Current through Register Vol. 49, No. 9, September, 2024
SECTION 1. PURPOSE
The purpose of this rule is to implement Act 534 of 1983, as
amended by establishing curricula for courses of instruction required to be
completed by applicants seeking insurance licenses in Arkansas, to establish
criteria for approval of providers of the courses of instruction, to establish
a mechanism of examination and review of the performance and quality of the
instruction and to establish duties of The Insurance Advisory Examining
Board.
SECTION 2. AUTHORITY
The rule is used pursuant to the authority vested in the
Commissioner under Ark. Code Ann. §
23-61-108
(1987),
23-76-125 (1987),
25-15-202
(1987), et sea-, and Act 534 of 1983, as amended.
SECTION 3. APPLICABILITY AND SCOPE
This rule shall apply to all applicants seeking a license as an
insurance 'agent, broker, solicitor, and consultant, and seeking a license as a
health maintenance organization ("HMO") agent, except those specifically
exempted pursuant to the provisions of Arkansas law. This rule is intended to
complement the provisions of Rule and Regulation 35, "Agent License for Health
Maintenance Organizations", and is not intended to supersede Regulation
35.
SECTION 4. EFFECTIVE
DATE
Under the emergency provisions of Ark. Code Ann. §
25-15-204(b)
(Supp. 1991), it is hereby declared that the immediate adoption of this Rule is
necessary to prevent any imminent peril to the public health, safety or welfare
of the citizens of this State. Therefore, the effective date of this Rule is
September 1, 1991.
SECTION
5. COURSE REQUIREMENTS
A. All
candidates for an Arkansas life and/or disability agent's license, and for a
health maintenance organization agents license are hereby required to complete
a course of instruction with a minimum of 36 hours of classroom instruction
which includes, but is not limited to, all of the following,
as
applicable:
1. Life Policy
Provisions
2. Life Policy
Options
3. Whole Life, Term, and
Endowment Life Insurance
4. Annuity
Contract Provisions
5. Universal
Life Insurance 5. Credit Life
7.
Rate Making and Reverses
8.
Interest Adjusted Cost Index
9.
Disability Income
10. Accident and
Health
11. Medicare Supplement
Insurance 12 Five hours of state regulation
B. All candidates for a property and casualty
license as agent, broker, solicitor, or consultant are hereby required to
complete a course of instruction with a minimum of 36 hours of classroom
instruction which includes all of the following;
1. Fire and Allied Lines
2. Homeowners and Dwelling
3. Automobile-Private Passenger and
Commercial
4. Farmowners,
Ranchowners
5. Commercial
Multi-Peril, Businessowners
6.
Workers' Compensation
7. Medical
Malpractice.
8. Liability, General,
Garage Keepers, and Professional
9.
Inland Marine
10. Fidelity and
Surety
11. Five hours of state
regulation
C. Any
applicant for life, disability, and/or HMO license and the property/casualty
agent's license may cambine the five hours of instruction on state
regulation.
SECTION 6.
INSTRUCTOR QUALIFICATION
A. Instructors must
have had specific insurance training or educational experience satisfactory to
the Insurance Advisory Examining Board and approved by the State Insurance
Comraissioner in order to be certified to teach any part of an approved course.
Each instructor must have five (5) or more years of specific insurance
experience and/or education in each part of the insurance training program in
which he instructs and must be approved prior to teaching any course, or any
part of a course, by the Insurance Advisory Examining Board and the Insurance
Commissioner. Applicants for approval as an instructor shall complete and
submit Appendix 4 to the Insurance Advisory Examining Board c/o Arkansas
Insurance Department.
B. No person
will be approved as an instructor who has received disciplinary action by the
Arkansas Insurance Department, the Insurance Department of another state, or
any similar regulatory body or court. The Commissioner shall have the authority
to waive this requirement after a hearing to determine the applicant's
qualifications.
