AR Crop Hail Exam UP-TO-DATE EXAM
QUESTIONS AND 100% ACCURATE SOLUTIONS
| Question And VERIFIED ANSWERS - INSTANT
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Section 1: Policy Basics & Definitions
1. Crop hail insurance differs from multi-peril crop insurance (MPCI) primarily because:
a) It covers only drought
b) It covers hail damage and often fire following hail
c) It requires a 30-day waiting period
d) It is only available in Arkansas
Correct answer: b. Crop hail insurance is named-peril coverage for hail and often includes
fire caused by hail, while MPCI covers broader perils like drought, flood, and disease.
2. In AR crop hail policies, the term “unit” refers to:
a) A single row of crop
b) The acreage of a single crop type in a county
c) The insured’s entire farm
d) A bushel weight measurement
Correct answer: b. A unit is typically defined by crop type and county location, allowing
separate coverage and loss calculations.
3. Which AR crop is most commonly insured under a standalone hail policy?
a) Timber
b) Pasture grass
c) Rice
d) Sod
Correct answer: c. Rice is a major insured crop in Arkansas under hail policies due to high
hail risk in the Delta region.
,4. The “valuation date” in a crop hail policy determines:
a) When the premium is due
b) The price used to value the crop at harvest
c) The date of loss inspection
d) The planting deadline
Correct answer: b. Valuation date sets the base price per bushel or pound for indemnity
calculation.
5. A “deductible” in crop hail insurance is usually expressed as:
a) Flat dollar amount
b) Percentage of the yield
c) Hours of exposure
d) Acres planted
*Correct answer: b. Deductibles are often percentage-based (e.g., 5% of expected yield)
in crop hail policies.*
6. The “crop year” for AR spring-planted crops typically runs:
a) Jan 1 – Dec 31
b) Mar 1 – Nov 30
c) July 1 – June 30
d) Oct 1 – Sep 30
Correct answer: b. Crop hail policies align with growing season; March to November
covers planting through harvest in AR.
7. Which peril is NOT covered by a standard AR crop hail policy?
a) Hail
b) Fire caused by hail
c) Flooding
d) Lightning accompanying hail
Correct answer: c. Flood is an excluded peril under named-peril hail policies unless added
by endorsement.
8. “Acres planted” in the declarations page refers to:
a) Maximum insurable acres
b) Actual seeded acres on insured land
c) County average acres
d. Harvested acres only
Correct answer: b. Insured acres are those planted by the insured within the policy
territory.
,9. An “endorsement” in crop hail insurance:
a) Cancels the policy
b) Modifies coverage or adds perils
c) Doubles the premium
d) Requires a deductible waiver
Correct answer: b. Endorsements add or change provisions, e.g., adding fire coverage
beyond hail-caused fire.
10. The “loss adjustment” process begins when:
a) The crop is planted
b) The insured reports a hail event
c) Premium is paid in full
d) Harvest is complete
Correct answer: b. Insured must notify company or agent promptly after a suspected hail
loss.
11. In AR, crop hail policies are regulated by:
a) USDA-RMA
b) Arkansas Insurance Department
c) Farm Service Agency
d) National Crop Insurance Services
Correct answer: b. State-licensed crop hail insurers are regulated by the Arkansas
Insurance Department.
12. “Proof of loss” must be submitted within what timeframe after a loss?
a) 30 days
b) 60 days (typical)
c) 120 days
d) No deadline
Correct answer: b. Most policies require written proof of loss within 60 days of the loss
date.
13. “Stripping” in crop hail adjustment refers to:
a) Removing hail pads
b) Harvesting only undamaged portions
c) Cleaning grain bins
d) Canceling coverage mid-term
Correct answer: b. Stripping is when an insured harvests good crop from damaged field
before adjuster inspects – affects claim settlement.
, 14. AR crop hail policies exclude hail damage occurring:
a) Before flowering
b) After harvest begins
c) At night
d) On organic farms
Correct answer: b. Coverage ends at harvest start or policy expiration, whichever comes
first.
15. A “stand-alone” crop hail policy means:
a) It replaces all other insurance
b) It is not bundled with MPCI
c) It covers only one field
d) It has zero deductible
Correct answer: b. Stand-alone means purchased separately from MPCI, often with higher
coverage levels.
16. “Catastrophic (CAT) hail coverage” in AR:
a) Is federally subsidized
b) Does not exist – hail is private insurance
c) Covers 100% of value
d) Is mandatory for rice
Correct answer: b. Unlike MPCI, crop hail is private insurance without federal CAT
program.
17. The “insurable interest” requirement means:
a) Insured must own the land
b) Insured must suffer financial loss if crop damaged
c) Crop must be irrigated
d) Yield must exceed county average
Correct answer: b. The insured must have a financial stake in the crop (e.g., owner, tenant,
lienholder).
18. “Hail pad” readings are used to:
a) Determine wind speed
b) Estimate hail intensity and duration
c) Calculate premium
d) Measure soil moisture
Correct answer: b. Hail pads show stone size and impact density, helping adjusters assess
damage potential.
