Committee approves bill clarifying nonresident insurance licenses, adding adjuster education requirements

House Bill 12 39 was presented to clarify how Arkansas treats nonresident insurance producers, adjusters and consultants when a license in the home state becomes inactive and to require specific courses for adjuster applicants before they sit for the Arkansas exam.

The sponsor explained that the bill makes clear a nonresident Arkansas license becomes inactive if the licensee loses an active license in their home jurisdiction. Jim Bridal of the Insurance Department told senators the state participates in a National Association of Insurance Commissioners (NAIC) data feed that updates license status daily, enabling Arkansas to detect when a licensee becomes inactive in another state. Bridal said, "We get a feed from them daily, and it will show if I'm licensed in Oklahoma and I go inactive, that's put out there for all other states to find." He emphasized the provision is ministerial and not intended to let bad conduct slip through; adverse‑conduct cases are handled through separate regulatory processes.

Senator Hickey raised an editorial concern about statutory phrasing that refers to the "insurance commissioner" and asked whether the authority should be described as vested in the department or the office; department counsel answered that authority follows the office and not the individual. The committee adopted an amendment and advanced the bill by voice vote.

The committee did not record a roll‑call tally in the hearing. The bill now moves to further consideration in the Senate.