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" by explicitly stating that it does not include the aforementioned business relations with insurance agents. It also includes a provision that retroactively applies these clarifications to previous acts from 1991, ensuring that the new definitions and exclusions are consistent with past legal interpretations. Overall, the bill aims to codify existing case law and prevent any alterations or extensions to it.

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