Arkansas Property & Casualty Exam Overview
Key Takeaways
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.
Welcome to OpenExamPrep'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.
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.
- Register and pay PSI — book online at psiexams.com, pay the $50 fee, choose a test center or online proctor.
- 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.
How many hours of pre-licensing education must an Arkansas candidate complete to sit for the COMBINED Property & Casualty exam?
20 hours total
No pre-licensing education is required
52 hours total
40 hours total (20 Property + 20 Casualty)
On the combined Arkansas P&C exam, how are the scored questions distributed?
125 scored general-knowledge questions plus a separate 25-question state-law section
100 general-knowledge questions plus a separate 25-question state-law section
160 scored questions with no separate state-law section
50 general questions and 50 state-law questions
What passing standard must an Arkansas P&C candidate meet?
70% on each section independently
70% on the combined total only
60% averaged across all sections
80% on the state-law section only
How long is an Arkansas pre-licensing certificate valid for use toward the state exam?
6 months
1 year
18 months
2 years
What are Arkansas's minimum compulsory auto liability limits, and how do they interact with uninsured motorist (UM) coverage?
15/30/5, and UM is mandatory and cannot be rejected
25/50/25, and UM is automatically waived
30/60/25, and UM is never offered
25/50/25, and UM must be offered but may be rejected in writing
Which organization administers the Arkansas P&C producer examination, and what is the exam fee?
PSI Services LLC, $50 per attempt
Prometric, $75 per attempt
Pearson VUE, $40 per attempt
The Arkansas Insurance Department directly, free of charge
Sections you finish are checked off in the contents.