Key Takeaways
- Arkansas producers have fiduciary duties to act in the best interest of clients
- Producers must disclose compensation arrangements when requested
- Trust funds and premiums must be handled according to strict requirements
- Records must be maintained for required periods
- Continuing education includes ethics training requirements
Last updated: January 2026
Producer Conduct and Fiduciary Duties
Arkansas insurance producers have legal and ethical obligations to their clients and the public.
Fiduciary Duties
A fiduciary is someone who acts in another's best interest. Insurance producers owe fiduciary duties to their clients:
Core Duties
| Duty | Description |
|---|---|
| Disclosure | Reveal material information affecting decisions |
| Competence | Maintain knowledge to serve clients properly |
| Diligence | Act promptly and thoroughly on client behalf |
| Confidentiality | Protect private client information |
| Loyalty | Act in client's best interest |
Agent vs. Broker Duties
| Producer Type | Primary Duty To |
|---|---|
| Agent | Insurance company (but still must be fair to client) |
| Broker | Client/Insured |
Disclosure Requirements
Arkansas producers must disclose:
- Policy Terms: All material features and limitations
- Exclusions: What is not covered
- Costs: Premiums, fees, and charges
- Compensation: When requested by client
- Conflicts: Any conflicts of interest
Handling of Funds
Producers must handle premiums and client funds according to strict rules:
| Requirement | Rule |
|---|---|
| Deposit | Promptly to insurer or trust account |
| Commingling | Cannot mix with personal funds |
| Trust Account | Required for holding premiums |
| Records | Must maintain detailed records |
Record Keeping
Arkansas requires producers to maintain records including:
- Applications and policy documentation
- Correspondence with clients
- Transaction records
- Suitability documentation
Privacy and Confidentiality
Arkansas producers must protect:
- Social Security numbers
- Financial account information
- Health information
- Personal identifying information
Test Your Knowledge
Which type of Arkansas insurance producer primarily represents the client rather than the insurer?
A
B
C
D
Test Your Knowledge
When must an Arkansas producer disclose their compensation to a client?
A
B
C
D