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23-64-520. Compensation disclosure.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-64-520. Compensation disclosure.
(a) As used in this section:
(1) “Affiliate” means a person that controls, is controlled by, or is under common control with a producer;
(2)(A) “Compensation from an insurer or other third party” means payments, commissions, fees, overrides, bonuses, contingent commissions, loans, stock options, or any other form of valuable consideration, whether or not payable pursuant to a written agreement.
(B) Awards, gifts, and prizes shall be considered “compensation from an insurer or other third party” if the award, gift, or prize is directly tied to the producer's performance; and
(3) “Compensation from the customer” shall not include any fee or similar expense under § 23-66-310 or any fee or amount collected by or paid to the producer that does not exceed an amount established by the Insurance Commissioner.
(b)(1) Before the placement of insurance business, all insurance producers shall disclose:
(A) Whether the producer or its affiliate represents the customer or the insurer; and
(B) The source or sources of the producer's or affiliate's compensation for the placement.
(2) If the producer represents the insurer, the producer shall disclose to the customer that the producer provides services to the customer on behalf of the insurer.
(3) If the producer receives compensation from the customer for a placement of insurance or acts as a broker as defined by § 23-64-102, the producer shall disclose:
(A) The source or sources of the producer's or affiliate's compensation for the placement; and
(B) Whether the producer or its affiliate will receive compensation for the placement from the insurer or other third party based upon volume, profitability, or other factors, and if the customer requests, the producer shall provide
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-64-520
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:23-64-520
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 363d83a433f0f2d1898125ab48ebe2ec71d3b224cc415827fb5e6e0ad7aa6ffd
Source location: content.xml paragraph 36391
Stored source content
23-64-520. Compensation disclosure.
(a) As used in this section:
(1) “Affiliate” means a person that controls, is controlled by, or is under common control with a producer;
(2)(A) “Compensation from an insurer or other third party” means payments, commissions, fees, overrides, bonuses, contingent commissions, loans, stock options, or any other form of valuable consideration, whether or not payable pursuant to a written agreement.
(B) Awards, gifts, and prizes shall be considered “compensation from an insurer or other third party” if the award, gift, or prize is directly tied to the producer's performance; and
(3) “Compensation from the customer” shall not include any fee or similar expense under § 23-66-310 or any fee or amount collected by or paid to the producer that does not exceed an amount established by the Insurance Commissioner.
(b)(1) Before the placement of insurance business, all insurance producers shall disclose:
(A) Whether the producer or its affiliate represents the customer or the insurer; and
(B) The source or sources of the producer's or affiliate's compensation for the placement.
(2) If the producer represents the insurer, the producer shall disclose to the customer that the producer provides services to the customer on behalf of the insurer.
(3) If the producer receives compensation from the customer for a placement of insurance or acts as a broker as defined by § 23-64-102, the producer shall disclose:
(A) The source or sources of the producer's or affiliate's compensation for the placement; and
(B) Whether the producer or its affiliate will receive compensation for the placement from the insurer or other third party based upon volume, profitability, or other factors, and if the customer requests, the producer shall provide a reasonable estimate of the amount of compensation.
(c) A person shall not be considered a “customer” for purposes of this section if the person is merely:
(1) A participant or beneficiary of an employee benefit plan; or
(2) Covered by a group or blanket insurance policy or group annuity contract sold, solicited, or negotiated by the producer or affiliate.
(d) This section shall not apply to:
(1) A person licensed as a producer who acts only as an intermediary between an insurer and the customer's producer, including, but not limited to, a managing general agent, a sales manager, or wholesale broker when acting only as an intermediary;
(2) A reinsurance intermediary;
(3) Any placement involving a residual market mechanism;
(4) Renewals, unless the information previously disclosed under subsection (b) of this section has substantially changed; or
(5) Any placement of credit life or credit disability insurance.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-64-102. Definitions.
As used in this chapter, unless the context otherwise requires:
(1)(A) An “agent” is an individual, firm, limited liability company, or corporation who is required by the Producer Licensing Model Act, § 23-64-501 et seq., to be licensed as an insurance producer by the Insurance Commissioner.
(B) An agent shall be deemed to be the agent of the appointing insurer;
(2)(A)(i) A “resident agent” is an agent whose residence is in or who may vote in this state or who is licensed as a resident insurance producer by the commissioner in accordance with the Producer Licensing Model Act, § 23-64-501 et seq.
(ii) Every reference herein to “an agent, a resident of this state” and to “a licensed agent, a resident of this state” shall include any duly licensed resident agent as defined in this section.
(B) By reciprocal arrangements with another state under which residents of Arkansas may be licensed and operate as resident agents of the other state, the commissioner may license, as resident agents of Arkansas, residents of the other state who:
(i) In cities or towns through which passes the Arkansas boundary, or border communities or border trade areas, maintain their principal place of business in that city, town, community, or trade area; and
(ii) Are otherwise qualified for the license.
(C) The terms “border communities” or “border trade areas” shall mean communities and trade areas situated within five (5) miles of the Arkansas boundary.
(D) Firms and corporations of which all the members and persons exercising the license power qualify individually as to residence under the definition in this subdivision (2) may be licensed as resident agents;
(3) A “broker” is an individual, firm, limited liability company, or corporation who is requi
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-64-102
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-64-102. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-66-310. Illegal dealing in premiums — Excess charges for insurance.
(a) No person shall willfully collect any sum as a premium or charge for insurance that is not then provided or is not in due course to be provided, subject to acceptance of the risk by the insurer, by an insurance policy issued by an insurer as authorized by the Arkansas Insurance Code.
(b)(1) No person shall willfully collect as a premium or charge for insurance any sum in excess of the premium or charge applicable to the insurance in accordance with the applicable classifications and rates as filed and approved if necessary by the Insurance Commissioner, or in cases in which classifications, premiums, or rates are not required by the Arkansas Insurance Code to be so filed and approved, the premiums and charges shall not be in excess of those specified in the policy and as fixed by the insurer.
(2) However, the provision in subdivision (b)(1) of this section shall not be deemed to prohibit:
(A) The charging and collection by surplus lines brokers licensed under § 23-65-101 et seq. of the amount of applicable state and federal taxes in addition to the premium and expense of underwriting as required by the insurer on risks written pursuant to the surplus lines law;
(B) The charging and collection by a life insurer of amounts actually to be expended for medical examination of an applicant for life insurance or for reinstatement of a life insurance policy;
(C) A property and casualty agent from charging and collecting interest upon premiums and charges that remain unpaid for a period of thirty (30) days beyond the date that the original premium was due, subject to the supervision of the commissioner. The interest shall not exceed the maximum rate prescribed by the Arkansas Constitution;
(D
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-66-310
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-66-310. This identifies an authority to review, not proof of applicability.