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.

Kyle operates a collision repair garage. Which type of coverage protects him from liability if a car is further damaged in his possession?

Bailment
Subrogation
Non-Owned Vehicle Coverage
Bailee Coverage

The correct answer is: Bailee Coverage

Bailee Coverage protects from liability for damages to a vehicle while it is in Kyle's possession due to operations related to his business, such as collision repair. This coverage is specifically designed to cover vehicles that do not belong to the insured, which makes options A, B, and C incorrect. Bailment refers to the legal relationship between a bailor and a bailee, Subrogation is the right of an insurance company to pursue a third party that caused an insurance loss to the insured, and Non-Owned Vehicle Coverage provides liability coverage for vehicles that are not owned by the insured but are used for business purposes. Therefore, Bailee Coverage is the most suitable and specific coverage for Kyle's collision repair business.