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. Schedule and pass the PSI exam.
4. Submit fingerprints for an FBI/state criminal background check.
5. Apply for the license through NIPR (nipr.com) or Sircon and pay the license fee.

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 general property (50 scored), general casualty (50 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.

Correction worth memorizing: the combined Arkansas exam scores 125 questions (100 general + 25 state), not a single 150-question block. Pretest items are mixed in unmarked, and the published total seat time is about 3.5 hours (80 + 80 + 50 minutes). Older study sheets that quote "150 scored / 2.5 hours" or "160 questions" are wrong.

After You Pass

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 restart the approval process. The license becomes active once AID processes the application and the background check clears.

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, Fingerprints, and Character

Every applicant submits fingerprints for a state and FBI criminal history check. 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, passes the PSI exam at 78%, and submits fingerprints with full disclosure of a 5-year-old shoplifting misdemeanor. 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. She may apply via NIPR and pay the license fee. 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.