Ark. Code Ann. § 23-69-134 — AR Code / Title 23 / Chapter 69 / Subchapter 1 / Section 23-69-134
Maintenance of home office and records - Definitions
Status: in_force

(a) Every domestic insurer shall have and maintain its principal place of business and home office in this state and shall keep therein complete records of its assets, transactions, and affairs in accordance with such methods and systems as are customary or suitable as to the kind or kinds of insurance transacted. (b) Every domestic insurer shall have and maintain its assets in this state, except as to: (1) Real property and personal property appurtenant thereto lawfully owned by the insurer and located outside this state; (2) Such property of the insurer as may be customary, necessary, and convenient to enable and facilitate the operation of its branch offices and regional home offices located outside this state as referred to in subsection (d) of this section; (3) Such securities of the insurer that are readily marketable and have a maturity of one (1) year or less from the date of purchase and that are kept in safekeeping in a federally chartered bank, bank and trust company, or national bank association domiciled outside the State of Arkansas, provided that: (A) The insurer shall maintain in its possession a safekeeping receipt for those securities evidencing uncontestable ownership; and (B) At no time shall the insurer hold pursuant to this subdivision (b)(3) securities in an aggregate amount in excess of the greater of: (i) Ten percent (10%) of its assets; or (ii) Forty percent (40%) of its surplus if a life or accident and health insurer or of its surplus to policyholders if other than a life or accident and health insurer; and (4) In the discretion of the Insurance Commissioner, custodied securities may be held or managed inside or outside the state by a bank custodian as defined by and subject to the requirements imposed on bank custodians by rules of the State Insurance Department governing the holding and transferring of securities through a clearing corporation. In addition, custodied securities may be held or managed inside or outside the state by a securities brokerage firm meeting the following qualifications: (A) The securities broker-dealer firm must be registered with and subject to jurisdiction of the United States Securities and Exchange Commission, maintain membership in the Securities Investor Protection Corporation, and demonstrate by its most recent audited financial statement and regulatory filings: (i) Tangible net worth that satisfies the capital and financial requirements of a custodian as defined by rules promulgated by the department and regulatory net capital in an amount determined by the commissioner; or (ii) Tangible net worth that satisfies the capital and financial requirements of a custodian as defined by rules promulgated by the department along with: (a) Regulatory net capital in an amount determined by the commissioner; and (b) Securities Investor Protection Corporation excess insurance coverage equal to or greater than the market value of the insurers' securities held by the custodian and in the form approved by the commissioner; (B) The deposited securities with the qualified broker-dealer must be governed by a written custodial agreement governing the insurer's deposit of the insurer's securities such that the qualified broker-dealer agrees that: (i) The qualified broker-dealer shall exercise the same due care that is expected of a fiduciary with the responsibility for the safeguarding of the insurer's custodied securities and for compliance with all provisions of the custodial agreement, whether the insurer's custodied securities are in the custodian's possession or have been deposited or redeposited by the custodian with a subcustodian; (ii) The qualified broker-dealer shall indemnify the insurer for any loss of custodied securities occasioned by the negligence or dishonesty of the custodian's officers and employees or burglary, robbery, hold-up, theft, or mysterious disappearance, including loss by damage or destruction. In the event of such a loss, the custodian must promptly replace the custodied securities or the value thereof and the value of any loss of rights or privileges resulting from the loss of custodied securities; (iii) Custodied securities shall be segregated at all times from the proprietary assets of the broker-dealer. The broker-dealer's official records shall separately identify custodied securities owned by the insurer; (iv) All custodied securities that are registered shall be registered in the name of the insurer or in the name of a nominee of the insurer or in the name of the custodian or its nominee or, if in a depository corporation, in the name of the depository corporation or its nominee; (v) All activities involving the insurer's custodied securities shall be subject to the insurer's instructions, and the custodied securities shall be withdrawable upon demand by the insurer or by the commissioner at any time; (vi) The custodian shall furnish upon request by the insurer or by the commissioner a confirmation of all purchases, sales, or transfers of custodied securities to or from the account of the insurer, reports of custodied securities sufficient to verify information reported in the insurer's annual statement filed with the department, and supporting schedules and information required in any audit of the insurer's financial statement; (vii) The insurer or its designee or the commissioner shall at all times be entitled to examine all records maintained by the broker-dealer relating to the insurer's custodied securities; (viii) The custodian shall not use any of the insurer's custodied securities for the broker-dealer's benefit, and none of the insurer's custodied securities shall be loaned, pledged, or hypothecated to any person or organization; (ix) The broker-dealer shall maintain securities all risks coverage or other insurance satisfactory to the commissioner at levels considered reasonable and customary for the custodian banking industry covering the broker-dealer's duties and activities as custodian for the insurer's assets and shall describe the nature and extent of the insurance protection. Any change in the insurance protection during the term of the custodial agreement shall be promptly disclosed to the insurer; (x) The broker-dealer is authorized and instructed by the insurer to honor any requests made by the department for information concerning the insurer's custodied securities. The department, from time to time, may request and the custodian shall furnish a detailed listing of the insurer's custodied securities and an affidavit by the broker-dealer certifying the custodian's safekeeping responsibilities relative to the custodied securities. The broker-dealer's response to such requests shall be made directly to the department and shall encompass all of the insurer's custodied securities; and (xi) Any other requirements provided by rules of the commissioner; and (5) (A) Government money market mutual fund or class one money market mutual fund shares held or managed by a securities broker-dealer firm which meets the standards prescribed in subdivision (b)(4)(A) of this section, subject to any limitations on domestic insurer investments of this nature which may be otherwise contained in the Arkansas Insurance Code. Provided further that no such money market mutual fund shares owned by the insurer shall be required to be issued in certificated form, nor held by the insurer in a custodian account. (B) For purposes of this subsection: (i) "Class one money market mutual fund" means a money market mutual fund that at all times qualifies for investment using the bond class one reserve factor under the "Purposes and Procedures Manual of the NAIC Securities Valuation Office" or any successor publication; (ii) "Government money market mutual fund" means a money market mutual fund that at all times: (a) Invests only in obligations issued, guaranteed, or insured by the United States Government or collateralized repurchase agreements composed of these obligations; and (b) Qualifies for investment without a reserve under the Purposes and Procedures of the Securities Valuation Office of the National Association of Insurance Commissioners or any successor publication; (iii) "Money market mutual fund" means a mutual fund that meets the conditions of 17 C.F.R. Part 270.2a-7, under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq., as amended or renumbered; and (iv) "Mutual fund" means an investment company or, in the case of an investment company that is organized as a series company, an investment company series that, in either case, is registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq., as amended. (c) (1) Removal of all or a material part of the records or assets of a domestic insurer from this state except pursuant to a plan of merger or consolidation approved by the commissioner under the Arkansas Insurance Code, or for such other reasonable purposes and periods of time as may be approved by the commissioner in writing in advance of the removal or concealment of the records or assets or material part thereof from the commissioner is prohibited. (2) Any person who removes or attempts to remove the records or assets or the material part thereof from the home office or other place of business or of safekeeping of the insurer in this state with the purpose of removing them from this state or who conceals or attempts to conceal them from the commissioner, in violation of this subsection, shall be guilty of a Class D felony. (3) Upon any removal or attempted removal of the records or assets, or upon retention of the records or assets or material part thereof outside this state beyond the period specified in the commissioner's consent under which the records were so removed, or upon concealment of or attempt to conceal records or assets in violation of this section, the commissioner may institute delinquency proceedings against the insurer pursuant to the provisions of § 23-68-101 et seq. (d) This section shall not be deemed to prohibit or prevent an insurer from: (1) Establishing and maintaining branch offices or regional home offices in other states when necessary or convenient to the transaction of its business and keeping in those offices the detailed records and assets customary and necessary for the servicing of its insurance in force and affairs in the territory served by the office, as long as the records and assets are made readily available at the office for examination by the commissioner at his or her request; (2) Having, depositing, or transmitting funds and assets of the insurer in or to jurisdictions outside this state as reasonably and customarily required in the regular course of its business; or (3) Maintaining its home office, records, and assets in another state if: (A) The insurer keeps in its home office complete records of its assets, transactions, and affairs according to the methods and systems as are customary or suitable as to the kinds of insurance transacted; (B) All records and assets of the insurer are made readily available at the home office for examination by the commissioner at his or her request; and (C) The insurer maintains a place of business in this state where service of process may be made under §§ 23-79-204 and 23-79-205 . Amended by Act 2023, No. 469,§ 7, eff. 8/1/2023. Amended by Act 2019, No. 315,§ 2685, eff. 7/24/2019. Acts 1959, No. 148, § 489; A.S.A. 1947, § 66-4237; Acts 1989, No. 772, § 12; 1999, No. 452, § 1; 2001, No. 1603, § 29; 2001, No. 1604, §§ 55, 56; 2005, No. 1994, § 451; 2007, No. 496, §§ 13, 14.

(a) Every domestic insurer shall have and maintain its principal place of business and home office in this state and shall keep therein complete records of its assets, transactions, and affairs in accordance with such methods and systems as are customary or suitable as to the kind or kinds of insurance transacted.

(b) Every domestic insurer shall have and maintain its assets in this state, except as to: (1) Real property and personal property appurtenant thereto lawfully owned by the insurer and located outside this state; (2) Such property of the insurer as may be customary, necessary, and convenient to enable and facilitate the operation of its branch offices and regional home offices located outside this state as referred to in subsection (d) of this section; (3) Such securities of the insurer that are readily marketable and have a maturity of one (1) year or less from the date of purchase and that are kept in safekeeping in a federally chartered bank, bank and trust company, or national bank association domiciled outside the State of Arkansas, provided that: (A) The insurer shall maintain in its possession a safekeeping receipt for those securities evidencing uncontestable ownership; and (B) At no time shall the insurer hold pursuant to this subdivision (b)(3) securities in an aggregate amount in excess of the greater of: (i) Ten percent (10%) of its assets; or (ii) Forty percent (40%) of its surplus if a life or accident and health insurer or of its surplus to policyholders if other than a life or accident and health insurer; and (4) In the discretion of the Insurance Commissioner, custodied securities may be held or managed inside or outside the state by a bank custodian as defined by and subject to the requirements imposed on bank custodians by rules of the State Insurance Department governing the holding and transferring of securities through a clearing corporation. In addition, custodied securities may be held or managed inside or outside the state by a securities brokerage firm meeting the following qualifications: (A) The securities broker-dealer firm must be registered with and subject to jurisdiction of the United States Securities and Exchange Commission, maintain membership in the Securities Investor Protection Corporation, and demonstrate by its most recent audited financial statement and regulatory filings: (i) Tangible net worth that satisfies the capital and financial requirements of a custodian as defined by rules promulgated by the department and regulatory net capital in an amount determined by the commissioner; or (ii) Tangible net worth that satisfies the capital and financial requirements of a custodian as defined by rules promulgated by the department along with: (a) Regulatory net capital in an amount determined by the commissioner; and (b) Securities Investor Protection Corporation excess insurance coverage equal to or greater than the market value of the insurers' securities held by the custodian and in the form approved by the commissioner; (B) The deposited securities with the qualified broker-dealer must be governed by a written custodial agreement governing the insurer's deposit of the insurer's securities such that the qualified broker-dealer agrees that: (i) The qualified broker-dealer shall exercise the same due care that is expected of a fiduciary with the responsibility for the safeguarding of the insurer's custodied securities and for compliance with all provisions of the custodial agreement, whether the insurer's custodied securities are in the custodian's possession or have been deposited or redeposited by the custodian with a subcustodian; (ii) The qualified broker-dealer shall indemnify the insurer for any loss of custodied securities occasioned by the negligence or dishonesty of the custodian's officers and employees or burglary, robbery, hold-up, theft, or mysterious disappearance, including loss by damage or destruction. In the event of such a loss, the custodian must promptly replace the custodied securities or the value thereof and the value of any loss of rights or privileges resulting from the loss of custodied securities; (iii) Custodied securities shall be segregated at all times from the proprietary assets of the broker-dealer. The broker-dealer's official records shall separately identify custodied securities owned by the insurer; (iv) All custodied securities that are registered shall be registered in the name of the insurer or in the name of a nominee of the insurer or in the name of the custodian or its nominee or, if in a depository corporation, in the name of the depository corporation or its nominee; (v) All activities involving the insurer's custodied securities shall be subject to the insurer's instructions, and the custodied securities shall be withdrawable upon demand by the insurer or by the commissioner at any time; (vi) The custodian shall furnish upon request by the insurer or by the commissioner a confirmation of all purchases, sales, or transfers of custodied securities to or from the account of the insurer, reports of custodied securities sufficient to verify information reported in the insurer's annual statement filed with the department, and supporting schedules and information required in any audit of the insurer's financial statement; (vii) The insurer or its designee or the commissioner shall at all times be entitled to examine all records maintained by the broker-dealer relating to the insurer's custodied securities; (viii) The custodian shall not use any of the insurer's custodied securities for the broker-dealer's benefit, and none of the insurer's custodied securities shall be loaned, pledged, or hypothecated to any person or organization; (ix) The broker-dealer shall maintain securities all risks coverage or other insurance satisfactory to the commissioner at levels considered reasonable and customary for the custodian banking industry covering the broker-dealer's duties and activities as custodian for the insurer's assets and shall describe the nature and extent of the insurance protection. Any change in the insurance protection during the term of the custodial agreement shall be promptly disclosed to the insurer; (x) The broker-dealer is authorized and instructed by the insurer to honor any requests made by the department for information concerning the insurer's custodied securities. The department, from time to time, may request and the custodian shall furnish a detailed listing of the insurer's custodied securities and an affidavit by the broker-dealer certifying the custodian's safekeeping responsibilities relative to the custodied securities. The broker-dealer's response to such requests shall be made directly to the department and shall encompass all of the insurer's custodied securities; and (xi) Any other requirements provided by rules of the commissioner; and (5) (A) Government money market mutual fund or class one money market mutual fund shares held or managed by a securities broker-dealer firm which meets the standards prescribed in subdivision (b)(4)(A) of this section, subject to any limitations on domestic insurer investments of this nature which may be otherwise contained in the Arkansas Insurance Code. Provided further that no such money market mutual fund shares owned by the insurer shall be required to be issued in certificated form, nor held by the insurer in a custodian account. (B) For purposes of this subsection: (i) "Class one money market mutual fund" means a money market mutual fund that at all times qualifies for investment using the bond class one reserve factor under the "Purposes and Procedures Manual of the NAIC Securities Valuation Office" or any successor publication; (ii) "Government money market mutual fund" means a money market mutual fund that at all times: (a) Invests only in obligations issued, guaranteed, or insured by the United States Government or collateralized repurchase agreements composed of these obligations; and (b) Qualifies for investment without a reserve under the Purposes and Procedures of the Securities Valuation Office of the National Association of Insurance Commissioners or any successor publication; (iii) "Money market mutual fund" means a mutual fund that meets the conditions of 17 C.F.R. Part 270.2a-7, under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq., as amended or renumbered; and (iv) "Mutual fund" means an investment company or, in the case of an investment company that is organized as a series company, an investment company series that, in either case, is registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq., as amended.

