Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 62 - KINDS OF INSURANCE - REINSURANCE (§§ 23-62-101 — 23-62-413) › Subchapter 4 - REINSURANCE INTERMEDIARY ACT (§§ 23-62-401 — 23-62-413) › Section 23-62-404 - Licensure

(a)
No person, firm, association, or corporation shall act as a reinsurance intermediary broker in this state if the reinsurance intermediary broker maintains an office either directly, or as a member or employee of a firm or association, or as an officer, director, or employee of a corporation:
(1)
In this state, unless the reinsurance intermediary broker is a licensed producer in this state; or
(2)
In another state, unless the reinsurance intermediary broker is a licensed producer in this state or the reinsurance intermediary broker is licensed in this state as a nonresident reinsurance intermediary.
(b)
No person, firm, association, or corporation shall act as a reinsurance intermediary manager:
(1)
For a reinsurer domiciled in this state, unless the reinsurance intermediary manager is a licensed producer in this state;
(2)
In this state, if the reinsurance intermediary manager maintains an office either directly or as a member or employee of a firm or association, or as an officer, director, or employee of a corporation in this state, unless the reinsurance intermediary manager is a licensed producer in this state; and
(3)
In another state for a nondomestic insurer, unless the reinsurance intermediary manager is a licensed producer in this state or the person is licensed in this state as a nonresident reinsurance intermediary.
(c)
The Insurance Commissioner may require a reinsurance intermediary manager subject to subsection (b) of this section to:
(1)
File a bond in an amount from an insurer acceptable to the commissioner for the protection of the reinsurer; and
(2)
Maintain an errors and omissions policy in an amount acceptable to the commissioner.
(d)
(1)
(A)
The commissioner may issue a reinsurance intermediary license to any person, firm, association, or corporation who has complied with the requirements of this subchapter.
(B)
Any such license issued to a firm or association will authorize all the members of the firm or association and any designated employees to act as reinsurance intermediaries under the license, and all such persons shall be named in the application and any supplements thereto.
(C)
Any such license issued to a corporation shall authorize all of the officers, and any designated employees and directors thereof, to act as reinsurance intermediaries on behalf of the corporation, and all such persons shall be named in the application and any supplements thereto.
(2)
(A)
If the applicant for a reinsurance intermediary license is a nonresident, the applicant, as a condition precedent to receiving or holding a license, shall designate the commissioner as agent for service of process in the manner, and with the same legal effect, provided for by this subchapter for designation of service of process upon unauthorized insurers; and also shall furnish the commissioner with the name and address of a resident of this state upon whom notices or orders of the commissioner or process affecting the nonresident reinsurance intermediary may be served.
(B)
The licensee shall promptly notify the commissioner in writing of every change in its designated agent for service of process, and the change shall not become effective until acknowledged by the commissioner.
(e)
(1)
The commissioner may refuse to issue a reinsurance intermediary license if, in his or her judgment, the applicant, anyone named on the application, or any member, principal, officer, or director of the applicant is not trustworthy, or that any controlling person of the applicant is not trustworthy to act as a reinsurance intermediary, or that any one (1) of the foregoing has given cause for revocation or suspension of the license, or has failed to comply with any prerequisite for the issuance of the license.
(2)
Upon written request therefor, the commissioner will furnish a summary of the basis for refusal to issue a license, which document shall be privileged and not subject to the Freedom of Information Act of 1967, §
25-19-101
et seq.
(f)
Licensed attorneys at law of this state when acting in their professional capacity as such shall be exempt from this section.
Acts 1993, No. 527, § 1; 1995, No. 1272, §§ 8, 9.