Arkansas Property & Casualty Exam Overview

Arkansas Property & Casualty Insurance State

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1 Standalone Coverage Map

Standalone Coverage Map

2 Introduction: Arkansas Property & Casualty Insurance Exam Overview

Arkansas Property & Casualty Exam Overview

3 National Portion: Insurance Fundamentals

1.1 Risk, Hazards, Perils, and the Law of Large Numbers 1.2 Insurable Interest, Indemnity, and Other Insurance Principles 1.3 Insurance Contract Law and Elements 1.4 Policy Structure: Declarations, Insuring Agreement, Conditions, Exclusions 1.5 Parties, Agents vs. Brokers, and Authority

4 National Portion: Property Insurance Concepts

2.1 Causes of Loss / Named-Peril vs. Open-Peril 2.2 Valuation: ACV, Replacement Cost, and Functional Value 2.3 Coinsurance and the Coinsurance Formula 2.4 Deductibles, Limits, and Loss Settlement 2.5 Common Property Policy Conditions and Clauses

5 National Portion: Dwelling Policies (DP)

3.1 Dwelling Policy Forms DP-1, DP-2, DP-3 3.2 Dwelling Coverages A-E and Other Coverages 3.3 Dwelling Perils, Conditions, and Endorsements 3.4 Mobile Home and Specialized Dwelling Coverage

6 National Portion: Homeowners Policies - Forms & Section I

4.1 Homeowners Forms HO-2 through HO-8 and Eligibility 4.2 Section I Coverages A-D and Additional Coverages 4.3 Section I Perils Insured Against and Exclusions 4.4 Replacement Cost vs. ACV and Loss Settlement in Homeowners

7 National Portion: Homeowners Policies - Section II & Endorsements

5.1 Section II Coverages E (Liability) and F (Medical Payments) 5.2 Homeowners Conditions and Duties After Loss 5.3 Common Homeowners Endorsements (scheduled property, water backup, ordinance or law)

8 National Portion: Personal Auto Policy - Liability & Injury

6.1 Personal Auto Policy Structure and Eligibility 6.2 Part A Liability and Supplementary Payments 6.3 Part B Medical Payments 6.4 Part C Uninsured/Underinsured Motorists

9 National Portion: Personal Auto Policy - Physical Damage & Duties

7.1 Part D: Coverage for Damage to Your Auto 7.2 Exclusions and Part E: Duties After an Accident 7.3 Part F: General Provisions, Endorsements, and No-Fault Concepts

10 National Portion: Liability Insurance Concepts

8.1 Negligence, Torts, and Legal Liability 8.2 Defenses, Damages, and Vicarious Liability 8.3 Occurrence vs. Claims-Made Triggers 8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury

11 National Portion: Commercial Property Insurance

9.1 Commercial Package Policy Structure and Common Policy Conditions 9.2 Building and Personal Property Coverage Form (BPP) 9.3 Causes of Loss Forms (Basic, Broad, Special) 9.4 Business Income and Extra Expense 9.5 Commercial Property Endorsements and the BOP

12 National Portion: Commercial General Liability - Coverages

10.1 CGL Coverage A: Bodily Injury and Property Damage Liability 10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments 10.3 Who Is an Insured and Supplementary Payments

13 National Portion: Commercial General Liability - Limits, Triggers & Exclusions

11.1 CGL Limits of Insurance and Aggregates 11.2 Occurrence vs. Claims-Made CGL and Retroactive Dates 11.3 Key CGL Exclusions and Endorsements

14 National Portion: Commercial Auto Insurance

12.1 Business Auto Coverage Form and Covered Auto Symbols 12.2 Commercial Auto Liability and Physical Damage 12.3 Motor Carrier / Trucking and MCS-90 12.4 Garage Coverage Form and Garagekeepers 12.5 Commercial Auto Endorsements

15 National Portion: Workers Compensation

13.1 Workers Compensation Statutory Background and Benefits 13.2 Part One (Workers Comp) and Part Two (Employers Liability) 13.3 Premium Basis, Experience Modification, and Classification 13.4 Other States, USL&H, and Federal Acts 13.5 Workers Comp Exclusions and Endorsements

16 National Portion: Other Commercial Lines - BOP, Crime & Marine

14.1 Businessowners Policy (BOP) in Depth 14.2 Crime and Fidelity Coverage 14.3 Inland Marine and Nationwide Marine Definition 14.4 Ocean Marine Coverages (Hull, Cargo, Freight, P&I)

17 National Portion: Other Commercial Lines - Specialty & Professional

15.1 Farm and Agricultural Coverage 15.2 Commercial Umbrella and Excess Liability 15.3 Professional Liability and Errors & Omissions 15.4 Directors & Officers and Employment Practices Liability