(1) Real property and personal property appurtenant thereto lawfully owned by the insurer and located outside this state;

(2) Such property of the insurer as may be customary, necessary, and convenient to enable and facilitate the operation of its branch offices and regional home offices located outside this state as referred to in subsection (d) of this section;

(3) Such securities of the insurer that are readily marketable and have a maturity of one (1) year or less from the date of purchase and that are kept in safekeeping in a federally chartered bank, bank and trust company, or national bank association domiciled outside the State of Arkansas, provided that: (A) The insurer shall maintain in its possession a safekeeping receipt for those securities evidencing uncontestable ownership; and (B) At no time shall the insurer hold pursuant to this subdivision (b)(3) securities in an aggregate amount in excess of the greater of: (i) Ten percent (10%) of its assets; or (ii) Forty percent (40%) of its surplus if a life or accident and health insurer or of its surplus to policyholders if other than a life or accident and health insurer; and

(A) The insurer shall maintain in its possession a safekeeping receipt for those securities evidencing uncontestable ownership; and

(B) At no time shall the insurer hold pursuant to this subdivision (b)(3) securities in an aggregate amount in excess of the greater of: (i) Ten percent (10%) of its assets; or (ii) Forty percent (40%) of its surplus if a life or accident and health insurer or of its surplus to policyholders if other than a life or accident and health insurer; and

(i) Ten percent (10%) of its assets; or

(ii) Forty percent (40%) of its surplus if a life or accident and health insurer or of its surplus to policyholders if other than a life or accident and health insurer; and

(4) In the discretion of the Insurance Commissioner, custodied securities may be held or managed inside or outside the state by a bank custodian as defined by and subject to the requirements imposed on bank custodians by rules of the State Insurance Department governing the holding and transferring of securities through a clearing corporation. In addition, custodied securities may be held or managed inside or outside the state by a securities brokerage firm meeting the following qualifications: (A) The securities broker-dealer firm must be registered with and subject to jurisdiction of the United States Securities and Exchange Commission, maintain membership in the Securities Investor Protection Corporation, and demonstrate by its most recent audited financial statement and regulatory filings: (i) Tangible net worth that satisfies the capital and financial requirements of a custodian as defined by rules promulgated by the department and regulatory net capital in an amount determined by the commissioner; or (ii) Tangible net worth that satisfies the capital and financial requirements of a custodian as defined by rules promulgated by the department along with: (a) Regulatory net capital in an amount determined by the commissioner; and (b) Securities Investor Protection Corporation excess insurance coverage equal to or greater than the market value of the insurers' securities held by the custodian and in the form approved by the commissioner; (B) The deposited securities with the qualified broker-dealer must be governed by a written custodial agreement governing the insurer's deposit of the insurer's securities such that the qualified broker-dealer agrees that: (i) The qualified broker-dealer shall exercise the same due care that is expected of a fiduciary with the responsibility for the safeguarding of the insurer's custodied securities and for compliance with all provisions of the custodial agreement, whether the insurer's custodied securities are in the custodian's possession or have been deposited or redeposited by the custodian with a subcustodian; (ii) The qualified broker-dealer shall indemnify the insurer for any loss of custodied securities occasioned by the negligence or dishonesty of the custodian's officers and employees or burglary, robbery, hold-up, theft, or mysterious disappearance, including loss by damage or destruction. In the event of such a loss, the custodian must promptly replace the custodied securities or the value thereof and the value of any loss of rights or privileges resulting from the loss of custodied securities; (iii) Custodied securities shall be segregated at all times from the proprietary assets of the broker-dealer. The broker-dealer's official records shall separately identify custodied securities owned by the insurer; (iv) All custodied securities that are registered shall be registered in the name of the insurer or in the name of a nominee of the insurer or in the name of the custodian or its nominee or, if in a depository corporation, in the name of the depository corporation or its nominee; (v) All activities involving the insurer's custodied securities shall be subject to the insurer's instructions, and the custodied securities shall be withdrawable upon demand by the insurer or by the commissioner at any time; (vi) The custodian shall furnish upon request by the insurer or by the commissioner a confirmation of all purchases, sales, or transfers of custodied securities to or from the account of the insurer, reports of custodied securities sufficient to verify information reported in the insurer's annual statement filed with the department, and supporting schedules and information required in any audit of the insurer's financial statement; (vii) The insurer or its designee or the commissioner shall at all times be entitled to examine all records maintained by the broker-dealer relating to the insurer's custodied securities; (viii) The custodian shall not use any of the insurer's custodied securities for the broker-dealer's benefit, and none of the insurer's custodied securities shall be loaned, pledged, or hypothecated to any person or organization; (ix) The broker-dealer shall maintain securities all risks coverage or other insurance satisfactory to the commissioner at levels considered reasonable and customary for the custodian banking industry covering the broker-dealer's duties and activities as custodian for the insurer's assets and shall describe the nature and extent of the insurance protection. Any change in the insurance protection during the term of the custodial agreement shall be promptly disclosed to the insurer; (x) The broker-dealer is authorized and instructed by the insurer to honor any requests made by the department for information concerning the insurer's custodied securities. The department, from time to time, may request and the custodian shall furnish a detailed listing of the insurer's custodied securities and an affidavit by the broker-dealer certifying the custodian's safekeeping responsibilities relative to the custodied securities. The broker-dealer's response to such requests shall be made directly to the department and shall encompass all of the insurer's custodied securities; and (xi) Any other requirements provided by rules of the commissioner; and

(A) The securities broker-dealer firm must be registered with and subject to jurisdiction of the United States Securities and Exchange Commission, maintain membership in the Securities Investor Protection Corporation, and demonstrate by its most recent audited financial statement and regulatory filings: (i) Tangible net worth that satisfies the capital and financial requirements of a custodian as defined by rules promulgated by the department and regulatory net capital in an amount determined by the commissioner; or (ii) Tangible net worth that satisfies the capital and financial requirements of a custodian as defined by rules promulgated by the department along with: (a) Regulatory net capital in an amount determined by the commissioner; and (b) Securities Investor Protection Corporation excess insurance coverage equal to or greater than the market value of the insurers' securities held by the custodian and in the form approved by the commissioner;

(i) Tangible net worth that satisfies the capital and financial requirements of a custodian as defined by rules promulgated by the department and regulatory net capital in an amount determined by the commissioner; or

(ii) Tangible net worth that satisfies the capital and financial requirements of a custodian as defined by rules promulgated by the department along with: (a) Regulatory net capital in an amount determined by the commissioner; and (b) Securities Investor Protection Corporation excess insurance coverage equal to or greater than the market value of the insurers' securities held by the custodian and in the form approved by the commissioner;

(a) Regulatory net capital in an amount determined by the commissioner; and

(b) Securities Investor Protection Corporation excess insurance coverage equal to or greater than the market value of the insurers' securities held by the custodian and in the form approved by the commissioner;

(B) The deposited securities with the qualified broker-dealer must be governed by a written custodial agreement governing the insurer's deposit of the insurer's securities such that the qualified broker-dealer agrees that: (i) The qualified broker-dealer shall exercise the same due care that is expected of a fiduciary with the responsibility for the safeguarding of the insurer's custodied securities and for compliance with all provisions of the custodial agreement, whether the insurer's custodied securities are in the custodian's possession or have been deposited or redeposited by the custodian with a subcustodian; (ii) The qualified broker-dealer shall indemnify the insurer for any loss of custodied securities occasioned by the negligence or dishonesty of the custodian's officers and employees or burglary, robbery, hold-up, theft, or mysterious disappearance, including loss by damage or destruction. In the event of such a loss, the custodian must promptly replace the custodied securities or the value thereof and the value of any loss of rights or privileges resulting from the loss of custodied securities; (iii) Custodied securities shall be segregated at all times from the proprietary assets of the broker-dealer. The broker-dealer's official records shall separately identify custodied securities owned by the insurer; (iv) All custodied securities that are registered shall be registered in the name of the insurer or in the name of a nominee of the insurer or in the name of the custodian or its nominee or, if in a depository corporation, in the name of the depository corporation or its nominee; (v) All activities involving the insurer's custodied securities shall be subject to the insurer's instructions, and the custodied securities shall be withdrawable upon demand by the insurer or by the commissioner at any time; (vi) The custodian shall furnish upon request by the insurer or by the commissioner a confirmation of all purchases, sales, or transfers of custodied securities to or from the account of the insurer, reports of custodied securities sufficient to verify information reported in the insurer's annual statement filed with the department, and supporting schedules and information required in any audit of the insurer's financial statement; (vii) The insurer or its designee or the commissioner shall at all times be entitled to examine all records maintained by the broker-dealer relating to the insurer's custodied securities; (viii) The custodian shall not use any of the insurer's custodied securities for the broker-dealer's benefit, and none of the insurer's custodied securities shall be loaned, pledged, or hypothecated to any person or organization; (ix) The broker-dealer shall maintain securities all risks coverage or other insurance satisfactory to the commissioner at levels considered reasonable and customary for the custodian banking industry covering the broker-dealer's duties and activities as custodian for the insurer's assets and shall describe the nature and extent of the insurance protection. Any change in the insurance protection during the term of the custodial agreement shall be promptly disclosed to the insurer; (x) The broker-dealer is authorized and instructed by the insurer to honor any requests made by the department for information concerning the insurer's custodied securities. The department, from time to time, may request and the custodian shall furnish a detailed listing of the insurer's custodied securities and an affidavit by the broker-dealer certifying the custodian's safekeeping responsibilities relative to the custodied securities. The broker-dealer's response to such requests shall be made directly to the department and shall encompass all of the insurer's custodied securities; and (xi) Any other requirements provided by rules of the commissioner; and

(i) The qualified broker-dealer shall exercise the same due care that is expected of a fiduciary with the responsibility for the safeguarding of the insurer's custodied securities and for compliance with all provisions of the custodial agreement, whether the insurer's custodied securities are in the custodian's possession or have been deposited or redeposited by the custodian with a subcustodian;

(ii) The qualified broker-dealer shall indemnify the insurer for any loss of custodied securities occasioned by the negligence or dishonesty of the custodian's officers and employees or burglary, robbery, hold-up, theft, or mysterious disappearance, including loss by damage or destruction. In the event of such a loss, the custodian must promptly replace the custodied securities or the value thereof and the value of any loss of rights or privileges resulting from the loss of custodied securities;

(iii) Custodied securities shall be segregated at all times from the proprietary assets of the broker-dealer. The broker-dealer's official records shall separately identify custodied securities owned by the insurer;

(iv) All custodied securities that are registered shall be registered in the name of the insurer or in the name of a nominee of the insurer or in the name of the custodian or its nominee or, if in a depository corporation, in the name of the depository corporation or its nominee;

(v) All activities involving the insurer's custodied securities shall be subject to the insurer's instructions, and the custodied securities shall be withdrawable upon demand by the insurer or by the commissioner at any time;

(vi) The custodian shall furnish upon request by the insurer or by the commissioner a confirmation of all purchases, sales, or transfers of custodied securities to or from the account of the insurer, reports of custodied securities sufficient to verify information reported in the insurer's annual statement filed with the department, and supporting schedules and information required in any audit of the insurer's financial statement;

(vii) The insurer or its designee or the commissioner shall at all times be entitled to examine all records maintained by the broker-dealer relating to the insurer's custodied securities;

