Arkansas Life and Health Insurance Practice Exam

Which of the following statements accurately describe the penalties that may be imposed by the Commissioner of insurance?

1. The Commissioner can impose a fine up to $10,000

2. The Commissioner may revoke the license of an individual who knowingly accepts business from an unlicensed producer

3. The Commissioner can suspend licenses for up to 2 years

4. The Commissioner can mandate state-approved ethics courses

The correct answer is: The Commissioner may revoke the license of an individual who knowingly accepts business from an unlicensed producer

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.