QUESTIONS AND 100% ACCURATE SOLUTIONS
| Question And VERIFIED ANSWERS - INSTANT
PDF DOWNLOAD.
Section 1: Policy Basics & Definitions
1. Crop hail insurance differs from multi-peril crop insurance (MPCI) primarily because:
a) It covers only drought
b) It covers hail damage and often fire following hail
c) It requires a 30-day waiting period
d) It is only available in Arkansas
Correct answer: b. Crop hail insurance is named-peril coverage for hail and often includes
fire caused by hail, while MPCI covers broader perils like drought, flood, and disease.
2. In AR crop hail policies, the term “unit” refers to:
a) A single row of crop
b) The acreage of a single crop type in a county
c) The insured’s entire farm
d) A bushel weight measurement
Correct answer: b. A unit is typically defined by crop type and county location, allowing
separate coverage and loss calculations.
3. Which AR crop is most commonly insured under a standalone hail policy?
a) Timber
b) Pasture grass
c) Rice
d) Sod
Correct answer: c. Rice is a major insured crop in Arkansas under hail policies due to high
hail risk in the Delta region.
,4. The “valuation date” in a crop hail policy determines:
a) When the premium is due
b) The price used to value the crop at harvest
c) The date of loss inspection
d) The planting deadline
Correct answer: b. Valuation date sets the base price per bushel or pound for indemnity
calculation.
5. A “deductible” in crop hail insurance is usually expressed as:
a) Flat dollar amount
b) Percentage of the yield
c) Hours of exposure
d) Acres planted
*Correct answer: b. Deductibles are often percentage-based (e.g., 5% of expected yield)
in crop hail policies.*
6. The “crop year” for AR spring-planted crops typically runs:
a) Jan 1 – Dec 31
b) Mar 1 – Nov 30
c) July 1 – June 30
d) Oct 1 – Sep 30
Correct answer: b. Crop hail policies align with growing season; March to November
covers planting through harvest in AR.
7. Which peril is NOT covered by a standard AR crop hail policy?
a) Hail
b) Fire caused by hail
c) Flooding
d) Lightning accompanying hail
Correct answer: c. Flood is an excluded peril under named-peril hail policies unless added
by endorsement.
8. “Acres planted” in the declarations page refers to:
a) Maximum insurable acres
b) Actual seeded acres on insured land
c) County average acres
d. Harvested acres only
Correct answer: b. Insured acres are those planted by the insured within the policy
territory.
,9. An “endorsement” in crop hail insurance:
a) Cancels the policy
b) Modifies coverage or adds perils
c) Doubles the premium
d) Requires a deductible waiver
Correct answer: b. Endorsements add or change provisions, e.g., adding fire coverage
beyond hail-caused fire.
10. The “loss adjustment” process begins when:
a) The crop is planted
b) The insured reports a hail event
c) Premium is paid in full
d) Harvest is complete
Correct answer: b. Insured must notify company or agent promptly after a suspected hail
loss.
11. In AR, crop hail policies are regulated by:
a) USDA-RMA
b) Arkansas Insurance Department
c) Farm Service Agency
d) National Crop Insurance Services
Correct answer: b. State-licensed crop hail insurers are regulated by the Arkansas
Insurance Department.
12. “Proof of loss” must be submitted within what timeframe after a loss?
a) 30 days
b) 60 days (typical)
c) 120 days
d) No deadline
Correct answer: b. Most policies require written proof of loss within 60 days of the loss
date.
13. “Stripping” in crop hail adjustment refers to:
a) Removing hail pads
b) Harvesting only undamaged portions
c) Cleaning grain bins
d) Canceling coverage mid-term
Correct answer: b. Stripping is when an insured harvests good crop from damaged field
before adjuster inspects – affects claim settlement.
, 14. AR crop hail policies exclude hail damage occurring:
a) Before flowering
b) After harvest begins
c) At night
d) On organic farms
Correct answer: b. Coverage ends at harvest start or policy expiration, whichever comes
first.
15. A “stand-alone” crop hail policy means:
a) It replaces all other insurance
b) It is not bundled with MPCI
c) It covers only one field
d) It has zero deductible
Correct answer: b. Stand-alone means purchased separately from MPCI, often with higher
coverage levels.
16. “Catastrophic (CAT) hail coverage” in AR:
a) Is federally subsidized
b) Does not exist – hail is private insurance
c) Covers 100% of value
d) Is mandatory for rice
Correct answer: b. Unlike MPCI, crop hail is private insurance without federal CAT
program.
17. The “insurable interest” requirement means:
a) Insured must own the land
b) Insured must suffer financial loss if crop damaged
c) Crop must be irrigated
d) Yield must exceed county average
Correct answer: b. The insured must have a financial stake in the crop (e.g., owner, tenant,
lienholder).
18. “Hail pad” readings are used to:
a) Determine wind speed
b) Estimate hail intensity and duration
c) Calculate premium
d) Measure soil moisture
Correct answer: b. Hail pads show stone size and impact density, helping adjusters assess
damage potential.
