10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The AR-PC exam has 150 questions and runs 3 hours 30 minutes.
These 10 free AR-PC questions are organized by exam domain, so you can see how each part of the Arkansas Property & Casualty Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
An agency agreement expressly withholds binding authority. Without changing the agreement, the insurer emails prospective customers that the producer can put coverage in force immediately. An applicant reasonably relies on that message when accepting the producer's binder, before the insurer learns of the specific transaction. Which doctrine is most directly involved?
Correct answer: A - Apparent authority created by the insurer's manifestations
For Arkansas regulatory purposes, how is an insurer incorporated under Texas law and holding an active Arkansas certificate of authority classified?
Correct answer: D - Foreign and admitted
After firefighters extinguish a house fire and release the premises, rain is entering through an opening in the roof. Which action best satisfies the insured's duties after loss?
Correct answer: C - Arrange safe temporary tarping, keep the receipts, and notify the insurer promptly
At the date of a covered partial loss, a commercial building insured on a replacement-cost basis has a replacement value of $1,000,000, a market value of $700,000, a $600,000 policy limit, an 80% coinsurance requirement, and a $5,000 deductible. The covered loss is $200,000, and no other limitation applies. The insurer's payment is:
Correct answer: D - $145,000
The owner of a warehouse proves that a delivery driver owed a duty, breached it, and proximately caused contact with a loading dock. A professional inspection confirms no physical damage, loss of use, or other legally recognized loss. The negligence action fails for lack of:
Correct answer: B - Damages
Open-peril coverage is requested for a one-family rental dwelling and its detached garage, while broad named-peril coverage is acceptable for the landlord's appliances and furnishings at the premises. The closest policy-form match is:
Correct answer: C - DP-3 Special Form
The homeowners policy on an $18,000 engagement ring contains a $1,500 theft sublimit for jewelry. The client wants a stated amount, broader causes of loss, and a lower or no deductible. The strongest recommendation is to:
Correct answer: B - Schedule the ring under a scheduled personal property endorsement
Without proof of negligence, a visiting guest who is not a household resident incurs $900 in medical expenses after tripping on a child's toy at the insured residence. Which homeowners coverage can respond?
Correct answer: A - Coverage F may pay eligible medical expenses without proof of negligence
A deer runs into the side of an insured automobile, denting the door and breaking the mirror. The policy includes both collision and other-than-collision coverage. How is the loss classified under Part D?
Correct answer: C - Other-than-collision loss because contact with an animal is specifically classified that way
Daily business use and commuting in an employer-owned automobile furnished for the insured's regular use creates a gap under the personal auto policy. The endorsement designed to address that gap is:
Correct answer: D - Extended Non-Owned Coverage
The AR-PC exam also covers these domains. Drill them in the full free practice test:
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