1. (a) Eligibility.

   1. (1)

      1. (A) On and after the effective date of this part, self-insured or self-funded entities may sponsor their employees for limited adjusters’ licenses with the State Insurance Department.
      2. (B) In order to be eligible for licensure, the individual persons must be current, full-time employees of the sponsoring self-insured or self-funded entity, not independent contractors for such sponsors.
   2. (2) Eligibility for such licensure shall cease upon the effective date of termination of the applicant’s or licensee’s employment with the sponsoring self-insured or self-funded entity for any reason by either party.
   3. (3) The applicant shall be of legal age of majority or have the disabilities of minority removed by a court of law for all general purposes and provide evidence of same.

   4. (4) The applicant must be a:

      1. (A) Resident of the State of Arkansas;
      2. (B) Resident of another state which will permit residents of Arkansas to act as an adjuster or limited adjuster in the other state; or
      3. (C) Nonresident who meets or will meet the requirements imposed on a resident of this state.

   5. (5)

      1. (A) The applicant must be a high school graduate or have obtained his or her GED (general equivalency diploma).
      2. (B) The applicant must be deemed by the Insurance Commissioner to be:

2. (i) Competent;

   1. (ii) Trustworthy;

      1. (iii) Financially responsible;

         1. (iv) Of good personal and business reputation; and
         2. (v) Not otherwise ineligible under the provisions of Acts 1997, No. 217, codified as Arkansas Code § 23-66-501 et seq., and other applicable laws.

   2. (6)

      1. (A) The applicant must pass a written examination as to his or her competence to act as a limited adjuster for the self-insured employer, with such examination based on the types of insurance which the applicant shall be adjusting.

      2. (B) The commissioner may specify that the applicant must pass:

         1. (i) An examination for property, casualty, or workers’ compensation insurance as is administered under Arkansas Code § 23-64-209 or other laws for adjusters;
         2. (ii) An examination for life and disability insurance as is administered under Arkansas Code § 23-64-203 or other laws for life and disability insurance agents; or
         3. (iii) Other examinations as the commissioner may prescribe in his or her license application instructions.
      3. (C) The commissioner may give, conduct, and grade all examinations, or he or she may arrange to have examinations administered and graded by an independent testing service as specified by contract, in a fair and impartial manner and without unfair discrimination as between individuals examined.

      4. (D)

         1. (i) An oral or other type examination may for good cause be substituted for a written examination of the applicant on his or her written request and if deemed necessary by any applicable laws, including but not limited to the Americans with Disabilities Act of 1990.
         2. (ii) The commissioner shall require a waiting period of eight (8) weeks before reexamination of an applicant who has twice failed to pass previous similar examinations.

   3. (7) The applicant for the limited adjuster’s license or renewal license shall not be required to obtain:

      1. (A) Prelicensure education hours under Arkansas Code §§ 23-64-202 and 23-64-203 or Prelicense Education for Producers, 23 CAR pt. 14; or
      2. (B) Continuing education hours under Arkansas Code § 23-64-301 et seq., or Continuing Education for Producers and Adjusters, 23 CAR pt. 18.
   4. (8) The employees of self-insured plans or entities or employees of corporate subsidiaries or affiliates of the self-insured plan or entity are eligible for the limited adjuster’s license provided under this part.

3. (b) Application. Each applicant for the limited adjuster’s license shall complete and submit the written application form, in format prescribed by or acceptable to the commissioner, accompanied by:

   1. (1) A letter or other documentation from the sponsor confirming active full-time employment of the applicant; and

   2. (2)

      1. (A) The fees for adjusters’ licenses established by Arkansas Code § 23-61-401 and State Insurance Department Administrative and Regulatory Fees, 23 CAR pt. 22.

      2. (B) Such fees shall be payable by check or money order to “The State Insurance Department Trust Fund” and are nonrefundable.

         1. (c) License issuance and annual renewal.

   3. (1)

      1. (A) The commissioner may issue the limited adjuster's license for property insurance, casualty insurance, workers' compensation insurance, life insurance, disability insurance, or any combination thereof to individuals meeting all applicable qualifications of this part, including successful examinations and payment of proper fees.
      2. (B) The commissioner shall issue a license on a form he or she shall prescribe to the limited adjuster upon successful completion of these requirements by the applicant.

      3. (C)

         1. (i) The term of the limited adjuster’s license shall be one (1) year.
         2. (ii) Within one (1) year from issuance date, the license shall be renewable on or before the licensee's birthday and annually on the birthday thereafter.
   4. (2) The limited adjuster shall at the anniversary remit the annual renewal fee for adjusters under State Insurance Department Administrative and Regulatory Fees or have his or her self-insured employer or any licensing bureau remit it to the department by check or money order payable to “The State Insurance Department Trust Fund”.

   5. (3)

      1. (A) With the renewal the applicant or licensing bureau shall submit a letter or other evidence from the self-insured employer confirming that the applicant is eligible for licensure because he or she is a full-time employee of the employer.

      2. (B) Alternately, the limited adjuster may continue his or he license upon submission of proof by letter or other documentation that he or she has a new employer and he or she is employed full time in the same capacity as a claims representative for the new employer which is a self-insured entity transacting business in Arkansas, so long as the limited adjuster demonstrates to the commissioner’s satisfaction that he or she continues to meet the eligibility requirements for such license under:

         1. (i) Acts 1997, No. 1004;
         2. (ii) This part; and
         3. (iii) Other applicable laws.

   6. (4) The limited adjuster or his or her self-insured employer or licensing bureau shall also pay the fee of thirty-five dollars ($35.00) (ARF fee) prescribed in State Insurance Department Administrative and Regulatory Fees on or before the licensee's birthday as required in Acts 1997, No. 1004.

      1. (d) License continuation. Licenses of individual persons granted limited adjuster's licenses by the commissioner under his or her discretionary authority pursuant to Arkansas Code § 23-61-103(a), (b) and other applicable laws before the effective date of this part shall continue in full force and effect, but subject to the provisions of this part after it is effective and without the necessity to requalify hereunder except as to the effect or impact of licensing provisions as to felons under Acts 1997, No. 217, codified as Arkansas Code § 23-66-501 et seq.
4. (e) Laws applicable. Except where they conflict with this part, the provisions of the Arkansas Insurance Code, Arkansas Code § 23-60-101 et seq., and the commissioner’s rules shall apply to limited adjuster’s licenses and applicants.

Codification Notes: Americans with Disabilities Act of 1990 is codified as 42 U.S.C. § 12101 et seq. "ARF" means administrative and regulatory fee.