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!

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What requirements must Wholesalers and Distributors meet to be eligible for a BOP?

Less than 20% of annual expenditures may involve food service, and less than 10% of building area may be open to the public.
More than 10% of floor space must be devoted to product storage, and less than 20% of expenditures may involve food service.
25% or less of floor space is available to the general public, and less than 25% of gross income may come from retail sales.
25% or less of floor space is available to the general public, and less than 50% of gross income may come from retail sales.

The correct answer is: 25% or less of floor space is available to the general public, and less than 50% of gross income may come from retail sales.

To be eligible for a BOP (Business Owner's Policy), wholesalers and distributors must meet the following requirements 25% or less of their floor space is available to the general public, and less than 50% of their gross income may come from retail sales. Option A is incorrect because it includes a restriction on annual expenditures for food service, which is not a requirement for BOP eligibility. Option B is incorrect because it states that more than 10% of floor space must be devoted to product storage, which is not one of the criteria for eligibility. Option C is incorrect because it only mentions the floor space available to the public, but does not include the requirement for gross income from retail sales. Therefore, option D is the correct answer as it includes both eligibility requirements for BOP.