Arkansas Insurance Adjuster Practice Exam

After recovering money through subrogation demands, the insurer may not take money from the insured’s recovered deductible unless:

1. it sends a notification to the insured.

2. the amount exceeds a certain limit.

3. it hired an attorney to recover the money.

4. the insured agrees in writing.

The correct answer is: it hired an attorney to recover the money.

After recovering money through subrogation demands, the insurer is not allowed to take money from the insured's recovered deductible unless the insured has agreed to it in writing. This means that the insurer cannot unilaterally deduct the amount from the insured's deductible without their consent. Options A, B, and D are incorrect because they do not address the key requirement of the insured's written agreement. Option A may seem plausible, but it does not specify any conditions for the notification or the notification may not be considered as valid consent. Option B is incorrect because it gives a vague condition and does not mention the insured's consent. Option D may also seem reasonable, but it does not specify whether the consent must be given before or after the insurer has recovered the money. Therefore, the correct answer is option C, as the insurer must obtain the insured's written consent before taking any money from the insured's recovered deductible.