West Virginia Adjusters Practice Exam

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Prepare for the West Virginia Adjusters Exam with our interactive quizzes and comprehensive study resources. Practice with flashcards and detailed explanations to ensure success on your exam day!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Jack's home is valued at $950,000. How much insurance does he need to carry on his home in order to be fully insured under a typical insurance policy?

$600,000
$760,000
$800,000
$950,000

The correct answer is: $600,000

Jack's home is insured based on the cost to rebuild the home, not its market value. Since the answer choices are all lower than the home's value, it can be inferred that Jack's home is over-insured. Insuring for the market value of the home may result in paying more for premiums, and not covering any potential rebuilding costs in the event of a disaster. Therefore, the correct and most cost-effective option for Jack is to insure his home for $600,000, ensuring it is fully covered without overpaying for excess insurance.