1 RULE AND REGULATION 68
2 LIMITED ADJUSTERS’ LICENSES
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4
5 SECTION 1. PURPOSE
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7 The purpose of this Rule and Regulation is to set out the minimum
8 qualifications for optional and permissive licensure of limited adjusters from
9 applicants desiring but not required to obtain this license under the provisions of
10 Ark. Code Ann. §23-64-102(4)(E), as amended by Arkansas Act 1004 of 1997,
11 effective July 1, 1997. It is not the intent of the Department in enacting this Rule
12 to construe this limited license as mandatory or required for self-insured
13 insurance activities in this State; nor any intent to have public or private sector
14 self-insured entities mandate that their employees obtain this limited license.
15 The purpose includes the availability of an Arkansas license for applicants who
16 need it as a prerequisite for their application for similar licensure in other states.
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19 SECTION 2. AUTHORITY AND SCOPE
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21 1. This Rule is promulgated under the Commissioner’s authority in Ark. Code
22 Ann. Sections 23-61-108, 23-63-106, 23-64-102 (4)(E) as amended by Act 1004
23 of 1997, and 25-15-201, et seq. This Rule shall apply to all applicants for license
24 as a limited adjuster on and after the effective date of this Rule.
25 2. Exemptions:
26 This Rule shall not be applicable to, and no limited adjuster license shall
27 be required of:
28 a. Third Party Administrators (TPA's) registered with the Department,
29 or exempted from the provisions of Ark. Code Ann. §§23-92-201, et seq.;
30 b. Valid ERISA-qualified or ERISA-exempt self-insured trusts, plans,
31 MET's or MEWA's or their third-party administrators (TPA's);
32 c. Self-insured plans, policies or contracts of the State of Arkansas, or
33 any of its political subdivisions, including counties, state agencies, boards and
34 commissions, and cities, municipalities, school districts, improvement or other
35 districts including any administered by a local trade association or organization;
36 d. Self-insured plans administered or regulated by or under the
37 statutory jurisdiction of any other state agency, board or commission, or of the
38 Federal Government;
39 e. Public adjusters who represent insureds or claimants under
40 insured/self-insured policies or contracts, including public adjusters licensed in
41 another state, country or territory;
42 f. Adjusters as independent contractors who are licensed by the
43 Commissioner to represent insurance companies, or who are otherwise
44 exempted from such licensure under Ark. Code Ann. §§23-64-101 et seq., or
45 other Arkansas laws;
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1 g. Attorneys at law and other licensed legal representatives of the
2 insurance company, self-insured, insured or claimant under a policy or contract;
3 and
4 h. Salaried and/or commissioned employees of insurers, HMO's, or
5 other Department licensees who adjust or settle claims for their employers.
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7
8 SECTION 3. DEFINITIONS
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10 As used in this Rule,
11 1. “Commissioner” shall mean the Insurance Commissioner of the State of
12 Arkansas; and
13 2. “Department” shall mean the Arkansas Insurance Department;
14 3. “Limited Adjusters” shall mean individual persons who are sponsored by
15 and are employees of self-insured (self-funded) entities for purposes of
16 the adjustment of claims for or on behalf of that self-insured sponsoring
17 entity, as defined in Section 23-64-102 (4)(E), as amended by Act 1004 of
18 1997.
19 4. “Rule and Regulation” shall mean the rules and regulations promulgated
20 by the Arkansas Insurance Department unless the context requires
21 otherwise.
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24 SECTION 4. LICENSE AVAILABLE AND OPTIONAL BUT NOT REQUIRED
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26 A. ELIGIBILITY.
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28 (1) On and after the effective date of this Rule, self-insured or self-
29 funded entities may sponsor their employees for limited adjusters’ licenses with
30 this Department. In order to be eligible for licensure, the individual persons must
31 be current, full time employees of the sponsoring self-insured or self-funded
32 entity, not independent contractors for such sponsors.
33 (2) Eligibility for such licensure shall cease upon the effective date of
34 termination of the applicant or licensee’s employment with the sponsoring self-
35 insured or self-funded entity for any reason by either party.
36 (3) The applicant shall be of legal age of majority or have the
37 disabilities of minority removed by a court of law for all general purposes, and
38 provide evidence of same.
39 (4) The applicant must be a resident of the State of Arkansas or a
40 resident of another state which will permit residents of Arkansas to act as an
41 adjuster or limited adjuster in the other state, or a nonresident who meets or will
42 meet the requirements imposed on a resident of this State.
