Download Insurance Licensing - Chapter 15. Arkansas State Law Questions and Answers 2025 and more Exams Advanced Education in PDF only on Docsity!
Insurance Licensing - Chapter 15.
Arkansas State Law
The Commissioner of insurance has all of the following duties and powers, except: a. The insurance Commissioner may update the insurance code (law) as needed b. The Commissioner regulates premium rates c. The Commissioner may institute court proceedings to enforce the Insurance Code d. The Commissioner has the authority to make necessary rules and regulations - answera. The insurance Commissioner may update the insurance code (law) as needed After a hearing before the Commissioner, Oscar's insurance license was suspended because: a. He failed to respond to a written inquiry from the Commissioner within 30 days b. His state income tax return was audited c. He was subpoenaed to appear before the insurance commissioner of another state d. He was a accused of committing a misdemeanor - answera. He failed to respond to a written inquiry from the Commissioner within 30 days According to Arkansas law, a resident insurance agent in the state of Arkansas: a. Must maintain client records for at least 1 year b. Must be at least 20 years old c. Must have a place of business in Arkansas d. Must notify the Commissioner of a change of address within 30 days - answerc. Must have a place of business in Arkansas The sale of surplus lines insurance is:
a. Done through surplus lines brokers working with eligible nonadmitted insurers b. Another name for insurance sold through unauthorized insurers c. Allowed when insurance is cheaper through a non-admitted carrier d. Done through any agent with a property and casualty license - answerb. Another name for insurance sold through unauthorized insurers What is the maximum financial penalty the Commissioner may impose upon a licensee who knowingly engages in unfair trade practice violations within a 6-month period? a. $5, b. $10, c. $1, d. $50,000 - answerd. $50, Which of the following statements regarding Arkansas definitions applicable to insurance is correct? a. The valued property law applies to real and personal property b. Insurers must provide 60 days notice of nonrenewal, except in cases of nonpayment c. Commercial liability insurance policies sold in Arkansas may not limit defense costs d. Boiler and machinery insurance is considered to be property insurance - answerb. Insurers must provide 60 days notice of nonrenewal, except in cases of nonpayment Which of the following policy standards is false according to Arkansas law? a. Insureds must be notified of any premium increases 30 days in advance b. Giving notice of claim to an authorized agent is the same as giving it to the insurer c. The insured must sign and accept any endorsements that restrict coverage, which the insurer adds after the inception date d. Insurance policies may be issued for a term that is greater than 12 months - answera. Insureds must be notified of any premium increases 30 days in advance Licensees must complete:
d. Geographical redlining - answerc. Unfair discrimination All licenses are the property of: a. The appointing insurer b. The Commissioner of Insurance c. The licensee d. The state of Arkansas - answerd. The state of Arkansas Which of the following statements regarding the temporary insurance license is correct? a. A temporary license is only granted when an agent dies or is disabled b. A temporary license does not allow the licensee to sell, solicit, or negotiate new contracts c. Temporary licenses are issued on the same basis as other insurance licenses d. Temporary licenses are granted for a term of up to 90 days - answerb. A temporary license does not allow the licensee to sell, solicit, or negotiate new contracts njuries compensated under the Workers' Compensation program does not include: a. An accidental injury to a prosthetic device which requires medical services b. Cardiovascular disease c. Injuries caused by horseplay d. Mental illness - answerc. Injuries caused by horseplay Which of the following statements regarding the Arkansas Rural Risk Underwriting Association is correct? a. The Association sets rules for risks classification, rate modification and coverage limits b. Participation in the Association is voluntary c. Assessments equal at least 2% of each insurer's net direct written premiums
