Arkansas Adjuster Practice Exam

Mark incurred $8,000. damage to his car in an accident. He received $8,000. from his insurance company and $4,000. from the other driver. By receiving a profit from the loss, Mark could be violation of:

What is a reserve, in insurance terms?

The purpose of the principle of indemnity is:

Greg plays trombone in his school band during football games. During a rally song in the stands on day. Greg annoys one of the opposing team's fans, who grabs his $400 trombone and hurls it down the bleachers, completely destroying it. Greg's insurance pays him $400 to replace the trombone, but then the opposing team's coach also offers to replace the instrument, at whatever the cost. So Greg orders a new 3,200 trombone and has the opposing team's athletic department absorb the cost. Which principle has Greg violated?

Which of the following refers to being restored to the financial condition you were in before a loss?

Bobby just purchased an insurance policy for his home from xyz insurance. Which of the following would be a reason this policy may not be legally binding?

Indemnification may include all of the following except:

Which of the following is NOT a requirement for a legally binding contract?

The fee paid by the insured in exchange for an insurance policy is called a:

Which of the following best defines the principle of indemnity?

Which one of the following is found on the declarations page of an insurance policy?

In which section of an insurance policy might you find the following statement? "We, us, and our' refers to ABC insurance company.

In which section of an insurance policy might you find the following statement? "Damage to insured property must be reported within 15 days of the damaging occurrence."

Which section of an insurance policy is designed to OMIT certain risks from coverage?

Which of the following would you find in the conditions section of an insurance policy?

All of the following are typical exclusions in an insurance policy, EXCEPT:

All of the following pieces of information can be found in the Conditions section of an insurance policy, EXCEPT:

Which of the following statements is true about an insurance policy?

In an insurance policy, the summary of what the insurer will do in the even of a covered loss is called.

In a ________________ , only one party is legally obligated to perform.

Insurance policies are unilateral contracts. This means:

Which of the following is not a characteristic of insurance contracts?

Which of the following best describes a Fraternal Benefit Society?

When an insurer buys insurance to reduce its exposure to loss, this called.

Which of the following is NOT a characteristic of social insurance programs?

When an insurer buys insurance to reduce its exposure to loss, this is called.

Frank purchases an automobile policy from publicly traded xyz insurance. He pays regular monthly premiums, and also purchases stock in xyz and receives dividends when the company turns a profit. From which type of company has Frank purchased insurance?

Xavier owns a small insurance company. Recently the company won a bid to insure a new housing development in Omaha, NE. His company can handle any claims that arise, but if a series of tornado were to tear through the area and destroy the entire development, Xavier's company would suffer financially. Which type of insurer could help Xavier's company protect itself the most from this potential loss?

Cindy holds an insurance policy from Sine Nomine Insurance. This is not a publicly traded company, and Cindy can participate in the election of the board, receiving dividends if the company does well. Sine Nomine insurance could be best described as a:

Edward is a member of the Knights of Columbus, a religious group dedicated to voluntary service to the benefit of society. He also recently purchased a $100,000 life insurance policy from the organization. This was possible because the Knights of Columbus is:

An insurer that adheres to the laws of a state but is located outside of that state is called a(n) _____

Sure trust insurance was founded and operates in Texas. In Texas, Sure Trust is condsidered:

A reciprocal insurer is:

A captive insurance company:

An insurance company might consider any of the following a risk, EXCEPT:

Which of the following would be considered an insurable risk?