and Casualty Insurance - Set 1 - Part 2

Question 27: An applicant asks the producer to bind coverage immediately over the phone rather than waiting on a written document, and the producer wonders whether West Virginia law allows a binder to be created that way. Which statement correctly describes the permissible form of a binder?

Question 28: An insurer files a new noncommercial homeowner's policy form with the Commissioner sixty days before it intends to use the form, and no objection is raised during that window. Which outcome correctly describes what happens to that form under West Virginia's forms-filing statute?

Question 29: An insurer submits a revised rate filing to the Commissioner for a line of property coverage and wants to know how long it must wait before the new rates may take effect absent any objection. Which statement correctly describes the waiting period that applies to that rate filing?

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