18 National Portion: Other Commercial Lines - Surety, Flood & Specialty

16.1 Surety and Fidelity Bonds 16.2 National Flood Insurance Program (NFIP) 16.3 Cyber, Aviation, and Other Specialty Lines

19 National Portion: Insurance Regulation & Market Conduct

17.1 State Regulation, Licensing, and the McCarran-Ferguson Act 17.2 Rates, Forms, Solvency, and Guaranty Associations 17.3 Producer Authority, Fiduciary Duty, and Company Operations

20 National Portion: Ethics & Unfair Trade Practices

18.1 Unfair Trade Practices and Unfair Claims Settlement 18.2 Producer Ethics, Errors & Omissions Exposure, and Fiduciary Conduct 18.3 Privacy, Fraud, and Consumer Protection

21 Chapter 1: Arkansas P&C Insurance Regulation & Licensing

1.1 Arkansas Insurance Department 1.2 Arkansas P&C Producer Licensing Requirements 1.3 Arkansas Producer Responsibilities

22 Chapter 2: Arkansas Property Insurance

2.1 Arkansas Homeowners Insurance 2.2 Arkansas Commercial Property Insurance

23 Chapter 3: Arkansas Casualty & Auto Insurance

3.1 Arkansas Auto Insurance Requirements 3.2 Arkansas Liability Insurance 3.3 Arkansas Workers' Compensation Insurance

24 Chapter 4: Arkansas Ethics & Professional Conduct

4.1 Ethical Practices and Consumer Protection

Arkansas Property & Casualty Exam Overview

Key Takeaways Explain This Topic AI

Arkansas requires 20 hours of pre-licensing education per line of authority (Property and Casualty), so a combined P&C candidate completes 40 hours total before testing.

The combined P&C exam has 150 scored questions plus 10 pretest questions: a general-knowledge section (125 scored + 8 pretest) and an Arkansas state-law section (25 scored + 2 pretest).

Timing is 160 minutes for the general-knowledge section and 50 minutes for the state-law section, 210 minutes in total; the exam costs $50 paid to PSI.

You must score 70% or higher on EACH section independently — a strong general score cannot rescue a failed state-law section.

PSI Services LLC delivers the exam by appointment at test centers or via online proctoring on behalf of the Arkansas Insurance Department (AID).

Arkansas compulsory auto liability limits are 25/50/25, and uninsured motorist coverage must be offered with a written rejection required to decline it.

Last updated: October 2026

Welcome to ExamFinch's FREE Arkansas Property & Casualty (P&C) insurance exam prep guide. This chapter maps the exam, the licensing pathway, and the Arkansas-specific numbers examiners reuse year after year.

About the Arkansas P&C Exam

The Arkansas Property & Casualty producer examination is administered by PSI Services LLC under contract with the Arkansas Insurance Department (AID) . A producer is the licensed individual who solicits, negotiates, or sells insurance. The exam blends national insurance theory with Arkansas statutory law and AID rules, and it covers:

The Arkansas Insurance Code and AID regulations (Rules 31, 81, 23, etc.)
Property lines: homeowners, dwelling, fire, commercial property, inland marine
Casualty lines: personal and commercial auto, general liability, workers' compensation
Policy provisions, contract law, and Arkansas-specific endorsements
Producer ethics, fiduciary duties, and consumer-protection rules
Exam Structure (Combined P&C)

Component Detail
Testing vendor PSI Services LLC (psiexams.com)
Regulator Arkansas Insurance Department (AID)
General-knowledge scored items 125 (+ 8 unscored pretest)
State-law scored items 25 (multi-line P&C, Arkansas; + 2 unscored pretest)
Total 150 scored + 10 pretest = 160 questions
General-knowledge time 160 minutes
State-law time 50 minutes
Total time 210 minutes (3.5 hours)
Passing score 70% on EACH section
Exam fee $50 per attempt, paid at reservation
Delivery Test center or online remote proctor
Results Pass/fail printed immediately at the center

Worth memorizing: PSI's Arkansas Property and Casualty outline lists 150 scored questions plus 10 pretest questions in 210 minutes: 125 + 8 in the 160-minute general section and 25 + 2 in the 50-minute Arkansas section, each with a 70% minimum. Score 70% on the state section AND the general section or you fail.

Exams in the PSI Arkansas Bulletin

Exam Time Notes
Property/Casualty (including commercial lines) 3.5 hours Cannot be combined with any other exam in one sitting
Personal Lines (no commercial lines) 3.5 hours Separate exam and separate 20-hour course

The bulletin lists no separate Property-only or Casualty-only exam: the combined Property/Casualty exam covers both lines for one $50 fee.

Pre-Licensing Education (Rule 31)

Arkansas Rule 31 requires 20 hours of approved pre-licensing education per line of authority . A combined P&C candidate therefore completes 40 hours total — 20 Property + 20 Casualty — through an AID-approved provider. The certificate is valid for 2 years ; you must sit the state exam within that window or repeat the coursework.

