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!

Practice this question and more.

During a strong storm, Missy's grain drill was mangled by a tornado, which rendered it useless. Before the damage, the grain drill was worth $25,000, but it would cost $45,000 to buy a new one today. Missy's farm policy has a replacement cost endorsement, and the grain drill is scheduled on a Mobile Agricultural Machinery and Equipment form with a $36,000 limit. How much total indemnification will she receive?

$36,000
$40,000
$45,000
$25,000

The correct answer is: $36,000

Missy will receive $36,000 in total indemnification. This is because the replacement cost endorsement and the Mobile Agricultural Machinery and Equipment form both have a limit of $36,000. Option B is incorrect because it exceeds the limit set in the policy. Option C is incorrect because it is the current cost of a new grain drill, not the value of Missy's damaged one. Option D is incorrect because it is the original value of Missy's grain drill, but this value has changed due to the current market.