The bill amends the Arkansas Franchise Practices Act to clarify its applicability, specifically regarding the relationship between insurance companies and their agents. It establishes that the Arkansas Franchise Practices Act does not apply to business relations, actions, or transactions between an insurance company and an insurance agent who solicits or sells insurance on behalf of the company. This clarification is supported by legislative findings that reference previous Supreme Court rulings, which affirmed that such relationships do not constitute a franchise under the Act.

Additionally, the bill introduces new legal language to define "franchise" and outlines that the Act's provisions do not pertain to the specified relationships between insurance companies and agents. The amendments are retroactive, applying to the effective dates of previous acts from 1991. This legislative change aims to codify existing case law and ensure that the definitions and applicability of the Arkansas Franchise Practices Act are consistent with judicial interpretations.

Statutes affected:
HB 1177: 4-72-202(1), 4-72-203