Arkansas Insurance Adjuster Practice Exam

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Prepare for the Arkansas Insurance Adjuster Exam with flashcards and multiple choice questions, each offering hints and explanations. Equip yourself for your test confidently!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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After a covered loss, how much will Jesse receive in indemnification for his damaged home worth $200,000 with a $160,000 policy limit and $10,000 in damages?

None
$8,000
$10,000
$9,500

The correct answer is: $10,000

The correct answer is option C, $10,000. This is because when determining the indemnification amount, the policy limit of $160,000 should not be considered. The damages are within the policy limit, so Jesse will receive the full amount of damages up to the policy limit, which in this case is $10,000. Option A, None, is incorrect because Jesse will receive an indemnification amount of $10,000. Option B, $8,000, is incorrect because that is less than the policy limit of $10,000. Option D, $9,500, is incorrect because it is not an option and does not accurately reflect the policy limit or damages.