Getting an insurance license in Arkansas can be a daunting process, especially if you are new to the industry. However, with the right preparation and guidance, it can be a rewarding and fruitful career. In this article, we will provide you with all the essential information you need to know about obtaining an insurance license in Arkansas.
What is an Arkansas Insurance License?
Before we dive into the details, let’s first understand what an Arkansas insurance license is. An insurance license is a permit granted by the Arkansas Insurance Department to individuals who meet the qualifications and requirements to sell, solicit or negotiate insurance in the state. It is mandatory for anyone who wishes to work as an insurance agent, broker, adjuster or consultant in Arkansas to obtain a license.
Who Needs an Arkansas Insurance License?
Anyone who wishes to work as an insurance agent, broker, adjuster, or consultant in Arkansas needs to obtain an Arkansas insurance license. This includes individuals who sell or solicit insurance policies, negotiate insurance contracts, or provide advice to clients on insurance matters.
It is essential to note that the license is not transferable between states. If you wish to sell insurance in multiple states, you will need to obtain a license in each state individually.
What Types of Insurance Licenses are There in Arkansas?
There are mainly three types of insurance licenses in Arkansas:
Type of License
This license is issued to individuals who reside in Arkansas and want to sell insurance in the state.
This license is issued to individuals who reside outside of Arkansas but want to sell insurance in the state.
Surplus Lines License
This license is issued to individuals who want to sell insurance policies that are not available through licensed insurers in Arkansas.
How to Get an Arkansas Insurance License?
The process of getting an Arkansas insurance license involves several steps, including:
Step 1: Meet the Basic Requirements
Before you start the licensing process, you must meet the following basic requirements:
- Be at least 18 years old.
- Be a resident of Arkansas or have a physical location in the state.
- Not have committed any disqualifying crimes.
- Pass a pre-licensing education course for the line of authority you wish to obtain.
Step 2: Choose Your Line of Authority
Once you have met the basic requirements, you will need to choose your line of authority. Line of authority refers to the type of insurance you wish to sell, such as life, health, property, casualty, or personal lines insurance.
You can choose to apply for one or multiple lines of authority depending on your interests and strengths. However, you will need to complete a separate pre-licensing education course and pass the exam for each line of authority you wish to add to your license.
Step 3: Complete Pre-Licensing Education
Before you can take the licensing exam, you must complete a pre-licensing education course for the line of authority you wish to obtain. The course is designed to provide you with the knowledge and skills necessary to pass the licensing exam and work as an insurance agent.
Arkansas requires a minimum of 20 hours of pre-licensing education for each line of authority. The course can be taken online or in a classroom setting. Once you have completed the course, you will receive a Certificate of Completion, which you will need to present when applying for the exam.
Step 4: Pass the Licensing Exam
After completing the pre-licensing education course, you can now apply for the licensing exam. The exam is administered by Pearson Vue and consists of 100 multiple-choice questions, which you will need to complete within two hours.
You must obtain a score of at least 70% to pass the exam. If you fail the exam, you can retake it after waiting for 24 hours. You are allowed three attempts to pass the exam within 90 days of your application.
Step 5: Apply for Your License
Once you have passed the exam, you can now apply for your license. You can apply online through the National Insurance Producer Registry (NIPR) or through the Arkansas Insurance Department (AID).
You will need to pay a licensing fee, submit your Certificate of Completion, and provide any additional documents requested by the AID. The processing time for the license varies depending on the completeness of your application and the background check requirements.
How much does it cost to get an Arkansas insurance license?
The cost of getting an Arkansas insurance license varies depending on the type of license and line of authority you wish to obtain. The licensing fee for a resident producer license is $50 per line of authority, while the non-resident license fee is $100 per line of authority. The surplus lines license fee is $500. You may also need to pay for the pre-licensing education course, exam fee, and fingerprinting fee.
How long does it take to get an Arkansas insurance license?
The time it takes to get an Arkansas insurance license depends on several factors, such as the completeness of your application, background check requirements, and processing time of the AID. Typically, it takes around 4-6 weeks to receive your license after submitting your application.
Do I need to renew my Arkansas insurance license?
Yes, you need to renew your Arkansas insurance license every two years. The renewal process involves completing a certain number of continuing education credits, paying a renewal fee, and submitting your renewal application before the expiration date. Failure to renew your license can result in penalties, fines or even suspension of your license.
Can I apply for my Arkansas insurance license online?
Yes, you can apply for your Arkansas insurance license online through the NIPR or AID. The online application process is fast, convenient, and secure. You can also check the status of your application and track the progress of your license online.
What happens if I fail the licensing exam?
If you fail the licensing exam, you can retake it after waiting for 24 hours. You are allowed three attempts to pass the exam within 90 days of your application. If you fail to pass the exam within the allotted attempts, you will need to retake the pre-licensing education course and reapply for the exam.
Obtaining an Arkansas insurance license can be an excellent opportunity to start a career in the insurance industry or expand your business. However, it requires dedication, hard work, and proper preparation to succeed. By following the steps outlined in this article and keeping yourself informed of the latest rules and regulations, you can obtain your license and work towards a successful career as an insurance agent in Arkansas.