Arkansas Insurance License Exam

Written by: Ethan Peyton

Cartoon woman holding Arkansas Insurance License Exam document

    Passing your Arkansas insurance license exam is a pivotal part of becoming a licensed insurance agent in the state of Arkansas.

    In this guide, we’ll break down the general information that you need to know in order to pass your exam, outline the differences between each examination line, and offer tips on both how to prepare for your Arkansas insurance licensing exam and what to do after you pass.

     

    Arkansas Insurance Exam Basics

    General Information

    The State of Arkansas uses PSI to administer its insurance agent licensing. This means you can register and book all of your licensing examinations through the PSI Website. Your test can be carried out online or in person.

    Each major insurance line examination is made up of bullet-point questions and includes both general and state-specific material.

    The general questions test your federal insurance product and agent knowledge. The state-specific questions test you on the Arkansas insurance regulations and laws that you will need to know in order to operate as an insurance agent.

    Score Explanation

    You must get 70% or higher in order to pass your Arkansas insurance exam(s).

    After you finish your exam, your score will be displayed on your screen and will also include whether you passed or not. A score report will be emailed to you. If you fail, you will be sent a diagnostic report via email. You can use this to identify your strengths and weaknesses when attempting to retake the exam in the future.

    Note: You can request a duplicate score report after the examination by emailing scorereport@psionline.com.

    You will need to include your:

    • Full name
    • Candidate ID number
    • Confirmation number (can be found on your exam’s confirmation email)

     

    Cost

    Your Arkansas insurance license exam cost will depend on the number of examinations that you take.

    Examination

    Cost 

    Time Allowed

    Life

    $50

    150 Minutes

    Health

    $50

    150 Minutes

    Property & Casualty (Commercial Lines)

    $50

    210 Minutes

    Property & Casualty (No Commercial Lines)

    $50

    210 Minutes

    Note: You should focus on one exam at a time. This will likely increase the amount of time and effort you can allocate to each examination and should allow you to feel more prepared when you sit your exam.

    Recommended Pre-License Course

    Before taking your insurance exam, we recommend completing a pre-license education course. This is not a requirement in the state of Arkansas, but it can go a long way in helping you get accustomed to the information that you will need to know.
    4.7 out of 5 starsKaplan Education Company

     

    Arkansas Life and Health Insurance Exam

    Below you can find the content outline offered by PSI.

    We recommend using it as a checklist when working through your pre-license education course. This way, you’ll be absolutely sure that you haven’t missed any topic that you will be tested on later on.

    Life General Knowledge Content Outline

    50 scorable questions, plus 5 pretest questions.

    I. Types of Policies

    A. Traditional Whole Life Products
    B. Interest/Market-Sensitive/Adjustable Life Products
    C. Term Life
    D. Annuities
    E. Combination Plans and Variations

     

    II. Policy Riders, Provisions, Options, and Exclusions

    A. Policy Riders
    B. Policy Provisions and Options
    C. Policy Exclusions

     

    III. Completing the Application, Underwriting, and Delivering the Policy

    A. Completing the Application
    B. Underwriting
    C. Delivering the Policy
    D. Contract Law

     

    IV. Taxes, Retirement, and Other Insurance Concepts

    A. Third-Party Ownership
    B. Viatical Settlements
    C. Life Settlements
    D. Group Life Insurance
    E. Retirement Plans
    F. Life Insurance Needs Analysis/Suitability
    G. Social Security Benefits
    H. Tax Treatment of Insurance Premiums, Proceeds, and Dividends

     

    Life State Specific Content Outline

    30 scorable questions, plus 5 pretest questions.

    I. Arkansas Statutes, Rules, and Regulations Common to Life and Health Insurance

    A. The Insurance Commissioner
    B. Definitions
    C. Licensing
    D. Producer Responsibilities
    E. Life and Health Insurance Guaranty Association Act
    F. Marketing Practices

     

    II. Arkansas Statutes, Rules, and Regulations Pertinent to Life Insurance Only

    A. Life Insurance Policies
    B. Group Life
    C. Credit Life Insurance
    D. Replacement

     

    Health General Knowledge Content Outline

    50 scorable questions plus 5 pretest questions.

