Arkansas Independent Adjuster Exam Prep FREE Sample Exam

All of the following can end or limit a producer’s authority EXCEPT:

The producer exceeding the binding limits in the agreement

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The producer's unexpired license alone automatically restoring authority the insurer has terminated

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Expiration of the authority stated in a binder

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Termination of the agency agreement by the insurer

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Adjuster staff in a Fayetteville office notice the same body shop appears in an unusual cluster of similar rear-end claims with matching injury complaints. The best business response is to:

Refuse to handle any claim involving that shop without telling anyone why

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Analyze the pattern, preserve the files, and escalate the concern to the insurer's special investigations unit for coordinated review

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Pay all the claims quickly to keep the pattern from growing

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Confront the shop owner with an accusation of running a fraud ring

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A lender is named on a Jonesboro cabin policy. If the cabin is destroyed by a covered fire, the lender’s insurable interest is best measured by:

The amount of the borrower's life insurance

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The borrower's total net worth

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The outstanding loan balance secured by the cabin

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The full replacement cost in all cases regardless of debt

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All of the following describe a split limit in auto liability EXCEPT:

Separate amounts for bodily injury per accident

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A single combined limit that applies to bodily injury and property damage together with no internal divisions

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A separate amount for property damage per accident

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Separate amounts for bodily injury per person

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An exclusion in a property policy serves to:

Increase the policy limit automatically at renewal

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Replace the need for an insuring agreement

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Remove certain causes, types of loss, or property from the coverage otherwise granted

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Guarantee payment for the losses it lists

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A Bentonville jewelry store applicant is asked about prior theft losses and says ‘none’ while deliberately omitting a break-in last year. The omission, because the question was asked, is best analyzed as:

Misrepresentation by a false answer, closely related to concealment of a material fact

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A warranty by the insurer to pay all future thefts

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An enforceable oral modification of the policy

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An immaterial estimate of future risk

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A Little Rock homeowner installs a monitored burglar alarm and deadbolt locks. Which method of handling risk is she primarily using?

Risk reduction

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Risk retention

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Risk transfer

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Risk avoidance

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Salvage in property claims refers to:

The insured's right to abandon a claim at any time

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A fee paid to the adjuster for closing a file

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The damaged property or its remaining value, which the insurer may take or credit when it pays for a total loss

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The process of appealing a claim denial

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All of the following are characteristics of an insurance contract EXCEPT:

It is a bilateral contract in which both parties' promises are equally enforceable from the start

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It is conditional on the insured meeting policy conditions

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It is aleatory, depending on an uncertain event

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It is a contract of utmost good faith

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An insurer organized under the laws of Arkansas and headquartered in Little Rock is, in Arkansas, a:

Alien insurer

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Unauthorized insurer in its home state

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Foreign insurer

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Domestic insurer

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A El Dorado business cancels its one-year policy at its own request exactly halfway through the term. The annual premium was $2,000 and the short-rate table in this question refunds 40% of the annual premium at that point. The refund is:

$800

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$400

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$2,000

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$1,000

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Which peril set is correctly matched to Broad form only?

Fire, lightning and explosion only

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Flood, earth movement and nuclear hazard

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War, governmental action and flood

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Falling objects, weight of ice snow or sleet, and accidental discharge from plumbing

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Arkansas Independent Adjuster Exam Prep FREE Sample Exam

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