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23-65-101. Unauthorized insurance transactions prohibited.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-65-101. Unauthorized insurance transactions prohibited.
(a)(1) No person or entity in this state shall act as agent or broker for or otherwise represent or aid any insurer, health maintenance organization, multiple employer welfare arrangement, multiple employer trust, association, or any other person or entity in the solicitation, negotiation, or effectuation of insurance, inspection of risks, fixing of rates, investigation or adjustment of losses, collection of premiums, or in any other manner in the transaction of insurance with respect to subjects of insurance resident, located, or to be performed in this state if that person or entity is not authorized or licensed by the State Insurance Department for those purposes.
(2)(A) No person or entity shall act as a producer, adjuster, or consultant without first obtaining appropriate licensure or registration as required by the insurance laws of this state for the transaction of insurance with respect to subjects of insurance or self-insurance resident, located, or to be performed in this state.
(B) No person or entity shall act as a multiple employer trust or multiple employer welfare arrangement without first obtaining appropriate registration or licensing as required by § 23-92-101.
(C) No person or entity shall act as a third-party administrator for a multiple employer trust, multiple employer welfare arrangement, collectively bargained trust, self-insurance plan, or any other plan providing accident and health insurance benefits to the citizens of this state without first obtaining appropriate registration as required by § 23-92-201 et seq.
(D) Any producer who knows or has reason to know that a health plan is not licensed in accordance with the Arkansas Insurance Code shall immediately report the health
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-65-101
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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Record provenance
Stable record: arkansas_code:legal_authorities:23-65-101
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 55046c88b4973d366101b549bf3b2190f8a5f4b359325fe0dba09033ed7204e4
Source location: content.xml paragraph 36829
Stored source content
23-65-101. Unauthorized insurance transactions prohibited.
(a)(1) No person or entity in this state shall act as agent or broker for or otherwise represent or aid any insurer, health maintenance organization, multiple employer welfare arrangement, multiple employer trust, association, or any other person or entity in the solicitation, negotiation, or effectuation of insurance, inspection of risks, fixing of rates, investigation or adjustment of losses, collection of premiums, or in any other manner in the transaction of insurance with respect to subjects of insurance resident, located, or to be performed in this state if that person or entity is not authorized or licensed by the State Insurance Department for those purposes.
(2)(A) No person or entity shall act as a producer, adjuster, or consultant without first obtaining appropriate licensure or registration as required by the insurance laws of this state for the transaction of insurance with respect to subjects of insurance or self-insurance resident, located, or to be performed in this state.
(B) No person or entity shall act as a multiple employer trust or multiple employer welfare arrangement without first obtaining appropriate registration or licensing as required by § 23-92-101.
(C) No person or entity shall act as a third-party administrator for a multiple employer trust, multiple employer welfare arrangement, collectively bargained trust, self-insurance plan, or any other plan providing accident and health insurance benefits to the citizens of this state without first obtaining appropriate registration as required by § 23-92-201 et seq.
(D) Any producer who knows or has reason to know that a health plan is not licensed in accordance with the Arkansas Insurance Code shall immediately report the health plan to the department.
(b)(1)(A) The Insurance Commissioner may summarily order a person or entity to cease and desist from an act or practice when the commissioner has reason to believe that the person or entity has not complied with the requirements of this section or any other provision of the Arkansas Insurance Code.
(B) Upon the entry of the cease and desist order, the commissioner shall promptly notify the person or entity named:
(i) That the order has been entered;
(ii) The reasons for the order; and
(iii) Of the person's or entity's right to a hearing on the order.
(2)(A) A hearing shall be held on the written request of the person or entity named in the cease and desist order if the commissioner receives the request within thirty (30) days of the date of the entry of the order or if otherwise ordered by the commissioner.
(B) If no hearing is requested and none is ordered by the commissioner, the order will remain in effect until it is modified or vacated by the commissioner.
(C) If a hearing is requested or ordered and after notice of an opportunity for hearing, the commissioner may affirm, modify, or vacate the cease and desist order.
