West Virginia Adjusters Practice Exam

Which of the following is NOT a valid reason for an insurer to leave mine subsidence coverage off of a policy?

1. The insured's home is in an area not prone to mine subsidence

2. The insured's mine subsidence waiver was properly executed

3. The insured's current policy covers less than 80% of the value of the property

4. The insured requested the exclusion in writing

The correct answer is: The insured's home is in an area not prone to mine subsidence

One possible explanation is that the insured's home is not located in an area where mine subsidence is a common occurrence, so the insurer does not see a need to include coverage for it. This option is incorrect because not all insurers have the same criteria for including mine subsidence coverage. Some insurers may still offer it as an optional add-on, even if the insured's home is not in a high-risk area. Additionally, an insured may still choose to have coverage for mine subsidence even if they do not live in an area prone to it.