Liable Charges: Misdemeanor, Felony

“(a) A person commits an offense if, with intent to obtain a direct economic benefit for himself or herself, the person:

   (1) Contracts with any person to represent that person with regard to personal causes of action for property damages or personal injury;

   (2) Advises any person as to the person’s rights and the advisability of making claims for personal injuries or property damages;

   (3) Advises any person as to whether or not to accept an offered sum of money in settlement of claims for personal injuries or property damages;

   (4) Enters into any contract with another person to represent that person in personal injury or property damage matters on a contingent fee basis with an attempted assignment of a portion of the person’s cause of action;

   (5) Enters into any contract, except a contract of insurance, with a third person which purports to grant the exclusive right to select and retain legal counsel to represent the individual in any legal proceeding; or

   (6) Contacts any person by telephone or in person for the purpose of soliciting business which is legal in nature, as set forth above.

(b) This section does not apply to a person currently licensed to practice law in this state, another state, or a foreign country and in good standing with the State Bar of Arkansas and the state bar or licensing authority of any and all other states and foreign countries where licensed.

(c) Except as provided by subsection (d) of this section, an offense under subsection (a) of this section is a Class A misdemeanor.

(d) An offense under subsection (a) of this section is a Class D felony if it is shown on the trial of the offense that the defendant has previously been convicted under subsection (a) of this section

(e) This section shall not apply to a person who is licensed as an adjuster or employed as an adjuster by an insurer as authorized by § 23-64-101.”

—§ 16-22-501