Arkansas Property & Casualty Insurance License Practice Exam
150 scored questions (125 general + 25 Arkansas) over 3.5 hours, 70% to pass. A pre-licensing certificate and AID approval to test are required before you can schedule.
Arkansas Property & Casualty — Study by Topic
Drill Arkansas insurance law or practice general property and casualty concepts. The PSI exam has 150 scored questions (125 general + 25 Arkansas) and a 70% passing score.
Property Insurance
Homeowners (HO-2/3/4/5/6/8), dwelling, commercial property, businessowners, flood, inland marine, actual cash value vs. replacement cost, and coinsurance.
Casualty & Liability
Auto (personal auto policy, 25/50/25 minimum limits, underinsured motorist coverage rejectable in writing), CGL, workers' compensation, umbrella, surety, commercial auto, and comparative fault.
Arkansas State Law
Insurance Commissioner, licensing and continuing education, 25/50/25 auto limits, UM/UIM, Rural Risk Underwriting, Farmowners, Arkansas Automobile Insurance Plan, and the Property and Casualty Guaranty Association.
P&C Concepts
Subrogation, indemnity, coinsurance, pro rata and short-rate cancellation, insurable interest at loss, waiver and estoppel, rural risk underwriting, and farmowners.
🌟 Full AR P&C Exam
85-question timed practice exam modeled on the Arkansas PSI Property/Casualty exam. The real exam has 150 scored questions and a 3.5-hour limit, with 70% to pass.
About the Arkansas Property & Casualty Insurance Exam
The Arkansas Property/Casualty producer exam is administered by PSI Services LLC for the Arkansas Insurance Department (AID). It covers property, casualty and commercial lines in a single exam; a separate Personal Lines exam (property and casualty without commercial lines) is also offered. You need 20 hours of AID-approved pre-licensing education for each line, a resident application through NIPR ($20 application fee), and a criminal background check before AID approves you to schedule.
The Property/Casualty exam has 150 scored questions in two separately timed parts: 125 property and casualty general knowledge questions (160 minutes) and 25 Arkansas multi-line questions (50 minutes), for 210 minutes (3.5 hours) in all, plus 10 unscored pretest questions. The exam fee is $50, and PSI's outline lists 70% as the minimum passing score. The P&C exam cannot be combined with another exam.
Arkansas Property & Casualty Insurance Exam Topic Breakdown
| Section | Questions / Weight | Key Topics |
|---|---|---|
| Federal Laws, Insurance Concepts & Contract Law | Part of 125 general | Fair Credit Reporting Act, federal fraud provisions, National Flood Insurance Program education, risk and insurable risk, insurer classifications, elements of a contract, producer authority, agency, indemnity, insurable interest |
| Damages, Liability, Negligence & Torts | Part of 125 general | Compensatory and punitive damages, absolute, strict and vicarious liability, elements of negligence and defenses, accident versus occurrence |
| Underwriting, Rating & Loss Valuation | Part of 125 general | Underwriting process, rate development, moral, morale and physical hazards, named and open perils, actual cash value, replacement cost, agreed and valued policy |
| Policy Structure & Conditions | Part of 125 general | Declarations, insuring agreements, exclusions, endorsements, cancellation and nonrenewal, deductibles, other insurance, limits, coinsurance, subrogation, mortgage and loss payable clauses |
| Dwelling & Homeowners Policies | Part of 125 general | Dwelling forms and Coverages A–E, HO-2, HO-3, HO-4, HO-5, HO-6 and HO-8, Section I and II, endorsements |
| Personal & Commercial Auto | Part of 125 general | Personal auto coverages (liability, medical payments, uninsured and underinsured motorists, physical damage), commercial auto covered autos, hired and non-owned autos |
| Commercial Property, Marine & Farm | Part of 125 general | Commercial property and package policies, business income, equipment breakdown, inland and ocean marine, farm coverage, businessowners policy |
| Liability, Workers' Compensation & Other Lines | Part of 125 general | Commercial general liability, occurrence versus claims-made, specialty liability, surety, umbrella and excess, mobile home, earthquake, flood, workers' compensation |
| AR — Statutes Common to Life, Health, Property & Casualty | Part of 25 state | Insurance Commissioner powers, licensing and continuing education, appointments, producer duties and fraud reporting, Property and Casualty Insurance Guaranty Association, unfair claims and marketing practices |
| AR — Multi-Line P&C | Part of 25 state | Surplus lines, valued policy law, comparative fault, rural risk underwriting, homeowners and farmowners provisions, automobile coverage, liability limits and financial responsibility, UM/UIM, Arkansas Automobile Insurance Plan, workers' compensation, earthquake and deductibles, notice and declination |
PSI's Arkansas outline publishes totals per part (125 general and 25 state scored questions, with 8 and 2 unscored pretest questions) but not a count for each topic, so the rows above are grouped by outline topic.
