WVPCI - West Virginia Property and Casualty Insurance

Question 21: A business auto policy's declarations page lists a small number next to each coverage, such as liability or physical damage, rather than describing in words which vehicles are covered under that coverage. Which of the following best explains the purpose of that number?

it sets the deductible amount

it identifies the rating territory

it designates which autos are covered

it states the policy's total premium

Question 22: A landscaping company rents a truck for one week from a local rental company to handle an unusually large job, and that rented truck is involved in an accident while being used for company business. Which category of covered auto describes that rented truck under the business auto policy?

an owned auto

a non-owned auto

mobile equipment

a hired auto

Question 23: An employee occasionally drives a personally owned car on errands for the employer, and the employer's business does not own, lease, hire, rent, or borrow that vehicle, yet the employer faces liability exposure if the employee causes an accident while running that errand. Which coverage addresses the employer's exposure?

non-owned auto liability coverage

hired auto liability coverage

the employee's own liability policy

garagekeepers legal liability coverage

Question 24: A delivery company's truck driver causes an accident while making deliveries, injuring another motorist, and the injured motorist sues the delivery company for damages. Which part of the business auto policy responds to pay damages the company becomes legally obligated to pay because of that accident?

the physical damage coverage part

the liability coverage part

the garagekeepers coverage part

the medical payments coverage part

Question 25: An insurance producer is asked which businesses a garage policy is designed to insure, since the client owns a used car dealership that also operates a repair bay and a parking lot for customer vehicles. Which of the following best describes the businesses this coverage is built for?

homeowners with a private garage

trucking companies hauling freight only

auto dealers, repair shops, and similar operations

manufacturers of auto replacement parts

Question 26: A customer visiting an auto dealership slips on a wet showroom floor and is injured, and separately a dealership employee causes an accident while road-testing a customer's trade-in vehicle. Which coverage part of a garage policy is written broadly enough to respond to both kinds of exposure?

garagekeepers coverage

physical damage coverage

medical payments coverage only

garage liability coverage

Question 27: A repair shop accepts a customer's car for a brake job, and while the car sits overnight in the shop's locked garage, it is damaged in circumstances unrelated to the repair work. Which coverage is designed to address damage to a customer's vehicle while it sits in the shop's care?

garagekeepers coverage

garage liability coverage

products-completed operations coverage

hired auto physical damage coverage

Question 28: A construction firm owns a bulldozer that is never registered for highway travel and is designed and used mainly to move earth on job sites rather than to transport people or cargo on public roads. Which classification applies to this bulldozer for purposes of distinguishing it from an auto?

a covered auto

mobile equipment

a hired auto

a temporary substitute auto

Question 29: An insurer settling a covered physical damage claim on a five-year-old vehicle pays an amount reflecting the replacement cost of a comparable new vehicle reduced by an amount for the wear and use the vehicle had already experienced before the loss. Which valuation method does this describe?

stated amount value

agreed value

actual cash value

replacement cost value

Question 30: An older vehicle's worn tires are damaged in a covered accident, and the repair shop replaces them with brand-new tires, leaving the vehicle with better tires than it had before the loss occurred. Which concept allows the insurer to account for this improvement in the settlement?

salvage

subrogation

appraisal

betterment

Question 31: A repair estimate includes a brand-new part to replace one that was significantly worn before the covered loss occurred, and the insurer applies a betterment deduction to the settlement to account for that improvement. Which party ultimately absorbs the dollar amount attributable to the betterment deduction?

the insured pays the betterment amount

the insurer absorbs it as overhead

the repair shop discounts its labor

the state guaranty fund covers it

Question 32: After a serious collision, a repair shop estimates that fixing a vehicle would cost more than the vehicle was actually worth immediately before the accident happened, making repair financially impractical for the insurer to authorize. Which of the following best describes how the vehicle would typically be classified?

