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Arkansas Property & Casualty Cheat Sheet

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Insurance Foundations

  • Not published of exam
  • Risk Terms Contract Parts Policy Clauses Loss Valuation

Property Coverages

  • Not published of exam
  • Dwelling Forms Homeowners Forms Commercial Property Marine and Flood

Casualty and Commercial

  • Not published of exam
  • Personal Auto CGL Workers Compensation Specialty Liability

Arkansas Law and Licensing

  • Not published of exam
  • Producer Licensing State Regulation Arkansas Auto Exam Administration

Quick Facts

  • Exam Combined P&C
  • Vendor PSI
  • Total Items 150 scored, 10 pretest
  • Total Time 210 minutes
  • Pass Mark 70%
  • Exam Fee $50
  • General Section 125 scored, 8 pretest
  • General Time 160 minutes
  • Arkansas Section 25 scored, 2 pretest
  • Arkansas Time 50 minutes
  • Prelicense 40 combined hours
  • Approval Window 90 days
  • Attempt Limit Three per approval

DICE Policy Parts FO

  • Declarations, Insuring agreement, Conditions, Exclusions
  • D = Declarations I = Insuring agreement C = Conditions E = Exclusions

Peril vs Hazard FO

Peril

  • Causes the loss
  • Example: fire

Hazard

  • Raises loss chance
  • Example: faulty wiring
  • Cause versus risk amplifier

Risk and Contract Basics FO

  • Peril Direct loss cause
  • Hazard Raises loss probability
  • Physical hazard Tangible dangerous condition
  • Moral hazard Dishonesty increases risk
  • Morale hazard Carelessness increases risk
  • Indemnity Restore, never profit
  • Insurable interest Financial stake at loss
  • Subrogation Insurer pursues responsible party

PMM Hazards FO

  • Physical, Moral, Morale raise risk
  • Physical = condition Moral = dishonesty Morale = carelessness

ACV vs Replacement Cost FO

Actual cash value

  • Subtracts depreciation
  • Lower older-property payment

Replacement cost

  • No depreciation deduction
  • Replacement conditions may apply
  • Depreciation creates difference

Policy Structure and Authority FO

  • Declarations Who, what, limits, premium
  • Insuring agreement Insurer coverage promise
  • Conditions Parties' required duties
  • Exclusions Removed coverage
  • Endorsement Changes policy terms
  • Express authority Explicitly granted authority
  • Implied authority Necessary supporting authority
  • Apparent authority Public reasonably perceives authority

Valuation and Claims FO

  • Actual cash value Replacement cost minus depreciation
  • Replacement cost Replace without depreciation
  • Agreed value Value fixed beforehand
  • Stated amount Maximum stated recovery
  • Market value Current sale price
  • Deductible Insured's retained loss
  • Coinsurance Required insurance percentage
  • Proximate cause Dominant unbroken loss cause

Named vs Open Perils PR

Named perils

  • Only listed causes
  • Insured proves coverage

Open perils

  • All except exclusions
  • Insurer proves exclusion
  • Check the burden

Choose Property Coverage PR

  • Owner-occupied home → Homeowners form
  • Tenant needs contents → HO-4
  • Condo unit owner → HO-6
  • Older specialized home → HO-8
  • Non-owner dwelling → Dwelling form
  • Business building → Commercial property
  • Mobile property → Inland marine
  • Flood loss → Flood policy

Dwelling and Homeowners PR

  • DP-1 Basic named perils
  • DP-2 Broad named perils
  • DP-3 Open-peril dwelling
  • HO-3 Open dwelling, named contents
  • HO-4 Tenant contents coverage
  • HO-5 Open dwelling and contents
  • HO-6 Condominium unit owner
  • HO-8 Modified older-home coverage

Property Coverage Parts PR

  • Coverage A Dwelling
  • Coverage B Other structures
  • Coverage C Personal property
  • Coverage D Loss of use
  • Coverage E Personal liability
  • Coverage F Medical payments
  • Direct loss Immediate physical damage
  • Indirect loss Consequential financial loss

Commercial Property and Marine PR

  • Building coverage Structures and fixtures
  • Business personal property Business contents
  • Basic causes Limited named perils
  • Broad causes Expanded named perils
  • Special causes Open-peril coverage
  • Business income Covered shutdown earnings
  • Inland marine Mobile property and transit
  • Ocean marine Ships, cargo, maritime liability
  • Flood insurance NFIP or private policy

Negligence Elements CA

  • Duty, Breach, Causation, Damages
  • Duty owed Duty breached Breach caused loss Actual damages

Occurrence vs Claims-Made CA

Occurrence

  • Injury date controls
  • Claim may arrive later

Claims-made

  • Claim timing controls
  • Retroactive date matters
  • Identify the trigger

Choose Liability Coverage CA

  • Private auto liability → Personal auto
  • Business auto exposure → Commercial auto
  • Premises liability → CGL
  • Professional service error → Errors and omissions
  • Employee job injury → Workers compensation
  • Employer lawsuit → Employers liability
  • Extra broad limits → Umbrella
  • Contract performance guarantee → Surety bond

