Arkansas Property & Casualty Insurance License Exam Overview
The Arkansas Property & Casualty Insurance License Exam is administered by PSI on behalf of the Arkansas Insurance Department. Arkansas is located in tornado alley and faces significant severe weather risks that create specialized insurance needs throughout the state.
Passing this exam qualifies you to sell property insurance, auto insurance, liability coverage, and related products throughout Arkansas—a state with over 3 million residents, frequent tornado activity, and growing urban markets in Little Rock, Fayetteville, and Fort Smith that create substantial P&C insurance demand.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 100 multiple-choice |
| Scored Questions | 100 |
| Time Limit | 2 hours |
| Passing Score | 70% (70 correct answers) |
| Testing Vendor | PSI |
| Exam Fee | $50 |
| Pre-licensing Education | 40 hours required |
Why Get P&C Licensed in Arkansas?
- Growing market — Over 3 million residents with expanding urban centers
- Lower barriers — Only 16 hours pre-licensing required
- Severe weather demand — Tornado coverage expertise valued
- Regional hub — Little Rock and NW Arkansas growing rapidly
- Competitive compensation — Average P&C agent salary over $50,000
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Key Topics Covered on the Exam
1. Property Insurance (30%)
Homeowners Insurance:
- HO-2, HO-3, HO-4, HO-5, HO-6, HO-8 policy forms
- Coverage A (Dwelling), B (Other Structures), C (Personal Property)
- Coverage D (Loss of Use), E (Personal Liability)
- Dwelling fire policies
Arkansas-Specific Property Topics:
- Arkansas FAIR Plan for hard-to-insure properties
- Tornado and severe storm coverage
- Hail damage coverage
- Flood insurance (Mississippi River and tributary areas)
- Wind/hail deductibles
Commercial Property:
- Building and personal property coverage forms
- Business income coverage
- Equipment breakdown
- Inland marine coverage
2. Liability Insurance (30%)
Personal Liability:
- Homeowners liability (Coverage E)
- Personal umbrella policies
- Medical payments coverage
Commercial Liability:
- Commercial General Liability (CGL)
- Products and completed operations
- Professional liability (E&O)
- Workers' compensation requirements
Arkansas Workers' Compensation:
- Required for employers with 3 or more employees
- Arkansas Workers' Compensation Commission oversight
- Self-insurance options available
- Competitive state (private market)
3. Auto Insurance (25%)
Arkansas Auto Insurance Requirements:
| Coverage | Minimum Limit |
|---|---|
| Bodily Injury (per person) | $25,000 |
| Bodily Injury (per accident) | $50,000 |
| Property Damage | $25,000 |
Additional Auto Topics:
- Personal Auto Policy (PAP) coverage parts
- Arkansas financial responsibility law
- Uninsured motorist coverage (required)
- Underinsured motorist coverage
- SR-22 requirements
- Commercial auto insurance
4. Arkansas Insurance Code and Regulations (10%)
Arkansas Insurance Code Key Provisions:
- Producer licensing requirements
- Unfair trade practices
- Unfair claims settlement practices
- Policy cancellation and nonrenewal rules
- Advertising guidelines
Licensing Requirements:
- Pre-licensing education: 16 hours (lower than most states)
- Continuing education: 24 hours every 2 years
- Ethics requirement: 3 hours included in CE
- Background check required
5. Ethics and Professional Conduct (5%)
- Fiduciary duties to insureds
- Premium handling requirements
- Claims reporting obligations
- Privacy and confidentiality
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1 | Property insurance fundamentals | 10-12 |
| Week 2 | Liability insurance | 10-12 |
| Week 3 | Auto insurance and AR requirements | 10-12 |
| Week 4 | Arkansas regulations and ethics | 8-10 |
| Week 5 | Practice exams and review | 10-12 |
Total recommended study time: 50-60 hours
Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the Arkansas P&C exam.
Arkansas-Specific Exam Tips
1. Know Arkansas Auto Minimums
Arkansas requires 25/50/25 liability coverage:
- $25,000 per person bodily injury
- $50,000 per accident bodily injury
- $25,000 property damage
2. Master Tornado and Severe Storm Coverage
Arkansas is in tornado alley:
- Wind and hail covered under standard HO policies
- Percentage deductibles common for wind/hail
- Debris removal coverage important after storms
- Additional living expenses for displacement
3. Understand Flood Coverage
Flood is a significant Arkansas exposure:
- Mississippi River and tributary flooding
- Flash flood risks throughout state
- NFIP flood insurance required in many areas
- Standard HO policies exclude flood damage
4. Key Numbers to Remember
| Topic | Arkansas Requirement |
|---|---|
| Auto minimums | 25/50/25 |
| WC threshold | 3+ employees |
| Pre-licensing | 16 hours |
| CE requirement | 24 hours/2 years |
| Passing score | 70% |
Common Mistakes to Avoid
- Confusing tornado and flood coverage — Flood requires separate NFIP policy
- Wrong pre-licensing hours — Arkansas only requires 16 hours
- Not knowing UM requirements — Arkansas requires uninsured motorist coverage
- Wrong WC threshold — Arkansas requires WC at 3+ employees
- Not practicing timed exams — 2 hours for 100 questions
- Cramming last minute — Spread study over 4-5 weeks
After Passing Your Exam
- Apply for license through Arkansas Insurance Department
- Complete background check — Required for all applicants
- Pay license fee — Approximately $50 for resident license
- Affiliate with insurer — Get appointed by carrier
- Maintain CE compliance — 24 hours every 2 years
- Begin selling — Your license is valid for 2 years
2026 Arkansas Updates
For 2026, be aware of:
- Severe weather coverage rate changes
- Tornado-related property insurance updates
- Auto insurance rate adjustments
- Enhanced consumer protection regulations
Start Your Arkansas P&C Insurance Career Today
The Arkansas P&C license opens doors to a growing insurance market with significant severe weather coverage opportunities. With proper preparation, you can pass the exam on your first attempt.
Our free study materials include:
- Complete topic coverage
- Practice questions with explanations
- Arkansas-specific regulations
- Study guides and summaries
- AI-powered study assistance
Don't pay for expensive prep courses when everything you need is available FREE.