(viii) The custodian shall not use any of the insurer's custodied securities for the broker-dealer's benefit, and none of the insurer's custodied securities shall be loaned, pledged, or hypothecated to any person or organization;

(ix) The broker-dealer shall maintain securities all risks coverage or other insurance satisfactory to the commissioner at levels considered reasonable and customary for the custodian banking industry covering the broker-dealer's duties and activities as custodian for the insurer's assets and shall describe the nature and extent of the insurance protection. Any change in the insurance protection during the term of the custodial agreement shall be promptly disclosed to the insurer;

(x) The broker-dealer is authorized and instructed by the insurer to honor any requests made by the department for information concerning the insurer's custodied securities. The department, from time to time, may request and the custodian shall furnish a detailed listing of the insurer's custodied securities and an affidavit by the broker-dealer certifying the custodian's safekeeping responsibilities relative to the custodied securities. The broker-dealer's response to such requests shall be made directly to the department and shall encompass all of the insurer's custodied securities; and

(xi) Any other requirements provided by rules of the commissioner; and

(5) (A) Government money market mutual fund or class one money market mutual fund shares held or managed by a securities broker-dealer firm which meets the standards prescribed in subdivision (b)(4)(A) of this section, subject to any limitations on domestic insurer investments of this nature which may be otherwise contained in the Arkansas Insurance Code. Provided further that no such money market mutual fund shares owned by the insurer shall be required to be issued in certificated form, nor held by the insurer in a custodian account. (B) For purposes of this subsection: (i) "Class one money market mutual fund" means a money market mutual fund that at all times qualifies for investment using the bond class one reserve factor under the "Purposes and Procedures Manual of the NAIC Securities Valuation Office" or any successor publication; (ii) "Government money market mutual fund" means a money market mutual fund that at all times: (a) Invests only in obligations issued, guaranteed, or insured by the United States Government or collateralized repurchase agreements composed of these obligations; and (b) Qualifies for investment without a reserve under the Purposes and Procedures of the Securities Valuation Office of the National Association of Insurance Commissioners or any successor publication; (iii) "Money market mutual fund" means a mutual fund that meets the conditions of 17 C.F.R. Part 270.2a-7, under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq., as amended or renumbered; and (iv) "Mutual fund" means an investment company or, in the case of an investment company that is organized as a series company, an investment company series that, in either case, is registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq., as amended.

(A) Government money market mutual fund or class one money market mutual fund shares held or managed by a securities broker-dealer firm which meets the standards prescribed in subdivision (b)(4)(A) of this section, subject to any limitations on domestic insurer investments of this nature which may be otherwise contained in the Arkansas Insurance Code. Provided further that no such money market mutual fund shares owned by the insurer shall be required to be issued in certificated form, nor held by the insurer in a custodian account.

(B) For purposes of this subsection: (i) "Class one money market mutual fund" means a money market mutual fund that at all times qualifies for investment using the bond class one reserve factor under the "Purposes and Procedures Manual of the NAIC Securities Valuation Office" or any successor publication; (ii) "Government money market mutual fund" means a money market mutual fund that at all times: (a) Invests only in obligations issued, guaranteed, or insured by the United States Government or collateralized repurchase agreements composed of these obligations; and (b) Qualifies for investment without a reserve under the Purposes and Procedures of the Securities Valuation Office of the National Association of Insurance Commissioners or any successor publication; (iii) "Money market mutual fund" means a mutual fund that meets the conditions of 17 C.F.R. Part 270.2a-7, under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq., as amended or renumbered; and (iv) "Mutual fund" means an investment company or, in the case of an investment company that is organized as a series company, an investment company series that, in either case, is registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq., as amended.

(i) "Class one money market mutual fund" means a money market mutual fund that at all times qualifies for investment using the bond class one reserve factor under the "Purposes and Procedures Manual of the NAIC Securities Valuation Office" or any successor publication;

(ii) "Government money market mutual fund" means a money market mutual fund that at all times: (a) Invests only in obligations issued, guaranteed, or insured by the United States Government or collateralized repurchase agreements composed of these obligations; and (b) Qualifies for investment without a reserve under the Purposes and Procedures of the Securities Valuation Office of the National Association of Insurance Commissioners or any successor publication;

(a) Invests only in obligations issued, guaranteed, or insured by the United States Government or collateralized repurchase agreements composed of these obligations; and

(b) Qualifies for investment without a reserve under the Purposes and Procedures of the Securities Valuation Office of the National Association of Insurance Commissioners or any successor publication;

(iii) "Money market mutual fund" means a mutual fund that meets the conditions of 17 C.F.R. Part 270.2a-7, under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq., as amended or renumbered; and

(iv) "Mutual fund" means an investment company or, in the case of an investment company that is organized as a series company, an investment company series that, in either case, is registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq., as amended.

(c) (1) Removal of all or a material part of the records or assets of a domestic insurer from this state except pursuant to a plan of merger or consolidation approved by the commissioner under the Arkansas Insurance Code, or for such other reasonable purposes and periods of time as may be approved by the commissioner in writing in advance of the removal or concealment of the records or assets or material part thereof from the commissioner is prohibited. (2) Any person who removes or attempts to remove the records or assets or the material part thereof from the home office or other place of business or of safekeeping of the insurer in this state with the purpose of removing them from this state or who conceals or attempts to conceal them from the commissioner, in violation of this subsection, shall be guilty of a Class D felony. (3) Upon any removal or attempted removal of the records or assets, or upon retention of the records or assets or material part thereof outside this state beyond the period specified in the commissioner's consent under which the records were so removed, or upon concealment of or attempt to conceal records or assets in violation of this section, the commissioner may institute delinquency proceedings against the insurer pursuant to the provisions of § 23-68-101 et seq.

(1) Removal of all or a material part of the records or assets of a domestic insurer from this state except pursuant to a plan of merger or consolidation approved by the commissioner under the Arkansas Insurance Code, or for such other reasonable purposes and periods of time as may be approved by the commissioner in writing in advance of the removal or concealment of the records or assets or material part thereof from the commissioner is prohibited.

(2) Any person who removes or attempts to remove the records or assets or the material part thereof from the home office or other place of business or of safekeeping of the insurer in this state with the purpose of removing them from this state or who conceals or attempts to conceal them from the commissioner, in violation of this subsection, shall be guilty of a Class D felony.

(3) Upon any removal or attempted removal of the records or assets, or upon retention of the records or assets or material part thereof outside this state beyond the period specified in the commissioner's consent under which the records were so removed, or upon concealment of or attempt to conceal records or assets in violation of this section, the commissioner may institute delinquency proceedings against the insurer pursuant to the provisions of § 23-68-101 et seq.

(d) This section shall not be deemed to prohibit or prevent an insurer from: (1) Establishing and maintaining branch offices or regional home offices in other states when necessary or convenient to the transaction of its business and keeping in those offices the detailed records and assets customary and necessary for the servicing of its insurance in force and affairs in the territory served by the office, as long as the records and assets are made readily available at the office for examination by the commissioner at his or her request; (2) Having, depositing, or transmitting funds and assets of the insurer in or to jurisdictions outside this state as reasonably and customarily required in the regular course of its business; or (3) Maintaining its home office, records, and assets in another state if: (A) The insurer keeps in its home office complete records of its assets, transactions, and affairs according to the methods and systems as are customary or suitable as to the kinds of insurance transacted; (B) All records and assets of the insurer are made readily available at the home office for examination by the commissioner at his or her request; and (C) The insurer maintains a place of business in this state where service of process may be made under §§ 23-79-204 and 23-79-205 .

(1) Establishing and maintaining branch offices or regional home offices in other states when necessary or convenient to the transaction of its business and keeping in those offices the detailed records and assets customary and necessary for the servicing of its insurance in force and affairs in the territory served by the office, as long as the records and assets are made readily available at the office for examination by the commissioner at his or her request;

(2) Having, depositing, or transmitting funds and assets of the insurer in or to jurisdictions outside this state as reasonably and customarily required in the regular course of its business; or

(3) Maintaining its home office, records, and assets in another state if: (A) The insurer keeps in its home office complete records of its assets, transactions, and affairs according to the methods and systems as are customary or suitable as to the kinds of insurance transacted; (B) All records and assets of the insurer are made readily available at the home office for examination by the commissioner at his or her request; and (C) The insurer maintains a place of business in this state where service of process may be made under §§ 23-79-204 and 23-79-205 .

(A) The insurer keeps in its home office complete records of its assets, transactions, and affairs according to the methods and systems as are customary or suitable as to the kinds of insurance transacted;

(B) All records and assets of the insurer are made readily available at the home office for examination by the commissioner at his or her request; and

(C) The insurer maintains a place of business in this state where service of process may be made under §§ 23-79-204 and 23-79-205 .

Amended by Act 2023, No. 469,§ 7, eff. 8/1/2023.

Amended by Act 2019, No. 315,§ 2685, eff. 7/24/2019.

Acts 1959, No. 148, § 489; A.S.A. 1947, § 66-4237; Acts 1989, No. 772, § 12; 1999, No. 452, § 1; 2001, No. 1603, § 29; 2001, No. 1604, §§ 55, 56; 2005, No. 1994, § 451; 2007, No. 496, §§ 13, 14.
Ark. Code Ann. § 23-46-503 — AR Code / Title 23 / Chapter 46 / Subchapter 5 / Section 23-46-503
When examinations made
Status: in_force

(a) The Bank Commissioner shall, as often as may be deemed necessary or proper, appoint suitable persons to make an examination of each state bank or subsidiary trust company. (b) (1) A thorough examination into the affairs of each state bank or subsidiary trust company shall be made at least once every twenty-four-month period. Provided, however, the twenty-four-month period may be extended to a thirty-six-month period if an interim thorough examination is performed by the state bank's or subsidiary trust company's primary federal regulatory authority. (2) The commissioner may authorize examinations at more frequent intervals if he or she shall deem it proper. (c) (1) The commissioner shall direct the State Bank Department to make an annual examination into the affairs of nonprofit corporations that have registered with the commissioner to be a regulated economic development enterprise under this subsection and that registration has been approved by the State Banking Board. (2) A nonprofit corporation electing to be a regulated economic development enterprise shall certify in its registration to the commissioner that the nonprofit corporation: (A) Was previously registered under the Arkansas Development Finance Corporation Act, § 15-4-901 et seq. [repealed]; (B) Is a domestic nonprofit corporation with a total equity of the nonprofit corporation and any subsidiaries exceeding five million dollars ($5,000,000); (C) Provides financing for the promotion, development, and conduct of Arkansas business; (D) Together with any of its subsidiaries, has loan receivables that exceed fifteen million dollars ($15,000,000); and (E) Shall provide reasonable cooperation and assistance to the department during an examination. (3) (A) A regulated economic development enterprise registered under this subsection shall pay to the department, within ten (10) days after notice from the commissioner in the months of January and July of each year, an assessment fee in accordance with an assessment fee schedule approved by the commissioner. (B) The commissioner, with the approval of the board, shall also have the authority to establish a schedule of fees to be charged by the department relative to registrations which are reviewed by the department, as well as a schedule of other fees to be charged for service performed by the department. (C) The assessments may be increased if not sufficient in connection with other fees received as mentioned in this section to defray the expenses of the department. (4) (A) The commissioner shall be charged with the general supervision of regulated economic development enterprises, with the power to issue cease-and-desist orders against any regulated economic development enterprise, or an officer, director, or employee of a regulated economic development enterprise, found to be violating state or federal law, rules, or regulations of a federal regulatory agency, violating any regulatory agreement, or jeopardizing the safety and soundness of the regulated economic development enterprise. (B) The commissioner has grounds for and may issue a cease-and-desist order for the permanent or temporary removal of an officer, director, employee, agent, or any other person participating in the affairs of or otherwise connected with a regulated economic development enterprise, or any affiliate thereof, if he or she is found by the commissioner to be or to have been: (i) Violating state or federal law, rules and regulations of a federal regulatory agency, or department rules; (ii) Acting incompetently, recklessly, or dishonestly; (iii) Indicted of a crime involving moral turpitude; or (iv) Otherwise impairing the safety and soundness of the regulated economic development enterprise. (C) (i) A person who is subject to a cease-and-desist order issued by the commissioner who refuses or fails to comply with the terms of the order may be assessed a monetary penalty for the failure to comply with the cease-and-desist order after a ten-day notice given by the commissioner to the regulated economic development enterprise or person who is subject to the order. (ii) The amount of the monetary penalty shall not exceed one thousand dollars ($1,000) per day of the violation against each regulated economic development enterprise and each officer, director, or employee contributing to the regulated economic development enterprise's or the person's failure to comply with the cease-and-desist order. (iii) Subject to the limitation described in subdivision (c)(4)(C)(ii) of this section, the amount of the monetary penalty shall be determined by the commissioner. (D) The commissioner may revoke a nonprofit corporation's status as a regulated economic development enterprise under this subsection if the commissioner determines, after examination and investigation, that the regulated economic development enterprise: (i) Is or has been violating state or federal law; (ii) Is violating the rules and regulations of a federal regulatory agency; (iii) Fails to meet the minimum equity requirements under subdivision (c)(2) of this section; or (iv) Is operating or has been operated in a manner that jeopardizes the safety and soundness of the regulated economic development enterprise. (E) (i) The commissioner shall have the power to issue such rules as may be necessary or appropriate with the approval and consent of the board. (ii) This section shall not be construed to curtail the commissioner's power to issue emergency rules with the approval and consent of the board. (F) In addition to other powers under this section, the commissioner shall have the power and authority to: (i) Inspect and copy all books, records, and other information relating to a regulated economic development enterprise; and (ii) Subpoena witnesses, compel their attendance, require production of evidence, and administer oaths. (G) (i) A person or regulated economic development enterprise aggrieved and directly affected by an order of the commissioner issued under this subsection is entitled to judicial review. (ii) A person or regulated economic development enterprise may seek judicial review by petition to a circuit court of competent jurisdiction. (iii) The petition shall be filed within thirty (30) days from the date of issuance of the order. (iv) If a petition is not filed within thirty (30) days from the date of issuance of the order, the order shall not be appealed and is permanently binding upon the person until terminated by the commissioner. (5) A nonprofit corporation that is registered as a regulated economic development enterprise, that is in compliance with federal and state laws, rules, and regulations, and that does not have any regulatory proceeding pending against it may withdraw its registration as a regulated economic development enterprise. Amended by Act 2019, No. 315,§ 2531, eff. 7/24/2019. Amended by Act 2017, No. 507,§ 1, eff. 3/15/2017. Acts 1997, No. 89, § 1.