    I. Types of Policies

    A. Disability Income
    B. Accidental Death and Dismemberment
    C. Medical Expense Insurance
    D. Medicare Supplement Policies
    E. Group Insurance
    F. Individual/Group Long Term Care (LTC)
    G. Other Policies

     

    II. Policy Provisions, Clauses, and Riders

    A. Mandatory Provisions
    B. Other Provisions and Clauses
    C. Riders
    D. Rights of Renewability

     

    III. Social Insurance

    A. Medicare (Parts A, B, C, D)
    B. Medicaid
    C. Social Security Benefits

     

    IV. Other Insurance Concepts

    A. Total, Partial, Recurrent, and Residual Disability
    B. Owner’s Rights
    C. Dependent Children Benefits
    D. Primary and Contingent Beneficiaries
    E. Modes of Premium Payments
    F. Nonduplication and Coordination of Benefits
    G. Occupational vs. Non-occupational
    H. Tax Treatment of Premiums and Proceeds of Insurance Contracts
    I. Managed Care
    J. Workers Compensation
    K. Subrogation

     

    V. Field Underwriting Procedures

    A. Completing the Application
    B. Explaining Sources of Insurability and HIPAA Privacy Information
    C. Initial Premium Payment and Receipt and Consequences of the Receipt
    D. Submitting Application to company for underwriting
    E. Policy Delivery
    F. Explaining Policy and its Provisions, Riders, Exclusions, and Ratings to Clients
    G. Replacement
    H. Contract Law

     

    Health Arkansas Specific Content Outline

    30 scorable questions plus 5 pretest questions.

    I. Arkansas Statutes, Rules, and Regulations Common to Life and Health Insurance 

    A. The Insurance Commissioner
    B. Definitions
    C. Licensing
    D. Producer Responsibilities
    E. Life and Health Insurance Guaranty Association Act
    F. Marketing Practices

     

    II. Arkansas Laws, Rules, and Regulations Pertinent to Health Insurance Only

    A. Policy Provisions
    B. Medicare Supplement
    C. Health Advertising
    D. Long Term Insurance Care Act
    E. Group/Blanket Health
    F. Small Group Coverage
    G. Health Maintenance Organizations (HMOs)
    H. COBRA Health — State Continuation

    We recommend reading our in-depth How to Pass the Life Insurance Exam guide for a better overview.

     

    Arkansas Property and Casualty License Exam

    Below you can find the content outline offered by PSI.

    You should use this outline as a checklist when working through your pre-license education course in order to ensure that you haven’t missed any topic that you will be tested on later on.

    Property General Knowledge Content Outline

    50 scorable questions plus 4 pretest questions.

    I. Types of Policies 

    A. Homeowners
    B. Dwelling Policies
    C. Commercial Lines
    D. Inland Marine
    E. National Flood Insurance Program
    F. Others

     

    II. Insurance Terms and Related Concepts

    A. Insurance
    B. Insurable Interest
    C. Risk
    D. Hazards
    E. Peril
    F. Loss
    G. Loss Valuation
    H. Proximate Cause
    I. Deductible
    J. Indemnity
    K. Limits of Liability
    L. Coinsurance/Insurance to Value
    M. Occurrence
    N. Cancellation
    O. Nonrenewal
    P. Vacancy and Inoccupancy
    Q. Liability
    R. Negligence
    S. Binders
    T. Endorsements
    U. Blanket vs. Specific

     

    III. Policy Provisions and Contract Law

    A. Declarations
    B. Insuring Agreement
    C. Conditions
    D. Exclusions and Limitations
    E. Definition of the Insured
    F. Duties of the Insured After a Loss
    G. Obligations of the Insurance Company
    H. Mortgagee Rights
    I. Proof of Loss
    J. Notice of Claim
    K. Appraisal
    L. Other insurance Provision
    M. Subrogation
    N. Terrorism Risk Insurance Act (TRIA)

     

    Arkansas Casualty General Knowledge Content Outline

    50 scorable answers plus 4 pretest questions.

    I. Types of Policies, Bonds, and Related Terms

    A. Commercial General Liability
    B. Automobile: Personal Auto and Business Auto
    C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues
    D. Crime
    E. Bonds
    F. Professional Liability
    G. Umbrella/Excess Liability

     

    II. Insurance Terms and Related Concepts

    A. Risk
    B. Hazards
    C. Indemnity
    D. Insurable Interest
    E. Loss Valuation
    F. Negligence
    G. Liability
    H. Occurrence
    I. Binders
    J. Warranties
    K. Representations
    L. Concealment
    M. Deposit Premium/Audit
    N. Certificate of Insurance
    O. Law of Large Numbers
    P. Pure vs. Speculative Risk
    Q. Endorsements
    R. Damages
    S. Compliance with Provisions of Fair Credit Reporting Act

     

    III. Policy Provisions and Contract Law

    A. Declarations
    B. Insuring Agreement
    C. Conditions
    D. Exclusions and Limitations
    E. Definition of the Insured
    F. Duties of the Insured after a Loss
    G. Cancellation and Nonrenewal Provisions
    H. Supplementary Payments
    I. Proof of Loss
    J. Notice of Claim
    K. Arbitration
    L. Other Insurance Provision
    M. Subrogation
    N. Loss Settlement Provisions including Consent to Settle a Loss
    O. Terrorism Risk Insurance Act (TRIA)

