Arkansas Administrative Code Agency 054 - Arkansas Insurance Department
Arkansas Administrative Code (AAC) – Agency 054: Arkansas Insurance Department
The Arkansas Administrative Code (AAC) is a collection of rules and regulations created by state agencies to carry out the laws passed by the Arkansas Legislature. These rules have the force of law.
Agency 054 specifically refers to the Arkansas Insurance Department (AID). This department regulates insurance in the state, making sure insurance companies, agents, and policies operate fairly and legally. The agency also protects consumers and ensures insurance markets are stable and reliable.
Purpose of Agency 054
The Arkansas Insurance Department has the authority to:
Regulate Insurance Companies
Approve new insurance companies to operate in the state.
Monitor the financial health of insurers to prevent bankruptcies.
Ensure that policies meet state law requirements.
Licensing of Professionals
License insurance agents, brokers, adjusters, and other insurance professionals.
Set requirements for education, exams, and ongoing training.
Enforce professional standards and ethical conduct.
Consumer Protection
Handle complaints from insurance policyholders.
Investigate unfair or deceptive practices by insurance companies or agents.
Provide information to consumers to help them make informed decisions.
Rate and Policy Regulation
Review and approve insurance rates for fairness.
Ensure policy forms comply with Arkansas law.
Regulate life, health, auto, property, and other types of insurance.
Financial Oversight
Monitor insurance company solvency (ability to pay claims).
Require reporting of financial statements and audits.
Take corrective action if a company is in financial trouble.
Enforcement
Issue fines, penalties, or license suspensions for violations.
Conduct hearings and investigations related to insurance law violations.
Structure of Agency 054
The rules in Agency 054 are divided into chapters and sections. Each section focuses on a specific type of insurance, requirement, or procedure. Here are some typical areas:
General Provisions
Definitions, authority, and procedures for the Insurance Department.
Rules for filing complaints and administrative hearings.
Licensing Rules
Licensing of agents, adjusters, brokers, and insurance companies.
Education and continuing education requirements.
Procedures for renewal, suspension, and revocation of licenses.
Insurance Rates and Policy Forms
Procedures for filing and approving rates for auto, health, life, and property insurance.
Rules for standardizing policy forms and disclosures.
Market Conduct
Rules regulating how insurance companies sell and service policies.
Prohibitions against unfair or deceptive practices.
Health Insurance
Specific rules for group health, individual health, and Medicaid-related insurance.
Requirements for coverage, claims processing, and reporting.
Property and Casualty Insurance
Rules for auto, home, commercial property, and liability insurance.
Coverage requirements, claims handling, and reporting rules.
Financial Regulation
Rules for insurer solvency, investments, reserves, and reporting.
Procedures for rehabilitation or liquidation of insolvent companies.
How It Works in Practice
For example:
If an insurance company wants to sell auto insurance in Arkansas, it must file its rates and policy forms with the Insurance Department and get approval under Agency 054 rules.
If someone has a complaint about their health insurance claim being unfairly denied, they can file a complaint with the department, which will investigate according to these rules.
Insurance agents must renew their licenses and complete continuing education, or they risk suspension, following the rules in Agency 054.
In short, Agency 054 ensures that insurance in Arkansas is safe, fair, and financially sound—for both consumers and companies.
RELATED Blog
comments