Arkansas Statutes, Rules, and Regs for Life and Health Insurance
Defamation
If a producer makes maliciously critical statements about another insurer what is this illegal practice called?
Authorized or admitted
If an insurer holds a certificate of authority, it is known as what type of insurer?
Authorized or admitted
If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer?
Cease and desist order
If the commissioner/superintendent finds a licensee engaging in an unfair method of competition or an unfair practice, what order will be issued?
Insurance company officers, directors, or any other employees who do not transact insurance and who do not receive commissions for their services
In general, who can be excluded from producer licensing and examination requirements?
Insurer
In the agent/insurer relationship, who is considered the principal?
Domestic, foreign, alien
Insurers are classified according to their domicile. What are the three types of insurers?
Misrepresentation
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?
To an insurer authorized to transact business in this state
To whom may a certificate of authority be issued?
Discrimination
Two individuals who are in the same risk and age class are charged different rates for their insurance policies due to an insignificant factor. What is this called?
Complete continuing education hours and pay a renewal fee
What are producers required to do in order to renew their license?
A cease and desist order, a fine, and license suspension or revocation
What are the most common penalties for violations of insurance statutes?
Certificate of Authority
What document is required for an insurance company to transact insurance?
Misrepresentation
What illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is?
180 days
What is the maximum period for a temporary license in this state?
To prevent a producer or insurer from further violating laws or transacting insurance
What is the purpose of a cease and desist order?
To protect policy owners, insureds and beneficiaries from financial losses caused by insolvent insurers
What is the purpose of insurance guaranty associations?
Broker
What type of licensee represent the insured?
The agent
What type of licensee represents the insurance company?
Twisting
What type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
Whenever deemed necessary, but at least once every few years
When can the Commissioner or Director examine insurers?
When the commissions from controlled business do not exceed the aggregate commissions on all the other businesses
When is controlled business legal?
Producer's spouse or designee in case the licensed producer dies or becomes disabled
Who can usually be granted a temporary license?
A person authorized to sell, solicit and negotiate insurance contracts
Who is an insurance agent?
Agent who resides and is licensed in another state, but who is authorized to transact insurance in this state
Who is considered a nonresident agent?
Insurance on the producer's own life or property, or the lives or property of the producer's family or business associates
Who is controlled business?
The insurance company
Who is responsible for the contents of insurance advertisements?
The insurer who is being examined
Who is responsible for the costs associated with the examination of insurers?
Only producers properly licensed for the type of insurance transaction
Who may share in the commission from the sale of a life insurance policy?
All insurers authorized to write insurance within a state
Who must be a member of insurance guaranty associations?
The Department of Insurance
Who must be notified of a producer's change of address?
Stockholders
Who owns stock companies?
For continuation of business in case the licensed producer dies or becomes disabled
For what reason can a temporary license be issued?
Rebating
An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of?
No, it is an illegal business practice
Can insurers advertise the existence of the guaranty association during solicitation and sale of insurance policies?