West Virginia Property & Casualty Insurance Practice Exam Free - 2026

• A. $25,000 / $50,000 / $25,000
• B. $20,000 / $40,000 / $10,000
• C. $25,000 / $50,000 / $10,000
• D. $50,000 / $100,000 / $25,000

Correct answer: A. $25,000 / $50,000 / $25,000

Explanation: Section 17D-4-2(b) provides that beginning January 1, 2016, proof of financial responsibility means the ability to respond in damages of $25,000 for bodily injury to or death of one person, $50,000 for two or more persons in one accident, and $25,000 for property damage. The $20,000/$40,000/$10,000 limits in subsection (a) applied only to policies in effect before January 1, 2016; $25,000/$50,000/$10,000 mixes the two eras; $50,000/$100,000/$25,000 exceeds the statutory minimum. See W. Va. Code § 17D-4-2.

• A. UM is optional; the insurer need only offer it at the financial responsibility minimums
• B. UM is mandatory at no less than the § 17D-4-2 minimum limits, and the insurer must offer an option up to $100,000 per person, $300,000 per accident and $50,000 property damage
• C. UM is mandatory at $50,000 per person and $100,000 per accident
• D. UM is mandatory only for bodily injury; property damage UM may not be sold

Correct answer: B. UM is mandatory at no less than the § 17D-4-2 minimum limits, and the insurer must offer an option up to $100,000 per person, $300,000 per accident and $50,000 property damage

Explanation: Section 33-6-31(b) requires every motor vehicle liability policy to include an uninsured motorist endorsement within limits no less than the financial responsibility requirements of § 17D-4-2, and requires the insurer to offer, with appropriately adjusted premiums, uninsured motorist limits up to $100,000 per person, $300,000 per accident and $50,000 for property damage, which may exclude the first $300 of property damage; it must also offer underinsured coverage up to the insured's liability limits. UM is not optional at the base level (A); $50,000/$100,000 is not a statutory tier (C); property damage UM is required, not prohibited (D). See W. Va. Code § 33-6-31.

• A. 10 days
• B. 14 days
• C. 30 days
• D. 45 days

Correct answer: C. 30 days

Explanation: Section 33-6A-1(b) provides that, except for nonpayment and initial-premium situations, no insurer may cancel an automobile liability policy without first giving the insured thirty days' notice of its intention to cancel, sent by first class mail (or electronically at the policyholder's request) stating the effective date and the specific reason. Ten days is the notice before voiding a policy for nonpayment of the initial premium under subsection (d); fourteen days is the nonpayment cancellation notice under subsection (c); forty-five days is the nonrenewal notice under § 33-6A-4. See W. Va. Code § 33-6A-1.

• A. 30 days, beginning on the date the notice is received
• B. 10 days, beginning on the date the notice is received
• C. 20 days, beginning on the date of the missed payment
• D. At least 14 days, beginning on the date the notice is mailed

Correct answer: D. At least 14 days, beginning on the date the notice is mailed

Explanation: Section 33-6A-1(c) provides that when an insurer cancels for failure to pay the premium or any installment when due, it must first give at least fourteen days' notice of its intention to cancel, the notice period begins to run on the date mailed, and payment is accomplished by depositing valid payment in first class mail on or before expiration of the fourteen-day period. Thirty days is the notice for other cancellation grounds under subsection (b); ten days applies to voiding for nonpayment of the initial premium under subsection (d); twenty days is not a statutory figure. See W. Va. Code § 33-6A-1.

• A. personal auto comprehensive coverage
• B. equipment breakdown only
• C. errors and omissions liability
• D. commercial property building coverage

Correct answer: C. errors and omissions liability

Explanation: An agent E&O policy may address covered claims alleging professional mistakes, such as failure to procure requested coverage.

• A. cash value accumulation basis
• B. personal auto split-limit basis only
• C. guaranteed lifetime benefit basis
• D. claims-made basis

Correct answer: D. claims-made basis

Explanation: Professional liability is often written on a claims-made basis, meaning timing of the claim and reporting requirements are critical.

• A. claims from acts before that date may not be covered
• B. claims must be reported within one year of that date
• C. acts after that date are covered under the prior policy
• D. it fixes the date on which the extended reporting period begins

Correct answer: A. claims from acts before that date may not be covered

Explanation: A retroactive date limits coverage for acts occurring before that date. Claims-made policies require careful attention to dates and reporting conditions.

• A. extend the policy period so new acts stay covered after expiration
• B. allow certain claims to be reported after a claims-made policy ends
• C. move the retroactive date backward to pick up earlier acts
• D. convert a claims-made policy into an occurrence policy at renewal

Correct answer: B. allow certain claims to be reported after a claims-made policy ends

Explanation: An extended reporting period allows reporting of certain claims after policy termination for acts that occurred during the covered period, subject to terms.

• A. a retail clerk stocking shelves for a store
• B. a landlord renting an apartment to a tenant
• C. an accountant giving professional tax advice
• D. a delivery driver operating a company truck

Correct answer: C. an accountant giving professional tax advice

Explanation: Professionals who provide specialized services or advice can face professional liability exposure.

• A. ignore policy conditions
• B. increase the policy limit after the loss
• C. repair everything without telling the insurer
• D. give prompt notice to the insurer

Correct answer: D. give prompt notice to the insurer

Explanation: Most policies require prompt notice of loss so the insurer can investigate and handle the claim.

• A. a formal statement of the details and amount of a claimed loss
• B. the adjuster's written estimate of the cost to repair the damage
• C. the insurer's written acknowledgment that a claim has been received
• D. a release the insured signs when accepting the final claim payment

Correct answer: A. a formal statement of the details and amount of a claimed loss

Explanation: A proof of loss gives the insurer information about the loss and the amount claimed, when required by the policy.

• A. rebating
• B. mitigation of damages
• C. adverse selection
• D. waiver of subrogation

Correct answer: B. mitigation of damages

Explanation: Policies often require the insured to take reasonable steps to protect property from further damage after a loss.