SECTION 1. PURPOSE
The purpose of this Emergency Rule is to set the standards and
guidelines under which agents for Health Maintenance Organizations ("HMO") can
be licensed by the State of Arkansas.
SECTION 2. AUTHORITY: EMERGENCY ADOPTION
The authority for this Emergency Rule is the power given to the
Insurance Commissioner for the State of Arkansas by Ark. Code Ann. §§
23-61-108,
23-76-120,
and the emergency adoption provisions of the Administrative Procedure Act,
§
25-15-204(b),
et seq.
SECTION 3.
EFFECTIVE DATE: EMERGENCY
It is hereby declared that the immediate adoption of this Rule is
necessary to implement and clarify the provisions of Ark. Code Ann. §
23-76-120,
as to nonresident HMO agent licensure. Immediate adoption is necessary to
prevent imminent peril to the public health, safety or welfare to the citizens
of this State. Therefore the provisions of this Emergency Rule shall become
effective immediately upon signature by the Commissioner and filing. The
Emergency Rule shall expire one hundred and twenty (120) days from its
effective date, unless sooner replaced with a permanent Rule adopted by the
Commissioner after public notice and a hearing.
SECTION 4. APPLICABILITY AND SCOPE '
This Emergency Rule shall apply to all persons engaged in the
business of marketing contracts, soliciting enrollments, or offering
memberships with a Health Maintenance Organization.
SECTION 5. DEFINITIONS
a) "Agent" means any person who engages in
solicitation and enrollment for any Health Maintenance Organization, but shall
* exclude any salaried officer or employee who has duties that
are primarily administrative and who receives no commission for applications
taken or enrollments made.
b) "Applicant" means any person, firm or
corporation who has applied for a certificate of authority as a Health
Maintenance Organization.
SECTION
6. LICENSE QUALIFICATIONS
a)
Every person applying for an agent license shall be qualified as follows:
(1) Must be of legal age. *
(2) Must be a resident of this state or a
licensed non-resident.
(3) 'Must be
appointed by a licensed Health" Maintenance Organization or an applicant for
said license.
(4) Must be deemed by
the Commissioner to be competent,
trustworthy, financially responsible and of good personal and
business reputation.
(5)
Must pass such written examination as required by the Commissioner.
SECTION 7. FEES
a) There shall be a Thirty Dollar ($30.00)
examination fee paid to the Commissioner prior to the examination, and a $30.00
retake fee.
b) There shall be a
Twenty-Five Dollar ($25.00) licensing fee paid to the Commissioner for the
issuance of an agent's license.
c)
There shall be a Twenty-Five Dollar ($25.00) renewal fee paid to the
Commissioner for the renewal of an agent's license.
d) There shall be a Thirty-five Dollar
($35.00) regulatory fee (ALF fee) due annually from each licensee per
Commissioner's Rule 57.
SECTION
8. TERM OF LICENSE
Every license issued under this Emergency Rule shall be valid for
the calendar year when issued and must be renewed annually. Licenses will be
renewed when the Department receives written notice and agent appointments from
the HMO of its' intent to have its agents' licenses continued.
SECTION 9. REVOCATION AND
SUSPENSION OF LICENSE
a) The Commissioner may
suspend, for not more than twelve (12) months, or may revoke or refuse to
continue any license issued under this Emergency Rule after notice to the
licensee and a hearing is held under the provisions of Ark Code Ann.
§§
23-61-303, et
seq., and the Commissioner finds that any one or more of the following causes
exist:
(1) Any cause for which issuance of
the license could have been refused had it then existed and been known to the
Commissioner.
(2) Violation of or
noncompliance with any provision of the insurance code, or for willful
violation of any rule, regulation or order of the Commissioner.
(3) Obtaining or attempting to obtain any
such license through fraud or misrepresentation.
(4) Misappropriation or conversion to his.-
own use any moneys received through the course of business that do not belong
to him.
(5) Conviction of a
felony.
(6) If in the conduct of
his affairs, the licensee has used fraudulent, or dishonest practices, or trade
practices prohibited by the insurance code.
b) If the Commissioner finds that any one (1)
or more grounds exist for the suspension or revocation of any license, the
Commissioner may in his discretion, in lieu of such suspension or revocation,
impose an administrative penalty in the amount of three hundred dollars ($300),
or if the Commissioner has found willful misconduct or willful violation by the
licensee, one thousand dollars ($1,000).
SECTION 10. SEVERABILITY
Any section or provision of this Emergency Rule held by a court
to be invalid or unconstitutional will not affect the validity of any other
section or provision of this rule.
