Arkansas Insurance Adjuster Practice Exam 2026 - Free Insurance Adjuster Practice Questions and Study Guide

A default judgment occurs when a defendant fails to respond to a complaint within the designated timeframe. This means that the defendant is essentially giving up their right to defend themselves in the case. Option A is incorrect because a defendant submitting an answer shows that they are actively participating in the case. Option B may be a factor in some cases, but it is not the defining factor for a default judgment. Option C is referring to a reservation of rights, which is when an insurance company notifies the insured that they may not cover a certain claim. This is not directly related to a default judgment. Therefore, the correct option is D, when a defendant fails to respond to a complaint.