a partial loss

a total loss

a constructive repair

a betterment loss

Question 33: An insured's vehicle sustains a covered collision loss estimated to cost a certain amount to repair, and the insurer's payment ends up being that repair estimate reduced by a fixed dollar amount the insured agreed to absorb when the policy was purchased. Which concept describes that fixed reduction?

the aggregate limit

the salvage value

the deductible

the betterment amount

Question 34: An insured shopping for auto physical damage coverage is offered two versions of the same policy, one with a low deductible and one with a considerably higher deductible, and wants to know how that choice will affect the cost of the coverage. Which of the following is generally true?

a higher deductible generally raises premium

the deductible has no effect on premium

only the vehicle's age affects premium

a higher deductible generally lowers premium

Question 35: An insured's car breaks down on the side of the road due to a mechanical failure unrelated to any collision, and a tow truck is called to bring the vehicle to a repair shop while a mechanic attempts a roadside fix. Which optional coverage helps pay these costs?

towing and labor coverage

collision coverage

medical payments coverage

transportation expense coverage

Question 36: A business hires a worker for a project, decides how the work gets performed, sets the hours, furnishes the tools, and directs the details of each task, while the worker holds no separate business license. Which classification best fits this worker under standard workers compensation principles?

an independent contractor exempt from coverage

an employee under the control test

a volunteer with no coverage rights

a subcontractor covered only by contract

Question 37: An employee suffers a back injury while lifting materials on the job and requires ongoing medical treatment along with wage replacement during recovery. Which part of a standard workers compensation and employers liability policy provides these statutory benefits directly to the injured employee without regard to fault?

Part Two, employers liability

Part Three, other states insurance

Part One, workers compensation

the commercial general liability section

Question 38: An injured worker's spouse files a separate lawsuit against the employer alleging loss of companionship, a claim that falls outside the statutory workers compensation benefit system entirely. Which part of a standard workers compensation and employers liability policy is designed to respond to this type of third-party damages suit?

Part One, workers compensation

Part Three, other states insurance

the voluntary compensation endorsement

Part Two, employers liability

Question 39: A construction firm based in one state occasionally sends crews to perform short jobs in a neighboring state that is not listed on its workers compensation information page. Which policy provision extends statutory benefits to an employee injured while working in that additional, unlisted state?

Part Three, other states insurance

Part One, workers compensation

Part Two, employers liability

the alternate employer endorsement

Question 40: An employee is injured on the job due to the employer's ordinary negligence and later wants to sue the employer directly in civil court for pain and suffering damages beyond what the statutory system provides. Under the general concept built into workers compensation systems, what typically bars this direct lawsuit?

a mandatory arbitration clause

the exclusive remedy doctrine

the employers liability limit

a standard liability policy exclusion

WVPCI West Virginia Property and Casualty Insurance - Set 3 - Part 2

Question 21: A business auto policy's declarations page lists a small number next to each coverage, such as liability or physical damage, rather than describing in words which vehicles are covered under that coverage. Which of the following best explains the purpose of that number?

Question 25: An insurance producer is asked which businesses a garage policy is designed to insure, since the client owns a used car dealership that also operates a repair bay and a parking lot for customer vehicles. Which of the following best describes the businesses this coverage is built for?

Question 27: A repair shop accepts a customer's car for a brake job, and while the car sits overnight in the shop's locked garage, it is damaged in circumstances unrelated to the repair work. Which coverage is designed to address damage to a customer's vehicle while it sits in the shop's care?

Question 30: An older vehicle's worn tires are damaged in a covered accident, and the repair shop replaces them with brand-new tires, leaving the vehicle with better tires than it had before the loss occurred. Which concept allows the insurer to account for this improvement in the settlement?

Question 34: An insured shopping for auto physical damage coverage is offered two versions of the same policy, one with a low deductible and one with a considerably higher deductible, and wants to know how that choice will affect the cost of the coverage. Which of the following is generally true?

Question 35: An insured's car breaks down on the side of the road due to a mechanical failure unrelated to any collision, and a tow truck is called to bring the vehicle to a repair shop while a mechanic attempts a roadside fix. Which optional coverage helps pay these costs?

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