2014 Arkansas Code
Title 23 - Public Utilities and Regulated Industries
Subtitle 3 - Insurance
Chapter 92 - Multiple Employer Trusts And Self-insured Plans
Subchapter 4 - Arkansas Professional Employer Organization Recognition and Licensing Act
§ 23-92-411 - Deceptive practices.

(a) No professional employer organization shall:

(1) Evade or attempt to evade the provisions of this subchapter by purporting to be the sole employer of the covered employees;

(2) Present a proposal to enter into a professional employer agreement with a prospective client unless the following notice is printed in not less than 12-point bold type on the first page of the proposal:

"This proposal is intended to provide information about the general terms and conditions under which the above named firm will enter into an agreement to provide professional employer services. Information contained in this proposal does not constitute advice on legal, tax, or insurance matters. For advice on these matters, you should consult with the appropriate licensed professional.";

(3) Enter into a professional employer agreement without a written provision signed by the client stating that the client is responsible for ensuring with the assistance of a licensed insurance producer that any subcontractor of the client has workers' compensation coverage as required by law;

(4) Transact insurance, as defined under § 23-60-102, except through a licensed resident or nonresident insurance producer;

(5) Use the name or title "licensed employee leasing company", "employee leasing company", "employee leasing company group", "professional employer", "professional employer organization", "PEO", "controlling person", or words that would tend to lead one to believe that the person or entity is licensed under this subchapter when the person or entity has not been licensed under this subchapter;

(6) Attempt to use a license that has lapsed or has been suspended or revoked;

(7) Fail to maintain workers' compensation insurance as required by this subchapter;

(8) Conduct business without an active license;

(9) Transfer or attempt to transfer a license issued under this subchapter;

(10) Violate or fail to conform to any provision of this subchapter or any lawful order or rule issued under this subchapter;

(11) Fail to notify the Insurance Commissioner in writing of any change of the primary business address or the addresses of any of the licensee's offices in the state;

(12) Have an adverse material final action taken by any state or federal regulatory agency for violations within the scope or control of the licensee;

(13) Fail to inform the commissioner in writing within thirty (30) days after any adverse material final action by a state or federal regulatory agency;

(14) Fail to meet or maintain the requirements for licensure as a professional employer organization; or

(15) Attempt to obtain or renew a license to provide professional employment services by bribery, misrepresentation, or fraud.

(b) The commissioner may prescribe by regulation additional acts or omissions that shall be deemed to constitute deceptive practices under this subchapter.