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054.00.48-10. LICENSE SANCTIONS

AR ADC 054.00.48-10Arkansas Administrative Code

West's Arkansas Administrative Code
Title 054. Insurance Department
Division 00.
Rule 48. Agent Licensing for Automobile Clubs or Associations
Ark. Admin. Code 054.00.48-10
054.00.48-10. LICENSE SANCTIONS
Currentness
(a) The Commissioner may suspend for not more than twelve (12) months, or may revoke or refuse to continue any license issued under this Rule and Arkansas laws after notice to the licensee and a hearing is held under the provisions of Ark. Code Ann. § 23-61-303, et seq., as provided under Ark. Code Ann. § 23-77-102 (1987), and the Commissioner determines that any one or more of the following causes exists
(1) Any cause for which issuance of the license could have been refused had it then existed and been known to the Commissioner
(2) Violation of or noncompliance with any provision of Ark. Code Ann. §§ 23-77-101, et seq., or other applicable laws of this State, or for willful violation of any rule, regulation, or order of the Commissioner;
(3) Obtaining or attempting to obtain any such license through fraud or misrepresentation;
(4) Misappropriation conversion to his/her own use of any monies received in transacting business under the license that do not belong to him or her;
(5) Conviction of a felony;
(6) If in the conduct of his affairs, the licensee has used fraudulent, or dishonest practices, or trade practices which are injurious or hazardous to the public;
(7) Solicitation or sale of automobile club or association memberships or insurance policies thereunder before initial or renewal licensing;
(8) Making false or misleading statements as to, or misrepresenting membership benefits or insurance policies thereunder;
(9) Making or offering to make to members or prospective members any unauthorized rebates or discounts or credits of membership dues or of premiums or other benefits of insurance policies provided as a motor club service to members;
(10) Participating a submission of false or fraudulent claims as to members' insurance policies or other membership benefits;
(11) Willfully collecting and/or retaining any sums as membership dues if the membership is not then provided or is not in due course to be provided; or willfully collecting and/or retaining a member's premiums or charges for insurance, which is not then provided or is not in due course to be provided;
(12) Willfully collecting as members' premiums or charges for insurance sums in excess of those specified in the policies and as fixed by the automobile club or association;
(13) Directly or indirectly sharing commissions or fees from membership dues or policy sales with persons not also licensed as agents for the automobile club or association involved, excluding payment of regular salaries due employees of the licensee; or
(14) Soliciting or selling a “24-hour” or “All Risk” accidental death and dismemberment policy which is not 100% underwritten by a licensed disability agent, which is marketed separately from other benefits included in the membership package, or for which an identifiable premium is collected from members.
(b) If the Commissioner finds that any one (1) or more grounds exist for the non-renewal, suspension or revocation of any license, the Commissioner may in his discretion, in lieu of such non-renewal, suspension or revocation, impose an administrative penalty in the amount of three hundred dollars ($300), or if the Commissioner has found willful misconduct or willful violation by the licensee, One Thousand Dollars ($1,000).
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 054.00.48-10, AR ADC 054.00.48-10
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