Arkansas Life and Health Insurance Practice Exam 2025 – Complete Study Guide

Question: 1 / 400

What occurs if a producer knowingly accepts business from an unlicensed producer?

The producer's license may be revoked

If a producer knowingly accepts business from an unlicensed producer, the producer's license may be revoked. This is a serious violation of insurance regulations and is not tolerated in the industry. The licensing requirements are in place to ensure that only qualified professionals conduct insurance business, and accepting business from someone who is not properly licensed undermines the integrity of the insurance system. Therefore, revoking the producer's license is the appropriate consequence for this action.

The other options are incorrect because they do not address the severity of the violation. Accepting business from an unlicensed producer is a serious offense that can result in more severe consequences than just a warning, a fine, or a notice of non-compliance.

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The producer will receive a warning

The producer can be fined up to $5,000

The producer's insurance agency gets a notice of non-compliance

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