Current through Register Vol. 49, No. 9, September, 2024
SECTION 1. PURPOSE
The purpose of this rule and regulation ("rule") is to implement
Act 53 4 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 delineate the areas of
responsibility of the Insurance Advisory Examining Board.
SECTION 2. AUTHORITY
This rule is used pursuant to the authority vested in the
Commissioner under Ark. Code Ann. Sections
23-61-108,
23-74-101,
et sea., 23-75-101,
et sea., 23-76-101,
leg.,
25-15-202,
et sea., and Act 534 of 1983, as amended, and codified as Sections
23-64-201,
et sea.
SECTION 3.
APPLICABILITY AND SCOPE
This rule shall apply to ail applicants seeking a license as an
insurance agent, broker, soliciror, and consultant, and seeking a license as a
health maintenance organization ("HMO") agent, except those specifically
exempted pursuant to the provisions of Arkansas law, and seeking a license as a
fraternal benefit society agent except those specifically exempted pursuant to
the provisions of Arkansas law. This rule is intended to complement the
provisions of Rule and Regulation 5, "Agent License for Health Maintenance
Organizations", and is not intended to supersede Rule and Regulation 35.
SECTION 4. EFFECTIVE DATE
This rule shall be effective December 30, 1991.
SECTION 5. COURSE REQUIREMENTS
A. All candidates for an Arkansas life and/or
disability agent's license, for a health maintenance organization agent's
license and for a fraternal benefit society agent's 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. Introduction to
Insurance
2. State Insurance
Regulations [Not Less Than Five Hours)
3. Life Insurance Basics
4. Life Insurance Policies and Policy
Provisions
5. Life Insurance Policy
Options ("Settlement") and Annuities
6. Health Insurance Basics
7. Health Insurance Policy
Provisions
8. Disability Income
Insurance
9. Medical Expense
Insurance - Including Medicare Supplement Ins.
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 3 6 hours of classroom
instruction which includes, but is not limited to, all of the following:
1. Introduction to Insurance and Laws
Governing Insurance
2. State
Insurance Regulations (Not Less Than Five Hours)
3. Fire and Allied Lines
4. Homeowners Policies and Other
Mutliple-Line Products
5. National
Flood Insurance
6. Ocean and Inland
Marine Insurance
7. Crop
Insurance
8. General Liability
Insurance
9. Automobile Insurance
and Assigned Risk Plan
10. Workers'
Compensation and Assigned Risk Plan
11. Commercial Crime Insurance and Fidelity
Bonds
12. Surety Bonds
C. Any applicant for life,
disability, HMO and/or fraternal benefit society license and the
property/casualty agent's license may combine the five hours of instruction on
state regulation.
SECTION
6. INSTRUCTOR QUALIFICATIONS
A.
Instructors must have had specific insurance training or educational experience
satisfactory to the Insurance Advisory Examining Board and approved by the
State Insurance Commissioner 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
(50) days prior to the expected use of the program. A provider shall include
the following 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
completed 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 a. PROGRAM
REVIEW
The Board and the Department shall have the authority to visit a
training facility and review its program at any time, 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 or Appendix 3A, and forward such 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.
Each individual certification must be on the form as shown in Appendix 3 or
Appendix 3A 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 (55)
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 (60) 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 any 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 Procedure Act and this rule,
approval of instructors and providers of instruction courses may be suspended
or revoked for violations of this rule and pertinent provisions of the Arkansas
Insurance Code upon notice and hearing.
SECTION 12. 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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