Arkansas Insurance Adjuster Practice Exam

Why does the insurance company classify the conditions of Adam's drive as 'physical hazards'?

1. Adam is indifferent to any losses he may suffer.

2. They take a toll on Adam physically, increasing the chance of a loss.

3. Adam doesn't consciously choose to take this route.

4. The roads present a physical condition that increases the chance of a loss.

The correct answer is: The roads present a physical condition that increases the chance of a loss.

The insurance company classifies the conditions of Adam's drive as 'physical hazards' because the roads present a physical condition that increases the chance of a loss. Options A, B, and C do not accurately explain the reason why the insurance company classifies the conditions as 'physical hazards.' Option A states that Adam is indifferent to any losses, but this does not relate to the physical conditions of the road. Option B mentions Adam's physical toll, but does not explain why this increases the chance of a loss. Option C mentions Adam's conscious choice, but this also does not relate to the physical conditions of the road. Therefore, option D is the best answer as it directly addresses the physical condition of the roads.