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100+ Free Arkansas Surplus Lines Practice Questions

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2026 Statistics

Key Facts: Arkansas Surplus Lines Exam

65-75%

First-Time Pass Rate

Industry Data

70%

Passing Score

Arkansas Insurance Department

50

Exam Questions

PSI Services

2 hours

Exam Duration

PSI Services

$50

Exam Fee

PSI Services

P&C Required

Prerequisite

AID (3+ years)

Arkansas administers its surplus lines broker exam through PSI Services with 50 questions in 120 minutes and a 70% passing standard. Unique requirements include 3 years of P&C experience, a $50,000 surety bond, and a $1,035 application fee. The exam covers surplus lines markets, AID regulations, diligent search, the 4.0% premium tax, and NRRA provisions.

About the Arkansas Surplus Lines Exam

Arkansas's surplus lines broker exam tests knowledge of the non-admitted insurance market, AID surplus lines regulations, the 3-year P&C experience requirement, $50,000 surety bond obligations, diligent search requirements, the 4.0% surplus lines premium tax, Lloyd's of London and London Market operations, eligible insurer requirements, NRRA provisions, and E&S coverages relevant to Arkansas risks including agriculture, poultry, and severe weather.

Questions

50 scored questions

Time Limit

2 hours (120 minutes)

Passing Score

70%

Exam Fee

$50 (Arkansas Insurance Department (AID) / PSI Services)

Arkansas Surplus Lines Exam Content Outline

30%

Surplus Lines Markets

Lloyd's of London syndicates, London Market, alien insurers, managing general agents, wholesale brokers, binding authority, and E&S market operations

25%

Arkansas Surplus Lines Law

AID regulation, 3-year P&C requirement, $50,000 surety bond, broker licensing, eligible insurer list, and state-specific compliance

20%

Diligent Search & Eligibility

Diligent search documentation, admitted market declinations, export lists, NAIC IID listing, and non-admitted insurer financial standards

25%

Taxation & Compliance

Arkansas 4.0% surplus lines premium tax, NRRA home-state taxation, recordkeeping, fiduciary duties, reporting requirements, and penalties

How to Pass the Arkansas Surplus Lines Exam

What You Need to Know

  • Passing score: 70%
  • Exam length: 50 questions
  • Time limit: 2 hours (120 minutes)
  • Exam fee: $50

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

Arkansas Surplus Lines Study Tips from Top Performers

1Master the Arkansas surplus lines tax rate of 4.0% and practice calculating tax amounts on various premium levels
2Know the unique Arkansas requirements: 3 years P&C experience, $50,000 surety bond, and $1,035 application fee
3Study Lloyd's of London structure: syndicates, managing agents, coverholders, slips, and binding authority thoroughly
4Understand NRRA provisions including home-state taxation and regulation of surplus lines transactions
5Review Arkansas-specific surplus lines risks: poultry/agriculture, natural gas extraction, timber, and tornado/severe weather
6Learn the diligent search documentation requirements and when export list exemptions apply

Frequently Asked Questions

How many questions are on the Arkansas surplus lines broker exam?

The Arkansas surplus lines broker exam contains 50 questions with a 2-hour time limit. You must score at least 70% (35 correct) to pass.

What are the unique prerequisites for Arkansas surplus lines brokers?

Arkansas requires 3 years of active P&C license experience, a $50,000 surety bond, and a $1,035 application fee. These requirements are more stringent than most other states.

What is Arkansas's surplus lines premium tax rate?

Arkansas imposes a 4.0% surplus lines premium tax on gross premiums. The broker collects this from the insured and remits it to the Arkansas Insurance Department (AID).

Why does Arkansas require a $50,000 surety bond?

The $50,000 surety bond protects the state and consumers by guaranteeing the broker will comply with surplus lines laws, including proper tax remittance. If the broker violates regulations, the bond can be claimed against.

How much does the Arkansas surplus lines broker exam cost?

The exam fee is approximately $50 through PSI Services. However, the total licensing cost includes the $1,035 application fee and the $50,000 surety bond premium (typically 1-5% of the bond amount).

What topics should I focus on for the Arkansas surplus lines exam?

Focus on surplus lines market structure, AID regulations, the 3-year P&C requirement, surety bond obligations, diligent search procedures, the 4.0% premium tax, non-admitted insurer eligibility, NRRA provisions, and Arkansas agricultural/severe weather risks.