Arkansas Insurance Adjuster Practice Exam 2025 – Comprehensive All-in-One Guide to Exam Success

Question: 1 / 400

Bill's new home is damaged by an electrical fire and theft during construction. He has an HO-2 policy. How will his insurer respond to the claim?

Pay $15,000 for the kitchen and nothing for the trim

A homeowner's HO-2 policy typically provides coverage for damage due to accidents such as fires and theft. However, since Bill's home is still under construction, the policy may not cover the entire loss. Option A is the correct answer because it specifies the amount that will be paid for each type of loss - $15,000 for the kitchen and nothing for the trim. Options B and D are incorrect because they do not specify the amount of coverage for each type of loss, and option C is incorrect because it assumes that the entire claim will be denied.

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Pay $4,200 for the stolen trim and nothing for the kitchen

Deny the claim because the house was still under construction

Pay $19,200 for the entire amount of the loss

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