Key Takeaways
- Producers must act with honesty, integrity, and in clients' best interests
- Prohibited practices include misrepresentation, rebating, and unfair discrimination
- Fiduciary duty requires proper handling of premiums and client funds
- Arkansas enforces strict ethical standards through investigation and discipline
- License violations can result in suspension, revocation, and fines
Last updated: January 2026
Arkansas Producer Responsibilities
Fiduciary Duties
Arkansas producers must:
- Act in clients' best interests
- Handle premiums properly
- Disclose material information
- Maintain confidentiality
- Provide competent service
Prohibited Practices
| Practice | Description | Penalty |
|---|---|---|
| Misrepresentation | False statements about coverage | Suspension/revocation |
| Rebating | Offering inducements not in policy | Revocation, fines |
| Twisting | Misrepresenting facts to induce replacement | Revocation |
| Unfair Discrimination | Using non-risk-based factors | Fines, discipline |
Record Keeping
Producers must maintain records for 5 years:
- Applications and policies
- Claims files
- Premium records
- Correspondence
- CE certificates
Exam Tip: Arkansas strictly prohibits rebating. Producers cannot share commissions or offer valuable inducements beyond what's specified in filed policies.
Test Your Knowledge
What is rebating in Arkansas insurance law?
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