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 100 scored general-knowledge questions (50 Property + 50 Casualty) plus a 25-question Arkansas state-law section, each with added unscored pretest items.
- Timing is 80 minutes for each general-knowledge section and 50 minutes for the state-law section; the exam runs about 3.5 hours total and 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 | 100 (50 Property + 50 Casualty) |
| State-law scored items | 25 (multi-line P&C, Arkansas) |
| Pretest items | Additional unscored questions, unmarked |
| General-knowledge time | 80 minutes per section |
| State-law time | 50 minutes |
| Total seat time | About 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 |
Correction worth memorizing: Arkansas is NOT a single 160-question exam. The combined P&C exam is 100 scored general questions plus a separate 25-question state-law section, each graded independently. Older study sheets that quote "150 scored + 10 pretest" are wrong — score 70% on the state section AND each general section or you fail.
Single-Line vs. Combined Options
| Exam | General scored Qs | Time | What it grants |
|---|---|---|---|
| Property only | 50 + 25 state | 80 + 50 min | Property line of authority |
| Casualty only | 50 + 25 state | 80 + 50 min | Casualty line of authority |
| Combined P&C | 100 + 25 state | 80 + 80 + 50 min | Full Property & Casualty license |
Recommendation: Most candidates sit the combined P&C exam to earn both lines in one appointment and one $50 fee, rather than scheduling two separate single-line sittings.
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 |
|---|---|
| Fire & allied lines, assigned-risk plans | 4 |
| Homeowners & other multi-line products | 5 |
| Automobile insurance & assigned-risk plans (AIPSO/CAIP) | 5 |
| Workers' compensation & assigned-risk plan | 3 |
| Commercial crime & fidelity bonds | 1 |
| Arkansas law, ethics, and remaining topics | 2 |
| Casualty line (20 hrs) | Hours |
|---|---|
| Introduction to insurance | 1 |
| State insurance laws & rules | 5 |
| Ocean & inland marine | 1 |
| General liability | 2 |
| Automobile & assigned-risk plan | 5 |
| Workers' compensation & assigned-risk plan | 3 |
| Commercial crime, fidelity & surety bonds | 2 |
| 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 each general-knowledge section and 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) | $150–$400 |
| PSI exam fee | $50 per attempt |
| State background check | ~$22–$40 |
| NIPR/license application fee | ~$100 (set by AID/NIPR) |
| Estimated total | ~$320–$590 |
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 (combined) | 100 (50 + 50) |
| State-law scored Qs | 25 |
| General time / state time | 80 min each / 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 |
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How many hours of pre-licensing education must an Arkansas candidate complete to sit for the COMBINED Property & Casualty exam?
On the combined Arkansas P&C exam, how are the scored questions distributed?
What passing standard must an Arkansas P&C candidate meet?
How long is an Arkansas pre-licensing certificate valid for use toward the state exam?
What are Arkansas's minimum compulsory auto liability limits, and how do they interact with uninsured motorist (UM) coverage?
Which organization administers the Arkansas P&C producer examination, and what is the exam fee?