ARKANSAS ADJUSTER LATEST 2026 QUESTIONS AND
ANSWERS MARKED A+
✔✔Pro Rata Liability Clause - ✔✔Provides that losses will be paid in the proportion that
the amount of the policy bears to the entire amount of insurance on all policies covering
the loss. This provides for insurance companies to appropriately share in the loss when
more than one policy exists, yet prevents the insured from collecting in total from
several insurance companies and making a profit.
✔✔liability - ✔✔Any legally enforceable obligation
✔✔ISO= insurance services office - ✔✔Helps insurance companies to design policies
and set premiums. Also creates policies, forms and premiums.
✔✔(VMM) Vandalism and Malicious Mischief Optional Coverage DP 1 - ✔✔Cannot be
purchased without having WC shaver
Person responsible for a damage must be under 13 years of age
✔✔ACV= actual care actual cash value - ✔✔Current day replacement (minus)
depreciation
✔✔Special or all risk coverage forms - ✔✔List the policy exclusions
✔✔Methods of managing risk (STARR) - ✔✔Avoidance, taking away the risk
Reduction preventative, actions
Retention -named insured retains portion of risk with deductible
Sharing- transfers part of the risk with liability
Transfer-transfers from person to company
✔✔Insurable Interest - ✔✔1. Personal risk/loss.
2. Has financial interest.
3. Cannot make a profit or gain.
✔✔Assignment Clause - ✔✔allows the right to transfer policy rights to another person or
entity. Must be in writing and new owner must accept.
✔✔Insured - ✔✔A person covered by an insurance policy
✔✔insurance claim - ✔✔formal request to the insurance company for reimbursement for
a covered loss must be in writing
✔✔Legal representative - ✔✔Is considered persons insured
✔✔Direct Loss - ✔✔Personal property damaged that is physical or tangible
, ✔✔Parol Evidence Rule - ✔✔Anything agent writes or says, during a sales presentation
will not count in the court of law
✔✔Persons Insured - ✔✔1. Named insured and household residents who are relatives
2. Other persons under age 21 in the care of the named insured or in the care of a
household resident who is a relative
3. Full-time resident students under age 24 who are relatives and attending school away
from home, or under age 21 and in the care of the named insured or the care of a
household resident who is your relative
✔✔burglary - ✔✔Breaking and entering into premises, with a felonious intent and visible
signs of forced entry
✔✔theft - ✔✔stealing
✔✔insurance - ✔✔Sharing losses, transferring risk to group
✔✔Statutory Defenses - ✔✔Comparative negligence damages will be awarded at a
reduced rate
✔✔liability insurance - ✔✔insurance that provides protection from claims arising from
injuries or damage to other people or property
✔✔Fidelity Bond - ✔✔insurance policy that pays the employer money in the case of
employees' dishonest acts
Principal-employee
Obligee- employer
Guarantor-insuer
✔✔Fiduciary Bond - ✔✔Reimbursed and employer for loss to amount of bond to
company due to a dishonest worker
✔✔Boiler and machinery - ✔✔Zero days notification for cancellation by insurer
✔✔Penalties For unknowing insurance code - ✔✔$1000 or one year probation
✔✔Penalty for knowing code - ✔✔$5000 or one year probation or suspended license
for five years
✔✔Privacy act, violation, penalty - ✔✔5K. Or one year in prison
✔✔joint tort - ✔✔Joint class action lawsuit
ANSWERS MARKED A+
✔✔Pro Rata Liability Clause - ✔✔Provides that losses will be paid in the proportion that
the amount of the policy bears to the entire amount of insurance on all policies covering
the loss. This provides for insurance companies to appropriately share in the loss when
more than one policy exists, yet prevents the insured from collecting in total from
several insurance companies and making a profit.
✔✔liability - ✔✔Any legally enforceable obligation
✔✔ISO= insurance services office - ✔✔Helps insurance companies to design policies
and set premiums. Also creates policies, forms and premiums.
✔✔(VMM) Vandalism and Malicious Mischief Optional Coverage DP 1 - ✔✔Cannot be
purchased without having WC shaver
Person responsible for a damage must be under 13 years of age
✔✔ACV= actual care actual cash value - ✔✔Current day replacement (minus)
depreciation
✔✔Special or all risk coverage forms - ✔✔List the policy exclusions
✔✔Methods of managing risk (STARR) - ✔✔Avoidance, taking away the risk
Reduction preventative, actions
Retention -named insured retains portion of risk with deductible
Sharing- transfers part of the risk with liability
Transfer-transfers from person to company
✔✔Insurable Interest - ✔✔1. Personal risk/loss.
2. Has financial interest.
3. Cannot make a profit or gain.
✔✔Assignment Clause - ✔✔allows the right to transfer policy rights to another person or
entity. Must be in writing and new owner must accept.
✔✔Insured - ✔✔A person covered by an insurance policy
✔✔insurance claim - ✔✔formal request to the insurance company for reimbursement for
a covered loss must be in writing
✔✔Legal representative - ✔✔Is considered persons insured
✔✔Direct Loss - ✔✔Personal property damaged that is physical or tangible
, ✔✔Parol Evidence Rule - ✔✔Anything agent writes or says, during a sales presentation
will not count in the court of law
✔✔Persons Insured - ✔✔1. Named insured and household residents who are relatives
2. Other persons under age 21 in the care of the named insured or in the care of a
household resident who is a relative
3. Full-time resident students under age 24 who are relatives and attending school away
from home, or under age 21 and in the care of the named insured or the care of a
household resident who is your relative
✔✔burglary - ✔✔Breaking and entering into premises, with a felonious intent and visible
signs of forced entry
✔✔theft - ✔✔stealing
✔✔insurance - ✔✔Sharing losses, transferring risk to group
✔✔Statutory Defenses - ✔✔Comparative negligence damages will be awarded at a
reduced rate
✔✔liability insurance - ✔✔insurance that provides protection from claims arising from
injuries or damage to other people or property
✔✔Fidelity Bond - ✔✔insurance policy that pays the employer money in the case of
employees' dishonest acts
Principal-employee
Obligee- employer
Guarantor-insuer
✔✔Fiduciary Bond - ✔✔Reimbursed and employer for loss to amount of bond to
company due to a dishonest worker
✔✔Boiler and machinery - ✔✔Zero days notification for cancellation by insurer
✔✔Penalties For unknowing insurance code - ✔✔$1000 or one year probation
✔✔Penalty for knowing code - ✔✔$5000 or one year probation or suspended license
for five years
✔✔Privacy act, violation, penalty - ✔✔5K. Or one year in prison
✔✔joint tort - ✔✔Joint class action lawsuit
