2010 Arkansas Code
Title 23 - Public Utilities and Regulated Industries
Subtitle 3 - Insurance
Chapter 91 - PrePaid Legal Insurance
Subchapter 2 - Arkansas Legal Insurance Act
§ 23-91-203 - Definitions.

23-91-203. Definitions.

As used in this subchapter:

(1) "Commissioner" means the Insurance Commissioner;

(2) "Insurer" means any person who obtains a certificate of authority under this subchapter;

(3) (A) "Legal insurance" means that assumption of a contractual obligation to provide, during a specified interval of time, specified legal services or reimbursement for legal expenses in consideration of a specified payment, regardless of whether the payment is made by the beneficiaries individually or by a third person for them, in such a manner that the total cost incurred by assuming the obligation is to be spread directly or indirectly among a group of persons. It does not include the provision of, or reimbursement for, legal services incidental to other insurance coverages. The following are not considered insurance under the insurance laws of this state:

(i) Retainer contracts made with individual clients with the fees based on estimates of the nature and amount of services that will be provided to the specific client and similar contracts made with a group of clients involved in the same or closely related legal matters such as class actions;

(ii) The providing of no benefits other than consultation and advice in connection with, or a part of, referral services;

(iii) The providing of limited legal services regarding simple legal matters on an informal basis, not involving a legally binding promise, in the context of an employment, educational, or similar relationship;

(iv) Legal services provided by unions or employee associations to their members in matters relating to employment or occupation; and

(v) Legal services provided by an agency of the federal or state government or a subdivision thereof to its employees.

(B) "Contractual obligation" in subdivision (3)(A) of this section includes any arrangement in which those persons for whom services are to be provided under the arrangement have reasonable expectations of enforceable rights; and

(4) "Person" means the definition as used in 23-60-102.