6/E - AR Adjuster Licensing and the Role of the Commissioner

Question 1

License and Lines of Authority

Answer 1

License Required
Any individual who adjusts losses or investigates claims on behalf of an insurer in AR must have a license

Lines of Authority
AR offers several lines of authority for an adjuster license. This allows an adjuster to negotiate claims for one or more of the following lines:
- Property Adjuster
- Casualty Adjuster
- Workers' Compensation Adjuster
- Any combination of the above lines

Question 2

Qualifications and Process

Answer 2

Resident:

• Be at least 18 years old
• Be an AR resident
• Be competent, trustworthy, financially responsible, and of good repute
• Fulfill ONE of the following:
  a. have the experience or special education needed to be able to fulfill the responsibilities of an adjuster and handle Property, Casualty and Workers’ Comp claims
  b. be a full-time salaried employee of a licensed adjuster
  c. be a graduate of a recognized law school
  d. complete the required AR adjuster pre-licensing course
• Pass the licensing examination in the 2 years before applying
• Maintain an office accessible to the public
• Complete the license application
• Complete fingerprinting
• Pay application fee of $120

Non-Resident:

• Be at least 18 years old
• Be trustworthy
• Have the experience or special education needed to be able to fulfill the responsibilities of an adjuster
• Live in a state that grants non-resident licenses to AR adjusters
• Fulfill ONE of the following:
  a. hold and maintain a current resident adjuster license, for which you passed an exam, in your home state (or in a designated home state if your home state does not require an exam for licensure)
  b. if you do not currently hold a resident or DHS license, complete all of the requirements of an AR resident adjuster and designate AR as your home state for licensing purposes

Question 3

License Maintenance

Answer 3

Change of Name
An adjuster must notify the commissioner of a change of name within 30 days

Renewal

• Licenses expire every 2 years on the last day of licensee’s birth month
• $120 renewal fee per 2-year renewal period
• 24 hours of CE is required, including 3 hours of ethics

Lapsed License

• A lapsed license may be reinstated within 12 months of expiration without retaking exam
• Renewal fee is doubled

Question 4

License Denial, Suspension, Revocation, and Penalties

Answer 4

The following are grounds for license suspension or revocation in AR:

1. Providing incorrect, misleading, incomplete, or materiality untrue information in the license application
2. Violating any insurance law or any regulation, subpoena, or order of the commissioner or any other state’s insurance commissioner
3. Obtaining or attempting to obtain a license through misrepresentation or fraud
4. Improperly handling any money received in the course of doing insurance business
5. Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance
6. Being convicted of a felony
7. Committing any insurance unfair trade practice or fraud
8. Using fraudulent, coercive or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility while conducting insurance business
9. Having an insurance producer, consultant or adjuster license (or its equivalent) denied, suspended, or revoked in any other state, province, district, or territory
10. Forging someone’s name on any document related to an insurance transaction
11. Improperly using notes or materials to complete an insurance license examination
12. Knowingly accepting insurance business from an unlicensed individual
13. Failing to pay child support
14. Failing to pay state income tax

Question 5

Loss of License and Reinstatement

Answer 5

Suspension or Revocation

• Commissioner may suspend or revoke an adjuster’s license or administer a fine of up to $1,000 for committing a prohibited act
• For wilful misconduct, the fine can go up to $5,000 per violation

Procedure Following Suspension or Revocation

• The commissioner must notify the license immediately
• The license must surrender the license to the commissioner

Adjusters who move out of AR must give their license to the commissioner within 10 days.

Reinstatement
The commissioner can reinstate a license after 3 years, if the licensee:
1. Pays applicable fines and penalties
2. Pays restitution of actual losses when necessary
3. Re-qualifies for the license under AR Insurance Code