Arkansas Laws Chapter 15 Exam Questions With 100% Correct Answers 2025

Arkansas Laws Chapter 15 Exam Questions With 100% Correct Answers 2025 Once in force for 60 days, a homeowner’s policy may be canceled for all the following reasons, except: - answer-The insurer's willingness to underwrite certain hazards changed Which of the following statements regarding the financial responsibility requirements for operating a motor vehicle in Arkansas is correct? - answer-All policies written in Arkansas must include liability limits of $25,000/$50,000/$25,000 If an insurer decides not to renew a motor vehicle insurance policy, the insurer must provide a reason for doing so. The reason for doing so may be given to the insured with a notice of nonrenewal, but in no case may be given less than: - answer-15 days prior to the expiration of the policy The notice of nonrenewal, on the other hand, must be given 30 days prior to the expiration of coverage. The 20-day time frame refers to policy cancellation midterm. The 10-day time frame applies when the insurer cancels the policy for nonpayment of premium. Which of the following statements reflects one of the timeline requirements for handling claims? - answer-If an investigation cannot be completed within 45 days, the insurer must notify the claimant and explain why The Commissioner of insurance has all of the following duties and powers, except: - answer-The insurance Commissioner may update the insurance code (law) as needed Which of the following statements apply to maintaining an insurance license in the state of Arkansas? - answer-The Commissioner may grant a licensee an extension of up to 12 months to complete continuing educationWhich of the following statements regarding the Arkansas Rural Risk Underwriting Association is correct? - answer-The Association sets rules for risks classification, rate modification and coverage limits Making a false statement regarding the financial condition of a person with intent to deceive is defined as: - answer-False Financial Statements Which of the following policy standards is false according to Arkansas law? - answer-Insureds must be notified of any premium increases 30 days in advance