23 CAR § 43-306. Notice of Investigative Conference

(a)(1) In the event that a licensee's response to a complaint or inquiry fails to sufficiently respond to the complaint or inquiry, or there is a need for additional information from the licensee by the State Insurance Department to adequately evaluate the complaint or inquiry, a licensee may receive a written Notice of Investigative Conference (NOIC) from the department. (2) An NOIC shall be a written request from the department for the licensee to attend a recorded conference at the department to discuss matters pertaining to the complaint. (3) The NOIC shall set the time, date, and location of the conference. (4) A licensee is entitled in the NOIC to be represented by counsel. (5) The NOIC may be transcribed, and the licensee's statements shall be taken under oath. (6) An NOIC may additionally request from the licensee that the licensee produce records or files as identified in the NOIC at the time of the NOIC. (7) In the event of conflict, hardship, or good cause, the department may reschedule an NOIC, or the department and the licensee may mutually agree as to a different date of the NOIC conference. (8) The NOIC shall consist of department personnel, the licensee, and counsel for the licensee. (9) The NOIC shall be considered an active, investigatory action that is confidential under Arkansas Code § 23-61-103(d). (10) Upon request, a licensee may obtain a copy of any statements of the licensee obtained during an NOIC within a reasonable time from the department after such statements are transcribed. (11) If permitted by the department, the conference required under the NOIC may take place through live video conferencing. (b) Failure to attend an NOIC. (1) The department strongly encourages all licensees to attend a requested NOIC. (2) For insurance producers, a failure to attend an NOIC may be grounds for sanctions under Arkansas Code § 23-64-512(a)(16), which involves refusing to be examined or to produce any accounts, records, or files for examination, in addition to Arkansas Code § 23-64-512(a)(17), for failing to cooperate with the commissioner in an investigation when required by the commissioner. (3) The above sanctions may be imposed for failure to attend an NOIC regardless of the ultimate outcome of the investigation.