Arkansas Personal Lines Insurance License Exam — All Questions

Which agency issues resident personal lines insurance producer licenses in Arkansas?

• a.Arkansas Insurance Department✓
• b.Arkansas Department of Insurance
• c.Arkansas Insurance Commission
• d.Arkansas Department of Financial Services

The insurance regulator in Arkansas is the Arkansas Insurance Department, a division of the Arkansas Department of Commerce. It issues and renews producer licenses and enforces the state insurance code. Source: Arkansas DOI (https://insurance.arkansas.gov/).

After a producer is licensed in Arkansas, what generally must occur before he or she can transact business for a specific insurer?

• a.Nothing further — the license alone authorizes sales for any insurer
• b.The insurer must appoint the producer, and that appointment is filed with the Arkansas Insurance Department✓
• c.The producer must post a personal surety bond with the state treasurer
• d.The producer must first sell to at least five clients on a temporary permit

A license lets a person act as a producer, but to represent a particular company that insurer must appoint the producer, with the appointment filed with the Arkansas Insurance Department. A producer may hold appointments from several insurers at once. This mirrors the NAIC producer-licensing model Arkansas follows.

Which statement about continuing education (CE) for resident personal lines producers in Arkansas is correct?

• a.Resident producers must complete state-approved CE each renewal cycle to keep the license active; confirm the exact hours and ethics requirement with the Arkansas Insurance Department✓
• b.CE is optional and only recommended for new producers
• c.CE is required once, in the first year, and never again
• d.Passing the licensing exam permanently exempts a producer from all CE

Like other states, Arkansas requires resident producers to complete approved continuing education every renewal cycle, typically including an ethics component, before renewing. Because specific hour totals change, verify the current CE requirement directly with the Arkansas Insurance Department (https://insurance.arkansas.gov/).