Arizona Adjuster Practice Exam

What is the maximum amount an insurer will pay for permanently installed after-market CB radio equipment under a personal auto policy?

1. $500

2. $750

3. $1,000

4. $1,500

The correct answer is: $1,000

Under a personal auto policy, the maximum amount an insurer will pay for permanently installed after-market CB radio equipment is $1,000. This coverage is designed to provide protection for additional equipment that is installed in the vehicle, which is not originally built-in by the manufacturer. Coverage limits vary by policy, but it is common for insurers to set specific amounts for after-market installations, which usually include features such as antennas, amplifiers, or additional communication devices like CB radios. Thus, having a cap set at $1,000 aligns with typical personal auto policy structures, ensuring that policyholders are aware of the financial limits in place for these types of enhancements. In this scenario, the other potential maximum amounts fall below the established cap, which could limit the policyholder's recovery in the event of damage or theft of the after-market equipment, but do not meet the actual limit set by the majority of personal auto policies. Thus, $1,000 serves as a standard benchmark for the coverage of permanently installed after-market CB radio equipment.