Alabama Insurance Adjuster Practice Exam

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Prepare for the Alabama Insurance Adjuster Test. Enhance your readiness with flashcards and multiple choice questions, complete with hints and explanations. Gear up for your exam!

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 indemnification will Sarah receive for her extra expenses if her Extra Expense coverage limit is $100,000?

$80,000
$125,000
$100,000
$40,000

The correct answer is: $100,000

Sarah will receive indemnification for her extra expenses up to the limit specified in her Extra Expense coverage, which is $100,000. This type of insurance is designed to cover additional costs incurred by a business following a loss, such as the expenses associated with re-establishing operations or maintaining the business during a period of recovery after a covered event. In this case, the coverage limit dictates the maximum amount the insurer will pay for such expenses. Since Sarah’s coverage limit is set at $100,000, she would be eligible to receive up to that amount for her extra expenses, provided they fall within the policy terms and conditions. The other figures mentioned do not reflect the coverage limit and, therefore, would not be applicable.