Arkansas Insurance Adjuster Practice Exam

Under what condition may an insurer not take money from an insured's recovered deductible to cover its own expenses?

1. Claimant agrees during negotiation

2. Claimant owes premiums

3. Hired an attorney for recovery

4. Owes payments for medical services

The correct answer is: Claimant agrees during negotiation

An insurer may not take money from an insured's recovered deductible to cover its own expenses if the claimant agrees during negotiation. This means that the claimant must explicitly agree to have their recovered deductible used for the insurer's expenses in order for the insurer to do so. The other options do not directly relate to the insurer taking money from the insured's recovered deductible. Option B states that the claimant owes premiums, which would affect their coverage but not necessarily their recovered deductible. Option C mentions hiring an attorney for recovery, which could potentially impact the negotiation process but would not necessarily result in the insurer taking money from the recovered deductible. Option D states that the claimant owes payments for medical services, which is a separate issue from the insurer taking money from the recovered deductible. Therefore, these options are incorrect and do not address the specific condition mentioned in the question.