Arkansas State Laws Exam With 100% Correct Answers 2024/Arkansas State Laws Quiz.
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Arkansas State Laws
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Arkansas State Laws
Arkansas State Laws Exam With 100% Correct Answers 2024/Arkansas State Laws Quiz.
Which of the following statements describing the fiduciary and contractual relationships between producers, clients, and insurers is correct?
A
A licensee appointed as an agent by one insurer is considered an age...
Arkansas State Laws Exam With 100% Correct
Answers 2024/Arkansas State Laws Quiz.
Which of the following statements describing the fiduciary and contractual relationships between
producers, clients, and insurers is correct?
A
A licensee appointed as an agent by one insurer is considered an agent by all insurers
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
C
All funds received by licensee must be held in a trust, and any personal use is considered theft
The fiduciary duty of the producer specifically refers to the funds that they handle for their clients and
insurers, which are held in a trust and may not be diverted for their own use. Agents may act as brokers
when dealing with firms with which they have no appointment. The reverse is equally true for brokers.
Which of the following statements accurately describe the penalties that may be imposed by the
Commissioner?
A
The Commissioner may revoke the license of an individual who knowingly accepts business from an
unlicensed producer
B
The Commissioner may order restitution for projected 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
A
The Commissioner may revoke the license of an individual who knowingly accepts business from an
unlicensed produce
If an individual knowingly accepts business from an unlicensed producer, the Commissioner may revoke
the license. The Commissioner may not revoke a license if an individual unknowingly accepts business
from an unlicensed producer. The Commissioner may suspend a license for up to 36 months, impose a
fine of up to $1,000 for each violation of the Insurance Code, and order restitution for actual losses to
affected persons.
,In Arkansas, a licensed insurance adjuster:
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
A
Investigates and negotiates the settlement of claims on behalf of the insurer.
Which of the following statements regarding insurance licensing exam is not 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
C
There is a four-week waiting period each time a candidate fails a licensing exam
In regard to hearings and the examination of insurer records, the Commissioner:
A
May only examine domestic insurers in the state of Arkansas, not foreign or alien insurers
B
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
C
May subpoena witnesses, administer oaths, and require the disclosure of books and records
The Commissioner may examine the records of any insurer, as often as needed, and may grant a
rehearing of the matters involved in the hearing. The notice for a rehearing must be given out 10 days in
advance.
In Arkansas, charging different rates to insureds of the same actuarial class or hazard category is
considered which of the following unfair trade practices?
, A
Rebating
B
Unfair discrimination
C
Twisting
D
False advertising
B
Unfair discrimination
All of the following are prohibited marketing practices in Arkansas, except:
A
Cold lead advertising
B
Replacement
C
High-pressure tactics
D
Misrepresentation
B
Replacement
Replacement is legal when it is in the best interest of the consumer; otherwise, it becomes twisting,
which is illegal. Cold lead advertising is a prohibited marketing practice, and it is using any marketing
method that fails to disclose that insurance is being solicited.
In Arkansas, a life insurer must maintain records for all replacement policies for how many years?
A
5 years
B
10 years
C
2 years
D
1 year
C
2 years
A copy of the memorandum must be furnished to the existing insurer, and to the company represented
by the agent, which must retain the copy for 5 years.
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