Required Reporting of Disciplinary Actions Pursuant to the Military Personnel Financial Services Protection Act

Arkansas Insurance Department Mike Beebe Julie Benafield Bowman Governor Commissioner 1200 West Third Street, Little Rock, AR 72201-1904 · (501) 371-2600 · (501) 371-2618 fax · www.insurance.arkansas.gov Information (800) 282-9134 · Consumer Services (800) 852-5494 · Seniors (800) 224-6330 · Criminal Inv. (866) 660-0888 February 26, 2008 BULLETIN NO. 4-2008 TO: ALL LIFE INSURERS, THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS, TRADE ASSOCIATIONS, AND OTHER INTERESTED PARTIES FROM: ARKANSAS INSURANCE DEPARTMENT RE: REQUIRED REPORTING OF DISCIPLINARY ACTIONS PURSUANT TO THE MILITARY PERSONNEL FINANCIAL SERVICES PROTECTION ACT On September 29, 2006, President Bush signed the Military Personnel Financial Services Act (“Act”), Pub. L. No. 109-290 (2006). Effective September 29, 2007, the Act prohibits an insurer from entering into or renewing a contractual relationship with an insurance producer or other person who sells life insurance on a military installation unless the insurer has implemented a system to report disciplinary actions taken by the insurer or any federal or state government entity against its producers for conduct occurring on a military installation. The insurer is required to report such disciplinary actions to both its domiciliary regulator and to the producer’s resident regulator. This system of reporting is hereinafter referred to as “The Federal Reporting Requirement.” To simplify the Federal Reporting Requirement for insurers, the National Association of Insurance Commissioners (“NAIC”) has implemented a Military Sales Online Reporting System that may be accessed via the NAIC’s website at https://external-apps.naic.org/msors/. The Military Sales Online Reporting System will forward the reported information to all appropriate state insurance departments. Reporting via the Military Sales Online Reporting System will satisfy the mandate of the Act. We strongly encourage insurers to use the Military Sales Online Reporting System. All insurers doing business in this state must comply with the Federal Reporting Requirement and shall demonstrate to the Insurance Commissioner, upon request, that they have complied with the reporting requirements. Questions concerning this Bulletin should be directed to the Arkansas Insurance Department’s Legal Division at (501) 371-2820 or via e-mail to insurance.legal@arkansas.gov. (signed by Julie Benafield Bowman) _______________________________ JULIE BENAFIELD BOWMAN INSURANCE COMMISSIONER STATE OF ARKANSAS (February 26, 2008) ______________________________ DATE