# AR Insurance Bulletin 1-2001: JOINT BULLETIN-Sales of Securities Products by Insurance Agents > Arkansas · Agency guidance · In force URL: https://www.frixlaw.com/law-library/statutes/AR_INS_B_2001-01 ## Section - **Citation:** AR Insurance Bulletin 1-2001 - **Heading:** JOINT BULLETIN-Sales of Securities Products by Insurance Agents - **Jurisdiction:** Arkansas - **Kind:** Agency guidance - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Arkansas Insurance Department Bulletins and Directives / JOINT BULLETIN-Sales of Securities Products by Insurance Agents ## Text ARKANSAS INSURANCE DEPARTMENT LEGAL DIVISION 1200 West Third Street Little Rock, AR 72201-1904 501-371-2820 FAX 501-371-2639 January 16, 2001 JOINT BULLETIN NO. 1-2001 TO: ALL LICENSED INSURANCE AGENTS, AGENT ASSOCIATIONS, NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS, TRADE ASSOCIATIONS AND OTHER INTERESTED PARTIES FROM: ARKANSAS INSURANCE DEPARTMENT and ARKANSAS SECURITIES DEPARTMENT The Arkansas Insurance Department is aware that some insurance agents sell securities products in addition to insurance. These securities products may include customer owned coin operated telephones (COCOTS), Prime Bank notes, promissory notes, nine-month notes, commercial paper, and various other investment vehicles which are defined as a “security” under the Arkansas Securities Act (the “Act”). Some insurance agents sell these securities products without being properly licensed to do so by the Arkansas Securities Department. Under Ark. Code Ann. 23-42-301(a), no one may transact business as a securities broker-dealer or securities agent unless registered with the Securities Commissioner. Pursuant to Ark. Code Ann. 23-64-216(a)(2), the Insurance Commissioner intends to take action against insurance agents who improperly engage in transaction involving securities. The Securities Commissioner also has the authority to penalize insurance agents who act in violation of the securities laws of this state. You should not rely on any representations that an investment product is not subject to securities regulation. We understand that issuers and others frequently approach insurance agents to sell their product, but any opinion given by these issuers or their counsel could be incorrect or even fraudulent. We encourage you to contact the Securities Department with any questions regarding investment products you are solicited to sell ations that an investment product is not subject to securities regulation. We understand that issuers and others frequently approach insurance agents to sell their product, but any opinion given by these issuers or their counsel could be incorrect or even fraudulent. We encourage you to contact the Securities Department with any questions regarding investment products you are solicited to sell. Please also take note of the additional restrictions placed on agents that are registered with the Securities Commissioner. The Act prohibits any registered broker-dealer agent from selling any security that is not specifically approved by the broker-dealer. The NASD recommends the appropriate penalty for this practice (commonly referred to as “selling away”) may be an Order and a fine of $5,000. Selling away is also grounds for suspension or revocation of the broker-dealer agent’s license and will likely result in disciplinary action from the broker-dealer. Additionally, the Act prohibits a broker- dealer agent from guaranteeing a customer against loss. Finally, the Act prohibits the charging of excessive fees. While there is no absolute guideline, broker-dealer agents should be wary of any product offering an agent’s commission higher than 5% or where the total expenses of the offering, including commissions, exceed 15%. This bulletin is intended to notify you of some potential pitfalls that could subject you to civil litigation by investors and action by the Insurance Commissioner and Securities Commissioner, including criminal prosecution. Please protect yourself and your clients. ______________________ _____________________ Mac Dodson Mike Pickens Securities Commissioner Insurance Commissioner ## Nearby sections - [AR Insurance Bulletin 1-83 Mortgage Guaranty Insurance: Commitment Fees](https://www.frixlaw.com/law-library/statutes/AR_INS_B_1983-01.md) - [AR Insurance Bulletin 1-84 Act 357 Of 1983](https://www.frixlaw.com/law-library/statutes/AR_INS_B_1984-01.md) - [AR Insurance Bulletin 1-87 Policy Loan Interest Rates](https://www.frixlaw.com/law-library/statutes/AR_INS_B_1987-01.md) - [AR Insurance Bulletin 1-95 WC Employers Paying Claims Directly -- SEE 1-95 AMENDMENT ABOVE DATED AUGUST 4, 2011](https://www.frixlaw.com/law-library/statutes/AR_INS_B_1995-01.md) - [AR Insurance Bulletin 1-96 Personal Lines Loss Settlements](https://www.frixlaw.com/law-library/statutes/AR_INS_B_1996-01.md) - [AR Insurance Bulletin 1-98 Required Reports](https://www.frixlaw.com/law-library/statutes/AR_INS_B_1998-01.md) - [AR Insurance Bulletin 1-2001 JOINT BULLETIN-Sales of Securities Products by Insurance Agents](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2001-01.md) - [AR Insurance Bulletin 1-2002 Voluntary Expedited Filing Procedures For Exclusions Related To Acts Of Terrorism](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2002-01.md) - [AR Insurance Bulletin 1-2006 Act 1526 of 2005](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2006-01.md) - [AR Insurance Bulletin 1-2008 Filing Procedures for Compliance with the Provisions of the Terrorism Risk Insurance Program Re-authorization Act of 2007](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2008-01.md) - [AR Insurance Bulletin 1-2009 Ark. Code Ann. § 23-86-119 “Disclosure to Policyholders”](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2009-01.md) - [AR Insurance Bulletin 1-2010 Replacement of Life Insurance Policies or Annuity Contracts; Compliance with Department Rule 97](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2010-01.md) - [AR Insurance Bulletin 1-2013 Requirements for Accreditation for Participation in the Arkansas Federally-facilitated Exchange Partnership](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2013-01.md) - [AR Insurance Bulletin 1-2014 Requirement to Provide Additional Language to be Included with the Delivery of Their Individual Policies](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2014-01.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/AR_INS_B_2001-01. Check the current official text before relying on it. Not legal advice.