ARKANSAS ADJUSTER LATEST 2026 EXAM QUESTIONS
AND ANSWERS MARKED A+
✔✔Phil heads over to visit his friend Josh, who is sick with the flu. While at the house,
Josh fails to cover his mouth when he coughs and Phil ends up contacting the flu. Phil
files a claim with Josh's insurer for medical expenses and lost income while Phil is out
sick from work. The insurer denies the claim because: - ✔✔disease transmitted from the
insured to a third party is excluded
✔✔Allen works as an adjuster for Insurer B. Which of the following is FALSE?
A. Insurer B is bound by Allen's words or decisions that he makes while on the job.
B. Allen is an agent of Insurer B.
C. Insurer B has given Allen express authority to perform on its behalf.
D. Allen is a salaried employee who only sells Insurer B's products. - ✔✔Allen is a
salaried employee who only sells Insurer B's products
✔✔Sarah suffers acute back pain. Not satisfied with the specialists in her own network,
Sarah elects to see a back specialist outside the network established by her healthcare
provider. Her healthcare provider pays the amount that the same appointment would
reasonably have cost with an in-network specialist, and Sarah has to pay the additional
costs out of her own pocket. Which type of healthcare provider does Sarah belong to? -
✔✔Preferred Provider Organization
✔✔Jack has been appointed to manage Margaret's financial estate, but Margaret
requires Jack to be bonded. What kind of bond might Jack seek? - ✔✔A fiduciary bond
✔✔Which of the following is NOT a risk management technique?
A. Risk equality
B. Risk retention
C. Risk reduction
D. Risk avoidance - ✔✔Risk equality
✔✔An oral or written statement providing temporary insurance coverage until an
insurance policy can be issued is called a: - ✔✔binder.
✔✔An "occurrence" is defined as: - ✔✔an unexpected event that causes loss.
✔✔Bonnie's PAP includes Comprehensive coverage. Which of the following losses
could this coverage pay for?
,A. Bonnie rolls her vehicle in a one-car accident.
B. Bonnie rear-ends another vehicle.
C. Bonnie's car breaks down due to an engine
malfunction.
D. Bonnie's car catches fire. - ✔✔??
✔✔When an insurer issues an insurance policy, the actual item, person, or organization
that is being insured is called the: - ✔✔risk.
✔✔In which section of an insurance policy might you find the following statement? "'We,
us, and our' refers to ABC Insurance company." - ✔✔Definitions
✔✔Which of the following would NOT be covered under a typical Ocean Marine policy?
- ✔✔The owner sustains a financial loss when her vessel is confiscated by the
government.
✔✔Jerry is using an expensive video recorder near the family pool when he slips and
falls in, destroying the camera. Jerry bought the camera three years ago for $4,000, and
it depreciates at $500 per year. A new, similar camera costs $5,000 today. Assuming
the loss is covered, if Jerry had a replacement cost policy, how much would Jerry's
insurer indemnify Jerry for the destroyed camera? - ✔✔$5,000
✔✔Josephine has purchased a Business Owners Policy. She insures both the real and
personal property at 80% under the policy. Assuming no endorsements apply, the
losses will be adjusted on a(n) _______________ basis. - ✔✔??
✔✔Which of the following is NOT a feature of a typical Business Owners Policy?
A. Built-in inflation protection
B. Extra Expense coverage
C. Liability protection for lawsuits from accidents or products
D. Usually Actual Cost Valuation - ✔✔??
✔✔Which statement BEST describes the "Follow Form" in excess liability coverage?
A. Excess liability insurance that "follows" the base policy, but includes its own set of
limitations and exclusions
,B. Insurance coverage that is written on the Standard Liability Insurance Form provided
by NAIC
C. Excess liability insurance that often covers more risks than the base policy
D. Excess liability insurance that "follows" the base insurance policy to the letter - ✔✔D.
Excess liability insurance that "follows" the base insurance policy to the letter
✔✔One morning, Jill arrives to open the bank, only to find the door already unlocked.
Upon entering the bank, she sees the vault door has been blown open and a large
amount of money has been burned when an explosive charge went off. Which
commercial crime insurance coverage might cover the loss? - ✔✔Inside the Premises:
Theft of Money and Securities
✔✔Veronica owns a pottery business and is insured under a commercial property
policy. She was in the process of building an extra structure for the sole purpose of kiln
firing her pottery when a massive storm came through and blew down all the
scaffolding, which added additional cost to the construction project. Which coverage
extension of the Builder's Risk Coverage Form would cover the scaffolding? -
✔✔Scaffolding, Construction Forms, and Temporary Structures
✔✔After a loss covered under a dwelling policy, Ordinance or Law coverage pays for: -
✔✔increased repair costs due to laws or codes.