What Makes the Arkansas Property & Casualty Exam Different
One exam covers property, casualty and commercial lines. The PSI bulletin lists Property/Casualty (including commercial lines) and Personal Lines (no commercial lines) as separate exams, each allowing 3.5 hours. Neither can be combined with another exam.
Property, casualty and personal lines are separate pre-licensing lines. Rule 31 requires a minimum of 20 hours for each line and uses a separate certificate for Casualty, Property and Personal Lines. The Casualty course includes 5 hours of automobile insurance, including the assigned risk plans (AIPSO and CAIP), and 3 hours of workers' compensation. The Property course includes 4 hours of fire and allied lines plus the ARRUA and AEA assigned risk plans (Ark. Admin. Code 054.00.06-001).
Arkansas auto limits. An owner's liability policy must provide at least $25,000 for injury or death of one person, $50,000 for two or more people in one accident, and $25,000 for property damage (Ark. Code Ann. § 27-19-713). PSI's state outline also tests required auto coverage, financial responsibility, uninsured and underinsured motorist coverage, and the Arkansas Automobile Insurance Plan.
Underinsured motorist coverage is offered and may be rejected in writing. Under Ark. Code Ann. § 23-89-209(a), the insured has the opportunity to purchase underinsured motorist coverage, which he or she may reject in writing, and after a rejection the insurer need not re-offer it on later renewals or replacement policies.
Rural and farm exposures are on the state outline. PSI lists rural risk underwriting, homeowners and farmowners provisions (including cancellation, renewal and nonrenewal), earthquake and deductibles, and notice and declination among the Arkansas multi-line topics, and farm coverage (Coverages A through J) on the general part.
Approval to test and retakes. You complete the course, submit the NIPR application, complete the Arkansas criminal background check, and schedule after PSI emails your confirmation. You must pass within 90 days of your approval date with a maximum of 3 attempts; otherwise you wait four weeks and restart. Continuing education is 24 hours every two years, including 3 hours of ethics (Rule 50, § 4(A)(1)).
Sample Arkansas Property & Casualty Insurance Exam Questions
1. What minimum bodily injury and property damage liability limits must an Arkansas owner's motor vehicle liability policy provide?
2. An Arkansas applicant for auto insurance declines underinsured motorist coverage in a signed writing. At the first renewal, what must the insurer do under Arkansas law?
3. Under Arkansas pre-licensing Rule 31, how many hours of automobile insurance, including the assigned risk plans, are included in the 20-hour Casualty line course?
Study Tips for the Arkansas Property & Casualty Exam
The general part is 125 of the 150 scored questions, and it is long: 160 minutes. Most of your points come from policy structure, homeowners and dwelling forms, personal and commercial auto, commercial property and CGL, so build speed on those before the Arkansas questions.
The 25 Arkansas questions are timed separately (50 minutes) and favor the topics PSI names: auto required coverage and limits, UM/UIM, the Arkansas Automobile Insurance Plan, rural risk underwriting, homeowners and farmowners provisions, workers' compensation, and earthquake deductibles. PSI's outline lists 70% as the minimum for each timed part but does not say whether the parts are scored separately, so aim for 70% on both.
Prefer life and health? Try our Arkansas Life & Health practice exam. National content is in our property and casualty practice exam, and our insurance license exam study guide covers strategy.
How to Get Your Arkansas Property & Casualty Insurance License
There are four steps to get your Arkansas insurance producer license for the Property and Casualty lines.
