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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When Bob adjusted Jane's commercial claim, he operated under what authority from Acme Insurance?

Apparent authority
Expert authority
Agency authority
Express authority

The correct answer is: Apparent authority

Bob operated under apparent authority from Acme Insurance because he wasn't directly given the power to make changes to Jane's commercial claim, but his actions made her believe that he had that authority. B is incorrect because it implies Bob was an expert in the field, which is not specified in the question. C could also be a possibility, but it is not the most accurate term because it implies a formal relationship between Bob and Jane, when in reality it was just a business transaction. D is also incorrect because express authority refers to specific, explicit instructions or abilities given to Bob, which was not the case here. A is the best choice because Bob appeared to have the authority to make changes on behalf of Acme Insurance, even though he technically did not.