AR Property & Casualty study guide
AR Property & Casualty · Work through your exam, one topic at a time.
The Arkansas Property & Casualty Insurance Producer license is the credential the Arkansas Insurance Department (AID) issues to individuals authorized to sell, solicit, and negotiate property and casualty insurance products in the state. It suits new agents entering personal or commercial lines, agency staff who need to transact business, and producers licensed in other states who are adding Arkansas to their resident or nonresident licenses. The AR Property & Casualty study guide has 4 sections and about 1,352 words.
01Arkansas Insurance Statutes, Rules, and Regulations
The Arkansas Insurance Department (AID), headed by the Insurance Commissioner -- appointed by the Governor, not elected -- administers Title 23 of the Arkansas Code. Know the Commissioner's toolkit: examining insurers and producers, issuing and revoking licenses, holding hearings, adopting rules, levying fines and penalties, issuing cease-and-desist orders, and placing an impaired insurer into rehabilitation or liquidation.
348 words, about 2 min02General Insurance Concepts
Insurance transfers pure risk (loss or no loss); speculative risk (chance of gain) is not insurable. A peril is the cause of loss (fire, windstorm); a hazard is a condition that increases the chance or severity of loss -- icy steps are a physical hazard, arson for profit is a moral hazard, and leaving keys in an unlocked car is a morale hazard (carelessness).
318 words, about 2 min03Property Insurance Basics and Policy Types
A homeowners policy is built from Coverage A (dwelling), B (other structures), C (personal property), D (loss of use), E (personal liability) and F (medical payments to others). Learn the forms by their perils: HO-2 broad named perils on dwelling and contents; HO-3 open-peril (special) on the dwelling but named perils on contents; HO-5 open peril on both; HO-4 renters (contents plus liability); HO-6 condo; HO-8 modified form for older homes using functional replacement cost.
329 words, about 2 min04Casualty Insurance Basics and Policy Types
Casualty coverage responds to the insured's legal liability. Review duty, breach, causation and damages; compensatory (special and general) versus punitive damages; absolute and vicarious liability.
357 words, about 2 min