What is the penalty for not maintaining liability insurance in Arkansas?

In Arkansas, failing to maintain liability insurance can indeed lead to both a license suspension and fines. The state requires all drivers to have a minimum level of liability insurance to ensure that they have financial responsibility in the event of an accident. If a driver is found to be operating a vehicle without this mandatory insurance, they can face serious consequences.

One of the primary penalties is the suspension of the driver's license. This serves as a deterrent to encourage compliance with the insurance requirement. Additionally, financial penalties, such as fines, are imposed to further reinforce the importance of maintaining proper insurance coverage. The combination of these penalties highlights the state's commitment to roadway safety and responsible driving practices, making option C the correct answer.