West Virginia Adjusters Practice Exam

Which of the following is NOT an unfair practice in West Virginia?

1. Delaying the settlement of a claim

2. Failing to acknowledge and act promptly upon communications regarding claims

3. Misrepresenting pertinent facts or insurance policy provisions

4. Providing a policyholder's claim history information to the fire marshal after a fire loss to the insured property

The correct answer is: Delaying the settlement of a claim

The correct answer identifies a situation that does not fall under the category of unfair practices in West Virginia. Providing a policyholder's claim history information to the fire marshal after a fire loss is a standard procedure that aligns with legal and regulatory obligations. It ensures that relevant authorities are informed about the context of a fire incident, which can be critical for investigations and safety measures. On the other hand, delaying the settlement of a claim, failing to promptly acknowledge and act on communications regarding claims, and misrepresenting facts or policy provisions are all practices that undermine the integrity and fairness expected in the insurance industry. These actions could harm the policyholder’s interests and are therefore classified as unfair practices under West Virginia law.