Arkansas Insurance Adjuster Practice Exam

Question: 1 / 400

After a loss covered under a dwelling policy, Ordinance or Law coverage pays for:

increased repair costs due to laws or codes

Ordinance or Law coverage is designed to cover any increased repair costs that may arise due to changes in laws or building codes after a covered loss. This means that option A is the only choice that accurately reflects the purpose of this type of insurance coverage. Option B is incorrect because it refers to pollution and not changes in laws or building codes. Option C is incorrect because it mentions government confiscation, which is not related to building codes. Option D is incorrect because it mentions changes that decrease the value of the property, which is not relevant to this type of insurance coverage. Therefore, option A is the correct answer because it accurately describes what Ordinance or Law coverage is intended to pay for.

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remediation of pollutants

confiscation of property by the government

any change that decreases the value of the property

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