SECTION
7. PROVIDER REQUIREMENTS
A.
Application for approval as a provider shall be submitted to the Insurance
Advisory Examining Board c/o Arkansas Insurance department not less than sixty
(60) days prior to the expected use of the program. A provider
shall include the fallowing information in duplicate:
1. Detailed description of the instruction
program including a course outline and list of resource materials.
2. Completion of Appendix 1 for the initial
certification or completion of Appendix 2 upon any change in curriculum or
instructor,
3. Schedules of classes
for all locations.
B.
Changes in class schedules are to be filed with the Insurance Department no
later than two (2) weeks before each class begins.
C. The Board may consider the type of
facility to be used for training, the sufficiency of teaching aids, and the
exclusive use of that portion of the facility being used for training in making
a determination to certify the provider.
D. The provider shall maintain detailed
attendance records for all students for all classes for three (3) years
following completion of the classes. Rosters of attendees, including courses
complered and completion dates, shall be maintained as a permanent record by
course providers. These records may be reviewed by the Commissioner and the
Board. In this regard, any studying which is not conducted under the direct
supervision of the instructor at the facility during scheduled classes may not
be credited toward completion of the required thirty-six (36) hours.
SECTION 8. PROGRAM REVIEW
The Board and the Department shall have the authority to visit a
training facility and review its program at anytime, including, but not limited
to, curriculum records, and attendance records,
SECTION 9. LICENSING PROCEDURE OF APPLICANT
A. The required hours of classroom
instruction may be completed prior to the date of the licensing examination,
but not later than sixty (60) days after the license is issued. If the
applicant fails to complete the required classroom instruction within sixty
(60) days of licensing, the applicant will be required to apply as if he had
never taken the insurance examination.
B. The instructor or designated official of
the provider is responsible for transmitting the certification of completion of
required hours to the Insurance Department immediately upon the applicant's
completion of the course. The instructor or designated official of the provider
shall complete an original and one copy of each individual certification,
Appendix 3, and forward to the Insurance Department with a self-addressed
stamped envelope. The Insurance Department will return a copy indicating proof
of receipt to the instructor or designated official of the provider. Failure of
the instructor or the designated official of the provider to file the
certification within the time required will be considered a violation of this
Regulation.
C. Certification must
be on the form as shown in Appendix 3 and must be signed by the applicant and
the instructor or designated official of the provider where more than one
instructor is used. The Insurance Department must actually receive
certification within sixty-five (65) days of the date the license is issued.
If the required certification is not received by the Insurance
Department within sixty-five (65) days of the issuance of license, the license
will be terminated. In such case where the applicant has actually completed the
required classroom instruction within sixty (50) days of licensing, but the
certification is not received by the Insurance Department within the required
sixty-five (65) days, the course provider must pay an reappointment fees
required prior to reissuance of the license.
SECTION 10. COMPLETION OF COURSE REQUIREMENTS
Educational requirements must be completed no more than two
(2) years prior to taking the license exam for course
certification to be valid.
SECTION
11. VIOLATIONS
Pursuant to the Administrative Procedures Act, approval of
instructors and providers of instruction courses may be suspended or revoked
for violations of this Regulation and pertinent provisions of the Arkansas
Insurance Code upon notice and hearing.
SECTION 12. EXPIRATION DATE
This Rule will expire three (3) years after it becomes effective
if the Commissioner does not call a hearing thirty (30) days prior to the
expiration date to determine whether this Rule should remain in effect, be
revised, or allowed to expire. Notice of a hearing to determine whether this
Rule should remain in effect, be revised, or allowed to expire shall be given
in writing to all interested parties at least twenty (20) days prior to the
hearing date.
SECTION 13.
SEVERABILITY
Any section or provision of this Rule held by a court to be
invalid or unconstitutional will not affect the validity of any other section
or provision of this Rule.
Appendix 1
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Appendix 2
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Appendix 3
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Appendix 4
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