Arkansas Life and Health Insurance Practice Exam

The correct answer is B. The Commissioner may revoke the license of an individual who knowingly accepts business from an unlicensed producer. This statement accurately reflects the penalty that can be imposed by the Commissioner of insurance in cases where an individual knowingly accepts business from an unlicensed producer, exhibiting a serious violation of ethical and legal standards in the insurance industry.

Option A is incorrect because the Commissioner can impose fines up to $25,000, not $10,000.

Option C is incorrect because the Commissioner can suspend licenses for more than 2 years in certain cases, depending on the severity of the offense.

Option D is incorrect because while the Commissioner can mandate continuing education courses, including ethics courses, it is not specific to state-approved courses.