(D) The person or entity named in the cease and desist order shall have the burden of proving:
(i) That the actions, methods, or practices described in the order are not in violation of the Arkansas Insurance Code; and
(ii) The grounds upon which the commissioner should modify or vacate an order issued under this section.
(3)(A) After issuance of an order under subdivision (b)(1)(B) of this section, the commissioner may apply to Pulaski County Circuit Court to temporarily or permanently enjoin the act or practice and to enforce compliance with the Arkansas Insurance Code or any rule or order under the Arkansas Insurance Code.
(B) However, the commissioner may apply directly to Pulaski County Circuit Court for a temporary or permanent injunction under subdivision (b)(3)(A) of this section.
(C) Upon a proper showing, the court shall enter a permanent or temporary injunction, restraining order, or writ of mandamus.
(D) The commissioner shall not be required to post a bond.
(c) The commissioner may also seek and the appropriate court may grant any other ancillary relief which may be in the public interest, including the appointment of a receiver, temporary receiver, conservator, or declaratory judgment, obtaining an accounting, disgorgement, assessment of a fine, or other relief as may be appropriate in the public interest.
(d) This section does not prohibit or restrict the informal disposition of a proceeding by stipulation, settlement, consent, or default.
(e) Any insurance producer licensed in this state, or any other person, who knowingly sells, solicits, or negotiates a product of an unauthorized person or entity in violation of this section or who knowingly represents or aids an unauthorized person or entity in violation of this section shall be guilty of a Class D felony.
(f) Any insurance producer licensed in this state, or any other person, who sells, solicits, or negotiates a product of an unauthorized person or entity in violation of this section or who represents or aids an unauthorized person or entity in violation of this section may be personally liable for all damages caused by the unauthorized person or entity, including claims unpaid by the unauthorized person or entity.
(g) Any person or entity who violates or otherwise fails to comply with a cease and desist order of the commissioner under this section while that order is in effect may be subject, at the discretion of the commissioner, to any one (1) or more of the following:
(1) A monetary penalty of not more than ten thousand dollars ($10,000);
(2) Suspension or revocation of the person's or entity's license or registration; and
(3) Upon the commissioner's petition filed in Pulaski County Circuit Court and upon good cause shown, that court may order injunctive relief.
(h) The following shall be applicable to hearings held, orders issued, and penalties levied by the commissioner under this section:
(1) The provisions of § 23-61-301, as to witnesses and evidence;
(2) Section 23-61-302, as to immunity from prosecution;
(3) The provisions of §§ 23-61-303 — 23-61-305, as to hearings;
(4) The provisions of §§ 23-61-306 and 23-61-307, as to orders on hearings and appeals of orders;
(5) The provisions of § 23-66-210(a)(1), as to monetary penalties; and
(6) The provisions of § 23-66-212, as to judicial review of cease and desist orders.
(i) The commissioner may promulgate such reasonable rules as are necessary to carry out the provisions of this section.
(j)(1) The commissioner shall have the power to examine and investigate the affairs of every person or entity suspected of engaging in activities which are prohibited by this section or by any other provision of the Arkansas Insurance Code.
(2) All licensees of the commissioner shall assist the commissioner in examinations and investigations conducted under this section.
(k) The powers vested in the commissioner by this section shall be additional to any other powers to enforce any penalties, fines, or forfeitures authorized by law or other provisions of the Arkansas Insurance Code with respect to activities that are prohibited by this section or the Arkansas Insurance Code.
(l) This section shall not apply to:
(1) Acceptance of service of process by the commissioner under § 23-65-203; and
(2) Surplus lines insurance and other transactions as to which a certificate of authority is not required of an insurer, as stated in § 23-63-201.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-61-301. Examination, investigation, or hearing — Witnesses and evidence.
(a) With respect to the subject of any examination, investigation, or hearing being conducted by the Insurance Commissioner, the commissioner may subpoena witnesses and administer oaths or affirmations and examine any individual under oath and may require and compel the production of records, books, papers, contracts, and other documents.
(b)(1) Witness fees and mileage shall not be allowed as to any licensee of the commissioner.
