WEST VIRGINIA INSURANCE LAW EXAM NEWEST ACTUAL EXAM COMPLETE 150 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+

1 | P a g e WEST VIRGINIA INSURANCE LAW EXAM NEWEST 2024-2025 ACTUAL EXAM COMPLETE 150 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+ An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles had the insurer violated? - ANSWER- Consideration An insurance contract must contain all of the following to be considered leagally binding EXCEPT - ANSWER- Beneficiary's consent Which of the following is NOT the consideration in a policy? - ANSWER- The application given to a prospective insured Which of the following is NOT an essential element of an insurance contract? - ANSWER- counteroffer When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? - ANSWER- consideration 2 | P a g e Which of the following would qualify as a competent party in an insurance contract? - ANSWER- The applicant has a prior felony conviction In insurance an offer is usually made when - ANSWER- The completed application is submitted In terms of parties to a contract which of the following does NOT describe a competent party? - ANSWER- The person must have at least completed secondary education. Which of the following is NOT the consideration in a policy? - ANSWER- The application given to a prospective insured In forming an insurance contract, when does acceptance usually occur? - ANSWER- When an insurer's underwriter approves coverage A life insurance policy has a legal purpose if both of which of the following elements exist? - ANSWER- Insurable interest and consent 3 | P a g e Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT - ANSWER- conditions An insurance contract must contain all the following to be considered legally binding EXCEPT - ANSWER- Beneficiary's consent Insurable interest can be best described by which of the following? - ANSWER- The applicant must experience a financial loss due to an accident of sickness that befalls the insured An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied? - ANSWER- Material misrepresentation What is material misrepresentation? - ANSWER- A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company 4 | P a g e Which of the following is a statement that is guaranteed to be true and if untrue may breach an insurance contract? - ANSWER- warranty An insured pays a $100 premium every month for his insurance coverage, yet the insured promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe? - ANSWER- Aleatory What is a definition of a unilateral contract? - ANSWER- Onesided: only one party makes an enforceable promise Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as - ANSWER- Contracts of Adhesion In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insured is legally obligated to pay losses covered by the policy. What contract element does this describe? - ANSWER- Unilateral Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristics does this describe? - ANSWER- Adhesion