Arkansas Insurance Adjuster Practice Exam

If an insurer insists that Christopher's property is worth far less than appraisals show, making negotiations futile, Christopher should:

1. issue a reservation of rights

2. issue an answer for the policyholder

3. issue a judgment

4. issue a complaint against the policyholder

The correct answer is: issue a complaint against the policyholder

Christopher should not issue a reservation of rights as that implies the insurer may not provide coverage and is not the appropriate course of action when the insurer undervalues the property. Issuing an answer for the policyholder would not address the issue and would not result in a resolution. Issuing a judgment is the responsibility of a court and is not the appropriate step for Christopher to take. Therefore, issuing a complaint against the policyholder is the best course of action as it allows for legal action to be taken to hold the insurer accountable for undervaluing the property.