Arkansas Insurance Adjuster Practice Exam

Why were Theresa's efforts to get flood damage covered unsuccessful?

1. Theresa's coinsurance is 80%

2. Theresa should have demanded full payment and talked her way down to half

3. her adjuster is an extremely effective negotiator

4. the policy's coverage is non-negotiable

The correct answer is: the policy's coverage is non-negotiable

Upon reviewing the options, it is clear that the first three choices do not directly address the reason for Theresa's unsuccessful attempts to get her flood damage covered. Choice A discusses Theresa's coinsurance percentage, which ultimately has no impact on whether or not her damage will be covered. Choice B suggests that Theresa should have argued for full payment, a tactic that is not likely to make a difference in the outcome. Choice C implies that Theresa's adjuster was skilled at negotiating, but this is also not a relevant factor in determining coverage for flood damage. Therefore, choice D is the correct answer as it directly states that the policy's coverage is non-negotiable, which is the most likely reason for Theresa's unsuccessful efforts.