(2) Witness fees and mileage of persons or entities not licensees of the commissioner, if claimed, shall be allowed the same as for testimony in a circuit court. Provided, however, that such a claim must be made at the time, date, and place of the hearing to which the person or entity has been summoned, and the amount thereof shall be processed in the same manner as are State Insurance Department employees' requests for expense reimbursement from the State of Arkansas.
(3) Witness fees, mileage, and the actual expense necessarily incurred in securing attendance of witnesses and their testimony shall be itemized and shall be paid by the person being examined or investigated if, in the proceedings in which the witness is called, the person is found to have been in violation of the law, or paid by the person, if other than the commissioner, at whose request the hearing is held.
(c)(1) Subpoenas of witnesses shall be served in the same manner as if issued by a circuit court and may be served by certified mail.
(2) If any individual fails to obey a subpoena issued and served pursuant to this section with respect to any matter concerning which he or she may be lawfully interrogated, upon application of the commissioner, the circuit court of the county in which is
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-61-301
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 23-61-301. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-61-302. Examination, investigation, or hearing — Testimony compelled.
(a)(1) An individual may execute, acknowledge, and file in the State Insurance Department a statement expressly waiving immunity or privilege for any transaction, matter, or thing specified in the statement.
(2) If a statement is filed under subdivision (a)(1) of this section, the testimony of the person or the evidence in relation to the transaction, matter, or thing may be received or produced before any judge or justice, court, tribunal, grand jury, or otherwise.
(b) If testimony or evidence is received or produced under subdivision (a)(2) of this section, the individual is not entitled to any immunity or privilege on account of any testimony he or she may give or evidence produced.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-61-302
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 23-61-302. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-92-101. Registration or licensure required.
(a) “Multiple employer welfare arrangement” has the same meaning as under 29 U.S.C. § 1002(40), as it existed on January 1, 2019.
(b)(1) A fully insured multiple employer trust and fully insured multiple employer welfare arrangement that intends to provide benefits to citizens of this state shall register with the Insurance Commissioner before soliciting or enrolling members or before conducting any other business activity in Arkansas.
(2)(A) Each fully insured multiple employer trust and fully insured multiple employer welfare arrangement under this section that is conducting any business activity in Arkansas shall register with the commissioner.
(B) After the initial registration, a fully insured multiple employer trust and fully insured multiple employer welfare arrangement under this section that conducts business in Arkansas shall register with the commissioner no later than January 1 of each year for as long as it continues to do business in Arkansas.
(c)(1) A multiple employer trust or multiple employer welfare arrangement that is not fully insured shall obtain a certificate of authority under rules promulgated by the commissioner before doing business in Arkansas.
(2) In order to remain licensed, a multiple employer trust or multiple employer welfare arrangement that is not fully insured shall comply with applicable terms of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq., as it existed on January 1, 2019.
(3)(A) The commissioner shall adopt rules regulating multiple employer trusts and multiple employer welfare arrangements that are not fully insured.
(B) The rules shall include information and procedures concerning:
(i) The criteria and application for obtaining a ce
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-92-101
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 23-92-101. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-92-201. Definition.
As used in this subchapter, “third-party administrator”:
(1) Means a person, firm, or partnership that collects or charges premiums from or adjusts or settles claims on residents of this state in connection with life or accident and health coverage provided by a self-insured plan or a multiple-employer trust or multiple-employer-welfare arrangement;
(2) Includes an administrative-services-only contract offered by insurers and health maintenance organizations; and
(3) Does not include:
(A) An employer, for its employees or for the employees of a subsidiary or affiliated corporation of the employer;
(B) A union, for its members;
(C) An insurer or health maintenance organization licensed to do business in this state;
(D) A creditor, for its debtors, regarding insurance covering a debt between the creditor and its debtors;
(E) A credit-card-issuing company that advances for, or collects premiums or charges from, its credit card holders, as long as that company does not adjust or settle claims;
(F) An individual who adjusts or settles claims in the normal course of his or her practice or employment and who does not collect charges or premiums in connection with life or accident and health coverage; or
(G) An agency licensed by the Insurance Commissioner and performing duties pursuant to an agency contract with an insurer authorized to do business in this state.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-92-201
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 23-92-201. This identifies an authority to review, not proof of applicability.