Ace the Arkansas Insurance Adjuster Exam 2025 – Switch Up Your Career Mojo!

Question: 1 / 400

After a severe hailstorm totals her roof, how much will Marlene receive in the settlement, assuming the insurer imposes the standard coinsurance penalty?

$10,000

$8,000

$5,000

The standard coinsurance penalty requires the policyholder to carry a specific percentage of the property's total value in insurance coverage, typically 80% or higher. In this scenario, it is likely that Marlene did not have enough coverage to fully cover the cost of the damage, resulting in a coinsurance penalty. Based on the options provided, it is clear that the penalty is a percentage of the total settlement amount, with options A, B, and D being higher than the correct answer of C. This means that those options would not impose a coinsurance penalty and would result in Marlene receiving more than $5,000. Therefore, the correct answer is C, as it is the only option that accounts for a potential coinsurance penalty and is the most likely amount Marlene would receive in the settlement.

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$3,000

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