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1.2 Arkansas P&C Producer Licensing Requirements

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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

1.2 Arkansas P&C Producer Licensing Requirements

Key Takeaways Explain This Topic AI

Arkansas pre-licensing education for the combined P&C line is 40 hours (20 property + 20 casualty) from an AID-approved provider.

The PSI-administered combined P&C exam has 150 scored questions (125 general knowledge plus 25 Arkansas state-law) and 10 pretest questions, each portion scored separately at a 70% standard.

Applicants must be at least 18, apply through NIPR and complete an online criminal background check BEFORE the exam; PSI schedules only AID-approved candidates.

The Arkansas exam fee is $50 per attempt, paid to PSI; results are reported immediately as pass/fail at the test center.

Licenses renew biennially on the producer's birthday with 24 CE hours (including 3 ethics hours) every two years.

Last updated: October 2026

Step-by-Step Path to an Arkansas P&C License

Meet eligibility — be at least 18 years old and a resident (or qualify as a nonresident through reciprocity).

Complete pre-licensing education.

Apply for the license through NIPR (nipr.com) and pay the $20 NIPR application fee.

Complete the online criminal background check for AID.

Wait for approval to test — AID reviews the application, and PSI emails you when you may schedule.

Schedule and pass the PSI exam , then print the license from NIPR 24 hours after passing.

This order comes from the current PSI Arkansas bulletin (June 18, 2025): in Arkansas the application comes before the exam.

Pre-License Education

Arkansas treats Property and Casualty as two coverage areas inside the combined P&C credential. AID-approved education totals 40 hours :

  • Component Hours
  • Property 20
  • Casualty 20
  • Total 40

Coursework must come from an AID-approved provider and a completion certificate is required before PSI will release an Approval-to-Test.

The Examination (PSI)

The exam is delivered by PSI Services at Arkansas test centers and online with remote proctoring. Reserve a seat at psi.com or by phone.

  • Exam detail Combined P&C
  • Vendor PSI Services LLC
  • Scored questions 150 (125 general + 25 Arkansas state-law), plus 10 unscored pretest items
  • 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
  • Format Multiple choice, computer-based
  • Results Immediate pass/fail at the center

The content splits into a general property and casualty section (125 scored) and a multi-line Arkansas state-law section (25 scored). You must reach 70% on each portion — a strong general score cannot rescue a failed state-law section. PSI reports a numeric score with a section-by-section diagnostic on a fail.

Worth memorizing: PSI's outline gives the combined Arkansas exam 150 scored questions (125 general + 25 state) plus 10 unmarked pretest items, in 210 minutes (160 + 50).

The 90-Day Permit Period

You must pass within the 90-day permit period that begins when AID issues your original approval to test. Within that window you may take the exam a maximum of three (3) times ; each attempt requires a new $50 fee and a new reservation. If you do not pass within three attempts or before the 90 days expire, you must wait four weeks and restart the approval process. Because AID approved the application and background check before the exam, you can print the license from NIPR 24 hours after you pass.

Renewal & Continuing Education

  • Requirement Detail
  • Renewal cycle Biennial (every 2 years) on the producer's birthday
  • Total CE 24 hours every 2 years
  • Ethics 3 of the 24 hours must be ethics
  • Multi-line rule Holding more than one line (e.g., P&C plus Life) does not double the 24 hours
  • Carryover Up to 24 excess hours may carry to the next term (but count as general credit)

Exam tip: Renewal and CE deadlines key off the producer's birthday in Arkansas, not the original license date — a frequent distractor on state-law questions.

Lines of Authority and What a P&C License Lets You Sell

A line of authority defines what a producer may sell and solicit. The combined Property and Casualty credential authorizes the major personal and commercial lines:

Property — homeowners, dwelling fire, commercial property, inland marine.

Casualty — auto liability, general liability, workers' compensation, umbrella, professional liability.

It does not authorize Life, Accident & Health, Title, or surplus-lines brokering — those require separate qualification. A producer who sells outside the lines on the license commits an unauthorized-line violation, even if otherwise competent.

Resident vs. Nonresident and Reciprocity

Arkansas issues both resident and nonresident licenses. A producer already licensed and in good standing in a home state may obtain an Arkansas nonresident license through reciprocity without retaking pre-licensing or the exam — Arkansas generally waives those when the home-state license is equivalent. If a resident producer moves their home state to Arkansas, they typically have a limited window (commonly 90 days) to convert to a resident license. Memorize the logic: pre-licensing and the PSI exam are resident-track requirements; reciprocity is the nonresident shortcut.

Background Check and Character

Every resident applicant completes the online criminal background check for AID before approval to test; Arkansas does not take producer fingerprints (NAIC's fingerprint chart lists Arkansas fingerprinting only for bail bondsmen). A prior conviction is not an automatic bar, but failing to disclose it on the application is itself grounds for denial. Under the federal Violent Crime Control Act (18 U.S.C. 1033/1034) , a person convicted of a crime involving breach of trust or dishonesty (e.g., fraud, embezzlement) may not work in insurance without written 1033 consent from the Commissioner. Expect at least one question linking a felony-of-dishonesty fact pattern to the need for 1033 written consent.

Worked Example: Is the Candidate Ready to Apply?

A 19-year-old completes 40 hours of AID-approved pre-licensing, applies via NIPR with full disclosure of a 5-year-old shoplifting misdemeanor, completes the online background check, and after AID's approval passes the PSI exam at 78%. Result: she meets the age (18+), education (40 hrs), and exam (≥70%) requirements; the misdemeanor was disclosed , so it is reviewed on its merits rather than treated as fraud. Had she hidden the misdemeanor, the application could be denied for material misrepresentation regardless of the underlying offense.

Requirement Met?

  • Age 18+ Yes (19)
  • 40 hours pre-licensing Yes
  • PSI exam ≥ 70% Yes (78%)
  • Background disclosure Yes — disclosed

Trap: The dangerous answer choice is usually 'the conviction automatically bars licensure.' Disclosure plus Commissioner review — not automatic denial — is the rule for most offenses.