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 severe hailstorm totals her roof, how much will Marlene receive in the settlement, assuming the insurer imposes the standard coinsurance penalty?

$10,000
$8,000
$5,000
$3,000

The correct answer is: $5,000

The standard coinsurance penalty requires the policyholder to carry a specific percentage of the property's total value in insurance coverage, typically 80% or higher. In this scenario, it is likely that Marlene did not have enough coverage to fully cover the cost of the damage, resulting in a coinsurance penalty. Based on the options provided, it is clear that the penalty is a percentage of the total settlement amount, with options A, B, and D being higher than the correct answer of C. This means that those options would not impose a coinsurance penalty and would result in Marlene receiving more than $5,000. Therefore, the correct answer is C, as it is the only option that accounts for a potential coinsurance penalty and is the most likely amount Marlene would receive in the settlement.