West Virginia Adjusters Practice Exam

The correct choice indicates that, under certain circumstances, another insurer might take over the defense of the claimant in court if the original insurer becomes insolvent. This reflects the ability of the insurance industry, specifically the insurance guaranty associations, to ensure that claims are handled even when a primary insurer is unable to continue due to insolvency. Guaranty associations are designed to protect policyholders and facilitate the continuation of coverage, making it possible for claims to be processed without significant interruption.

The other options each present scenarios that generally do not align with standard practices following an insurer's insolvency. Automatic delays, such as a mandated six-month wait for an association, are not typically mandated. The idea that a new defense attorney would be appointed immediately by the court overlooks the process and framework set in place for handling such cases through guaranty associations. Similarly, the outright dismissal of the case due to the insolvency of the insurer does not take into account the protections extended to claimants and policyholders through regulatory frameworks and associations designed specifically to address these types of situations.