Arkansas License Test Arkansas Insurance License 2 — Questions and Answers
Question 1: How often must Arkansas insurance producer licenses be renewed?
- Every year
- Every 2 years (Correct answer)
- Every 3 years
- Every 5 years
Correct answer: Every 2 years
Arkansas insurance producer licenses must be renewed every two years on the licensee's birth month cycle.
Question 2: How many continuing education credits must Arkansas-licensed insurance producers complete per renewal period?
- 12 credits
- 24 credits (Correct answer)
- 30 credits
- 40 credits
Correct answer: 24 credits
Arkansas insurance producers must complete 24 hours of continuing education per two-year renewal cycle.
Question 3: Of the required continuing education credits, how many must be in ethics for Arkansas insurance producers?
- 0 hours
- 3 hours (Correct answer)
- 6 hours
- 12 hours
Correct answer: 3 hours
Arkansas requires that 3 of the 24 continuing education hours per renewal period be specifically focused on ethics.
Question 4: Which of the following actions can cause an Arkansas insurance license to be suspended or revoked?
- Selling a policy to a family member
- Misrepresenting the terms of an insurance policy to a customer (Correct answer)
- Failing to memorize all policy details
- Changing insurance companies as an agent
Correct answer: Misrepresenting the terms of an insurance policy to a customer
Misrepresenting insurance policy terms to a client is a serious violation that can result in suspension or revocation of an Arkansas insurance license.
Question 5: An Arkansas non-resident insurance producer license is available to producers licensed in their home state under which principle?
- Federal insurance parity
- Reciprocity (Correct answer)
- Concurrent jurisdiction
- Home state priority
Correct answer: Reciprocity
Arkansas grants non-resident insurance producer licenses through reciprocity, allowing out-of-state producers to obtain an Arkansas license if their home state has a similar reciprocal agreement.
Question 6: What must an Arkansas insurance producer do when they change their mailing address?
- Nothing; address changes are optional
- Notify the Arkansas Insurance Department within 30 days (Correct answer)
- Apply for a new license with the updated address
- Only inform their insurance company employer
Correct answer: Notify the Arkansas Insurance Department within 30 days
Arkansas-licensed insurance producers must notify the Arkansas Insurance Department of any address change within 30 days.
Arkansas License Test Arkansas Insurance License 2
How often must Arkansas insurance producer licenses be renewed?