Arkansas Life & Health Exam Overview

About the Arkansas Life & Health Exam

The Arkansas Life & Health insurance examination is administered by PSI Services LLC under contract with the Arkansas Insurance Department (AID). "Life" and "Health" are two separate lines of authority: you may sit for one or both. Each exam blends national insurance fundamentals with Arkansas statute and rule. The graded content covers:

• Arkansas Insurance Code (Title 23) and AID rules
• Life insurance principles, policies, provisions, and riders
• Health insurance: major medical, disability income, Medicare supplement, and long-term care (LTC)
• Annuities and retirement income products
• Ethics, producer duties, and unfair trade practices

Exam structure by line

Pretest questions are scattered, unmarked, and do not count toward your score, so answer every item. A combined L&H candidate sits for both exams (Life and Health), paying $50 each. Worked example: to pass the Life general section you must answer at least 42 of 60 scored items correctly (60 x 0.70 = 42), and at least 35 of 50 on the state section. Missing the threshold on either section fails that exam, even if your blended average exceeds 70%.

Trap: You must pass each section independently. A 90% on general cannot rescue a 60% on Arkansas state law. Treat the state-law section as its own exam.

Pre-licensing education and the path to test

Arkansas requires approved pre-licensing education before you sit for the exam. Under AID Rule 31, each line requires a 20-hour course of instruction.

The state-prescribed Life curriculum allocates hours roughly as: 1 hour introduction to insurance, 5 hours state insurance laws and rules, 5 hours life insurance basics, 5 hours life policies and provisions, 3 hours annuity contracts, and 1 hour ethics. Courses must be AID-approved, end with a passing course final exam, and the certificate of completion is valid for two years.

Step-by-step licensing path

1. Complete pre-licensing education with an AID-approved provider; keep the certificate.
2. Schedule and pass the PSI exam at psi.com or 1-800-733-9267; pay $50 per exam and bring two valid IDs (one photo, one signature). You receive a pass/fail report at the test center.
3. Apply for the license through NIPR (nipr.com), pay licensing fees, and authorize a background review.
4. License issued by AID upon approval, valid for a two-year term.

Retake rules

Trap: Pre-licensing certificates expire after two years. If you delay testing past that window, you must retake the full course before you may sit again. Schedule the exam well inside the two-year validity period.

License maintenance and special training

Arkansas resident producers renew on a two-year (biennial) cycle, due on or before the licensee's birthday. Renewal requires meeting continuing-education (CE) obligations.

Certain product lines require one-time or recurring training beyond general CE:

• Annuity Best Interest training — a one-time course required before soliciting annuities (aligned with the NAIC Suitability in Annuity Transactions model adopted by Arkansas).
• Long-term care (LTC) — initial LTC training plus ongoing refresher hours each renewal before selling LTC partnership-qualified policies.
• Flood/NFIP — producers selling federal flood policies must meet the federal one-time minimum training requirement.

Why the Guaranty Association matters on the exam

The Arkansas Life & Health Insurance Guaranty Association is a statutory safety net: if a member insurer becomes insolvent, the Association pays covered claims up to statutory caps (commonly tested as $300,000 in life death benefits, $300,000 in life net cash surrender value, $300,000 in present-value annuity benefits, and up to $500,000 in major-medical health benefits per individual, subject to an overall $300,000 per-life aggregate that rises to $500,000 for basic/major-medical health coverage).

It is funded by assessments on member insurers, never by taxpayer money, and producers are prohibited from using the Association in advertising to sell policies.

Trap: The Guaranty Association protects policyholders, not the failed insurer, and advertising its protection to induce a sale is an unfair trade practice under Arkansas law. Expect at least one question pairing the dollar limits with the advertising prohibition.

How to study this Arkansas guide

This FREE guide concentrates on Arkansas-specific law and rule layered on top of national L&H fundamentals. Use it alongside a national study package — the state section is where many otherwise-prepared candidates lose points.

What the chapters cover

• Chapter 1 — Regulation & Licensing: AID authority, producer licensing, appointments, and CE.
• Chapter 2 — Life Insurance Regulations: Arkansas policy provisions, free-look and replacement rules, and the Guaranty Association.
• Chapter 3 — Health Insurance Regulations: group vs. individual rules, Medicare supplement, and marketplace coverage.
• Chapter 4 — Ethics & Consumer Protection: producer duties, prohibited practices, penalties, and complaint procedures.

Suggested 6-week plan

High-yield Arkansas anchors to memorize

• 70% pass mark on each section; $50 fee per exam; PSI is the vendor.
• 20 pre-licensing hours per line (40 combined); certificate valid 2 years.
• 24 CE hours / 2 years, 3 of them ethics; renew by your birthday.
• Guaranty Association limits and the advertising prohibition.

Useful contacts

Trap: Do not assume national numbers (e.g., another state's CE total) apply to Arkansas. When a question says "in Arkansas," the answer is governed by Title 23 and AID rules — match the exact Arkansas figure, not a generic one.