Arkansas property and casualty practice exam
Free property and casualty practice for the Arkansas producer exam: 367 general questions plus 16 Arkansas state law questions, each with an explanation.
Licensing facts checked on
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Studying for Life and Health? Arkansas life and health practice exam
Getting your Arkansas property and casualty license
Arkansas gives property and casualty as one 3.5-hour PSI exam that cannot be combined with any other exam. You need a pre-licensing certificate for the line at every attempt.
- Exam provider
- PSI
- Exam length
- Property and casualty: 3.5 hours. It cannot be taken with any other exam.
- Pre-licensing education
- Course completion certificate required for the line, shown at every attempt. Certificates are valid for 2 years.
- Exam fee
- $50 per exam
- Passing score
- 70 percent
- Application fee
- $20 electronic resident application fee, paid to NIPR
- Retakes
- Up to three attempts within the 90-day approval period. After three attempts or 90 days, wait four weeks and apply for a new approval to test. You cannot book a retake on the same day you test, and you need valid pre-licensing proof for every attempt.
How to plan your retake
Retake rules by state
Official links
- Arkansas Insurance Department - official state insurance department
- PSI, Arkansas Insurance Department Candidate Information Bulletin (Jun 2025) - exam provider information
Licensing facts checked on , against official sources. Fees and rules change, so confirm with the Arkansas Insurance Department and your exam's candidate handbook before you register.
Arkansas state law questions
Every Arkansas question with its answer, explanation, and the law it comes from.
Licensing and CE
3 questions
1. How many hours of continuing education must an Arkansas producer licensed for property or casualty complete in each two-year cycle under Rule 50?
- 12 hours, including at least 2 hours of ethics
- 24 hours, including at least 6 hours of ethics
- 36 hours, including at least 3 hours of ethics
- 24 hours, including at least 3 hours of ethics
Show answer
Rule 50, Section 4(A)(1), applies the 24-hour biennial requirement to producers licensed for life, accident and health, property, casualty, variable products, or personal lines.
2. Under Arkansas Rule 50, what happens to extra continuing education hours a producer earns in one two-year period?
- They carry forward only to the next biennial period
- They carry forward for up to 3 biennial periods
- They cannot be carried forward at all
- They carry forward for as long as the license stays active
Show answer
Carried-forward hours expire when the second biennial period after completion begins, and extra ethics hours carry over as general hours, not ethics hours.
3. Which Arkansas resident producer may be exempt from continuing education under Rule 50's age or years-licensed exceptions?
- A producer licensed before July 1, 2003 who is 60 or older
- A producer who relicensed after letting an Arkansas license lapse
- A title insurance agent who has held a license for 15 years
- Any producer who is at least 60 years old, whenever first licensed
Show answer
A resident licensed before July 1, 2003 may also qualify by holding a producer, insurance consultant, or broker license for 15 consecutive years. The exceptions do not reach later resident licensees, relicensed producers, or title agents.
Auto Insurance
1 question
1. What are the minimum auto liability limits in Arkansas?
- $25,000 per person, $50,000 per accident, $25,000 property damage
- $25,000 per person, $50,000 per accident, $20,000 property damage
- $15,000 per person, $30,000 per accident, $10,000 property damage
- $20,000 per person, $40,000 per accident, $15,000 property damage
Show answer
The Arkansas Insurance Department auto brochure lists 25/50/25 and says driving without the minimum coverage is unlawful.
Coverage Mandates
3 questions
1. Arkansas auto policies include uninsured motorist coverage unless the insured does what?
- Buys a personal umbrella policy instead
- Signs a statement rejecting the coverage
- Tells the producer by phone that it is declined
- Pays an extra premium to waive the coverage
Show answer
Insurers must offer uninsured motorist bodily injury limits up to the liability limits the applicant elects, citing Ark. Code 23-89-403.
2. What deductible does the Arkansas Insurance Department brochure say applies to uninsured motorist property damage coverage?
- $50
- $1,000
- $200
- $500
Show answer
The deductible does not apply if the same company covers both collision and UMPD, the uninsured driver is positively identified, and that driver is solely at fault.
3. How must an Arkansas insured decline any part of personal injury protection coverage, which has medical payments, lost wages, and death benefits parts?
- By checking a box on the declarations page only
- By rejecting it in writing
- By declining to pay the premium for that part
- By a verbal request to the agent
Show answer
The brochure explains the insured may buy any or all of the three parts and must reject any part in writing.
Cancellation and Nonrenewal
3 questions
1. Once an Arkansas personal auto policy has been in effect more than how many days may the insurer cancel it only for specific listed reasons?
- 90 days
- 10 days
- 30 days
- 60 days
Show answer
Listed reasons include nonpayment, fraud or misrepresentation, homicide arising from vehicle use, three speeding or reckless driving convictions in the policy period and the 3 months before it, and a DWI conviction.
2. How much written notice does the Arkansas Insurance Department brochure say an auto insurer must give to cancel for most reasons, and for nonpayment of premium?
- 10 days for most reasons and 20 days for nonpayment
- 10 days for every reason
- 30 days for most reasons and 10 days for nonpayment
- 20 days for most reasons and 10 days for nonpayment
Show answer
A policy in effect for more than 60 days can be cancelled only for the reasons the brochure lists.
3. How much written notice before the expiration date must an Arkansas insurer give to nonrenew a personal auto policy, according to the Arkansas Insurance Department brochure?
- 10 days
- 20 days
- 60 days
- 30 days
Show answer
The brochure adds that a driver cannot be refused coverage elsewhere solely because of a previous nonrenewal.
