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Chapter 15 Arkansas Laws Exam Questions and Answers
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Once in force for 60 days, a homeowners 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, 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: - answer15 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? - answerIf 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: - answerThe 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? - answerThe Commissioner may grant a licensee an extension of up to 12 months to complete continuing education Which of the following statements regarding the Arkansas Rural Risk Underwriting Association is correct? - answerThe 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: - answerFalse Financial Statements Which of the following policy standards is false according to Arkansas law? - answerInsureds must be notified of any premium increases 30 days in advance
In state law, the principle of comparative fault holds that: - answerIf the fault of the claimant is less than that of the defendant, the claimant is awarded a percentage of the total loss based on the comparative fault of the parties Motor vehicle insurance policies issued in the state of Arkansas must provide all the following coverages, except: - answerProperty damage coverage with a deductible of $200 or more All licenses are the property of: - answerThe state of Arkansas (They're all property to the state who licensed them) The insurer that carried Alfred's homeowners insurance policy determined there was a material change in the risk due to an increase in certain hazards at his home. The insurer sent a notice of cancellation, which in accordance with the law was received: - answer20 days in advance For those drivers required to show proof of future financial responsibility before operating a motor vehicle, which of the following methods is appropriate? - answerA certificate of self-insurance All the following are forms of casualty insurance, except: - answerInsurance covering damage to a bridge Which of the following individuals is required to pass an insurance licensing exam in order to reinstate their license due to a failure to meet CE requirements? - answerAn insurance adjuster The Arkansas Automobile Insurance Plan: - answerRequires the participation of all companies writing automobile liability insurance Licensees must complete: - answer24 hours of continuing education credit every 2 years, including 3 hours of ethics Which of the following statements regarding the appointment of the Commissioner of Insurance is correct? - answerThe Commissioner is appointed by the governor with the advice and consent of the Senate After a hearing before the Commissioner, Oscar's insurance license was suspended because: - answerHe failed to respond to a written inquiry from the Commissioner within 30 days Primary purpose of the Worker's Compensation laws are all the following EXCEPT: - answerTo improve healthcare delivery by bypassing managed-care restrictions The maximum temporary total disability benefit payable under Arkansas's Workers' Compensation Program is: - answer66 2/3% of the state's average weekly wage
Which of the following statements regarding Arkansas definitions applicable to insurance is correct? - answerInsurers must provide 60 days notice of nonrenewal, except in cases of nonpayment