Arkansas Laws Chapter 15 Exam
Questions With 100% Correct Answers
2024.
Once in force for 60 days, a homeowners policy may be canceled for all the following reasons, except:
The insurer's willingness to underwrite certain hazards changed
Which of the following statements regarding the financial responsibility requirements for operating a
motor vehicle in Arkansas is correct?
All policies written in Arkansas must include liability limits of $25,000/$50,000/$25,000
If an insurer decides not to renew a motor vehicle insurance policy, the insurer must provide a reason
for doing so. The reason for doing so may be given to the insured with a notice of nonrenewal, but in
no case may be given less than:
15 days prior to the expiration of the policy
The notice of nonrenewal, on the other hand, must be given 30 days prior to the expiration of coverage.
The 20-day time frame refers to policy cancellation midterm. The 10-day time frame applies when the
insurer cancels the policy for nonpayment of premium.
Which of the following statements reflects one of the timeline requirements for handling claims?
If an investigation cannot be completed within 45 days, the insurer must notify the claimant and explain
why
The Commissioner of insurance has all of the following duties and powers, except:
The insurance Commissioner may update the insurance code (law) as needed
Which of the following statements apply to maintaining an insurance license in the state of Arkansas?
The Commissioner may grant a licensee an extension of up to 12 months to complete continuing
education
Which of the following statements regarding the Arkansas Rural Risk Underwriting Association is
correct?
The Association sets rules for risks classification, rate modification and coverage limits
Making a false statement regarding the financial condition of a person with intent to deceive is
defined as:
False Financial Statements
Which of the following policy standards is false according to Arkansas law?
Questions With 100% Correct Answers
2024.
Once in force for 60 days, a homeowners policy may be canceled for all the following reasons, except:
The insurer's willingness to underwrite certain hazards changed
Which of the following statements regarding the financial responsibility requirements for operating a
motor vehicle in Arkansas is correct?
All policies written in Arkansas must include liability limits of $25,000/$50,000/$25,000
If an insurer decides not to renew a motor vehicle insurance policy, the insurer must provide a reason
for doing so. The reason for doing so may be given to the insured with a notice of nonrenewal, but in
no case may be given less than:
15 days prior to the expiration of the policy
The notice of nonrenewal, on the other hand, must be given 30 days prior to the expiration of coverage.
The 20-day time frame refers to policy cancellation midterm. The 10-day time frame applies when the
insurer cancels the policy for nonpayment of premium.
Which of the following statements reflects one of the timeline requirements for handling claims?
If an investigation cannot be completed within 45 days, the insurer must notify the claimant and explain
why
The Commissioner of insurance has all of the following duties and powers, except:
The insurance Commissioner may update the insurance code (law) as needed
Which of the following statements apply to maintaining an insurance license in the state of Arkansas?
The Commissioner may grant a licensee an extension of up to 12 months to complete continuing
education
Which of the following statements regarding the Arkansas Rural Risk Underwriting Association is
correct?
The Association sets rules for risks classification, rate modification and coverage limits
Making a false statement regarding the financial condition of a person with intent to deceive is
defined as:
False Financial Statements
Which of the following policy standards is false according to Arkansas law?
