§ 23-66-404 - Required practices. - Arkansas Statutes

23-66-404. Required practices.

Each insurer engaged in the home service system of distribution of policies in this state shall:

(1) (A) Establish written procedures to audit agencies engaged in the home service system of distribution of policies in this state;

(B) File the audit procedures in effect each year with the annual statement or provide a certification with each annual statement that the procedures have been adopted;

(C) Conduct audits periodically, or in the manner as described by rules and regulation, at the field level or premium payor level which reasonably ensure that the premium payor's premium recording item or records accurately reflect the premium due date and premium paid-to status of the policy or policies purchased;

(D) Provide a receipt or record to the premium payor reflecting the amount of the premium paid, the date of payment, and the policy number, or other identifying characteristics, toward which the premium is paid if the premium receipt book or other premium recording record is unavailable for marking the premium payments of the payor; and

(E) Provide to a policy owner or premium payor upon request the current paid-to status of any and all policies owned within forty-five (45) days, and, in the event the records of the policy owner or premium payor differ, adjust the company records to credit the policy any previously uncredited payments for which a receipt or other reasonable evidence of payment is submitted by the policy owner; and

(2) With the delivery of the policy, provide notice in bold print with at least ten-point font or size which states:

(A) That a premium savings may be realized by a different or less frequent method of premium payment;

(B) That premiums are still due and payable by the person responsible for premium payments even when an agent does not collect the premiums; and

(C) The mailing address for payment of premiums to the company.