(a) The Bank Commissioner shall, as often as may be deemed necessary or proper, appoint suitable persons to make an examination of each state bank or subsidiary trust company.

(b) (1) A thorough examination into the affairs of each state bank or subsidiary trust company shall be made at least once every twenty-four-month period. Provided, however, the twenty-four-month period may be extended to a thirty-six-month period if an interim thorough examination is performed by the state bank's or subsidiary trust company's primary federal regulatory authority. (2) The commissioner may authorize examinations at more frequent intervals if he or she shall deem it proper.

(1) A thorough examination into the affairs of each state bank or subsidiary trust company shall be made at least once every twenty-four-month period. Provided, however, the twenty-four-month period may be extended to a thirty-six-month period if an interim thorough examination is performed by the state bank's or subsidiary trust company's primary federal regulatory authority.

(2) The commissioner may authorize examinations at more frequent intervals if he or she shall deem it proper.

(c) (1) The commissioner shall direct the State Bank Department to make an annual examination into the affairs of nonprofit corporations that have registered with the commissioner to be a regulated economic development enterprise under this subsection and that registration has been approved by the State Banking Board. (2) A nonprofit corporation electing to be a regulated economic development enterprise shall certify in its registration to the commissioner that the nonprofit corporation: (A) Was previously registered under the Arkansas Development Finance Corporation Act, § 15-4-901 et seq. [repealed]; (B) Is a domestic nonprofit corporation with a total equity of the nonprofit corporation and any subsidiaries exceeding five million dollars ($5,000,000); (C) Provides financing for the promotion, development, and conduct of Arkansas business; (D) Together with any of its subsidiaries, has loan receivables that exceed fifteen million dollars ($15,000,000); and (E) Shall provide reasonable cooperation and assistance to the department during an examination. (3) (A) A regulated economic development enterprise registered under this subsection shall pay to the department, within ten (10) days after notice from the commissioner in the months of January and July of each year, an assessment fee in accordance with an assessment fee schedule approved by the commissioner. (B) The commissioner, with the approval of the board, shall also have the authority to establish a schedule of fees to be charged by the department relative to registrations which are reviewed by the department, as well as a schedule of other fees to be charged for service performed by the department. (C) The assessments may be increased if not sufficient in connection with other fees received as mentioned in this section to defray the expenses of the department. (4) (A) The commissioner shall be charged with the general supervision of regulated economic development enterprises, with the power to issue cease-and-desist orders against any regulated economic development enterprise, or an officer, director, or employee of a regulated economic development enterprise, found to be violating state or federal law, rules, or regulations of a federal regulatory agency, violating any regulatory agreement, or jeopardizing the safety and soundness of the regulated economic development enterprise. (B) The commissioner has grounds for and may issue a cease-and-desist order for the permanent or temporary removal of an officer, director, employee, agent, or any other person participating in the affairs of or otherwise connected with a regulated economic development enterprise, or any affiliate thereof, if he or she is found by the commissioner to be or to have been: (i) Violating state or federal law, rules and regulations of a federal regulatory agency, or department rules; (ii) Acting incompetently, recklessly, or dishonestly; (iii) Indicted of a crime involving moral turpitude; or (iv) Otherwise impairing the safety and soundness of the regulated economic development enterprise. (C) (i) A person who is subject to a cease-and-desist order issued by the commissioner who refuses or fails to comply with the terms of the order may be assessed a monetary penalty for the failure to comply with the cease-and-desist order after a ten-day notice given by the commissioner to the regulated economic development enterprise or person who is subject to the order. (ii) The amount of the monetary penalty shall not exceed one thousand dollars ($1,000) per day of the violation against each regulated economic development enterprise and each officer, director, or employee contributing to the regulated economic development enterprise's or the person's failure to comply with the cease-and-desist order. (iii) Subject to the limitation described in subdivision (c)(4)(C)(ii) of this section, the amount of the monetary penalty shall be determined by the commissioner. (D) The commissioner may revoke a nonprofit corporation's status as a regulated economic development enterprise under this subsection if the commissioner determines, after examination and investigation, that the regulated economic development enterprise: (i) Is or has been violating state or federal law; (ii) Is violating the rules and regulations of a federal regulatory agency; (iii) Fails to meet the minimum equity requirements under subdivision (c)(2) of this section; or (iv) Is operating or has been operated in a manner that jeopardizes the safety and soundness of the regulated economic development enterprise. (E) (i) The commissioner shall have the power to issue such rules as may be necessary or appropriate with the approval and consent of the board. (ii) This section shall not be construed to curtail the commissioner's power to issue emergency rules with the approval and consent of the board. (F) In addition to other powers under this section, the commissioner shall have the power and authority to: (i) Inspect and copy all books, records, and other information relating to a regulated economic development enterprise; and (ii) Subpoena witnesses, compel their attendance, require production of evidence, and administer oaths. (G) (i) A person or regulated economic development enterprise aggrieved and directly affected by an order of the commissioner issued under this subsection is entitled to judicial review. (ii) A person or regulated economic development enterprise may seek judicial review by petition to a circuit court of competent jurisdiction. (iii) The petition shall be filed within thirty (30) days from the date of issuance of the order. (iv) If a petition is not filed within thirty (30) days from the date of issuance of the order, the order shall not be appealed and is permanently binding upon the person until terminated by the commissioner. (5) A nonprofit corporation that is registered as a regulated economic development enterprise, that is in compliance with federal and state laws, rules, and regulations, and that does not have any regulatory proceeding pending against it may withdraw its registration as a regulated economic development enterprise.

(1) The commissioner shall direct the State Bank Department to make an annual examination into the affairs of nonprofit corporations that have registered with the commissioner to be a regulated economic development enterprise under this subsection and that registration has been approved by the State Banking Board.

(2) A nonprofit corporation electing to be a regulated economic development enterprise shall certify in its registration to the commissioner that the nonprofit corporation: (A) Was previously registered under the Arkansas Development Finance Corporation Act, § 15-4-901 et seq. [repealed]; (B) Is a domestic nonprofit corporation with a total equity of the nonprofit corporation and any subsidiaries exceeding five million dollars ($5,000,000); (C) Provides financing for the promotion, development, and conduct of Arkansas business; (D) Together with any of its subsidiaries, has loan receivables that exceed fifteen million dollars ($15,000,000); and (E) Shall provide reasonable cooperation and assistance to the department during an examination.

(A) Was previously registered under the Arkansas Development Finance Corporation Act, § 15-4-901 et seq. [repealed];

(B) Is a domestic nonprofit corporation with a total equity of the nonprofit corporation and any subsidiaries exceeding five million dollars ($5,000,000);

(C) Provides financing for the promotion, development, and conduct of Arkansas business;

(D) Together with any of its subsidiaries, has loan receivables that exceed fifteen million dollars ($15,000,000); and

(E) Shall provide reasonable cooperation and assistance to the department during an examination.

(3) (A) A regulated economic development enterprise registered under this subsection shall pay to the department, within ten (10) days after notice from the commissioner in the months of January and July of each year, an assessment fee in accordance with an assessment fee schedule approved by the commissioner. (B) The commissioner, with the approval of the board, shall also have the authority to establish a schedule of fees to be charged by the department relative to registrations which are reviewed by the department, as well as a schedule of other fees to be charged for service performed by the department. (C) The assessments may be increased if not sufficient in connection with other fees received as mentioned in this section to defray the expenses of the department.

(A) A regulated economic development enterprise registered under this subsection shall pay to the department, within ten (10) days after notice from the commissioner in the months of January and July of each year, an assessment fee in accordance with an assessment fee schedule approved by the commissioner.

(B) The commissioner, with the approval of the board, shall also have the authority to establish a schedule of fees to be charged by the department relative to registrations which are reviewed by the department, as well as a schedule of other fees to be charged for service performed by the department.

(C) The assessments may be increased if not sufficient in connection with other fees received as mentioned in this section to defray the expenses of the department.

(4) (A) The commissioner shall be charged with the general supervision of regulated economic development enterprises, with the power to issue cease-and-desist orders against any regulated economic development enterprise, or an officer, director, or employee of a regulated economic development enterprise, found to be violating state or federal law, rules, or regulations of a federal regulatory agency, violating any regulatory agreement, or jeopardizing the safety and soundness of the regulated economic development enterprise. (B) The commissioner has grounds for and may issue a cease-and-desist order for the permanent or temporary removal of an officer, director, employee, agent, or any other person participating in the affairs of or otherwise connected with a regulated economic development enterprise, or any affiliate thereof, if he or she is found by the commissioner to be or to have been: (i) Violating state or federal law, rules and regulations of a federal regulatory agency, or department rules; (ii) Acting incompetently, recklessly, or dishonestly; (iii) Indicted of a crime involving moral turpitude; or (iv) Otherwise impairing the safety and soundness of the regulated economic development enterprise. (C) (i) A person who is subject to a cease-and-desist order issued by the commissioner who refuses or fails to comply with the terms of the order may be assessed a monetary penalty for the failure to comply with the cease-and-desist order after a ten-day notice given by the commissioner to the regulated economic development enterprise or person who is subject to the order. (ii) The amount of the monetary penalty shall not exceed one thousand dollars ($1,000) per day of the violation against each regulated economic development enterprise and each officer, director, or employee contributing to the regulated economic development enterprise's or the person's failure to comply with the cease-and-desist order. (iii) Subject to the limitation described in subdivision (c)(4)(C)(ii) of this section, the amount of the monetary penalty shall be determined by the commissioner. (D) The commissioner may revoke a nonprofit corporation's status as a regulated economic development enterprise under this subsection if the commissioner determines, after examination and investigation, that the regulated economic development enterprise: (i) Is or has been violating state or federal law; (ii) Is violating the rules and regulations of a federal regulatory agency; (iii) Fails to meet the minimum equity requirements under subdivision (c)(2) of this section; or (iv) Is operating or has been operated in a manner that jeopardizes the safety and soundness of the regulated economic development enterprise. (E) (i) The commissioner shall have the power to issue such rules as may be necessary or appropriate with the approval and consent of the board. (ii) This section shall not be construed to curtail the commissioner's power to issue emergency rules with the approval and consent of the board. (F) In addition to other powers under this section, the commissioner shall have the power and authority to: (i) Inspect and copy all books, records, and other information relating to a regulated economic development enterprise; and (ii) Subpoena witnesses, compel their attendance, require production of evidence, and administer oaths. (G) (i) A person or regulated economic development enterprise aggrieved and directly affected by an order of the commissioner issued under this subsection is entitled to judicial review. (ii) A person or regulated economic development enterprise may seek judicial review by petition to a circuit court of competent jurisdiction. (iii) The petition shall be filed within thirty (30) days from the date of issuance of the order. (iv) If a petition is not filed within thirty (30) days from the date of issuance of the order, the order shall not be appealed and is permanently binding upon the person until terminated by the commissioner.

(A) The commissioner shall be charged with the general supervision of regulated economic development enterprises, with the power to issue cease-and-desist orders against any regulated economic development enterprise, or an officer, director, or employee of a regulated economic development enterprise, found to be violating state or federal law, rules, or regulations of a federal regulatory agency, violating any regulatory agreement, or jeopardizing the safety and soundness of the regulated economic development enterprise.

(B) The commissioner has grounds for and may issue a cease-and-desist order for the permanent or temporary removal of an officer, director, employee, agent, or any other person participating in the affairs of or otherwise connected with a regulated economic development enterprise, or any affiliate thereof, if he or she is found by the commissioner to be or to have been: (i) Violating state or federal law, rules and regulations of a federal regulatory agency, or department rules; (ii) Acting incompetently, recklessly, or dishonestly; (iii) Indicted of a crime involving moral turpitude; or (iv) Otherwise impairing the safety and soundness of the regulated economic development enterprise.

(i) Violating state or federal law, rules and regulations of a federal regulatory agency, or department rules;

(ii) Acting incompetently, recklessly, or dishonestly;

(iii) Indicted of a crime involving moral turpitude; or

(iv) Otherwise impairing the safety and soundness of the regulated economic development enterprise.