43 (5) The applicant must be a high school graduate or have obtained his
44 GED (General Education Diploma). The applicant must be deemed by the
45 Commissioner to be competent, trustworthy, financially responsible, and of good
46 personal and business reputation, and not otherwise ineligible under the
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1 provisions of Arkansas Act 217 of 1997, codified as Ark. Code Ann. §§23-66-501,
2 et seq., and other applicable laws.
3 (6) The applicant must pass a written examination as to his
4 competence to act as a limited adjuster for the self-insured employer, with such
5 examination based on the types of insurance which the applicant shall be
6 adjusting. The Commissioner may specify that the applicant must pass an
7 examination for property, casualty or workers’ compensation insurance as is
8 administered under Ark. Code Ann. Section 23-64-209 or other laws for
9 adjusters, and may specify that the applicant must pass an examination for life
10 and disability insurance as is administered under Ark. Code Ann. Section 23-64-
11 203 or other laws for life and disability insurance agents, or other examinations
12 as the Commissioner may prescribe in his license application instructions. The
13 Commissioner may give, conduct, and grade all examinations, or he may arrange
14 to have examinations administered and graded by an independent testing service
15 as specified by contract, in a fair and impartial manner, and without unfair
16 discrimination as between individuals examined. An oral or other type
17 examination may for good cause be substituted for a written examination of the
18 applicant on his written request, and if deemed necessary by any applicable
19 laws, including but not limited to The Americans with Disabilities Act (ADA). The
20 Commissioner shall require a waiting period of eight (8) weeks before
21 reexamination of an applicant who has twice failed to pass previous similar
22 examinations.
23 (7) The applicant for the limited adjuster license or renewal license
24 shall not be required to obtain pre-licensure education hours under Ark. Code
25 Ann. Sections 23-64-202 and 203 or Department Rule and Regulation 31, nor
26 continuing education hours under Sections 23-64-301, et seq., or Department
27 Rule and Regulation 50.
28 (8) The employees of self-insured plans or entities or employees of
29 corporate subsidiaries or affiliates of the self-insured plan or entity are eligible for
30 the limited adjuster license provided under this Rule and Regulation.
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32 B. APPLICATION. Each applicant for the limited adjuster’s license shall
33 complete and submit the written application form, in format prescribed by or
34 acceptable to the Commissioner, accompanied by a letter or other
35 documentation from the sponsor confirming active full-time employment of the
36 applicant, and accompanied by the fees for adjusters’ licenses established by
37 Ark. Code Ann. §23-61-401 and Department Rule and Regulation 57. Such fees
38 shall be payable by check or money order to “The State Insurance Department
39 Trust Fund”, and are nonrefundable.
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41 C. LICENSE ISSUANCE AND ANNUAL RENEWAL.
42 (1) The Commissioner may issue the limited adjuster's license for
43 property insurance, casualty insurance, workers' compensation insurance, life
44 insurance, disability insurance, or any combination thereof to individuals meeting
45 all applicable qualifications of this Rule and Regulation, including successful
46 examinations and payment of proper fees. The Commissioner shall issue a
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1 license on a form he shall prescribe to the limited adjuster upon successful
2 completion of these requirements by the applicant. The term of the limited
3 adjuster license shall be one year. Within one year from issuance date, the
4 license shall be renewable on or before the licensee's birthday, and annually on
5 the birthday thereafter.
6 (2) The limited adjuster shall at the anniversary remit the annual
7 renewal fee for adjusters under Rule & Regulation 57, or have his self-insured
8 employer or any licensing bureau remit it to the Department by check or money
9 order payable to “The State Insurance Department Trust Fund”.
10 (3) With the renewal the applicant or licensing bureau shall submit a
11 letter or other evidence from the self-insured employer confirming that the
12 applicant is eligible for licensure because he is a full-time employee of the
13 employer. Alternately, the limited adjuster may continue his license upon
14 submission of proof by letter or other documentation that he has a new employer
15 and he is employed full-time in the same capacity as a claims representative for
16 the new employer which is a self-insured entity transacting business in Arkansas,
17 so long as the limited adjuster demonstrates to the Commissioner’s satisfaction
18 that he continues to meet the eligibility requirements for such license under Act
19 1004 of 1997 and this Rule and Regulation, and other applicable laws.
20 (4) The limited adjuster or his self-insured employer or licensing
21 bureau shall also pay the Rule 57 fee of $35 (ARF Fee) on or before the
22 licensee's birthday as required in Act 1004 of 1997.
