What term describes a producer who sells insurance in Arkansas but resides in another state?

Prepare for the Arkansas Laws and Rules Test. Study using comprehensive quizzes featuring multiple choice questions, hints, and detailed explanations. Ace your test with confidence!

The term that accurately describes a producer who sells insurance in Arkansas but resides in another state is "nonresident producer." This classification is used in insurance regulations to identify individuals who have obtained the necessary licenses to operate in a state where they do not live. Nonresident producers typically must meet the licensing requirements of the state where they are conducting business, including passing an exam and fulfilling continuing education obligations.

This term is important because it distinguishes them from resident producers, who live in the state where they sell insurance and have different regulatory requirements. Temporary producers, on the other hand, may engage in insurance activity for a limited time or under specific circumstances, which is not applicable in this context. An interstate producer is not a standard term used in insurance regulation. It is more common to refer to the distinctions of resident and nonresident producers in legal and regulatory discussions surrounding insurance sales.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy