Arkansas Insurance Law & Code
Beyond getting licensed, Arkansas producers must know the substantive rules that protect policyholders. This chapter covers the state insurance code and the department's rule-making authority, required policy protections such as the free-look right, replacement rules, and the Arkansas Life and Health Insurance Guaranty Association. These are state-specific overlays on the national policy provisions.
The Arkansas Insurance Code and Department Rules
The Arkansas insurance code is the body of statutes governing insurers, producers, policies, and market conduct in the state, and the department adopts administrative rules to implement it. Different parts of the code address licensing, required policy provisions, unfair trade practices, and claims handling. Knowing that the code and the department's rules together control what a producer may and may not do is foundational.
Policyholder Protections and Required Provisions
Arkansas requires certain protections in individual policies. A key example is the free-look (right-to-examine) provision, which gives the policyowner a set period after delivery — commonly at least 10 days for individual life — to return the policy for a full premium refund; replacement and senior sales often carry longer periods. The state also regulates grace periods, required disclosures, and policy language so consumers understand what they buy. Replacement regulations require producers to give applicants replacement notices and to notify the insurers involved.
The Arkansas Life and Health Insurance Guaranty Association
The Arkansas Life and Health Insurance Guaranty Association pays certain covered claims of policyholders when a member insurer becomes insolvent, subject to statutory dollar limits that vary by benefit type (for example, death benefits, cash value, and annuity values). Importantly, Arkansas law prohibits producers and insurers from using the existence of the association as an inducement to buy insurance or in advertising; it is a backstop, not a selling point.
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State-specific details
State exam facts
- State regulator
- Arkansas Insurance Department
- Exam vendor
- PSI
- Prelicensing education
- 20 hours per line of authority
- Passing score
- 70%
Who regulates life & health insurance licensing in Arkansas?
The Arkansas Insurance Department (AID) licenses producers and contracts with PSI Services to administer the Life & Health producer examinations.
Does Arkansas require prelicensing education for the life & health exam?
Yes. Arkansas requires 20 hours of prelicensing education per line of authority, completed before you take the state licensing exam.
How is the Arkansas life & health exam administered?
The exam is delivered by PSI Services, with separate Life and Health sections, each requiring a 70% passing standard.
Sources: https://insurance.arkansas.gov/site/assets/files/1744/psi_exam_handbook.pdf, https://www.psiexams.com/
In the Arkansas Life & Health Insurance Producer Exam guide: A KEY CONCEPT box, a Common Traps list and a Check Yourself set closing each of the 9 national chapters. Practice here stays free.