(C) (i) A person who is subject to a cease-and-desist order issued by the commissioner who refuses or fails to comply with the terms of the order may be assessed a monetary penalty for the failure to comply with the cease-and-desist order after a ten-day notice given by the commissioner to the regulated economic development enterprise or person who is subject to the order. (ii) The amount of the monetary penalty shall not exceed one thousand dollars ($1,000) per day of the violation against each regulated economic development enterprise and each officer, director, or employee contributing to the regulated economic development enterprise's or the person's failure to comply with the cease-and-desist order. (iii) Subject to the limitation described in subdivision (c)(4)(C)(ii) of this section, the amount of the monetary penalty shall be determined by the commissioner.

(i) A person who is subject to a cease-and-desist order issued by the commissioner who refuses or fails to comply with the terms of the order may be assessed a monetary penalty for the failure to comply with the cease-and-desist order after a ten-day notice given by the commissioner to the regulated economic development enterprise or person who is subject to the order.

(ii) The amount of the monetary penalty shall not exceed one thousand dollars ($1,000) per day of the violation against each regulated economic development enterprise and each officer, director, or employee contributing to the regulated economic development enterprise's or the person's failure to comply with the cease-and-desist order.

(iii) Subject to the limitation described in subdivision (c)(4)(C)(ii) of this section, the amount of the monetary penalty shall be determined by the commissioner.

(D) The commissioner may revoke a nonprofit corporation's status as a regulated economic development enterprise under this subsection if the commissioner determines, after examination and investigation, that the regulated economic development enterprise: (i) Is or has been violating state or federal law; (ii) Is violating the rules and regulations of a federal regulatory agency; (iii) Fails to meet the minimum equity requirements under subdivision (c)(2) of this section; or (iv) Is operating or has been operated in a manner that jeopardizes the safety and soundness of the regulated economic development enterprise.

(i) Is or has been violating state or federal law;

(ii) Is violating the rules and regulations of a federal regulatory agency;

(iii) Fails to meet the minimum equity requirements under subdivision (c)(2) of this section; or

(iv) Is operating or has been operated in a manner that jeopardizes the safety and soundness of the regulated economic development enterprise.

(E) (i) The commissioner shall have the power to issue such rules as may be necessary or appropriate with the approval and consent of the board. (ii) This section shall not be construed to curtail the commissioner's power to issue emergency rules with the approval and consent of the board.

(i) The commissioner shall have the power to issue such rules as may be necessary or appropriate with the approval and consent of the board.

(ii) This section shall not be construed to curtail the commissioner's power to issue emergency rules with the approval and consent of the board.

(F) In addition to other powers under this section, the commissioner shall have the power and authority to: (i) Inspect and copy all books, records, and other information relating to a regulated economic development enterprise; and (ii) Subpoena witnesses, compel their attendance, require production of evidence, and administer oaths.

(i) Inspect and copy all books, records, and other information relating to a regulated economic development enterprise; and

(ii) Subpoena witnesses, compel their attendance, require production of evidence, and administer oaths.

(G) (i) A person or regulated economic development enterprise aggrieved and directly affected by an order of the commissioner issued under this subsection is entitled to judicial review. (ii) A person or regulated economic development enterprise may seek judicial review by petition to a circuit court of competent jurisdiction. (iii) The petition shall be filed within thirty (30) days from the date of issuance of the order. (iv) If a petition is not filed within thirty (30) days from the date of issuance of the order, the order shall not be appealed and is permanently binding upon the person until terminated by the commissioner.

(i) A person or regulated economic development enterprise aggrieved and directly affected by an order of the commissioner issued under this subsection is entitled to judicial review.

(ii) A person or regulated economic development enterprise may seek judicial review by petition to a circuit court of competent jurisdiction.

(iii) The petition shall be filed within thirty (30) days from the date of issuance of the order.

(iv) If a petition is not filed within thirty (30) days from the date of issuance of the order, the order shall not be appealed and is permanently binding upon the person until terminated by the commissioner.

(5) A nonprofit corporation that is registered as a regulated economic development enterprise, that is in compliance with federal and state laws, rules, and regulations, and that does not have any regulatory proceeding pending against it may withdraw its registration as a regulated economic development enterprise.

Amended by Act 2019, No. 315,§ 2531, eff. 7/24/2019.

Amended by Act 2017, No. 507,§ 1, eff. 3/15/2017.

Acts 1997, No. 89, § 1.
Ark. Code Ann. § 23-83-105 — AR Code / Title 23 / Chapter 83 / Section 23-83-105
Debtor groups and credit union groups
Status: in_force

(a) Excluding an annuity policy, a policy issued to a creditor or its parent holding company or to a trustee or agent designated by two (2) or more creditors, which creditor, holding company, affiliate, trustee, or agent shall be deemed the policyholder, to insure debtors of the creditor, or creditors, subject to the following requirements: (1) The debtors eligible for insurance under the policy shall be all of the debtors of the creditor, or all of any classes thereof. The policy may provide that the term "debtor" shall include: (A) Borrowers of money or purchasers or lessees of goods, services, or property for which payment is arranged through a credit transaction; (B) The debtors of one (1) or more subsidiary corporations; and (C) The debtors of one (1) or more affiliated corporations, proprietorships, or partnerships if the business of the policyholder and of the affiliated corporations, proprietorships, or partnerships is under common control; (2) (A) The premium for the policy shall be paid either from the creditor's funds or from charges collected from the insured debtors, or from both. (B) Except as provided in subdivision (a)(3) of this section, a policy on which no part of the premium is to be derived from funds contributed by insured debtors specifically for their insurance must insure all eligible debtors; (3) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer; (4) The amount of the insurance on the life of any debtor shall at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor; (5) The insurance may be payable to the creditor or any successor to the right, title, and interest of the creditor. The payment shall reduce or extinguish the unpaid indebtedness of the debtor to the extent of the payment; and (6) Notwithstanding the provisions of subdivisions (a)(1)-(5) of this section, insurance on agricultural credit transaction commitments may be written up to the amount of the loan commitment on a nondecreasing or level term plan. Insurance on educational credit transaction commitments may be written up to the amount of the loan commitment less the amount of any repayments made on the loan. (b) Excluding an annuity policy, a policy issued to a credit union or to a trustee or agent designated by two (2) or more credit unions, which credit union, trustee, or agent shall be deemed the policyholder, to insure members of the credit union or for the benefit of persons other than the credit union, trustee, or agent or any of their officials, subject to the following requirements: (1) The members eligible for insurance shall be all of the members of the credit union or all members of any classes thereof; (2) The premium for the policy shall be paid by the policyholder from the credit union's funds and, except as provided in subdivision (b)(3) of this section, must insure all eligible members; and (3) An insurer may exclude or limit the coverage on any member as to whom evidence of individual insurability is not satisfactory to the insurer. Acts 1981, No. 898, § 5; A.S.A. 1947, § 66-3505.

(a) Excluding an annuity policy, a policy issued to a creditor or its parent holding company or to a trustee or agent designated by two (2) or more creditors, which creditor, holding company, affiliate, trustee, or agent shall be deemed the policyholder, to insure debtors of the creditor, or creditors, subject to the following requirements: (1) The debtors eligible for insurance under the policy shall be all of the debtors of the creditor, or all of any classes thereof. The policy may provide that the term "debtor" shall include: (A) Borrowers of money or purchasers or lessees of goods, services, or property for which payment is arranged through a credit transaction; (B) The debtors of one (1) or more subsidiary corporations; and (C) The debtors of one (1) or more affiliated corporations, proprietorships, or partnerships if the business of the policyholder and of the affiliated corporations, proprietorships, or partnerships is under common control; (2) (A) The premium for the policy shall be paid either from the creditor's funds or from charges collected from the insured debtors, or from both. (B) Except as provided in subdivision (a)(3) of this section, a policy on which no part of the premium is to be derived from funds contributed by insured debtors specifically for their insurance must insure all eligible debtors; (3) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer; (4) The amount of the insurance on the life of any debtor shall at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor; (5) The insurance may be payable to the creditor or any successor to the right, title, and interest of the creditor. The payment shall reduce or extinguish the unpaid indebtedness of the debtor to the extent of the payment; and (6) Notwithstanding the provisions of subdivisions (a)(1)-(5) of this section, insurance on agricultural credit transaction commitments may be written up to the amount of the loan commitment on a nondecreasing or level term plan. Insurance on educational credit transaction commitments may be written up to the amount of the loan commitment less the amount of any repayments made on the loan.

(1) The debtors eligible for insurance under the policy shall be all of the debtors of the creditor, or all of any classes thereof. The policy may provide that the term "debtor" shall include: (A) Borrowers of money or purchasers or lessees of goods, services, or property for which payment is arranged through a credit transaction; (B) The debtors of one (1) or more subsidiary corporations; and (C) The debtors of one (1) or more affiliated corporations, proprietorships, or partnerships if the business of the policyholder and of the affiliated corporations, proprietorships, or partnerships is under common control;

(A) Borrowers of money or purchasers or lessees of goods, services, or property for which payment is arranged through a credit transaction;

(B) The debtors of one (1) or more subsidiary corporations; and

(C) The debtors of one (1) or more affiliated corporations, proprietorships, or partnerships if the business of the policyholder and of the affiliated corporations, proprietorships, or partnerships is under common control;

(2) (A) The premium for the policy shall be paid either from the creditor's funds or from charges collected from the insured debtors, or from both. (B) Except as provided in subdivision (a)(3) of this section, a policy on which no part of the premium is to be derived from funds contributed by insured debtors specifically for their insurance must insure all eligible debtors;

(A) The premium for the policy shall be paid either from the creditor's funds or from charges collected from the insured debtors, or from both.

(B) Except as provided in subdivision (a)(3) of this section, a policy on which no part of the premium is to be derived from funds contributed by insured debtors specifically for their insurance must insure all eligible debtors;

(3) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer;

(4) The amount of the insurance on the life of any debtor shall at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor;

(5) The insurance may be payable to the creditor or any successor to the right, title, and interest of the creditor. The payment shall reduce or extinguish the unpaid indebtedness of the debtor to the extent of the payment; and

(6) Notwithstanding the provisions of subdivisions (a)(1)-(5) of this section, insurance on agricultural credit transaction commitments may be written up to the amount of the loan commitment on a nondecreasing or level term plan. Insurance on educational credit transaction commitments may be written up to the amount of the loan commitment less the amount of any repayments made on the loan.

(b) Excluding an annuity policy, a policy issued to a credit union or to a trustee or agent designated by two (2) or more credit unions, which credit union, trustee, or agent shall be deemed the policyholder, to insure members of the credit union or for the benefit of persons other than the credit union, trustee, or agent or any of their officials, subject to the following requirements: (1) The members eligible for insurance shall be all of the members of the credit union or all members of any classes thereof; (2) The premium for the policy shall be paid by the policyholder from the credit union's funds and, except as provided in subdivision (b)(3) of this section, must insure all eligible members; and (3) An insurer may exclude or limit the coverage on any member as to whom evidence of individual insurability is not satisfactory to the insurer.

(1) The members eligible for insurance shall be all of the members of the credit union or all members of any classes thereof;

(2) The premium for the policy shall be paid by the policyholder from the credit union's funds and, except as provided in subdivision (b)(3) of this section, must insure all eligible members; and

(3) An insurer may exclude or limit the coverage on any member as to whom evidence of individual insurability is not satisfactory to the insurer.

Acts 1981, No. 898, § 5; A.S.A. 1947, § 66-3505.
Ark. Code Ann. § 23-86-313 — AR Code / Title 23 / Chapter 86 / Subchapter 3 / Section 23-86-313
Disclosure of information
Status: in_force

(a) Disclosure of Information by Health Insurance Issuers. In connection with the offering of any health insurance coverage to a small employer, a health insurance issuer: (1) Shall make a reasonable disclosure to the small employer as part of its solicitation and sales materials of the availability of information described in subsection (b) of this section; and (2) Upon request of such a small employer, provide that information. (b) Information Described. (1) In General. Subject to subdivision (b)(3) of this section, with respect to a health insurance issuer offering health insurance coverage to a small employer, information described in this section is information concerning: (A) The provisions of the health insurance coverage concerning the health insurance issuer's right to change premium rates and the factors that may affect changes in premium rates; (B) The provisions of the health insurance coverage relating to renewability of health insurance coverage; (C) The provisions of the health insurance coverage relating to any preexisting condition exclusion; and (D) The benefits and premiums available under all health insurance coverage for which the small employer is qualified. (2) Form of Information. Information under this section shall be provided to small employers in a manner determined by the Insurance Commissioner to be understandable by the average small employer, and shall be sufficient to reasonably inform small employers of their rights and obligations under the health insurance coverage. (3) Exception. A health insurance issuer is not required under this section to disclose any information that is proprietary or trade secret information under applicable law. Acts 1997, No. 997, § 1.

(a) Disclosure of Information by Health Insurance Issuers. In connection with the offering of any health insurance coverage to a small employer, a health insurance issuer: (1) Shall make a reasonable disclosure to the small employer as part of its solicitation and sales materials of the availability of information described in subsection (b) of this section; and (2) Upon request of such a small employer, provide that information.

