Arkansas License Test Arkansas Insurance License 3

Question 1

An Arkansas insurance producer who acts as an agent for the insurer has what type of authority?

Accepted Answer

Agency authority

Answer

Broker authority

Answer

Captive authority

Answer

Fiduciary authority

Question 2

Which type of Arkansas insurance license is required to sell Medicare Supplement policies?

Accepted Answer

Life and Health license

Answer

Property and Casualty license

Answer

Title insurance license

Answer

Surplus lines license

Question 3

What is required before an Arkansas insurance producer can receive a commission for selling insurance?

Accepted Answer

A valid Arkansas insurance producer license for the applicable line of authority

Answer

Only a verbal agreement with the insurance company

Answer

Completing 100 hours of on-the-job training

Answer

Approval from the Arkansas Insurance Department on each individual sale

Question 4

Which of the following correctly describes a 'surplus lines' insurance license in Arkansas?

Accepted Answer

A license allowing placement of coverage with non-admitted insurers when coverage is unavailable from admitted carriers

Answer

A license for selling life insurance to high-net-worth individuals

Answer

A license exclusively for commercial property insurance

Answer

A temporary license valid for 90 days only

Question 5

Which exam provider delivers the Arkansas insurance licensing exam?

Accepted Answer

PSI Services

Answer

Pearson VUE

Answer

Prometric

Answer

Prometrics National

Question 6

An Arkansas insurance producer convicted of a felony must do which of the following?

Accepted Answer

Report the conviction to the Arkansas Insurance Department within 30 days

Answer

Automatically surrender their license immediately

Answer

Continue operating normally as convictions do not affect licensure

Answer

Apply to the governor's office for a license exemption