Arkansas Property and Casualty Practice Exam

An "all-risk" crop insurance policy is designed to provide coverage for a wide range of perils that can damage or destroy crops. However, even with its broad coverage, there are typically exclusions based on the specifics of the policy.

Floods are often excluded from crop insurance policies, especially those labeled as "all-risk." This exclusion arises because flooding is considered to be a significant peril that frequently results in extensive and catastrophic damage, and it can be challenging for insurers to accurately assess risk and set premiums accordingly. Policies usually require separate flood insurance for comprehensive protection against such risks.

In contrast, fire, hail, and earthquakes are generally included under an all-risk policy, meaning that losses from these events would be covered unless specifically excluded within the terms of that policy.