Arkansas Statutes, Rules, and
Regulations Common to All Lines
Questions and Correct Answers 2025-
2026 Updated.
Cease and desist - Answer to stop or discontinue
Coercion - Answer forceful act or threat aimed to influence a person to act against his or her
will
Commission - Answer payment to the agent by the insurance company for placing insurance,
usually a percentage of the policy premium
Commissioner - Answer the head of the State Department of Insurance
Exempt - Answer not subject to an obligation
Home office - Answer insurer's headquarters, principal place of business
Inducement - Answer an offer that attempts to influence the other party
Solvency - Answer ability to meet financial obligations (e.g. an insurance company maintains
enough assets to pay claims)
Statute - Answer a formal written law enacted by legislature; insurance statutes can be
found in the state Insurance Code
The term insurance transaction includes any of the following (by mail or any other means): -
Answer 1. Solicitation
2. Negotiations
3. Sale (effectuation of a contract of insurance)
4. Advising and individual concerning coverage or claims
, 2. Authorized or admitted (approved to transact business in the state)
3. Unauthorized or nonadmitted (not been approved to do business in the state)
What are the 3 types of Location of Incorporation (domicile) for insurance companies? - Answer
1. Domestic (in-state)
2. Foreign (out-of-state)
3. Alien (outside U.S.)
Who owns the insurance companies? - Answer 1. Stock companies (owned by the
stockholders)
2. Mutual companies (owned by the policyholders)
Facts about the Insurance Commissioner. - Answer 1. Appointed by Governor for 4 years
2. Must be a citizen of Arkansas
3. At least 30 years of age
4. Must execute a $50,000 bond
The Commissioner of Insurance has which General Duties and Powers? - Answer 1. Supervise
insurance business
2. Licensing
3. Approve policies and forms
4. Enforce insurance laws and impose violation penalties
5. Conduct examinations (every 5 years), investigations, and hearings
Hearings and Notice of Hearings - Answer 1. Commissioner may insure a statement of
charges and hold a hearing
Regulations Common to All Lines
Questions and Correct Answers 2025-
2026 Updated.
Cease and desist - Answer to stop or discontinue
Coercion - Answer forceful act or threat aimed to influence a person to act against his or her
will
Commission - Answer payment to the agent by the insurance company for placing insurance,
usually a percentage of the policy premium
Commissioner - Answer the head of the State Department of Insurance
Exempt - Answer not subject to an obligation
Home office - Answer insurer's headquarters, principal place of business
Inducement - Answer an offer that attempts to influence the other party
Solvency - Answer ability to meet financial obligations (e.g. an insurance company maintains
enough assets to pay claims)
Statute - Answer a formal written law enacted by legislature; insurance statutes can be
found in the state Insurance Code
The term insurance transaction includes any of the following (by mail or any other means): -
Answer 1. Solicitation
2. Negotiations
3. Sale (effectuation of a contract of insurance)
4. Advising and individual concerning coverage or claims
, 2. Authorized or admitted (approved to transact business in the state)
3. Unauthorized or nonadmitted (not been approved to do business in the state)
What are the 3 types of Location of Incorporation (domicile) for insurance companies? - Answer
1. Domestic (in-state)
2. Foreign (out-of-state)
3. Alien (outside U.S.)
Who owns the insurance companies? - Answer 1. Stock companies (owned by the
stockholders)
2. Mutual companies (owned by the policyholders)
Facts about the Insurance Commissioner. - Answer 1. Appointed by Governor for 4 years
2. Must be a citizen of Arkansas
3. At least 30 years of age
4. Must execute a $50,000 bond
The Commissioner of Insurance has which General Duties and Powers? - Answer 1. Supervise
insurance business
2. Licensing
3. Approve policies and forms
4. Enforce insurance laws and impose violation penalties
5. Conduct examinations (every 5 years), investigations, and hearings
Hearings and Notice of Hearings - Answer 1. Commissioner may insure a statement of
charges and hold a hearing
