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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Offering 10-year warranties for dishwashers to alleviate purchasing concerns is an example of:

risk mitigation
risk transference
risk avoidance
risk acceptance

The correct answer is: risk transference

Offering 10-year warranties for dishwashers is an example of risk transference because this strategy transfers the financial burden and potential risk of repairs and replacements from the consumer to the warranty provider. This reduces the risk for the consumer and alleviates their purchasing concerns. Choice A, risk mitigation, involves taking specific actions to minimize the impact of a potential risk, while B, risk avoidance, means actively avoiding certain risks altogether. Choice D, risk acceptance, means acknowledging and accepting the potential consequences of a risk. These options do not accurately describe the action of offering warranties in this scenario.