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Arkansas State Laws Quiz WITH 100- SURE ANSWERS
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Arkansas State Laws Quiz WITH 100- SURE ANSWERS
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AMEUNICE
Arkansas State Laws Quiz WITH QUESTIONS AND 100%
COMPLETE ANSWERS
Terms in this set (52)
Which of the following statements C
describing the fiduciary and contractual All funds received by licensee must be held in a trust, and any personal use is
relationships between producers, clients, considered theft
and insurers is correct?
A The fiduciary duty of the producer specifically refers to the funds that they handle for
A licensee appointed as an agent by one their clients and insurers, which are held in a trust and may not be diverted for their
insurer is considered an agent by all own use. Agents may act as brokers when dealing with firms with which they have no
insurers appointment. The reverse is equally true for brokers.
B
All funds received by a licensee must be
held in a trust, but the licensee may use the
funds to help out an insolvent insurer
C
All funds received by licensee must be
held in a trust, and any personal use is
considered theft
D
A licensed agent may not act as a broker
and a licensed broker may not act as an
agent
1/17
,Which of the following statements A
accurately describe the penalties that may The Commissioner may revoke the license of an individual who knowingly accepts
be imposed by the Commissioner? business from an unlicensed produce
A
The Commissioner may revoke the license If an individual knowingly accepts business from an unlicensed producer, the
of an individual who knowingly accepts Commissioner may revoke the license. The Commissioner may not revoke a license if
business from an unlicensed producer an individual unknowingly accepts business from an unlicensed producer. The
B Commissioner may suspend a license for up to 36 months, impose a fine of up to
The Commissioner may order restitution for $1,000 for each violation of the Insurance Code, and order restitution for actual
projected losses to affected persons losses to affected persons.
C
The Commissioner may impose a fine of up
to $2,500 for violating any provision of the
Insurance Code
D
The Commissioner can suspend an
insurance license for up to 24 months
In Arkansas, a licensed insurance adjuster: A
Investigates and negotiates the settlement of claims on behalf of the insurer.
A
Investigates and negotiates the settlement
of claims on behalf of the insurer.
B
Must obtain an insurance agent license
C
Solicits, negotiates, effects, or binds
insurance contracts
D
Advises consumers about their insurance
needs for a fee
Which of the following statements C
regarding insurance licensing exam is not There is a four-week waiting period each time a candidate fails a licensing exam
correct?
A
Nonresident agents are not required to
pass an exam in Arkansas
B
Personal lines producers must pass a
licensing exam
C
There is a four-week waiting period each
time a candidate fails a licensing exam
D
An applicant must be tested on each
insurance class they wish to transact in
2/17
, In regard to hearings and the examination C
of insurer records, the Commissioner: May subpoena witnesses, administer oaths, and require the disclosure of books and
A records
May only examine domestic insurers in the
state of Arkansas, not foreign or alien The Commissioner may examine the records of any insurer, as often as needed, and
insurers may grant a rehearing of the matters involved in the hearing. The notice for a
B rehearing must be given out 10 days in advance.
May not examine insurer records more
often than once every 5 years
C
May subpoena witnesses, administer oaths,
and require the disclosure of books and
records
D
May grant a rehearing, and send the notice
30 days in advance
In Arkansas, charging different rates to B
insureds of the same actuarial class or Unfair discrimination
hazard category is considered which of the
following unfair trade practices?
A
Rebating
B
Unfair discrimination
C
Twisting
D
False advertising
All of the following are prohibited B
marketing practices in Arkansas, except: Replacement
A
Cold lead advertising Replacement is legal when it is in the best interest of the consumer; otherwise, it
B becomes twisting, which is illegal. Cold lead advertising is a prohibited marketing
Replacement practice, and it is using any marketing method that fails to disclose that insurance is
C being solicited.
High-pressure tactics
D
Misrepresentation
In Arkansas, a life insurer must maintain C
records for all replacement policies for 2 years
how many years?
A copy of the memorandum must be furnished to the existing insurer, and to the
A company represented by the agent, which must retain the copy for 5 years.
5 years
B
10 years
C
2 years
D
1 year
3/17
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