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.

In order to qualify for an insurance policy, Lydia's Fine Jewels must agree to what?

Have a binder.
Have a waiver.
Have a security guard on the premises 24/7.
Have a representation.

The correct answer is: Have a security guard on the premises 24/7.

By having a security guard on the premises 24/7, Lydia's Fine Jewels can reduce the risk of theft or damage to the store, which in turn makes it less risky for the insurance company to insure their business. This option is typically a requirement for high-value items such as jewelry. Options A, B, and D are incorrect because they do not directly address the issue of risk reduction, which is the main concern for insurance companies when insuring businesses. Having a binder or a waiver may be related to policy paperwork, while having a representation may refer to legal representation, none of which directly impact the safety and security of Lydia's Fine Jewels.