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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When would a default judgment occur?

When a defendant submits an answer
In cases that involve an intentional tort
When an insurer sends a reservation of rights
When a defendant does not answer a complaint

The correct answer is: When a defendant does not answer a complaint

A default judgment occurs when a defendant fails to respond to a complaint within the designated timeframe. This means that the defendant is essentially giving up their right to defend themselves in the case. Option A is incorrect because a defendant submitting an answer shows that they are actively participating in the case. Option B may be a factor in some cases, but it is not the defining factor for a default judgment. Option C is referring to a reservation of rights, which is when an insurance company notifies the insured that they may not cover a certain claim. This is not directly related to a default judgment. Therefore, the correct option is D, when a defendant fails to respond to a complaint.