West Virginia Adjusters Practice Exam

In West Virginia, a vehicle is considered "underinsured" for the purposes of UM/UIM coverage if:

1. the vehicle does not have any insurance coverage.

2. the liability limits that apply to it are lower than the injured person's UM/UIM limit.

3. the vehicle has been declared a total loss.

4. the vehicle has expired registration.

The correct answer is: the vehicle does not have any insurance coverage.

A "underinsured" vehicle, for the purposes of UM/UIM coverage, is one that does not have enough insurance coverage to fully compensate for damages in the event of an accident. Choice B is incorrect because it is referring to "liability limits," which are not specific to UM/UIM coverage. Choice C is incorrect because a total loss designation does not necessarily indicate the amount of insurance coverage on the vehicle. Choice D is incorrect because registration status does not determine the amount of insurance coverage on a vehicle. Only Choice A accurately defines "underinsured" for UM/UIM coverage.