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

Question: 1 / 400

Melanie's home suffers $90,000 in damage. Given the depreciation and policy terms, how much further indemnification may she receive after initial payment if repairs total $79,500?

$0

$10,500

$12,000

$22,500

Even after the initial payment, Melanie is still entitled to a further indemnity of $22,500. This is because the total cost of the damage ($90,000) minus the depreciation ($10,500) equals $79,500, which is the amount of her final indemnification. Option A is incorrect because it assumes that the initial payment covers the full cost of repairs, which is not the case. Option B is incorrect because it only accounts for the depreciation, not the total cost of repairs. Option C is incorrect because it only accounts for the difference between the total cost of damage and the depreciation, not the total cost of repairs. Therefore, option D is the correct answer.

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