What is the consequence for knowingly selling insurance products with an unlicensed individual in Arkansas?

In Arkansas, the law specifies serious legal consequences for knowingly engaging in the sale of insurance products with an unlicensed individual. The classification as a Class D felony reflects the state's intent to address this issue rigorously. A Class D felony typically involves offenses that are considered more severe than misdemeanors but less severe than Class A or B felonies. This classification underscores the importance of maintaining regulatory standards in the insurance industry, protecting consumers, and ensuring that all agents and brokers are properly licensed.

Conducting business with unlicensed individuals not only undermines the integrity of the insurance market but also poses risks to consumers who rely on these products for protection and security. Therefore, the legal framework in Arkansas seeks to deter such practices by imposing heavy penalties, reinforcing the critical role of licensing in adding a layer of accountability and professionalism to the insurance sector.