✔✔Sue decides to get a valued insurance policy on her antique car. She and her
insurance company agree to a value of $85,000. Three years later, the car is destroyed
when a tree falls on it in a parking lot. The car depreciates at $2,000 a year, and its
replacement cost is $100,000. Ignoring any deductible, how much can Sue expect her
insurer to indemnify her? - ✔✔??
✔✔Tamara is fully insured by a DP-1 on her $175,000 home. When a portion of
Tamara's attached garage burns in a small fire, the adjuster estimates it will take $8,000
to repair the damage. However, based on the age of the structure, the adjuster writes
Tamara a check for $5,500. Once repairs are completed, Tamara submits proof and
receives how much more from her insurer? - ✔✔??
✔✔Which statement BEST describes Umbrella coverage?
A. Excess liability insurance that "follows" the base insurance policy to the letter
B. Excess liability insurance that can also provide additional coverages not provided by
the base policy
C. Excess liability insurance that "follows" the base policy, but includes its own set of
limitations and exclusions
, D. Insurance coverage for that doesn't have deductibles - ✔✔Excess liability insurance
that can also provide additional coverages not provided by the base policy
✔✔Which of the following statements about insurable interest is FALSE?
A. Purchasing an insurance policy on your home helps protect your insurable interest in
a home.
B. When a renter leases your house, your insurable interest in the home remains.
C. Maintaining property values allows your neighbor to have an insurable interest in
your house.
D. Insurable interest reduces the incentive for someone to cause damages intentionally
to insured property. - ✔✔Maintaining property values allows your neighbor to have an
insurable interest in your house.
✔✔Lewis owns a computer store, and he spends many hours a day on the sales floor
demonstrating his products to customers. He often gets very animated when showing
the electronics and, although he does not intend for anything bad to happen, he doesn't
worry too much about handling them carefully, since he knows that his insurance policy
will cover any damages. This behavior would be called a: - ✔✔??
✔✔All of the following are types of Cargo Coverage in Ocean Marine insurance,
EXCEPT:
A. Floating, Open or Long Term.
B. All Risk Form.
C. Single Risk Form.
D. Warehouse-to-Warehouse. - ✔✔All Risk Form
✔✔Which of the following losses may be covered by Mechanical Breakdown
Insurance?
A. Harry's power steering system failed at 55,000 miles.
B. Elliot's windshield wipers cracked shortly after purchase.
C. Someone put sugar in Selma's gas tank, which ruined her engine.
AND ANSWERS MARKED A+
✔✔Phil heads over to visit his friend Josh, who is sick with the flu. While at the house,
Josh fails to cover his mouth when he coughs and Phil ends up contacting the flu. Phil
files a claim with Josh's insurer for medical expenses and lost income while Phil is out
sick from work. The insurer denies the claim because: - ✔✔disease transmitted from the
insured to a third party is excluded
✔✔Allen works as an adjuster for Insurer B. Which of the following is FALSE?
A. Insurer B is bound by Allen's words or decisions that he makes while on the job.
B. Allen is an agent of Insurer B.
C. Insurer B has given Allen express authority to perform on its behalf.
D. Allen is a salaried employee who only sells Insurer B's products. - ✔✔Allen is a
salaried employee who only sells Insurer B's products
✔✔Sarah suffers acute back pain. Not satisfied with the specialists in her own network,
Sarah elects to see a back specialist outside the network established by her healthcare
provider. Her healthcare provider pays the amount that the same appointment would
reasonably have cost with an in-network specialist, and Sarah has to pay the additional
costs out of her own pocket. Which type of healthcare provider does Sarah belong to? -
✔✔Preferred Provider Organization
✔✔Jack has been appointed to manage Margaret's financial estate, but Margaret
requires Jack to be bonded. What kind of bond might Jack seek? - ✔✔A fiduciary bond
✔✔Which of the following is NOT a risk management technique?
A. Risk equality
B. Risk retention
C. Risk reduction
D. Risk avoidance - ✔✔Risk equality
✔✔An oral or written statement providing temporary insurance coverage until an
insurance policy can be issued is called a: - ✔✔binder.
✔✔An "occurrence" is defined as: - ✔✔an unexpected event that causes loss.
✔✔Bonnie's PAP includes Comprehensive coverage. Which of the following losses
could this coverage pay for?
,A. Bonnie rolls her vehicle in a one-car accident.
B. Bonnie rear-ends another vehicle.
C. Bonnie's car breaks down due to an engine
malfunction.
D. Bonnie's car catches fire. - ✔✔??
✔✔When an insurer issues an insurance policy, the actual item, person, or organization
that is being insured is called the: - ✔✔risk.
✔✔In which section of an insurance policy might you find the following statement? "'We,
us, and our' refers to ABC Insurance company." - ✔✔Definitions
✔✔Which of the following would NOT be covered under a typical Ocean Marine policy?