Claims Practices
4 questions
1. Under Arkansas Rule 43 Section 7(a), within how many working days must an insurer acknowledge notice of a claim, unless payment is made in that time?
- 5 working days
- 15 working days
- 30 working days
- 10 working days
Show answer
Section 7(a) also requires proof-of-loss forms to be furnished within 20 calendar days after a loss is reported.
2. Within how many calendar days after notification of a claim must an Arkansas insurer complete its investigation under Rule 43 Section 8?
- 30 calendar days
- 10 calendar days
- 45 calendar days
- 90 calendar days
Show answer
If completing the investigation in that time is not reasonable, the insurer must notify the claimant that more time is needed and why.
3. After receiving properly executed proofs of loss, within how many working days must an Arkansas insurer advise a first-party claimant of acceptance or denial under Rule 43 Section 9(a)(1)?
- 15 working days
- 5 working days
- 45 working days
- 30 working days
Show answer
A denial must be in writing and cite the specific policy provision relied on.
4. Under Arkansas Rule 43 Section 9(f), within how many working days after a claim is processed must the claim check or draft be mailed or delivered?
- 3 working days
- 20 working days
- 10 working days
- 30 working days
Show answer
The period runs after the investigation is complete and the file is closed and ready for payment.
Workers Compensation
2 questions
1. Most Arkansas employers with at least how many employees must carry workers compensation coverage, according to the Arkansas Workers' Compensation Commission?
- 5 employees
- 1 employee
- 3 employees
- 10 employees
Show answer
The Commission notes there are exceptions, so a smaller employer should confirm before assuming it is exempt.
2. How long are Arkansas employers generally responsible for workers compensation benefits, according to the Arkansas Workers' Compensation Commission?
- 1 year from injury, with no extension for payments made
- 2 years from injury, or 1 year after the last payment if longer
- 5 years from injury, or 2 years after the last payment
- 3 years from injury, with no extension for payments made
Show answer
The Commission's Basic Facts page states this employer responsibility period.
Key Arkansas terms
15 plain-English cards on Arkansas insurance law, from the Arkansas flashcard deck.
Licensing and CE
- Arkansas producer CE biennium
- Nonexempt major-line producers complete 24 approved hours per two-year cycle, including three ethics hours.
- Arkansas excess CE carryover duration
- Excess hours may carry only to the next biennium and expire when the second biennium after completion begins.
- Arkansas extra ethics credit carryover
- Additional ethics hours carry forward as general hours, rather than satisfying the next ethics requirement.
- Arkansas CE provider roster deadline
- Providers must electronically file the attendance roster within 10 days after course completion.
- Arkansas biennial CE filing fee
- Rule 50 specifies a $20 CE filing fee with the required biennial renewal fees.
Auto Insurance
- Arkansas minimum auto liability limits
- Required limits are $25,000 per injured person, $50,000 per accident and $25,000 property damage.
Cancellation and Nonrenewal
- Arkansas established auto policy cancellation grounds
- After more than 60 days, cancellation is restricted to listed grounds such as nonpayment, application fraud and DWI conviction.
- Arkansas auto cancellation notice periods
- The brochure specifies 20 days' written notice for listed grounds, shortened to 10 days for nonpayment.
- Arkansas auto nonrenewal notice
- An insurer must give 30 days' written notice before nonrenewal at expiration.
Claims Practices
- Arkansas ordinary claim acknowledgment period
- For Rule 43 section 7 claims, acknowledge notice within 15 working days unless payment is made within that period.
- Arkansas proof-of-loss forms deadline
- Furnish forms within 20 calendar days after loss is reported, or waive the proof-of-loss requirement.
- Arkansas claim investigation timeframe
- Complete investigation within 45 calendar days after notice, or explain why additional time is reasonably needed.
- Arkansas policy-based claim denial notice
- Denial must be written, cite the relied-on provision, condition or exclusion, and be copied into the claim file.
- Arkansas first-party proof-of-loss decision period
- Generally advise acceptance or denial within 15 working days after proper proof of loss, or timely explain the need for more time.
- Arkansas response to department claim inquiries
- For claims under section 7, respond adequately to the Insurance Department within 15 working days.
Keep studying
The general topics make up most of the exam.
Arkansas exam questions
Do I need a pre-licensing course for property and casualty in Arkansas?
Yes. You need a course completion certificate for the line and must show it every time you test. Certificates are valid for 2 years.Source: PSI, Arkansas Insurance Department Candidate Information Bulletin (Jun 2025)
How long is the Arkansas property and casualty exam?
3.5 hours. It is given on its own and cannot be combined with another exam.Source: PSI, Arkansas Insurance Department Candidate Information Bulletin (Jun 2025)
What score do I need to pass in Arkansas?
70 percent. The exam fee is $50.Source: PSI, Arkansas Insurance Department Candidate Information Bulletin (Jun 2025)
How much of the Arkansas property and casualty exam is state law?
State law is usually around 20 to 30 percent of a state's producer exam. Check the Arkansas candidate handbook from your testing provider for the exact content outline.
What does the Arkansas state law section cover?
Common areas include licensing and continuing education, auto liability minimums, cancellation and nonrenewal notice rules, and the guaranty fund. This page covers: Licensing and CE, Auto Insurance, Coverage Mandates, Cancellation and Nonrenewal, Claims Practices, Workers Compensation.
Where do these state questions come from?
Each state question is written from the state's statutes, regulations, or insurance department guidance, and the source is linked under the answer so you can read it yourself.
Do I still need the general questions?
Yes. Most of the exam is general property and casualty knowledge. The full exam option here mixes 367 general questions with the Arkansas state law questions.