Insurance Licensing - Chapter 15:
Arkansas State Law Questions and All
Correct Answers 2025-2026 Edition.
The Commissioner of insurance has all of the following duties and powers, except:
a. The insurance Commissioner may update the insurance code (law) as needed
b. The Commissioner regulates premium rates
c. The Commissioner may institute court proceedings to enforce the Insurance Code
d. The Commissioner has the authority to make necessary rules and regulations - Answer a.
The insurance Commissioner may update the insurance code (law) as needed
After a hearing before the Commissioner, Oscar's insurance license was suspended because:
a. He failed to respond to a written inquiry from the Commissioner within 30 days
b. His state income tax return was audited
c. He was subpoenaed to appear before the insurance commissioner of another state
d. He was a accused of committing a misdemeanor - Answer a. He failed to respond to a
written inquiry from the Commissioner within 30 days
According to Arkansas law, a resident insurance agent in the state of Arkansas:
a. Must maintain client records for at least 1 year
b. Must be at least 20 years old
, d. Must notify the Commissioner of a change of address within 30 days - Answer c. Must
have a place of business in Arkansas
The sale of surplus lines insurance is:
a. Done through surplus lines brokers working with eligible nonadmitted insurers
b. Another name for insurance sold through unauthorized insurers
c. Allowed when insurance is cheaper through a non-admitted carrier
d. Done through any agent with a property and casualty license - Answer b. Another name
for insurance sold through unauthorized insurers
What is the maximum financial penalty the Commissioner may impose upon a licensee who
knowingly engages in unfair trade practice violations within a 6-month period?
a. $5,000
b. $10,000
c. $1,000
d. $50,000 - Answer d. $50,000
Which of the following statements regarding Arkansas definitions applicable to insurance is
correct?
a. The valued property law applies to real and personal property
b. Insurers must provide 60 days notice of nonrenewal, except in cases of nonpayment
Arkansas State Law Questions and All
Correct Answers 2025-2026 Edition.
The Commissioner of insurance has all of the following duties and powers, except:
a. The insurance Commissioner may update the insurance code (law) as needed
b. The Commissioner regulates premium rates
c. The Commissioner may institute court proceedings to enforce the Insurance Code
d. The Commissioner has the authority to make necessary rules and regulations - Answer a.
The insurance Commissioner may update the insurance code (law) as needed
After a hearing before the Commissioner, Oscar's insurance license was suspended because:
a. He failed to respond to a written inquiry from the Commissioner within 30 days
b. His state income tax return was audited
c. He was subpoenaed to appear before the insurance commissioner of another state
d. He was a accused of committing a misdemeanor - Answer a. He failed to respond to a
written inquiry from the Commissioner within 30 days
According to Arkansas law, a resident insurance agent in the state of Arkansas:
a. Must maintain client records for at least 1 year
b. Must be at least 20 years old
, d. Must notify the Commissioner of a change of address within 30 days - Answer c. Must
have a place of business in Arkansas
The sale of surplus lines insurance is:
a. Done through surplus lines brokers working with eligible nonadmitted insurers
b. Another name for insurance sold through unauthorized insurers
c. Allowed when insurance is cheaper through a non-admitted carrier
d. Done through any agent with a property and casualty license - Answer b. Another name
for insurance sold through unauthorized insurers
What is the maximum financial penalty the Commissioner may impose upon a licensee who
knowingly engages in unfair trade practice violations within a 6-month period?
a. $5,000
b. $10,000
c. $1,000
d. $50,000 - Answer d. $50,000
Which of the following statements regarding Arkansas definitions applicable to insurance is
correct?
a. The valued property law applies to real and personal property
b. Insurers must provide 60 days notice of nonrenewal, except in cases of nonpayment
