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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What type of insurance does Farmer Bob need to sell his lettuce to a wholesaler, ensuring protection if the product causes illness?

  1. Farm Product Liability insurance

  2. Scheduled Farm Personal Property coverage

  3. Medical Payments

  4. Farm Pollution Liability insurance

The correct answer is: Farm Product Liability insurance

Farmer Bob would need to have Farm Product Liability insurance in order to ensure protection if his lettuce were to cause illness. This type of insurance provides coverage for claims against farmers or ranchers for bodily injury or property damage caused by their products. Option B is incorrect, as Scheduled Farm Personal Property coverage only covers damage or loss to farm personal property such as buildings and equipment. Option C is incorrect because Medical Payments only covers medical expenses for injuries that occur on the farmer's property and not for illnesses caused by the product. Option D is incorrect because Farm Pollution Liability insurance only covers damages related to pollution or environmental contamination, not illnesses caused by products.

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