Insurance Licensing Chapter 15: Arkansas State Law Exam 2024

Insurance Licensing Chapter 15: Arkansas State Law Exam 2024 The Commissioner of insurance has all of the following duties and powers, except: a. The insurance Commissioner may update the insurance code (law) as needed b. The Commissioner regulates premium rates c. The Commissioner may institute court proceedings to enforce the Insurance Code d. The Commissioner has the authority to make necessary rules and regulations - CORRECT ANSWER-a. The insurance Commissioner may update the insurance code (law) as needed After a hearing before the Commissioner, Oscar's insurance license was suspended because: a. He failed to respond to a written inquiry from the Commissioner within 30 days b. His state income tax return was audited c. He was subpoenaed to appear before the insurance commissioner of another state d. He was a accused of committing a misdemeanor - CORRECT ANSWER-a. He failed to respond to a written inquiry from the Commissioner within 30 days According to Arkansas law, a resident insurance agent in the state of Arkansas: a. Must maintain client records for at least 1 year b. Must be at least 20 years old c. Must have a place of business in Arkansas d. Must notify the Commissioner of a change of address within 30 days - CORRECT ANSWER-c. Must have a place of business in Arkansas The sale of surplus lines insurance is: a. Done through surplus lines brokers working with eligible nonadmitted insurers b. Another name for insurance sold through unauthorized insurers c. Allowed when insurance is cheaper through a non-admitted carrier d. Done through any agent with a property and casualty license - CORRECT ANSWERb. Another name for insurance sold through unauthorized insurers What is the maximum financial penalty the Commissioner may impose upon a licensee who knowingly engages in unfair trade practice violations within a 6-month period? a. $5,000 b. $10,000 c. $1,000 d. $50,000 - CORRECT ANSWER-d. $50,000