d. All members are initially assessed $2,000 for the expenses of mailing subscription notices - answera. The Association sets rules for risks classification, rate modification and coverage limits Which of the following statements regarding the Arkansas Workers' Compensation program is correct? a. Workers' Compensation benefits begin on the ninth day b. The statutory funeral benefit under Workers' Compensation is $10, c. The Workers' Compensation program has a 7-day retroactive period d. An employee must notify employer regarding a compensable injury within 7 working days - answera. Workers' Compensation benefits begin on the ninth day If a licensee demands a hearing, the Commissioner is obliged to hold one within________ days, and must give all parties advanced notice of at least______ days. a. 10 and 10 b. 10 and 30 c. 30 and 30 d. 30 and 10 - answerd. 30 and 10 Alexander may committed a violation of the insurance code when he: a. Assigned some of his commissions to an out-of-state insurance agency not active in Arkansas b. Paid a deferred commission to a formerly licensed producer who is now retired c. Procured insurance for his client from an insurer with whom he was not appointed d. Paid a referral fee to an unlicensed solicitor for each life insurance appointment arranged - answerd. Paid a referral fee to an unlicensed solicitor for each life insurance appointment arranged 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: a. 15 days prior to the expiration of the policy
a. The Commissioner is appointed by the governor with the advice and consent of the Senate b. The Commissioner must execute a $25,000 bond to the state c. The Commissioner may or may not be a resident of Arkansas d. A candidate for the office of Commissioner must be at least 40 years old - answera. The Commissioner is appointed by the governor with the advice and consent of the Senate The qualifications for becoming an insurance producer include all of the following, except: a. Agents may only be licensed for life, health, property, or casualty lines of insurance b. A candidate seeking a property and casualty license must complete 40 hours of prelicensing education c. Licensed business entities must designate an individual producer to be responsible for the entity's compliance with all regulatory requirements d. The candidate must be at least 18 years of age - answera. Agents may only be licensed for life, health, property, or casualty lines of insurance In state law, the principle of comparative fault holds that: a. If the fault of the claimant is less than that of the defendant, the claimant is awarded 100% of the amount claimed b. If the fault of the claimant is greater than that of the defendant to claimant's award is proportionately reduced c. If the claimant is at all at fault, no award is made d. If 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 - answerd. If 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 The primary purposes of the Workers' Compensation laws are all the following, except: a. To improve workplace safety b. To provide disability benefits for workers suffering from work-related injuries
c. To improve healthcare delivery by bypassing managed-care restrictions d. To encourage injured workers to return to work - answerc. To improve healthcare delivery by bypassing managed-care restrictions For those drivers required to show proof of future financial responsibility before operating a motor vehicle, which of the following methods is appropriate? a. A certificate of deposit b. A bond c. A certificate of self-insurance d. A certificate of financial responsibility - answerc. A certificate of self-insurance Which of the following statements apply to maintaining an insurance license in the state of Arkansas? a. Membership in a professional insurance organization or association is not considered a form of continuing education b. New insurance licenses renew every two years in odd or even years, subject to whether one's birth date occurred in an even year or an odd year c. The Commissioner may grant a licensee an extension of up to 12 months to complete continuing education d. A person teaching an approved continuing education course receives twice the number of hours as a person completing the course - answerc. The Commissioner may grant a licensee an extension of up to 12 months to complete continuing education Which of the following statements regarding the financial responsibility requirements for operating a motor vehicle in Arkansas is correct? a. Arkansas requires automobile policies to be purchased with uninsured motorist coverage b. All drivers in Arkansas must purchase an insurance policy c. All policies written in Arkansas must include liability limits of $25,000/$50,000/$25, d. Insurance policies must offer third-party, medical coverage of at least $5,000 - answerc. All policies written in Arkansas must include liability limits of $25,000/$50,000/$25,
The Arkansas Automobile Insurance Plan: a. Requires the participation of all companies writing automobile liability insurance b. Covers insureds unable to afford auto insurance in the voluntary market c. Must include all of the coverages offered by commercial insurers d. Provides at least $500 of first party medical coverage - answera. Requires the participation of all companies writing automobile liability insurance The purpose of the Arkansas Rural Risk Underwriting Association is to provide: a. Farmowners insurance in areas subject to increased urbanization, where it is otherwise not available b. Homeowners insurance in rural areas, where there is limited capacity c. To assure an adequate market for property insurance on insurable risks in rural areas d. To set rates for insurable risks in the rural areas of Arkansas - answerc. To assure an adequate market for property insurance on insurable risks in rural areas
