§ 23-64-502 — Definitions

Arkansas § 23-64-502

• Jurisdiction: Arkansas
• Title: 23

Text

For purposes of this subchapter: (1) "Business entity" means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity; (2) "Home state" means the District of Columbia and any state or territory of the United States in which an insurance producer maintains his or her principal place of residence or principal place of business and is licensed to act as an insurance producer; (3) "Insurance" means any of the lines of authority defined in §§ 23-62-101 - 23-62-108 ; (4) "Insurance producer" means a person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance; (5) "Insurer" means those entities defined in § 23-60-102 ; (6) "License" means a document issued by this state's Insurance Commissioner authorizing a person to act as an insurance producer for the lines of authority specified in the document. The license itself does not create any authority, actual, apparent, or inherent, in the holder to represent or commit an insurance carrier; (7) "Limited line credit insurance" includes credit life, credit disability, credit property, credit unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, guaranteed automobile protection (gap) insurance, and any other form of insurance offered in connection with an extension of credit that is limited to partially or wholly extinguishing that credit obligation that the commissioner determines should be designated a form of limited line credit insurance; (8) "Limited line credit insurance producer" means a person who sells, solicits, or negotiates one (1) or more forms of limited line credit insurance coverage to individuals through a master, corporate, group, or individual policy; (9) "Limited lines insurance" means those lines of insurance for crop hail insurance, mobile home physical damage insurance, prepaid legal insurance, and fire and marine insurance written in connection with credit transactions, or any other line of insurance that the commissioner deems necessary to recognize for the purposes of complying with § 23-64-508(e) ; (10) "Limited lines producer" means a person authorized by the commissioner to sell, solicit, or negotiate limited lines insurance; (11) "Negotiate" means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers; (12) "Person" means an individual or a business entity; (13) "Sell" means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company; (14) "Solicit" means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company; (15) "Terminate" means the cancellation of the relationship between an insurance producer and the insurer or the termination of a producer's authority to transact insurance; (16) "Uniform Business Entity Application" means the current version of the National Association of Insurance Commissioners' Uniform Business Entity Application License/Registration for resident and nonresident business entities; and (17) "Uniform Application" means the current version of the National Association of Insurance Commissioners' Uniform Application for resident and nonresident producer licensing.

Legislative History

Acts 2001, No. 580, § 1.