Arkansas Insurance Adjuster Practice Exam

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Ace your Arkansas Insurance Adjuster Exam. Featuring multiple-choice questions, flashcards, and detailed explanations. Ensure your success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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How much will an actual cash value policy indemnify Clara for her stolen harp?

$7,000
$10,000
$12,000
$15,000

The correct answer is: $10,000

An actual cash value policy is a type of insurance that covers the current market value of a stolen item, taking into consideration depreciation. This means that the amount of indemnification will not necessarily be the same as the original purchase price of the item. Out of the options given, only option B is the closest to the current market value of Clara's stolen harp. Options A, C, and D may be too high or too low depending on the depreciation of the harp. Therefore, option B is the most accurate estimate of how much Clara will be indemnified for her stolen harp under an actual cash value policy.