Arkansas Health Insurance Adjuster Practice Test Exam Questions with Verified Answers

Arkansas Health Insurance Adjuster Practice Test Exam Questions with Verified Answers Herb owns a processing plant outside of town that services all the local farmers. He's been using over-the-road transportation but wants to streamline his business by using the railroads. He contacts ABC Railway Transport and the two come to an agreement: ABC Railway will run a sidetrack onto Herb's business premises, if Herb agrees not to hold ABC Railway responsible for certain liabilities that could result from the sidetrack's use. This agreement would fall under __________ in Herb's Commercial General Liability policy. - CORRECT ANSWER-Insured Contracts What is a reserve, in insurance terms? - CORRECT ANSWER-A pool of collected premiums that the insurer sets aside to pay claims Norris borrows Arnold's truck to pick up some lumber from the hardware store. On the way to the store, Norris collides with a car, injuring the three people inside. The driver suffers $15,000 in injuries, one passenger suffers $25,000, and the other passenger suffers $20,000. Norris has a PAP with liability limits of 50/100/50, and Arnold's policy has liability limits of 25/50/10. How much will the primary policy pay for the injuries? - CORRECT ANSWER-$50,000 Alice is an adjuster and is currently negotiating a settlement with Gale. Which of the following actions that Alice could take would be disrespectful towards Gale, and thus hinder the negotiation process? - CORRECT ANSWER-Assuming to know what Gale wants Which of the following automobile components is NOT covered by a Mechanical Breakdown Insurance policy? - CORRECT ANSWER-Tires (Drive train, steering assembly, engine ARE covered by a mechanical breakdown insurance policy) Which of the following statements applies to replacement cost valuation? A. An actual cash value policy will pay out more than a replacement cost value policy. B. Replacement cost valuations take into account the depreciated value of an item. C. Under replacement cost valuation, insurers may safeguard the principle of indemnity by requiring policyholders to replace insured items before making full reparations. D. Replacement cost valuations provide cheaper premiums for the policyholder than an actual cash value insurance policy. - CORRECT ANSWER-Under replacement cost valuation, insurers may safeguard the principle of indemnity by requiring policyholders to replace insured items before making full reparations. James and Eric want to play a prank on Bob for Halloween. They dress up like headless horsemen and throw ignited Jack O'Lanterns at his house. Unfortunately, one of the inflamed pumpkins catches the porch on fire, causing $3,500 in damages. Bob doesn't find this tomfoolery very entertaining and sues both James and Eric for the cost of the repairs. In court, James and Eric would be: A. intentional tort. B. a joint tortfeasor. C. a tortfeasor. D. the plaintiffs. - CORRECT ANSWER-A Joint Tortfeasor Under the Longshore and Harbor Workers' Compensation Act, how much would the surviving spouse of a deceased worker receive in benefits? - CORRECT ANSWER-?? Kirk is adjusting an auto liability claim submitted by Christine, who has retained an attorney to represent her in the claim. Kirk should: - CORRECT ANSWER-?? An individual must re-qualify for her license under the Arkansas Insurance Code: - CORRECT ANSWER-To get her license reinstated after a suspension. After a rain storm, Nancy realizes that she left her bedroom windows open the entire time. Now there is extensive water damage to her area rug and furniture, and the laptop that had been sitting on her desk is ruined. Nancy has a Broad Form homeowners policy, so she calls her insurance company and files a claim. What is the likely result of Nancy's claim? - CORRECT ANSWER-The insurer will not cover any of the damage, since Nancy left the windows open. When would a default judgment occur? - CORRECT ANSWER-When a defendant does not answer a complaint After recovering money through subrogation demands, the insurer may not take money from the insured's recovered deductible to cover its own expenses unless: - CORRECT ANSWER-it hired an attorney to recover the money. Which item would NOT belong in an adjuster's initial report on a claim? A. A list of all known circumstances surrounding the claim B. The date that the adjuster first contacts the claimant