Ark. Agents Have License Revoked for Reportedly Selling Illegal Health Plans

June 3, 2003

Arkansas Insurance Commissioner Mike Pickens announced that the license for four insurance agents who reportedly sold or were involved in the marketing of an unauthorized health plan in the State of Arkansas have been revoked. Commissioner Pickens last month revoked the insurance license of former agents Billy Dean Mullins of Conway, Cassondra Ann Kimble, John Anthony Markovich, and Helen Marie Markovich, all of Pocahontas, for their involvement with TRG Marketing, LLC.

TRG Marketing, LLC was ordered in 2002 to cease and desist operating in the State of Arkansas due to the company’s reported sale of an illegal health care plan. The company had claimed the multiple employer welfare arrangement (MEWA) plan to be set up pursuant to the Employee Retirement Income Security Act (ERISA) and was therefore exempt from state regulation. That claim was reportedly proven to be untrue.

“We take seriously the sale and operation of illegal health plans in the State of Arkansas,” Commissioner Pickens said. “A new law, enacted earlier this year places more responsibility on the agent to ensure that the product he or she markets or sales in the State of Arkansas is a legitimate one.”

Act 516 of 2003 states that any person or entity that knowingly represents or aids in the negotiation of an unauthorized product shall be guilty of a Class D felony. According to this law, those individuals or entities could be held personally liable for all damages caused by those acts, including claims not paid by the unauthorized individual/entity.

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