A. The attention of all insurers and their agents is specifically directed to the provisions of the Arkansas Insurance Code, Section 66-3005, pertaining to misrepresentation of policy contracts; Section 66-2215 (1-f) providing for suspension or revocation of insurer certificates of authority; Section 66-2835 (1-f) providing for revocation, suspension or refusal to renew licenses of agents or brokers found to have used fraudulent or dishonest practices or trade practices prohibited by law. This Department will take such steps as are necessary to assure compliance with the provisions of the Insurance code dealing with fraud, misrepresentation and other injurious practices in the disability insurance field.

B. Section 66-2811 (3-c) of the Arkansas Insurance Code requires all insurers to notify the Commissioner of Insurance of the termination of any disability agent's license because of such agent's misrepresentation of policies, for acts of fraud or any other reason. The reasons for this are also required. Strict compliance with the provisions of this section is expected by this Department.