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!

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Under the mortgagee clause, Emma's mortgage lender can recoup how much after the arson of her home?

HALF the total amount of the loss - $87,500
HALF the total amount left on the loan - $77,500
the total amount of the loss - $175,000
the total amount left on the loan - $155,000

The correct answer is: the total amount left on the loan - $155,000

Under the mortgagee clause, Emma's mortgage lender can recoup the total amount left on the loan - $155,000 after the arson of her home. This clause specifies that the lender is entitled to receive their full remaining loan amount (including any accrued interest) in the event of destruction or damage to the property. Therefore, options A and C are incorrect as they do not reflect the full remaining loan amount. Option B is incorrect as it only accounts for half of the remaining loan amount.