What type of crime is considered if one sells insurance without necessary licensing?

Selling insurance without the necessary licensing is classified as a Class D felony in Arkansas. This classification reflects the seriousness of the act, given that it undermines the regulatory framework designed to protect consumers and ensure that insurance products are sold by qualified individuals.

In Arkansas, the insurance industry is carefully regulated, and licensing serves to verify that agents possess the necessary knowledge and skills to adequately represent clients and provide them with suitable insurance products. Engaging in the sale of insurance without this certification can expose consumers to risks, such as financial losses or receiving inappropriate policy recommendations. Therefore, the state takes such violations seriously, imposing significant penalties to deter unlicensed activity in the insurance market. This helps maintain integrity and trust in the insurance system.

The other options do not accurately capture the severity of the violation; while some may represent lesser offenses or different classifications, the act of selling insurance without a license is specifically outlined as a Class D felony, emphasizing its potential ramifications for both the individual and the broader public.