Chapter 15 Arkansas Laws Exam
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/$25,000
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