- ✔✔The owner sustains a financial loss when her vessel is confiscated by the
government.
✔✔Jerry is using an expensive video recorder near the family pool when he slips and
falls in, destroying the camera. Jerry bought the camera three years ago for $4,000, and
it depreciates at $500 per year. A new, similar camera costs $5,000 today. Assuming
the loss is covered, if Jerry had a replacement cost policy, how much would Jerry's
insurer indemnify Jerry for the destroyed camera? - ✔✔$5,000
✔✔Josephine has purchased a Business Owners Policy. She insures both the real and
personal property at 80% under the policy. Assuming no endorsements apply, the
losses will be adjusted on a(n) _______________ basis. - ✔✔??
✔✔Which of the following is NOT a feature of a typical Business Owners Policy?
A. Built-in inflation protection
B. Extra Expense coverage
C. Liability protection for lawsuits from accidents or products
D. Usually Actual Cost Valuation - ✔✔??
✔✔Which statement BEST describes the "Follow Form" in excess liability coverage?
A. Excess liability insurance that "follows" the base policy, but includes its own set of
limitations and exclusions
,B. Insurance coverage that is written on the Standard Liability Insurance Form provided
by NAIC
C. Excess liability insurance that often covers more risks than the base policy
D. Excess liability insurance that "follows" the base insurance policy to the letter - ✔✔D.
Excess liability insurance that "follows" the base insurance policy to the letter
✔✔One morning, Jill arrives to open the bank, only to find the door already unlocked.
Upon entering the bank, she sees the vault door has been blown open and a large
amount of money has been burned when an explosive charge went off. Which
commercial crime insurance coverage might cover the loss? - ✔✔Inside the Premises:
Theft of Money and Securities
✔✔Veronica owns a pottery business and is insured under a commercial property
policy. She was in the process of building an extra structure for the sole purpose of kiln
firing her pottery when a massive storm came through and blew down all the
scaffolding, which added additional cost to the construction project. Which coverage
extension of the Builder's Risk Coverage Form would cover the scaffolding? -
✔✔Scaffolding, Construction Forms, and Temporary Structures
✔✔After a loss covered under a dwelling policy, Ordinance or Law coverage pays for: -
✔✔increased repair costs due to laws or codes.
✔✔Sue decides to get a valued insurance policy on her antique car. She and her
insurance company agree to a value of $85,000. Three years later, the car is destroyed
when a tree falls on it in a parking lot. The car depreciates at $2,000 a year, and its
replacement cost is $100,000. Ignoring any deductible, how much can Sue expect her
insurer to indemnify her? - ✔✔??
✔✔Tamara is fully insured by a DP-1 on her $175,000 home. When a portion of
Tamara's attached garage burns in a small fire, the adjuster estimates it will take $8,000
to repair the damage. However, based on the age of the structure, the adjuster writes
Tamara a check for $5,500. Once repairs are completed, Tamara submits proof and
receives how much more from her insurer? - ✔✔??
✔✔Which statement BEST describes Umbrella coverage?
A. Excess liability insurance that "follows" the base insurance policy to the letter
B. Excess liability insurance that can also provide additional coverages not provided by
the base policy
C. Excess liability insurance that "follows" the base policy, but includes its own set of
limitations and exclusions
, D. Insurance coverage for that doesn't have deductibles - ✔✔Excess liability insurance
that can also provide additional coverages not provided by the base policy
✔✔Which of the following statements about insurable interest is FALSE?
A. Purchasing an insurance policy on your home helps protect your insurable interest in
a home.
B. When a renter leases your house, your insurable interest in the home remains.
C. Maintaining property values allows your neighbor to have an insurable interest in
your house.
D. Insurable interest reduces the incentive for someone to cause damages intentionally
to insured property. - ✔✔Maintaining property values allows your neighbor to have an
insurable interest in your house.
✔✔Lewis owns a computer store, and he spends many hours a day on the sales floor
demonstrating his products to customers. He often gets very animated when showing
the electronics and, although he does not intend for anything bad to happen, he doesn't
worry too much about handling them carefully, since he knows that his insurance policy
will cover any damages. This behavior would be called a: - ✔✔??
✔✔All of the following are types of Cargo Coverage in Ocean Marine insurance,
EXCEPT:
A. Floating, Open or Long Term.
B. All Risk Form.
C. Single Risk Form.
D. Warehouse-to-Warehouse. - ✔✔All Risk Form
✔✔Which of the following losses may be covered by Mechanical Breakdown
Insurance?
A. Harry's power steering system failed at 55,000 miles.
B. Elliot's windshield wipers cracked shortly after purchase.
C. Someone put sugar in Selma's gas tank, which ruined her engine.
