ARKANSAS ADJUSTER LATEST 2026 ALL FINALS
QUESTIONS AND ANSWERS MARKED A+
✔✔Types of Insurance
Stock Insurance Company - ✔✔-always for profit
-stockholders provide capital
-non-participating insurers
-no dividends go to policy holders
✔✔Types of Insurance
Mutual Insurers - ✔✔-for profit
-owned by policy holders
-policy holders elect board of directors
-participating insurers: policy holders participate in dividends
✔✔Types of Insurance
Re-Insurer - ✔✔-an insurer that provides insurance for other insurers
-the insurer buys insurance to protect against loss
-re-insurer pays a percentage of the insurers losses, or any losses over a certain
amount
(kinda like gap)
✔✔Types of Insurance
Reciprocal Insurance - ✔✔-a group of people or organizations that insure each other
Characteristics:
-unincorporated
- non-profit
-operated by attorney- in fact
-members pay into individual accounts
-cost of claims shared by whole group
✔✔Types of Insurance
Fraternal Benefit Societies - ✔✔-non-profit
-engages in charitable activities
-provides some types of insurance
-typically consist of people with similar religions, ethnicities and occupations
✔✔ - ✔✔
, ✔✔Types of Insurance
Risk Retention Group - ✔✔-a group of people with similar insurance needs who form an
organization to buy insurance as a group
-usually formed to provide commercial liability insurance
-do not act as insurers
-not exposed to risk the way insurers are
-members must operate in related businesses with similar risks
✔✔Types of Insurance
Private Non-Commercial Insurance - ✔✔-Private- not for profit
-Returns profits to policy holders by reducing premiums or explaining benefits
✔✔(Classification Based on Location)
Domestic Insurer - ✔✔-located in a particular state, abide by state laws
✔✔(Classification Based on Location)
Foreign Insurer - ✔✔-obeys a states or US Laws but can be located elsewhere
✔✔(Classification Based on Location)
Alien Insurer - ✔✔-obeys laws of another country altogether
✔✔Risk for Insurers - ✔✔-the potential for financial loss; being exposed or open to
damage
-an insured item
✔✔Speculative risk - ✔✔-cannot be insured
-is undertaken with no certainty of either gain or loss
-is made knowingly, by conscious choice.
-examples: lottery, stock market, gambling, investing in a business
✔✔Pure risk - ✔✔-can be insured
-is a risk with no chance of gain
-can only result in either loss or no loss
-can be insured
✔✔Exposure - ✔✔-the extent to which a person, item, or organization is open to
damage or loss
QUESTIONS AND ANSWERS MARKED A+
✔✔Types of Insurance
Stock Insurance Company - ✔✔-always for profit
-stockholders provide capital
-non-participating insurers
-no dividends go to policy holders
✔✔Types of Insurance
Mutual Insurers - ✔✔-for profit
-owned by policy holders
-policy holders elect board of directors
-participating insurers: policy holders participate in dividends
✔✔Types of Insurance
Re-Insurer - ✔✔-an insurer that provides insurance for other insurers
-the insurer buys insurance to protect against loss
-re-insurer pays a percentage of the insurers losses, or any losses over a certain
amount
(kinda like gap)
✔✔Types of Insurance
Reciprocal Insurance - ✔✔-a group of people or organizations that insure each other
Characteristics:
-unincorporated
- non-profit
-operated by attorney- in fact
-members pay into individual accounts
-cost of claims shared by whole group
✔✔Types of Insurance
Fraternal Benefit Societies - ✔✔-non-profit
-engages in charitable activities
-provides some types of insurance
-typically consist of people with similar religions, ethnicities and occupations
✔✔ - ✔✔
, ✔✔Types of Insurance
Risk Retention Group - ✔✔-a group of people with similar insurance needs who form an
organization to buy insurance as a group
-usually formed to provide commercial liability insurance
-do not act as insurers
-not exposed to risk the way insurers are
-members must operate in related businesses with similar risks
✔✔Types of Insurance
Private Non-Commercial Insurance - ✔✔-Private- not for profit
-Returns profits to policy holders by reducing premiums or explaining benefits
✔✔(Classification Based on Location)
Domestic Insurer - ✔✔-located in a particular state, abide by state laws
✔✔(Classification Based on Location)
Foreign Insurer - ✔✔-obeys a states or US Laws but can be located elsewhere
✔✔(Classification Based on Location)
Alien Insurer - ✔✔-obeys laws of another country altogether
✔✔Risk for Insurers - ✔✔-the potential for financial loss; being exposed or open to
damage
-an insured item
✔✔Speculative risk - ✔✔-cannot be insured
-is undertaken with no certainty of either gain or loss
-is made knowingly, by conscious choice.
-examples: lottery, stock market, gambling, investing in a business
✔✔Pure risk - ✔✔-can be insured
-is a risk with no chance of gain
-can only result in either loss or no loss
-can be insured
✔✔Exposure - ✔✔-the extent to which a person, item, or organization is open to
damage or loss
