When an ARC accredited agency fails to pay a debit memo, which action is NOT allowed for the ARC participating carrier?

• A. Direct ARC to terminate the Agent Reporting Agreement (ARA) with the agency
• B. Pursue collection through appropriate remedies
• C. Withhold future payments until resolution
• D. Place the agency on a payment hold pending investigation

Answer: (A)

When an ARC accredited agency doesn’t pay a debit memo, a carrier uses remedies to enforce payment and move toward resolution. The carrier can pursue collection through appropriate remedies, withhold future payments until resolution, or place the agency on a payment hold pending investigation. These actions are within the carrier’s authority and help protect the settlement process while the issue is resolved.

Directing ARC to terminate the Agent Reporting Agreement with the agency is not within the carrier’s power. Termination of the ARA is an ARC governance matter governed by ARC policies and procedures, not something a carrier can unilaterally impose.