West Virginia Adjusters Practice Exam

The correct understanding revolves around the Recovered Property provision, which is a standard clause in insurance policies regarding claims for stolen property. When the insured property is recovered after a claim has been paid, the insured typically has an obligation to inform the insurer about the recovery. In this case, since Sara's vehicle was recovered after the insurance company had already compensated her for the total value of the car, she cannot simply keep both the settlement payment and the car. The obligation under the Recovered Property provision would require her to notify the insurer about the recovery. This means she must either return the settlement payment to the insurer or surrender the vehicle. Therefore, the most accurate statement is the one that reflects the need for Sara to inform her insurer and outlines that she must return the settlement or the vehicle. This ensures compliance with the policy terms and maintains the integrity of the insurance process.