     

    Multi-Line (P&C) Arkansas Specific Content Outline

    I. State Statutes, Rules, and Regulations Common to Life, Health, Property, and Casualty Insurance

    A. The Insurance Commissioner
    B. Definitions
    C. Licensing
    D. Producer Responsibilities
    E. Property and Casualty Insurance Guaranty Association
    F. Marketing Practices

     

    II. Arkansas Statutes, Rules, and Regulations Common to Multi-Line (P&C) Insurance Only

    A. Definitions
    B. Rural Risk Underwriting
    C. Homeowners Coverage
    D. Farmowners
    E. Automobile Insurance
    F. Arkansas Automobile Insurance Plan
    G. Employers Liability and Workers Compensation
    H. Earthquake and Deductible

    We recommend reading our Property and Casualty Insurance exam article for a more in-depth overview.

     

    How to Pass the Arkansas Insurance Exam

    Passing your Arkansas insurance exam ultimately comes down to your mindset and degree of preparation.

    We have composed a few helpful exam tips and tricks that should help you perform as well as you can during your exam day.

    Get a Pre-License Course

    Even though this is not a requirement in the state of Arkansas, getting a pre-license course can be incredibly beneficial. These courses can help you get accustomed to the extensive amount of content that you will have to memorize.

    We recommend Kaplan’s course because it offers a variety of helpful features, including:

    • Online exam simulations
    • Live online training
    • Printable study guides
    • End of chapter reviews

    For more information, we recommend reading our Kaplan Insurance Course Review.

     

    Make Enough Time to Study

    Not leaving enough time to prepare is one of the easiest ways to ensure that you do not pass your exam on your first attempt.

    Remember, there are zero questions on your exam that are based on common sense or critical thinking. All questions are purely factual, and so will relate to how well you understand and remember the content that you have learned.

    We recommend allocating around one to two weeks to prepare for your exam, as this should allow you to go through all of the material at least twice.

     

    Control Test Anxiety

    Even though you cannot control whether you get exam anxiety or not, you can take a few steps when preparing to limit its effect on your performance:

    • Establish a consistent pretest routine — Acclimate yourself to exam conditions by following a specific routine on each practice exam at home. This should help you feel less anxious during your exam day.
    • Get plenty of sleep — Lack of sleep can exacerbate your anxiety and increase your self-doubt. Make sure you are consistently getting a good night’s sleep in the week leading up to your exam.
    • Study effectively — This sounds obvious, but make sure you are actually tailoring your studying to the exam that you are taking. Remember, there are no critical thinking or common sense questions involved.
    • Arrive early — If you are planning to sit your exam in person, we recommend you arrive at least 30 minutes before it’s due to start in order to get used to your surroundings and have time to check in with your center’s administrator.

    For a more in-depth overview of how you can prepare for your Arkansas insurance exam, we recommend reading our How to Pass the Insurance Exam article.

     

    Getting Your Arkansas Insurance License

    Your next steps will depend on whether you passed your exam, as well as on whether you plan to get licensed for any additional lines.

    You can apply for your license up to 12 months after you complete your exam, so if you would like to attempt passing additional insurance line exams before filing your licensing application with the Arkansas Insurance Department, you are free to do that.

    After you have passed your insurance licensing exam, you will need to:

    • Complete any required background checks
    • Wait for your application to be reviewed
    • Print your license by visiting the NIPR website

    Have a look at our How to Become an Insurance Agent in Arkansas review for more information on all the steps that you will need to take after passing your insurance exam.




    Arkansas Insurance Exams FAQ

    How often do I have to renew my license?

    You must renew your Arkansas state license every two years after first passing your examination.

    For more information, see our guide on How to Renew Your Insurance License in Arkansas.

     

    How long is the Arkansas insurance exam?

    Insurance exam times will vary based on the type of exam you are taking. However, you will generally have between one and a half and three and a half hours to complete your exam.

     

    How many times can you take the Arkansas insurance exam?

    You can take each Arkansas insurance exam three times per 90 day period.

     

    How many questions are on the Arkansas insurance exam?

    Each exam will have a different number of questions. Typically, exams will have between 25 to 150 questions. There are generally more total questions for combined exams.

    Arkansas Insurance Department Contact Information

    Mailing Address:

    1 Commerce Way Little Rock
    Arkansas 72202

    Phone: (501) 371-2750

    Fax: (501) 683-2604

    Email: insurance.license@arkansas.gov

    Website: http://insurance.arkansas.gov

    License Search: Arkansas Insurance License Search and Lookup




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