Arkansas Insurance Adjuster Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

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.

Which is NOT a qualification for a 'Fast Food Restaurant' to qualify for a BOP?

Maintaining appropriate fire extinguishing equipment
Liquor accounting for more than 25% of total annual sales
Not exceeding 7,500 square feet
Not seating more than 150 people

The correct answer is: Liquor accounting for more than 25% of total annual sales

Maintaining appropriate fire extinguishing equipment is a necessary qualification for a 'Fast Food Restaurant' to qualify for a BOP. This is because fire safety is crucial in all food establishments and having the proper equipment can help prevent and control potential fires. Both options C and D are also qualifications that 'Fast Food Restaurants' need to meet in order to qualify for a BOP. Not exceeding 7,500 square feet is a size requirement, as larger establishments may have different insurance needs. Not seating more than 150 people is another limitation often placed on fast food restaurants to be eligible for a BOP. Option B, on the other hand, is incorrect because having liquor sales as a major part of the restaurant's revenue shifts the establishment's risk profile and may require different insurance coverage, making it ineligible for a BOP.