Arkansas Insurance Adjuster Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

By having a security guard on the premises 24/7, Lydia's Fine Jewels can reduce the risk of theft or damage to the store, which in turn makes it less risky for the insurance company to insure their business. This option is typically a requirement for high-value items such as jewelry. Options A, B, and D are incorrect because they do not directly address the issue of risk reduction, which is the main concern for insurance companies when insuring businesses. Having a binder or a waiver may be related to policy paperwork, while having a representation may refer to legal representation, none of which directly impact the safety and security of Lydia's Fine Jewels.