Arkansas Surplus Lines study guide
Arkansas Surplus Lines · Work through your exam, one topic at a time.
The Arkansas Surplus Lines credential is a state producer/broker licensing category administered through the Arkansas Insurance Department (AID), the division of the Arkansas Department of Commerce whose stated primary mission is consumer protection. Surplus lines authority is for insurance professionals who place coverage with eligible non-admitted insurers when admitted carriers cannot or will not write the risk. AID organizes this subject area under its industry-regulation structure, with the Accounting Division handling the Surplus Lines Brokers Filing and the Solvency & Regulation Division handling insurer-side matters such as Surplus Lines Insurers and accredited/trusteed reinsurer information. Licensing of resident and nonresident producers, adjusters, title agents, and business entities that solicit, sell, or negotiate insurance in Arkansas sits with the Licensing Division. The Arkansas Surplus Lines study guide has 4 sections and about 1,331 words.
01Surplus Lines Broker Licensing and Filing in Arkansas
Surplus lines business in Arkansas may be placed only by a licensed surplus lines broker. The candidate must understand the licensing pathway: the producer must hold (or obtain) a property and casualty authority and then secure the surplus lines broker license, which authorizes the holder to place coverage with eligible nonadmitted insurers.
352 words, about 2 min02Surplus Lines Insurer Eligibility and Regulation
Surplus lines insurers are nonadmitted: they are not licensed in Arkansas. However, they must be "eligible" surplus lines insurers, meaning they meet standards that allow Arkansas brokers to place business with them.
349 words, about 2 min03Placement of Surplus Lines Coverage
The placement process begins with the admitted market. The broker must search authorized insurers that write the class of business before turning to the surplus lines market.
323 words, about 2 min04Arkansas Insurance Law and Producer Regulation
Arkansas regulates producers through licensing, continuing education, and conduct standards. Candidates should understand that a producer must be licensed for the lines of authority being sold, must comply with CE requirements, and must avoid prohibited conduct such as misrepresentation, rebating, and commingling of premium funds.
307 words, about 2 min