Arkansas P&C Law & Coverage Requirements
The state portion of the Arkansas property & casualty exam tests the coverage rules that differ from the national fundamentals: Arkansas's compulsory auto insurance limits, how injury claims are settled, cancellation and nonrenewal protections, and the dwelling/homeowners products used for Arkansas property. These sit on top of the shared national P&C bank.
Compulsory Auto Liability Limits in Arkansas
Arkansas requires every registered vehicle to carry at least the state minimum liability coverage. Under Ark. Code 27-19-605 (Motor Vehicle Safety Responsibility Act), the minimums are $25,000 for bodily injury per person, $50,000 per accident, and $25,000 for property damage — commonly written 25/50/25. These are floors, not recommendations; higher limits and optional coverages (uninsured/underinsured motorist, collision, comprehensive) are available. Confirm the current statutory figures with the Arkansas Insurance Department before quoting them.
How Arkansas Settles Auto Injury Claims
Arkansas is a tort ('at-fault') state, not a no-fault state; however, Arkansas insurers must offer personal injury protection (PIP) as an add-on, which the applicant may reject in writing. Knowing whether Arkansas is a tort or no-fault state tells the producer which coverage responds first and how an injured party recovers. Uninsured/underinsured motorist coverage protects the insured when the at-fault party has no or too little insurance.
Cancellation, Nonrenewal, and Dwelling/Homeowners Coverage
Arkansas protects personal-lines policyholders by regulating when and how an insurer may cancel a policy midterm or decline to renew it, generally requiring advance written notice with a stated reason; the exact number of days is fixed by state law and should be verified with the Arkansas Insurance Department. For property, homeowners (HO) forms require owner-occupancy, while a Dwelling (DP) policy covers rental or non-owner-occupied dwellings — a national distinction the exam applies to Arkansas risks.
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.