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24 D. LICENSE CONTINUATION. Licenses of individual persons granted
25 limited adjuster's licenses by the Commissioner under his discretionary authority
26 pursuant to Ark. Code Ann. §23-61-103(a)(b) and other applicable laws before
27 the effective date of this Rule shall continue in full force and effect, but subject to
28 the provisions of this Rule after it is effective, and without the necessity to
29 requalify hereunder except as to the effect or impact of licensing provisions as to
30 felons under Arkansas Act 217 of 1997, codified as Ark. Code Ann. §§23-66-501,
31 et seq.
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33 E. LAWS APPLICABLE. Except where they conflict with this Rule, the
34 provisions of the Insurance Code, Ark. Code Ann. §§23-60-101, et seq., and the
35 Commissioner's Rules and Regulations shall apply to limited adjuster licenses
36 and applicants.
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38
39 SECTION 5. LICENSE TERMINATION OR NONRENEWAL
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41 A. The Commissioner may suspend or revoke upon notice and a hearing, or
42 nonrenew or refuse to continue without notice and a hearing the license of any
43 limited adjuster who has failed to comply with the license continuation provisions
44 of Ark. Code Ann. Section 23-64-215, as amended by Act 1004 of 1997,
45 including failure of the limited adjuster to remit or timely remit the annual fees or
46 ARF fees to the Commissioner. Alternately the Commissioner may in his
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1 discretion impose a monetary penalty in the amounts contained in Ark. Code
2 Ann. Section 23-64-216, as amended by Act 1004 of 1997.
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4 B. The Commissioner may immediately terminate, cancel or expire any
5 license of a limited adjuster without notice or a hearing upon adequate proof that
6 the limited adjuster is no longer a full-time employee of the self-insured employer;
7 or upon adequate proof that the self-insured employer has terminated its self-
8 insurance plan or has gone out of business, or no longer has insured employees
9 within the State of Arkansas; or upon adequate proof that the limited adjuster is
10 no longer employed as an adjuster or claims representative for the self-insured
11 entity or employer but has been hired in a new capacity by such employer.
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13 C. The Commissioner may suspend, revoke, or nonrenew or refuse to
14 continue the license of any limited adjuster who is in violation of or
15 noncompliance with the provisions of the Unfair Trade Practices laws of the State
16 under Ark. Code Ann. Sections 23-66-201, et seq., and Sections 23-66-301, et
17 seq., or with the license provisions under Ark. Code Ann. Sections 23-64-101, et
18 seq., 23-64-201, et seq., particularly Section 23-64-216 as amended by Act 1004
19 of 1997, or is in violation of the laws of the State of Arkansas, the Insurance
20 Code or rules and regulations of the Commissioner.
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22 D. Administrative proceedings under this Rule and Regulation shall be
23 conducted under the Administrative Procedure Act, Ark. Code Ann. §§25-15-201,
24 et seq. as applicable, or under the provisions of the Insurance Code under Ark.
25 Code Ann. Sections 23-61-301, et seq.
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27 E. The Commissioner may not again issue any license to an applicant or
28 limited adjuster whose other insurance license under the Insurance laws has
29 been suspended or revoked, or whose limited adjuster license under this Rule
30 and Regulation has been revoked.
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32 F. Upon any revocation, suspension, cancellation, expiration or lapse, the
33 limited adjuster license shall be returned to the Department as the property of the
34 State of Arkansas.
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37 SECTION 6. TPA REGISTRATION NOT REQUIRED
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39 The applicants or renewal applicants for the limited adjuster license shall
40 not be deemed to be “third party administrators” (“TPA’s”) under the provisions of
41 Ark. Code Ann. Sections 23-92-201, et seq.; nor shall such applicants or renewal
42 applicants be required to obtain the TPA registration from the Commissioner.
43 Third party administrators registered or licensed by the Commissioner shall not
44 be required to obtain the limited adjuster license under the provisions of Act 1004
45 of 1997 or this Rule and Regulation. The licenses for limited adjusters and third
46 party administrators shall be deemed mutually exclusive by the Department.
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1 SECTION 7. EFFECTIVE DATE
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3 The provisions of this Rule and Regulation shall be effective on and after
4 April 15, 1998, upon signature and statutory filing by the Commissioner.
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7 SECTION 8. SEVERABILITY
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9 Any section or provision of this Rule and Regulation held by a court to be
10 invalid or unconstitutional shall not affect the validity of any other section or
11 provision of this Rule.
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13
14 ______________________ ________
15 Mike Pickens
16 Insurance Commissioner
17 State of Arkansas
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19
20 _______________________________
21 Date
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