Arkansas Code
Chapter 96 - Arkansas Life and Health Insurance Guaranty Association Act
§ 23-96-105. Advertisement of association act in insurance sales — Notice to policy owners

(a)
(1) A person, including a member insurer, agent, or affiliate of a member insurer, shall not make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in any newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio station or television station, or in any other way, any advertisement, announcement, or statement, written or oral, which uses the existence of the Arkansas Life and Health Insurance Guaranty Association for the purpose of sales, solicitation, or inducement to purchase any form of insurance or other coverage covered by this chapter, except in conformity with the rules of the Insurance Commissioner.
(2) In adopting such rules, the commissioner, in consultation with the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association, shall take into consideration the following factors:
(A) The need of the public to have confidence in the financial soundness of insurance and health maintenance organization products offered for sale in this state;
(B) The financial integrity of member insurers doing business in this state; and
(C) The role of the association in serving as a safety net for policy owners, contract owners, insureds, certificate holders, enrollees, and beneficiaries of impaired insurers or insolvent insurers in this state.

(3) This section shall not apply to the association or any other entity which does not sell or solicit insurance or coverage by a health maintenance organization.

(b)
(1)
(A) Within one hundred eighty (180) days of March 9, 1989, the association shall prepare a summary document describing the general purpose and current limitations of this chapter and complying with subsection (c) of this section.
(B) The summary document required under subdivision (b)(1)(A) of this section shall be submitted to the commissioner for approval.
(C) Sixty (60) days after receiving such approval, a member insurer shall not deliver a policy or contract described in § 23-96-107(b) to a policy owner, contract owner, certificate holder, or enrollee unless the summary document is delivered to the policy owner, contract owner, certificate holder, or enrollee at the time of delivery of the policy or contract unless § 23-96-107(c) applies.

(2)
(A) The document should also be available upon request by a policy owner, contract owner, certificate holder, or enrollee.
(B) The distribution, delivery, or contents or interpretation of this document does not guarantee that either the policy or the contract or the policy owner, contract owner, certificate holder, or enrollee thereof is covered in the event of the impairment or insolvency of a member insurer.
(C) The description document shall be revised by the association as amendments to this chapter may require.
(D) Failure to receive this document does not give the policy owner, contract owner, certificate holder, enrollee, or insured any greater rights than those stated in this chapter.

(c)
(1) The document prepared under subsection (b) of this section shall contain a clear and conspicuous disclaimer on its face.
(2) The commissioner shall establish the form and content of the disclaimer.
(3) The disclaimer shall:
(A) State the name and address of the association and the State Insurance Department;
(B) Prominently warn the policy owner, contract owner, certificate holder, or enrollee that the association may not cover the policy or contract or, if coverage is available, that the coverage will be subject to substantial limitations, exclusions, and conditioned on continued residence in this state;
(C) State the types of policies or contracts for which guaranty funds will provide coverage;
(D) State that the member insurer and its agents are prohibited by law from using the existence of the association for the purpose of sales, solicitation, or inducement to purchase any form of insurance or health maintenance organization product;
(E) State that the policy owner, contract owner, certificate holder, or enrollee should not rely on coverage under the association when selecting an insurer or health maintenance organization;
(F) Explain rights available and procedures for filing a complaint of a violation of any provisions of this chapter; and
(G) Provide other information as directed by the commissioner, including without limitation sources of information about financial conditions of member insurers, if the information is not proprietary and is subject to disclosure under that state's public records law.