1.2 Arkansas P&C Producer Licensing Requirements

Step-by-Step Path to an Arkansas P&C License

1. Meet eligibility — be at least 18 years old and a resident (or qualify as a nonresident through reciprocity).
2. Complete pre-licensing education.
3. Apply for the license through NIPR (nipr.com) and pay the $20 NIPR application fee.
4. Complete the online criminal background check for AID.
5. Wait for approval to test — AID reviews the application, and PSI emails you when you may schedule.
6. Schedule and pass the PSI exam, then print the license from NIPR 24 hours after passing.

This order comes from the current PSI Arkansas bulletin (June 18, 2025): in Arkansas the application comes before the exam.

Pre-License Education

Arkansas treats Property and Casualty as two coverage areas inside the combined P&C credential. AID-approved education totals 40 hours:

Coursework must come from an AID-approved provider and a completion certificate is required before PSI will release an Approval-to-Test.

The Examination (PSI)

The exam is delivered by PSI Services at Arkansas test centers and online with remote proctoring. Reserve a seat at psi.com or by phone.

The content splits into a general property and casualty section (125 scored) and a multi-line Arkansas state-law section (25 scored). You must reach 70% on each portion — a strong general score cannot rescue a failed state-law section. PSI reports a numeric score with a section-by-section diagnostic on a fail.

Worth memorizing: PSI's outline gives the combined Arkansas exam 150 scored questions (125 general + 25 state) plus 10 unmarked pretest items, in 210 minutes (160 + 50).

The 90-Day Permit Period

You must pass within the 90-day permit period that begins when AID issues your original approval to test. Within that window you may take the exam a maximum of three (3) times; each attempt requires a new $50 fee and a new reservation. If you do not pass within three attempts or before the 90 days expire, you must wait four weeks and restart the approval process. Because AID approved the application and background check before the exam, you can print the license from NIPR 24 hours after you pass.

Renewal & Continuing Education

Exam tip: Renewal and CE deadlines key off the producer's birthday in Arkansas, not the original license date — a frequent distractor on state-law questions.

Lines of Authority and What a P&C License Lets You Sell

A line of authority defines what a producer may sell and solicit. The combined Property and Casualty credential authorizes the major personal and commercial lines:

• Property — homeowners, dwelling fire, commercial property, inland marine.
• Casualty — auto liability, general liability, workers' compensation, umbrella, professional liability.

It does not authorize Life, Accident & Health, Title, or surplus-lines brokering — those require separate qualification. A producer who sells outside the lines on the license commits an unauthorized-line violation, even if otherwise competent.

Resident vs. Nonresident and Reciprocity

Arkansas issues both resident and nonresident licenses. A producer already licensed and in good standing in a home state may obtain an Arkansas nonresident license through reciprocity without retaking pre-licensing or the exam — Arkansas generally waives those when the home-state license is equivalent. If a resident producer moves their home state to Arkansas, they typically have a limited window (commonly 90 days) to convert to a resident license. Memorize the logic: pre-licensing and the PSI exam are resident-track requirements; reciprocity is the nonresident shortcut.

Background Check and Character

Every resident applicant completes the online criminal background check for AID before approval to test; Arkansas does not take producer fingerprints (NAIC's fingerprint chart lists Arkansas fingerprinting only for bail bondsmen). A prior conviction is not an automatic bar, but failing to disclose it on the application is itself grounds for denial. Under the federal Violent Crime Control Act (18 U.S.C. 1033/1034), a person convicted of a crime involving breach of trust or dishonesty (e.g., fraud, embezzlement) may not work in insurance without written 1033 consent from the Commissioner. Expect at least one question linking a felony-of-dishonesty fact pattern to the need for 1033 written consent.

Worked Example: Is the Candidate Ready to Apply?

A 19-year-old completes 40 hours of AID-approved pre-licensing, applies via NIPR with full disclosure of a 5-year-old shoplifting misdemeanor, completes the online background check, and after AID's approval passes the PSI exam at 78%. Result: she meets the age (18+), education (40 hrs), and exam (≥70%) requirements; the misdemeanor was disclosed, so it is reviewed on its merits rather than treated as fraud. Had she hidden the misdemeanor, the application could be denied for material misrepresentation regardless of the underlying offense.

Trap: The dangerous answer choice is usually 'the conviction automatically bars licensure.' Disclosure plus Commissioner review — not automatic denial — is the rule for most offenses.