054.00.12-16. COMPENSATING BALANCES OR SPECIAL DEPOSITS.
AR ADC 054.00.12-16Arkansas Administrative Code
Ark. Admin. Code 054.00.12-16
054.00.12-16. COMPENSATING BALANCES OR SPECIAL DEPOSITS.
16.1 On or after adoption of this regulation the use of compensating balances or special deposit accounts in connection either directly or indirectly with a credit life insurance program and/or a credit disability insurance program is prohibited as being an illegal inducement in violation of Ark. Stat. Ann. ยง 66-3001 et. seq.
16.2 This prohibition applies regardless of whether premiums are due the insurer on the single premium basis or on the monthly premium outstanding balance basis. Nothing herein shall prevent the insurer from making deposits in a financial institution which are not related to a credit insurance program.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 054.00.12-16, AR ADC 054.00.12-16
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