(1) Shall make a reasonable disclosure to the small employer as part of its solicitation and sales materials of the availability of information described in subsection (b) of this section; and

(2) Upon request of such a small employer, provide that information.

(b) Information Described. (1) In General. Subject to subdivision (b)(3) of this section, with respect to a health insurance issuer offering health insurance coverage to a small employer, information described in this section is information concerning: (A) The provisions of the health insurance coverage concerning the health insurance issuer's right to change premium rates and the factors that may affect changes in premium rates; (B) The provisions of the health insurance coverage relating to renewability of health insurance coverage; (C) The provisions of the health insurance coverage relating to any preexisting condition exclusion; and (D) The benefits and premiums available under all health insurance coverage for which the small employer is qualified. (2) Form of Information. Information under this section shall be provided to small employers in a manner determined by the Insurance Commissioner to be understandable by the average small employer, and shall be sufficient to reasonably inform small employers of their rights and obligations under the health insurance coverage. (3) Exception. A health insurance issuer is not required under this section to disclose any information that is proprietary or trade secret information under applicable law.

(1) In General. Subject to subdivision (b)(3) of this section, with respect to a health insurance issuer offering health insurance coverage to a small employer, information described in this section is information concerning: (A) The provisions of the health insurance coverage concerning the health insurance issuer's right to change premium rates and the factors that may affect changes in premium rates; (B) The provisions of the health insurance coverage relating to renewability of health insurance coverage; (C) The provisions of the health insurance coverage relating to any preexisting condition exclusion; and (D) The benefits and premiums available under all health insurance coverage for which the small employer is qualified.

(A) The provisions of the health insurance coverage concerning the health insurance issuer's right to change premium rates and the factors that may affect changes in premium rates;

(B) The provisions of the health insurance coverage relating to renewability of health insurance coverage;

(C) The provisions of the health insurance coverage relating to any preexisting condition exclusion; and

(D) The benefits and premiums available under all health insurance coverage for which the small employer is qualified.

(2) Form of Information. Information under this section shall be provided to small employers in a manner determined by the Insurance Commissioner to be understandable by the average small employer, and shall be sufficient to reasonably inform small employers of their rights and obligations under the health insurance coverage.

(3) Exception. A health insurance issuer is not required under this section to disclose any information that is proprietary or trade secret information under applicable law.

Acts 1997, No. 997, § 1.
Ark. Code Ann. § 23-48-312 — AR Code / Title 23 / Chapter 48 / Subchapter 3 / Section 23-48-312
Liability of shareholders - Assessment of stock
Status: in_force

(a) (1) Except as otherwise provided in this section, a purchaser from a state bank of its own shares is not liable to the state bank or its creditors with respect to the shares except to pay the full consideration, fixed as provided by law, for which the shares were issued or were to be issued. (2) Except as otherwise provided in this section, or unless otherwise provided in the articles of incorporation, a shareholder of a state bank is not personally liable for the acts or debts of the state bank except that he or she may become personally liable by reason of his or her own acts or conduct. (b) (1) When, in the opinion of the Bank Commissioner, the report of an examination of a state bank discloses bad or worthless assets which should be charged off, he or she shall immediately instruct the officers of the state bank to collect and realize upon the assets within a time fixed by him or her, and, if not collected or realized upon within that time, the assets shall immediately be charged off. (2) If the capital, as defined by the commissioner, is thereby impaired, the commissioner shall order the directors to make an assessment upon the capital stock in form and manner as provided in subsection (c) of this section to restore capital. (c) (1) The directors of every state bank shall have power and authority to levy and collect assessments on the stock of the state bank and shall make the levy on the order of the commissioner for the purpose of restoring any deficiency that may occur by reason of the impairment of the capital of the state bank. (2) Should the assessment not be paid within thirty (30) days from the date the assessment is made, the assessed stock, or so much thereof as may be necessary, shall be sold at public auction to provide funds to meet the assessment. (3) A lien is created in favor of the state bank on the stock to pay the assessments so made. (d) (1) For purposes of this section, a state bank's capital is impaired when, in the opinion of the commissioner, its assets are of such a character and value that it is unable in the ordinary course of business to meet the minimum capital requirements as specified from time to time by administrative policies adopted by the commissioner. (2) In the absence of fraud or collusion, the determination of the commissioner as to impairment of capital is conclusive. (e) Subdivision (b)(2) of this section and subsection (c) of this section do not apply to a state bank if the state bank: (1) Is required to file reports under section 13 or section 15(d) of the Securities Exchange Act of 1934, 15 U.S.C. § 78a et seq., as it existed on January 1, 2017; or (2) Has a class of equity securities registered under section 12(b) or section 12(g) of the Securities Exchange Act of 1934, 15 U.S.C. § 78a et seq., as it existed on January 1, 2017. Amended by Act 2017, No. 548,§ 5, eff. 3/21/2017. Acts 1997, No. 89, § 1.

(a) (1) Except as otherwise provided in this section, a purchaser from a state bank of its own shares is not liable to the state bank or its creditors with respect to the shares except to pay the full consideration, fixed as provided by law, for which the shares were issued or were to be issued. (2) Except as otherwise provided in this section, or unless otherwise provided in the articles of incorporation, a shareholder of a state bank is not personally liable for the acts or debts of the state bank except that he or she may become personally liable by reason of his or her own acts or conduct.

(1) Except as otherwise provided in this section, a purchaser from a state bank of its own shares is not liable to the state bank or its creditors with respect to the shares except to pay the full consideration, fixed as provided by law, for which the shares were issued or were to be issued.

(2) Except as otherwise provided in this section, or unless otherwise provided in the articles of incorporation, a shareholder of a state bank is not personally liable for the acts or debts of the state bank except that he or she may become personally liable by reason of his or her own acts or conduct.

(b) (1) When, in the opinion of the Bank Commissioner, the report of an examination of a state bank discloses bad or worthless assets which should be charged off, he or she shall immediately instruct the officers of the state bank to collect and realize upon the assets within a time fixed by him or her, and, if not collected or realized upon within that time, the assets shall immediately be charged off. (2) If the capital, as defined by the commissioner, is thereby impaired, the commissioner shall order the directors to make an assessment upon the capital stock in form and manner as provided in subsection (c) of this section to restore capital.

(1) When, in the opinion of the Bank Commissioner, the report of an examination of a state bank discloses bad or worthless assets which should be charged off, he or she shall immediately instruct the officers of the state bank to collect and realize upon the assets within a time fixed by him or her, and, if not collected or realized upon within that time, the assets shall immediately be charged off.

(2) If the capital, as defined by the commissioner, is thereby impaired, the commissioner shall order the directors to make an assessment upon the capital stock in form and manner as provided in subsection (c) of this section to restore capital.

(c) (1) The directors of every state bank shall have power and authority to levy and collect assessments on the stock of the state bank and shall make the levy on the order of the commissioner for the purpose of restoring any deficiency that may occur by reason of the impairment of the capital of the state bank. (2) Should the assessment not be paid within thirty (30) days from the date the assessment is made, the assessed stock, or so much thereof as may be necessary, shall be sold at public auction to provide funds to meet the assessment. (3) A lien is created in favor of the state bank on the stock to pay the assessments so made.

(1) The directors of every state bank shall have power and authority to levy and collect assessments on the stock of the state bank and shall make the levy on the order of the commissioner for the purpose of restoring any deficiency that may occur by reason of the impairment of the capital of the state bank.

(2) Should the assessment not be paid within thirty (30) days from the date the assessment is made, the assessed stock, or so much thereof as may be necessary, shall be sold at public auction to provide funds to meet the assessment.

(3) A lien is created in favor of the state bank on the stock to pay the assessments so made.

(d) (1) For purposes of this section, a state bank's capital is impaired when, in the opinion of the commissioner, its assets are of such a character and value that it is unable in the ordinary course of business to meet the minimum capital requirements as specified from time to time by administrative policies adopted by the commissioner. (2) In the absence of fraud or collusion, the determination of the commissioner as to impairment of capital is conclusive.

(1) For purposes of this section, a state bank's capital is impaired when, in the opinion of the commissioner, its assets are of such a character and value that it is unable in the ordinary course of business to meet the minimum capital requirements as specified from time to time by administrative policies adopted by the commissioner.

(2) In the absence of fraud or collusion, the determination of the commissioner as to impairment of capital is conclusive.

(e) Subdivision (b)(2) of this section and subsection (c) of this section do not apply to a state bank if the state bank: (1) Is required to file reports under section 13 or section 15(d) of the Securities Exchange Act of 1934, 15 U.S.C. § 78a et seq., as it existed on January 1, 2017; or (2) Has a class of equity securities registered under section 12(b) or section 12(g) of the Securities Exchange Act of 1934, 15 U.S.C. § 78a et seq., as it existed on January 1, 2017.

(1) Is required to file reports under section 13 or section 15(d) of the Securities Exchange Act of 1934, 15 U.S.C. § 78a et seq., as it existed on January 1, 2017; or

(2) Has a class of equity securities registered under section 12(b) or section 12(g) of the Securities Exchange Act of 1934, 15 U.S.C. § 78a et seq., as it existed on January 1, 2017.

Amended by Act 2017, No. 548,§ 5, eff. 3/21/2017.

Acts 1997, No. 89, § 1.
Ark. Code Ann. § 23-69-138 — AR Code / Title 23 / Chapter 69 / Subchapter 1 / Section 23-69-138
Impairment of capital or assets
Status: in_force

(a) (1) (A) If a stock or mutual insurer becomes impaired or insolvent, the Insurance Commissioner may: (i) Determine the amount of the deficiency; and (ii) Serve notice upon the insurer to make good the deficiency within thirty (30) days after service of the notice. (B) After a hearing, the commissioner may suspend the insurer from soliciting or writing any new coverages in this state until the deficiency is made good. (2) For the purposes of this section, "insolvent" or "impairment" means the same as defined in the Uniform Insurers Liquidation Act, §§ 23-68-101 , 23-68-102(2) -(13), 23-68-104 , 23-68-105 , 23-68-113 , and 23-68-115 - 23-68-120 . (b) The deficiency may be made good: (1) In cash; (2) In assets eligible under § 23-63-801 et seq., which refers to investments, for the investment of the insurer's funds; (3) If a stock insurer, by: (A) Reduction of the stock insurer's capital to an amount not below the minimum required for the kinds of insurance thereafter to be transacted; or (B) Amendment of its certificate of authority to cover only such kinds of insurance thereafter for which the stock insurer has sufficient capital; or (4) If a mutual insurer, by amendment of its certificate of authority to cover only the kinds of insurance thereafter for which the mutual insurer has sufficient surplus. (c) (1) If the deficiency is not made good and proof filed with the commissioner within the thirty-day period: (A) The insurer shall be deemed insolvent; and (B) The commissioner shall institute delinquency proceedings against the insurer under the Uniform Insurers Liquidation Act, §§ 23-68-101 , 23-68-102(2) -(13), 23-68-104 , 23-68-105 , 23-68-113 , and 23-68-115 - 23-68-120 . (2) (A) However, the commissioner, upon application and submission of good cause, may extend the period that the deficiency may be made good and proof filed, but for no more than an additional thirty (30) days if the deficiency exists because of: (i) Increased loss reserves required by the commissioner; or (ii) Disallowance by the commissioner of certain assets or reduction of the value at which carried in the insurer's accounts. (B) However, acquisitions or changes of control of an impaired or insolvent domestic insurer that is or has applied to become an affiliate or subsidiary of a depository institution under federal law shall comply with the periods stated to restore capital or surplus. (d) This section applies in addition to or in conjunction with the insurance laws of this state, including without limitation the Risk-Based Capital Act, § 23-63-1301 et seq., and § 23-63-1501 et seq. Acts 1959, No. 148, § 493; 1977, No. 373, §§ 1, 2; A.S.A. 1947, § 66-4241; Acts 2001, No. 1604, § 58; 2003, No. 540, § 1; 2011, No. 760, § 10.

(a) (1) (A) If a stock or mutual insurer becomes impaired or insolvent, the Insurance Commissioner may: (i) Determine the amount of the deficiency; and (ii) Serve notice upon the insurer to make good the deficiency within thirty (30) days after service of the notice. (B) After a hearing, the commissioner may suspend the insurer from soliciting or writing any new coverages in this state until the deficiency is made good. (2) For the purposes of this section, "insolvent" or "impairment" means the same as defined in the Uniform Insurers Liquidation Act, §§ 23-68-101 , 23-68-102(2) -(13), 23-68-104 , 23-68-105 , 23-68-113 , and 23-68-115 - 23-68-120 .

(1) (A) If a stock or mutual insurer becomes impaired or insolvent, the Insurance Commissioner may: (i) Determine the amount of the deficiency; and (ii) Serve notice upon the insurer to make good the deficiency within thirty (30) days after service of the notice. (B) After a hearing, the commissioner may suspend the insurer from soliciting or writing any new coverages in this state until the deficiency is made good.

(A) If a stock or mutual insurer becomes impaired or insolvent, the Insurance Commissioner may: (i) Determine the amount of the deficiency; and (ii) Serve notice upon the insurer to make good the deficiency within thirty (30) days after service of the notice.

