West Virginia Property and Casualty Licensing Practice Exam

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Study for the West Virginia Property and Casualty Licensing Exam. Enhance your knowledge with flashcards and multiple choice questions. Each question is accompanied by hints and explanations to boost your confidence. Prepare effectively for your exam!

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!

Practice this question and more.

The coverage provided under the West Virginia FAIR Plan may not exceed what amount for any one habitational or commercial risk?

$100,000 | $250,000
$200,000 | $500,000
$300,000 | $600,000
$400,000 | $800,000

The correct answer is: $200,000 | $500,000

The West Virginia FAIR Plan is designed to provide basic property insurance for individuals and businesses that have been unable to obtain insurance through the conventional marketplace due to high risk. The coverage limits are established to ensure that the plans remain viable and to safeguard against financial losses that could otherwise threaten the insurance pool. The correct answer reflects industry standards and recognizes the need for sufficient coverage while maintaining the viability of the FAIR Plan. The coverage limits under the FAIR Plan for habitational risks typically allow for a maximum of $200,000, whereas commercial risks can be covered up to $500,000. These limits are set to provide a reasonable amount of protection for those insured under the plan, taking into account the challenges associated with high-risk properties. By establishing these specific limits, the FAIR Plan aims to provide essential coverage without overextending its resources, ultimately serving the purpose it was created for—offering access to insurance for otherwise uninsurable properties.