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.

When Sam's ship suffers $75,000 in damage, how much indemnification can he expect to get from his insurer, given his Ocean Marine hull policy has a franchise deductible of $50,000?

$75,000
$50,000
$25,000
$0

The correct answer is: $75,000

The correct answer is A because when an insurance policy has a franchise deductible, the insurer only covers the excess amount above the deductible. In this scenario, Sam's ship suffered $75,000 in damage, which exceeds the deductible of $50,000, so he can expect to receive the full amount of $75,000 as indemnification from his insurer. The other options, B, C, and D, are incorrect because they do not consider the deductible amount and suggest that Sam would receive less than $75,000 in indemnification.