(i) Determine the amount of the deficiency; and

(ii) Serve notice upon the insurer to make good the deficiency within thirty (30) days after service of the notice.

(B) After a hearing, the commissioner may suspend the insurer from soliciting or writing any new coverages in this state until the deficiency is made good.

(2) For the purposes of this section, "insolvent" or "impairment" means the same as defined in the Uniform Insurers Liquidation Act, §§ 23-68-101 , 23-68-102(2) -(13), 23-68-104 , 23-68-105 , 23-68-113 , and 23-68-115 - 23-68-120 .

(b) The deficiency may be made good: (1) In cash; (2) In assets eligible under § 23-63-801 et seq., which refers to investments, for the investment of the insurer's funds; (3) If a stock insurer, by: (A) Reduction of the stock insurer's capital to an amount not below the minimum required for the kinds of insurance thereafter to be transacted; or (B) Amendment of its certificate of authority to cover only such kinds of insurance thereafter for which the stock insurer has sufficient capital; or (4) If a mutual insurer, by amendment of its certificate of authority to cover only the kinds of insurance thereafter for which the mutual insurer has sufficient surplus.

(1) In cash;

(2) In assets eligible under § 23-63-801 et seq., which refers to investments, for the investment of the insurer's funds;

(3) If a stock insurer, by: (A) Reduction of the stock insurer's capital to an amount not below the minimum required for the kinds of insurance thereafter to be transacted; or (B) Amendment of its certificate of authority to cover only such kinds of insurance thereafter for which the stock insurer has sufficient capital; or

(A) Reduction of the stock insurer's capital to an amount not below the minimum required for the kinds of insurance thereafter to be transacted; or

(B) Amendment of its certificate of authority to cover only such kinds of insurance thereafter for which the stock insurer has sufficient capital; or

(4) If a mutual insurer, by amendment of its certificate of authority to cover only the kinds of insurance thereafter for which the mutual insurer has sufficient surplus.

(c) (1) If the deficiency is not made good and proof filed with the commissioner within the thirty-day period: (A) The insurer shall be deemed insolvent; and (B) The commissioner shall institute delinquency proceedings against the insurer under the Uniform Insurers Liquidation Act, §§ 23-68-101 , 23-68-102(2) -(13), 23-68-104 , 23-68-105 , 23-68-113 , and 23-68-115 - 23-68-120 . (2) (A) However, the commissioner, upon application and submission of good cause, may extend the period that the deficiency may be made good and proof filed, but for no more than an additional thirty (30) days if the deficiency exists because of: (i) Increased loss reserves required by the commissioner; or (ii) Disallowance by the commissioner of certain assets or reduction of the value at which carried in the insurer's accounts. (B) However, acquisitions or changes of control of an impaired or insolvent domestic insurer that is or has applied to become an affiliate or subsidiary of a depository institution under federal law shall comply with the periods stated to restore capital or surplus.

(1) If the deficiency is not made good and proof filed with the commissioner within the thirty-day period: (A) The insurer shall be deemed insolvent; and (B) The commissioner shall institute delinquency proceedings against the insurer under the Uniform Insurers Liquidation Act, §§ 23-68-101 , 23-68-102(2) -(13), 23-68-104 , 23-68-105 , 23-68-113 , and 23-68-115 - 23-68-120 .

(A) The insurer shall be deemed insolvent; and

(B) The commissioner shall institute delinquency proceedings against the insurer under the Uniform Insurers Liquidation Act, §§ 23-68-101 , 23-68-102(2) -(13), 23-68-104 , 23-68-105 , 23-68-113 , and 23-68-115 - 23-68-120 .

(2) (A) However, the commissioner, upon application and submission of good cause, may extend the period that the deficiency may be made good and proof filed, but for no more than an additional thirty (30) days if the deficiency exists because of: (i) Increased loss reserves required by the commissioner; or (ii) Disallowance by the commissioner of certain assets or reduction of the value at which carried in the insurer's accounts. (B) However, acquisitions or changes of control of an impaired or insolvent domestic insurer that is or has applied to become an affiliate or subsidiary of a depository institution under federal law shall comply with the periods stated to restore capital or surplus.

(A) However, the commissioner, upon application and submission of good cause, may extend the period that the deficiency may be made good and proof filed, but for no more than an additional thirty (30) days if the deficiency exists because of: (i) Increased loss reserves required by the commissioner; or (ii) Disallowance by the commissioner of certain assets or reduction of the value at which carried in the insurer's accounts.

(i) Increased loss reserves required by the commissioner; or

(ii) Disallowance by the commissioner of certain assets or reduction of the value at which carried in the insurer's accounts.

(B) However, acquisitions or changes of control of an impaired or insolvent domestic insurer that is or has applied to become an affiliate or subsidiary of a depository institution under federal law shall comply with the periods stated to restore capital or surplus.

(d) This section applies in addition to or in conjunction with the insurance laws of this state, including without limitation the Risk-Based Capital Act, § 23-63-1301 et seq., and § 23-63-1501 et seq.

Acts 1959, No. 148, § 493; 1977, No. 373, §§ 1, 2; A.S.A. 1947, § 66-4241; Acts 2001, No. 1604, § 58; 2003, No. 540, § 1; 2011, No. 760, § 10.
Ark. Code Ann. § 23-38-306 — AR Code / Title 23 / Chapter 38 / Subchapter 3 / Section 23-38-306
[Repealed]
Status: repealed

Repealed by Act 2013, No. 1144,§ 4, eff. 8/16/2013. Acts 1932 (2nd Ex. Sess.), No. 10, § 5; Pope's Dig., § 1033; A.S.A. 1947, § 67-855.

Repealed by Act 2013, No. 1144,§ 4, eff. 8/16/2013.

Acts 1932 (2nd Ex. Sess.), No. 10, § 5; Pope's Dig., § 1033; A.S.A. 1947, § 67-855.
Ark. Code Ann. § 23-48-702 — AR Code / Title 23 / Chapter 48 / Subchapter 7 / Section 23-48-702
Establishment of full-service branches and limited-purpose offices - Locations
Status: in_force

(a) (1) No bank shall engage in core banking activities, receiving deposits, paying checks, or lending money at any location other than at a main banking office or full-service branch, except as otherwise permitted by law. (2) Unless otherwise restricted by applicable law, banks may engage in permitted activities other than core banking activities at a main office, any branch, or a limited purpose office. (3) (A) All communities and banking markets shall be presumed to be suitable for bank branches. (B) The prior existence of a main or branch office of any bank in a community does not grant the bank any right or power to preclude any other bank from branching into the community. (b) (1) (A) An Arkansas bank may establish a full-service branch anywhere within the United States with the approval of its supervisory banking authority. (B) A state bank that relocates its main banking office may continue to use its former main banking office location as a full-service branch as long as the use of the banking facility is uninterrupted. (2) A registered out-of-state bank may establish a full-service branch anywhere within the State of Arkansas: (A) With the approval of its bank supervisory agencies; and (B) Upon receiving a certificate of authority from the Bank Commissioner. (3) An Arkansas bank possessing a capital and surplus of one million dollars ($1,000,000) or more may file an application with the commissioner for permission to exercise, upon such conditions as the commissioner may prescribe, the power to establish branches in foreign countries or dependencies or insular possessions of the United States and to act as fiscal agent for any government entity. (4) Notwithstanding any other provisions of state law regarding locations of full-service branches, a federal or state savings bank or association chartered and in operation before August 13, 2001, with branches in operation in one (1) or more states, may convert to a state bank in accordance with § 23-48-504 and may retain its branches, both in state and out of state, as branches of the state bank. (c) (1) None of the provisions of this section which restrict the locations in which full-service branches may be established shall be effective in emergency instances in which the purchase or assumption of the assets and liabilities of a failed bank becomes necessary due to state or federal regulatory action. (2) The restrictions on the location of banking services by an authorized bank may be suspended by the commissioner during a disaster, emergency, or other cause which disables the operation of a permanent location of the bank under the terms and conditions considered appropriate by the commissioner. (d) (1) Any state bank may file a notice with the commissioner to relocate any existing full-service branch to another location then authorized by law. (2) A fee of not less than three hundred dollars ($300) nor more than five hundred dollars ($500) established by State Bank Department rule shall accompany the notice. (3) The notice shall: (A) Be filed not less than thirty (30) days prior to the proposed relocation; and (B) Contain any information concerning the new location required by the commissioner. (4) The commissioner shall approve the relocation unless it is determined that the relocation is not consistent with the standards contained in § 23-48-703(a) . (5) (A) No notice to relocate a full-service branch is required if: (i) (a) A full-service branch is: (1) Opened or built within the immediate neighborhood of an existing branch; or (2) Opened, built, or established as a result of the consolidation of two (2) or more banks within the immediate neighborhood of an existing branch or main office of a bank. (b) The existing branch or main office may be closed upon the opening of the new branch; (ii) The nature of the business and customers of the branch are not substantially affected; and (iii) A notice and filing fee of no more than two hundred fifty dollars ($250) as prescribed by the commissioner is filed with the department. (B) As used in subdivision (d)(5)(A) of this section, "within the immediate neighborhood" includes, but is not limited to: (i) Across the street; (ii) Around the corner; (iii) Within two (2) blocks; (iv) Within one thousand feet (1,000'); or (v) In densely populated areas, within five thousand feet (5,000'). (e) (1) Any bank may establish a limited-purpose office anywhere in the state to conduct noncore banking activities upon satisfaction of the notice requirement set forth in this subsection. (2) As to each limited-purpose office which a bank proposes to establish or use, the bank shall give not fewer than thirty (30) days' prior written notice of its intention to establish or use the limited-purpose office to: (A) The commissioner, in the case of a state bank; (B) The home state regulator, in the case of a registered out-of-state bank which is an out-of-state state-chartered bank; or (C) The United States Comptroller of the Currency, in the case of a national bank. (3) The notice shall be in such form that may be required by the regulatory authority with which the notice is to be filed and shall include the following information: (A) The location and a general description of the surrounding area; (B) Whether the location will be owned or leased; (C) The noncore banking activities to be conducted; (D) An estimate of the initial cost of the limited-purpose office; and (E) Such other relevant information as may be required by the regulatory authority. Amended by Act 2019, No. 315,§ 2550, eff. 7/24/2019. Acts 1997, No. 89, § 1; 1997, No. 408, § 16; 1999, No. 113, § 6; 2001, No. 62, §§ 3, 4; 2005, No. 249, § 1; 2005, No. 1816, § 2; 2007, No. 42, § 2; 2011, No. 796, § 1.

(a) (1) No bank shall engage in core banking activities, receiving deposits, paying checks, or lending money at any location other than at a main banking office or full-service branch, except as otherwise permitted by law. (2) Unless otherwise restricted by applicable law, banks may engage in permitted activities other than core banking activities at a main office, any branch, or a limited purpose office. (3) (A) All communities and banking markets shall be presumed to be suitable for bank branches. (B) The prior existence of a main or branch office of any bank in a community does not grant the bank any right or power to preclude any other bank from branching into the community.

(1) No bank shall engage in core banking activities, receiving deposits, paying checks, or lending money at any location other than at a main banking office or full-service branch, except as otherwise permitted by law.

(2) Unless otherwise restricted by applicable law, banks may engage in permitted activities other than core banking activities at a main office, any branch, or a limited purpose office.

(3) (A) All communities and banking markets shall be presumed to be suitable for bank branches. (B) The prior existence of a main or branch office of any bank in a community does not grant the bank any right or power to preclude any other bank from branching into the community.

(A) All communities and banking markets shall be presumed to be suitable for bank branches.

(B) The prior existence of a main or branch office of any bank in a community does not grant the bank any right or power to preclude any other bank from branching into the community.

(b) (1) (A) An Arkansas bank may establish a full-service branch anywhere within the United States with the approval of its supervisory banking authority. (B) A state bank that relocates its main banking office may continue to use its former main banking office location as a full-service branch as long as the use of the banking facility is uninterrupted. (2) A registered out-of-state bank may establish a full-service branch anywhere within the State of Arkansas: (A) With the approval of its bank supervisory agencies; and (B) Upon receiving a certificate of authority from the Bank Commissioner. (3) An Arkansas bank possessing a capital and surplus of one million dollars ($1,000,000) or more may file an application with the commissioner for permission to exercise, upon such conditions as the commissioner may prescribe, the power to establish branches in foreign countries or dependencies or insular possessions of the United States and to act as fiscal agent for any government entity. (4) Notwithstanding any other provisions of state law regarding locations of full-service branches, a federal or state savings bank or association chartered and in operation before August 13, 2001, with branches in operation in one (1) or more states, may convert to a state bank in accordance with § 23-48-504 and may retain its branches, both in state and out of state, as branches of the state bank.

(1) (A) An Arkansas bank may establish a full-service branch anywhere within the United States with the approval of its supervisory banking authority. (B) A state bank that relocates its main banking office may continue to use its former main banking office location as a full-service branch as long as the use of the banking facility is uninterrupted.

(A) An Arkansas bank may establish a full-service branch anywhere within the United States with the approval of its supervisory banking authority.

(B) A state bank that relocates its main banking office may continue to use its former main banking office location as a full-service branch as long as the use of the banking facility is uninterrupted.