Personal Auto Coverage CA

  • Part A Liability coverage
  • Part B Medical payments
  • Part C Uninsured motorists
  • Part D Physical damage
  • Collision Vehicle impact or upset
  • Other-than-collision Noncollision covered losses
  • Split limits Per-person, per-accident, property
  • Combined single limit One aggregate liability limit

Surety Parties CA

  • Principal performs, obligee receives, surety guarantees
  • Principal = performer Obligee = beneficiary Surety = guarantor

Workers Comp vs Employers Liability CA

Workers compensation

  • Statutory benefits
  • No-fault framework

Employers liability

  • Employer tort liability
  • Outside statutory benefits
  • Benefits versus employer liability

Liability and Commercial Lines CA

  • Negligence Duty, breach, causation, damages
  • CGL Coverage A Injury and property damage
  • CGL Coverage B Personal and advertising injury
  • CGL Coverage C Medical payments
  • Occurrence form Trigger is injury date
  • Claims-made form Trigger is claim timing
  • Businessowners policy Bundled property and liability
  • Commercial package Modular commercial coverages

Specialty Casualty Coverages CA

  • Workers compensation Statutory employee benefits
  • Employers liability Employer liability beyond benefits
  • Surety bond Principal, obligee, surety
  • Umbrella Broad excess liability
  • Excess liability Higher underlying limits
  • Errors and omissions Professional negligence liability
  • Employment practices Workplace allegation liability
  • Cyber liability Network and data losses

Prelicense vs Continuing Education AR

Prelicense

  • Before initial exam
  • 40 combined hours

Continuing education

  • After licensing
  • 24 biennial hours
  • Different lifecycle stages

Arkansas License Path AR

  • Starting combined line → Complete 40 hours
  • Education completed → Keep completion certificate
  • Application ready → File through NIPR
  • Background review needed → Submit online check
  • AID approves testing → Schedule with PSI
  • Exam attempt day → Bring current ID
  • Exam passed → Print after 24 hours
  • Three attempts fail → Wait four weeks

Published Exam Split AR

  • Combined exam Property, casualty, commercial lines
  • General scored 125 questions
  • General pretest 8 unscored questions
  • General time 160 minutes
  • Arkansas scored 25 questions
  • Arkansas pretest 2 unscored questions
  • Arkansas time 50 minutes
  • Passing score 70% minimum
  • Topic weights Not published

General vs Arkansas Section AR

General section

  • 125 scored questions
  • 160 minutes

Arkansas section

  • 25 scored questions
  • 50 minutes
  • One combined exam

Arkansas Licensing Rules AR

  • Property prelicense 20 classroom hours
  • Casualty prelicense 20 classroom hours
  • Combined prelicense 40 classroom hours
  • Certificate validity Two years
  • Resident application Submit electronically through NIPR
  • Application fee $20
  • Background check Complete online submission
  • Continuing education 24 hours biennially
  • Ethics education Three CE hours

Exam Fee vs Application Fee AR

Exam fee

  • $50
  • Paid for testing

Application fee

  • $20
  • Paid for licensing
  • Separate payments

Arkansas State Topics AR

  • Auto minimum $25K/$50K/$25K
  • Uninsured motorists Written rejection required
  • Underinsured motorists Written rejection permitted
  • Valued policy law Listed state topic
  • Comparative fault Listed state topic
  • Guaranty association Listed state topic
  • Surplus lines Listed state topic
  • Unfair trade practices Listed state topic
  • Rural risk underwriting Listed state topic

Exam and Retake Rules AR

  • Testing window Pass within 90 days
  • Window attempts Maximum three attempts
  • Reset wait Four weeks
  • Reset trigger Window lapse or failures
  • Retake booking Begin following day
  • Required identification One current government ID
  • Exam books Closed book
  • Handheld calculator Prohibited
  • Cancellation deadline Two days beforehand

Common Traps

Bank Size Is Not Exam Size

  • Use PSI published counts ≠ Ignore local category totals

Topic Weights Are Unpublished

  • Section counts are published ≠ Subtopic percentages are not

Pretest Items Are Unidentified

  • Ten items are unscored ≠ Answer every presented item

One Exam, Two Sections

  • General has 125 scored ≠ Arkansas has 25 scored

Prelicense Is Not CE

  • Forty hours before exam ≠ CE follows licensure

Exam Fee Is Separate

  • $50 pays PSI ≠ $20 is application fee

Retake Reset Has Two Triggers

  • Ninety-day window expires ≠ Three failures exhaust approval

Coverage Letters Change Meaning

  • HO letters differ from CGL ≠ Read the policy family

Last Minute

  • 1. Memorize 125 plus 25 split
  • 2. Separate scored and pretest items
  • 3. Keep unpublished weights unpublished
  • 4. Review DICE policy parts
  • 5. Distinguish peril from hazard
  • 6. Compare ACV with replacement cost
  • 7. Match HO and DP forms
  • 8. Review PAP coverage parts
  • 9. Memorize CGL coverage parts
  • 10. Separate prelicense from CE
  • 11. Know 25/50/25 auto limits
  • 12. Track three-attempt approval limit
  • 13. Bring one current government ID
  • 14. Leave handheld calculator home