Steps to Get Your Arkansas Property & Casualty Insurance License
| Step | What to Do |
|---|---|
| 1. Pre-License Education | Complete 20 hours for each line you want (Property, Casualty, or Personal Lines) with an AID-approved provider. Present the certificate for every exam attempt; it must be dated no more than two years before the exam. |
| 2. Apply & Background Check | Submit the resident application on NIPR ($20 application fee) and complete the criminal background check through the Arkansas portal. The Arkansas Insurance Department reviews your application for completeness and errors. |
| 3. Licensing Exam | Once AID approves you, PSI emails a confirmation and you can schedule the Property/Casualty exam (or Personal Lines). The fee is $50, paid to PSI. Pass within 90 days of your approval date, with a maximum of 3 attempts. |
| 4. Print Your License & Maintain It | Print your license on NIPR 24 hours after passing. To keep it active, complete 24 hours of continuing education, including 3 hours of ethics, every two years. |
Arkansas Property & Casualty Insurance License Requirements at a Glance
| Requirement | Detail |
|---|---|
| Exams | Property/Casualty (including commercial lines) or Personal Lines, each a separate exam |
| Pre-license education | 20 hours per line, with a certificate valid for two years |
| Application | Resident application through NIPR, $20 application fee |
| Background check | Criminal background check through the Arkansas portal; AID also reviews Arkansas State Police records |
| Exam | 150 scored questions (125 general + 25 Arkansas), plus 10 unscored pretest questions |
| Time limit | 210 minutes (160 general + 50 Arkansas) |
| Passing score | 70% |
| Exam fee | $50, paid to PSI (nonrefundable) |
| Auto minimum limits | $25,000 / $50,000 bodily injury and $25,000 property damage |
| Retakes | Pass within 90 days of approval, maximum 3 attempts, then wait four weeks and restart |
| Continuing education | 24 hours every two years, including 3 hours of ethics |
| Exam provider | PSI Services LLC |
| Licensing authority | Arkansas Insurance Department |
Verified against the PSI Arkansas Licensure Candidate Information Bulletin and Property and Casualty content outline, Arkansas Insurance Department licensing pages, Insurance Commissioner Rules 31 and 50, and the Arkansas Code. Confirm current fees with AID and PSI before you apply.
Our free Arkansas Property & Casualty practice exam covers general and Arkansas content. You can also try the national property and casualty practice exam or the insurance license exam study guide.
Interested in where this license leads? See our guide to insurance careers — including salary ranges, how to break in, and what the career looks like day to day.
Frequently Asked Questions — Arkansas Property & Casualty Insurance Exam
How many questions are on the Arkansas Property and Casualty exam?
The Property/Casualty exam has 150 scored questions: 125 general knowledge and 25 Arkansas-specific, plus 10 unscored pretest questions. The PSI bulletin lists a separate Personal Lines exam for non-commercial lines.
What is the passing score for the Arkansas P&C exam?
PSI's candidate bulletin states that you must get 70% correct to pass, and the content outline lists 70% as the minimum for each part.
How long is the Arkansas Property and Casualty exam?
The exam allows 3.5 hours (210 minutes): 160 minutes for the general part and 50 minutes for the Arkansas-specific part.
Does Arkansas require pre-licensing education for Property and Casualty?
Yes. Rule 31 requires a minimum of 20 hours for each line, with separate certificates for Casualty, Property and Personal Lines. The certificate must be presented for every exam attempt and be dated no more than two years before the exam.
How much does the Arkansas insurance exam cost?
The exam fee is $50, paid to PSI by credit card at registration and nonrefundable. The NIPR resident application fee is a separate $20.
What are Arkansas's minimum auto liability limits?
An owner's liability policy must provide at least $25,000 for injury or death of one person, $50,000 for two or more people in one accident, and $25,000 for property damage (Ark. Code Ann. § 27-19-713).
How many times can I retake the Arkansas insurance exam?
You must pass within 90 days of your original approval date, with a maximum of 3 attempts in that period. After that, wait four weeks and restart the approval process. Same-day retests are not allowed.
How many continuing education hours does Arkansas require?
Producers licensed for property, casualty or personal lines need 24 hours every two years, including 3 hours of ethics, completed on or before their birthdate (Rule 50, § 4(A)(1)).