Arkansas Market Conduct, Ethics & Unfair Practices
The final state topic covers how a Arkansas producer must behave in the market: prohibited unfair trade practices, the duty to handle client money properly, and honest advertising and disclosure. Most rules flow from the state's unfair trade practices law and related department rules.
Unfair Trade Practices
Arkansas's unfair trade practices law lists prohibited methods of competition and deceptive acts in the business of insurance, including misrepresentation of policy terms, false or misleading advertising, unfair discrimination between similar risks, defamation of an insurer, coercion, and unfair claim settlement practices. Violations can lead to fines and license suspension or revocation by the Arkansas Insurance Department.
Rebating and Twisting
Rebating — offering any part of the premium or commission, or other valuable consideration, as an inducement to buy — is prohibited in Arkansas. Twisting is using misrepresentation or misleading comparisons to induce a policyholder to drop an existing policy for a new one. Both are barred because they harm consumers and create unfair discrimination among policyholders.
Fiduciary Duty and Client Funds
Premiums a producer collects belong to the insurer or the client, not to the producer. Arkansas treats this as a fiduciary responsibility: funds must be remitted properly and not commingled or converted for personal use. Failing to account for premiums, or misappropriating client money, is grounds for discipline and can also be a crime.
Keep going: the full Property & Casualty Insurance Producer guide covers every section of the exam. Property & Casualty Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
State-specific details
State exam facts
- State regulator
- Arkansas Insurance Department
- Exam vendor
- PSI
- Passing score
- 70%
Who regulates property & casualty insurance licensing in Arkansas?
The Arkansas Insurance Department (AID) licenses property & casualty producers and contracts with PSI Services to administer the Property & Casualty producer examinations.
Does Arkansas require prelicensing education for the P&C exam?
Yes. Arkansas requires prelicensing education per line of authority, but the property & casualty hours are set separately from life & health — confirm the current P&C figure with AID before testing.
How is the Arkansas P&C exam administered?
The exam is delivered by PSI Services, with Property and Casualty sections, each requiring a 70% passing standard.
Sources: https://insurance.arkansas.gov/site/assets/files/1744/psi_exam_handbook.pdf, https://www.psiexams.com/
Only in the book: 100 practice questions, every answer reasoned out rather than keyed — none of them in the free bank on this site. Practice here stays free.