Mandated Topic Hours (Per 20-Hour Line)

Rule 31 prescribes how the 20 hours break down, which is why generic "insurance basics" courses do not qualify:

Property line (20 hrs) Hours
Introduction to insurance 1
State insurance laws & rules 5
Fire & allied lines, assigned-risk plan (ARRUA), Arkansas Earthquake Authority 4
Homeowners & other multiple-line products 5
National Flood Insurance Program 0.5
Commercial property & commercial crime 3
Federal Crop Insurance Corporation (FCIC) 0.5
Ethics 1

Casualty line (20 hrs) Hours
Introduction to insurance 1
State insurance laws & rules 5
Ocean & inland marine 1
General liability 2
Automobile & assigned-risk plans (AIPSO/CAIP) 5
Workers' compensation & assigned-risk plan 3
Commercial crime & fidelity bonds 1
Surety bonds 1
Ethics 1
Worked Timeline Example

Suppose you finish your 40-hour course on March 1, 2026 . Your pre-licensing certificate is valid through March 1, 2028 . If you apply, receive Authorization to Test, but keep rescheduling, you must still pass before that 2028 cutoff — otherwise the coursework is void and you re-take all 40 hours. Plan to test within weeks of completing education while the material is fresh.

Arkansas Market & Compulsory Auto Limits

Arkansas sits in a high-severe-weather corridor, so examiners emphasize windstorm, hail, and tornado exposures, the named-storm/wind-hail deductible concept, and flood being excluded from standard homeowners (requiring the NFIP or a private flood policy).

Compulsory Auto Liability — 25/50/25

Every registered Arkansas vehicle must carry minimum liability:

Coverage Minimum limit
Bodily injury — per person $25,000
Bodily injury — per accident $50,000
Property damage — per accident $25,000

Additional Arkansas auto rules examiners test:

Uninsured Motorist (UM) coverage must be offered ; the insured must sign a written rejection to decline it.

Underinsured Motorist (UIM) must also be offered alongside UM.

Arkansas is a tort (at-fault) state , so no-fault PIP is not mandatory, though medical-payments and UM/UIM offers are regulated.

Exam trap: Do not confuse the 25/50/25 liability minimums with UM limits. UM/UIM must be offered but can be rejected in writing; the 25/50/25 liability minimums are mandatory and cannot be waived for a registered vehicle.

Loading diagram... Arkansas P&C Licensing Path (2026)

License Application Process

Arkansas uses the National Insurance Producer Registry (NIPR) for applications and a state background check before AID issues a license.

Step-by-Step

Complete pre-licensing education — 40 hours (20 Property + 20 Casualty); pass the course final at 70%; certificate valid 2 years.

Apply through NIPR at nipr.com, selecting Arkansas and the Property and Casualty lines; complete the background/character disclosures.

Authorization to Test (ATT) — AID/PSI confirms eligibility; you receive instructions to schedule.

Pass the exam — 70% on the general-knowledge section and on the state-law section; results print immediately.

License issued — printable from NIPR shortly after passing; you may then transact P&C business in Arkansas.

Retake Policy

Item Detail
Permit period You must pass within 90 days of your original approval to test
Attempt cap A maximum of 3 attempts within that 90-day permit period
If you fail Re-register and pay the $50 fee again for each attempt
After 3 fails / 90 days The permit expires; restart the AID approval process

Note: Always confirm current reschedule windows and same-day-rebooking rules in the AID/PSI candidate handbook, as the published policy is updated periodically. The three-attempts-within-90-days cap is the figure PSI's Arkansas bulletin states.

Cost Summary

Item Typical cost
Pre-license education (40 hrs) Priced by the provider
PSI exam fee $50 per attempt
Online criminal background check Fee set by the check
NIPR application fee $20 (PSI Arkansas bulletin)
License Maintenance — Continuing Education

Requirement Detail
License term 2 years
CE hours 24 hours per renewal period
Ethics within CE 3 hours
Provider AID-approved CE provider
Late renewal Penalty/reinstatement fees apply
Numbers to Memorize

Topic Number
Pre-license hours 20 per line (40 combined)
General scored Qs 125 (+ 8 pretest)
State-law scored Qs 25 (+ 2 pretest)
General time / state time 160 min / 50 min
Passing score 70% per section
Exam fee $50
Certificate / license validity 2 years each
CE per renewal / ethics 24 hrs / 3 hrs
Auto liability minimum 25/50/25

Next: Chapter 1 covers AID structure and producer licensing law; Chapter 2 property law; Chapter 3 casualty/auto law; Chapter 4 ethics and consumer protection. Pair this with our national Property & Casualty prep for the general-knowledge sections.