(2) A registered out-of-state bank may establish a full-service branch anywhere within the State of Arkansas: (A) With the approval of its bank supervisory agencies; and (B) Upon receiving a certificate of authority from the Bank Commissioner.

(A) With the approval of its bank supervisory agencies; and

(B) Upon receiving a certificate of authority from the Bank Commissioner.

(3) An Arkansas bank possessing a capital and surplus of one million dollars ($1,000,000) or more may file an application with the commissioner for permission to exercise, upon such conditions as the commissioner may prescribe, the power to establish branches in foreign countries or dependencies or insular possessions of the United States and to act as fiscal agent for any government entity.

(4) Notwithstanding any other provisions of state law regarding locations of full-service branches, a federal or state savings bank or association chartered and in operation before August 13, 2001, with branches in operation in one (1) or more states, may convert to a state bank in accordance with § 23-48-504 and may retain its branches, both in state and out of state, as branches of the state bank.

(c) (1) None of the provisions of this section which restrict the locations in which full-service branches may be established shall be effective in emergency instances in which the purchase or assumption of the assets and liabilities of a failed bank becomes necessary due to state or federal regulatory action. (2) The restrictions on the location of banking services by an authorized bank may be suspended by the commissioner during a disaster, emergency, or other cause which disables the operation of a permanent location of the bank under the terms and conditions considered appropriate by the commissioner.

(1) None of the provisions of this section which restrict the locations in which full-service branches may be established shall be effective in emergency instances in which the purchase or assumption of the assets and liabilities of a failed bank becomes necessary due to state or federal regulatory action.

(2) The restrictions on the location of banking services by an authorized bank may be suspended by the commissioner during a disaster, emergency, or other cause which disables the operation of a permanent location of the bank under the terms and conditions considered appropriate by the commissioner.

(d) (1) Any state bank may file a notice with the commissioner to relocate any existing full-service branch to another location then authorized by law. (2) A fee of not less than three hundred dollars ($300) nor more than five hundred dollars ($500) established by State Bank Department rule shall accompany the notice. (3) The notice shall: (A) Be filed not less than thirty (30) days prior to the proposed relocation; and (B) Contain any information concerning the new location required by the commissioner. (4) The commissioner shall approve the relocation unless it is determined that the relocation is not consistent with the standards contained in § 23-48-703(a) . (5) (A) No notice to relocate a full-service branch is required if: (i) (a) A full-service branch is: (1) Opened or built within the immediate neighborhood of an existing branch; or (2) Opened, built, or established as a result of the consolidation of two (2) or more banks within the immediate neighborhood of an existing branch or main office of a bank. (b) The existing branch or main office may be closed upon the opening of the new branch; (ii) The nature of the business and customers of the branch are not substantially affected; and (iii) A notice and filing fee of no more than two hundred fifty dollars ($250) as prescribed by the commissioner is filed with the department. (B) As used in subdivision (d)(5)(A) of this section, "within the immediate neighborhood" includes, but is not limited to: (i) Across the street; (ii) Around the corner; (iii) Within two (2) blocks; (iv) Within one thousand feet (1,000'); or (v) In densely populated areas, within five thousand feet (5,000').

(1) Any state bank may file a notice with the commissioner to relocate any existing full-service branch to another location then authorized by law.

(2) A fee of not less than three hundred dollars ($300) nor more than five hundred dollars ($500) established by State Bank Department rule shall accompany the notice.

(3) The notice shall: (A) Be filed not less than thirty (30) days prior to the proposed relocation; and (B) Contain any information concerning the new location required by the commissioner.

(A) Be filed not less than thirty (30) days prior to the proposed relocation; and

(B) Contain any information concerning the new location required by the commissioner.

(4) The commissioner shall approve the relocation unless it is determined that the relocation is not consistent with the standards contained in § 23-48-703(a) .

(5) (A) No notice to relocate a full-service branch is required if: (i) (a) A full-service branch is: (1) Opened or built within the immediate neighborhood of an existing branch; or (2) Opened, built, or established as a result of the consolidation of two (2) or more banks within the immediate neighborhood of an existing branch or main office of a bank. (b) The existing branch or main office may be closed upon the opening of the new branch; (ii) The nature of the business and customers of the branch are not substantially affected; and (iii) A notice and filing fee of no more than two hundred fifty dollars ($250) as prescribed by the commissioner is filed with the department. (B) As used in subdivision (d)(5)(A) of this section, "within the immediate neighborhood" includes, but is not limited to: (i) Across the street; (ii) Around the corner; (iii) Within two (2) blocks; (iv) Within one thousand feet (1,000'); or (v) In densely populated areas, within five thousand feet (5,000').

(A) No notice to relocate a full-service branch is required if: (i) (a) A full-service branch is: (1) Opened or built within the immediate neighborhood of an existing branch; or (2) Opened, built, or established as a result of the consolidation of two (2) or more banks within the immediate neighborhood of an existing branch or main office of a bank. (b) The existing branch or main office may be closed upon the opening of the new branch; (ii) The nature of the business and customers of the branch are not substantially affected; and (iii) A notice and filing fee of no more than two hundred fifty dollars ($250) as prescribed by the commissioner is filed with the department.

(i) (a) A full-service branch is: (1) Opened or built within the immediate neighborhood of an existing branch; or (2) Opened, built, or established as a result of the consolidation of two (2) or more banks within the immediate neighborhood of an existing branch or main office of a bank. (b) The existing branch or main office may be closed upon the opening of the new branch;

(a) A full-service branch is: (1) Opened or built within the immediate neighborhood of an existing branch; or (2) Opened, built, or established as a result of the consolidation of two (2) or more banks within the immediate neighborhood of an existing branch or main office of a bank.

(1) Opened or built within the immediate neighborhood of an existing branch; or

(2) Opened, built, or established as a result of the consolidation of two (2) or more banks within the immediate neighborhood of an existing branch or main office of a bank.

(b) The existing branch or main office may be closed upon the opening of the new branch;

(ii) The nature of the business and customers of the branch are not substantially affected; and

(iii) A notice and filing fee of no more than two hundred fifty dollars ($250) as prescribed by the commissioner is filed with the department.

(B) As used in subdivision (d)(5)(A) of this section, "within the immediate neighborhood" includes, but is not limited to: (i) Across the street; (ii) Around the corner; (iii) Within two (2) blocks; (iv) Within one thousand feet (1,000'); or (v) In densely populated areas, within five thousand feet (5,000').

(i) Across the street;

(ii) Around the corner;

(iii) Within two (2) blocks;

(iv) Within one thousand feet (1,000'); or

(v) In densely populated areas, within five thousand feet (5,000').

(e) (1) Any bank may establish a limited-purpose office anywhere in the state to conduct noncore banking activities upon satisfaction of the notice requirement set forth in this subsection. (2) As to each limited-purpose office which a bank proposes to establish or use, the bank shall give not fewer than thirty (30) days' prior written notice of its intention to establish or use the limited-purpose office to: (A) The commissioner, in the case of a state bank; (B) The home state regulator, in the case of a registered out-of-state bank which is an out-of-state state-chartered bank; or (C) The United States Comptroller of the Currency, in the case of a national bank. (3) The notice shall be in such form that may be required by the regulatory authority with which the notice is to be filed and shall include the following information: (A) The location and a general description of the surrounding area; (B) Whether the location will be owned or leased; (C) The noncore banking activities to be conducted; (D) An estimate of the initial cost of the limited-purpose office; and (E) Such other relevant information as may be required by the regulatory authority.

(1) Any bank may establish a limited-purpose office anywhere in the state to conduct noncore banking activities upon satisfaction of the notice requirement set forth in this subsection.

(2) As to each limited-purpose office which a bank proposes to establish or use, the bank shall give not fewer than thirty (30) days' prior written notice of its intention to establish or use the limited-purpose office to: (A) The commissioner, in the case of a state bank; (B) The home state regulator, in the case of a registered out-of-state bank which is an out-of-state state-chartered bank; or (C) The United States Comptroller of the Currency, in the case of a national bank.

(A) The commissioner, in the case of a state bank;

(B) The home state regulator, in the case of a registered out-of-state bank which is an out-of-state state-chartered bank; or

(C) The United States Comptroller of the Currency, in the case of a national bank.

(3) The notice shall be in such form that may be required by the regulatory authority with which the notice is to be filed and shall include the following information: (A) The location and a general description of the surrounding area; (B) Whether the location will be owned or leased; (C) The noncore banking activities to be conducted; (D) An estimate of the initial cost of the limited-purpose office; and (E) Such other relevant information as may be required by the regulatory authority.

(A) The location and a general description of the surrounding area;

(B) Whether the location will be owned or leased;

(C) The noncore banking activities to be conducted;

(D) An estimate of the initial cost of the limited-purpose office; and

(E) Such other relevant information as may be required by the regulatory authority.

Amended by Act 2019, No. 315,§ 2550, eff. 7/24/2019.

Acts 1997, No. 89, § 1; 1997, No. 408, § 16; 1999, No. 113, § 6; 2001, No. 62, §§ 3, 4; 2005, No. 249, § 1; 2005, No. 1816, § 2; 2007, No. 42, § 2; 2011, No. 796, § 1.
Ark. Code Ann. § 23-63-506 — AR Code / Title 23 / Chapter 63 / Subchapter 5 / Section 23-63-506
Control of or merger with domestic insurer - Filing requirements - Definition
Status: in_force

(a) (1) No person other than the issuer shall make a tender offer for or a request or invitation for tenders of, or enter into any agreement to exchange securities for, seek to acquire, or acquire, in the open market or otherwise, any voting security of a domestic insurer if, after the consummation thereof, the person would, directly or indirectly, or by conversion or by exercise of any right to acquire, be in control of the insurer. (2) No person shall enter into an agreement to merge with or otherwise acquire control of a domestic insurer or any person controlling a domestic insurer unless at the time the offer, request, or invitation is made or the agreement is entered into, or prior to the acquisition of the securities if no offer or agreement is involved: (A) The person has filed with the Insurance Commissioner and has sent to the insurer a statement containing the information required by this section and §§ 23-63-507 - 23-63-513 ; and (B) The offer, request, invitation, agreement, or acquisition has been approved by the commissioner in the manner prescribed in this section and §§ 23-63-507 - 23-63-513 . (b) (1) For purposes of this section, any person controlling a domestic insurer seeking to divest its controlling interest in the domestic insurer in any manner, shall file with the commissioner, with a copy to the insurer, confidential notice of its proposed divestiture at least thirty (30) days prior to the cessation of control. (2) The commissioner shall determine those instances in which the person seeking to divest or to acquire a controlling interest in an insurer will be required to file for and obtain approval of the transaction. (c) (1) For the purposes of this section and §§ 23-63-507 - 23-63-513 , a domestic insurer shall include any person controlling a domestic insurer unless the person, as determined by the commissioner, is either directly or through its affiliates primarily engaged in business other than the business of insurance. However, the person shall file a preacquisition notification with the commissioner containing the information set forth in § 23-63-527(b) , sixty (60) days prior to the proposed effective date of the acquisition. Failure to file is subject to § 23-63-529(c) . (2) As used in this section, "person" shall not include any securities broker holding, in the usual and customary brokers' function, less than twenty percent (20%) of the voting securities of an insurance company or of any person which controls an insurance company. Amended by Act 2017, No. 386,§ 1, eff. 8/1/2017. Acts 1971, No. 288, § 5; A.S.A. 1947, § 66-5005; Acts 1991, No. 723, § 21; 2001, No. 1604, § 33; 2005, No. 506, § 21.

(a) (1) No person other than the issuer shall make a tender offer for or a request or invitation for tenders of, or enter into any agreement to exchange securities for, seek to acquire, or acquire, in the open market or otherwise, any voting security of a domestic insurer if, after the consummation thereof, the person would, directly or indirectly, or by conversion or by exercise of any right to acquire, be in control of the insurer. (2) No person shall enter into an agreement to merge with or otherwise acquire control of a domestic insurer or any person controlling a domestic insurer unless at the time the offer, request, or invitation is made or the agreement is entered into, or prior to the acquisition of the securities if no offer or agreement is involved: (A) The person has filed with the Insurance Commissioner and has sent to the insurer a statement containing the information required by this section and §§ 23-63-507 - 23-63-513 ; and (B) The offer, request, invitation, agreement, or acquisition has been approved by the commissioner in the manner prescribed in this section and §§ 23-63-507 - 23-63-513 .

(1) No person other than the issuer shall make a tender offer for or a request or invitation for tenders of, or enter into any agreement to exchange securities for, seek to acquire, or acquire, in the open market or otherwise, any voting security of a domestic insurer if, after the consummation thereof, the person would, directly or indirectly, or by conversion or by exercise of any right to acquire, be in control of the insurer.

(2) No person shall enter into an agreement to merge with or otherwise acquire control of a domestic insurer or any person controlling a domestic insurer unless at the time the offer, request, or invitation is made or the agreement is entered into, or prior to the acquisition of the securities if no offer or agreement is involved: (A) The person has filed with the Insurance Commissioner and has sent to the insurer a statement containing the information required by this section and §§ 23-63-507 - 23-63-513 ; and (B) The offer, request, invitation, agreement, or acquisition has been approved by the commissioner in the manner prescribed in this section and §§ 23-63-507 - 23-63-513 .

(A) The person has filed with the Insurance Commissioner and has sent to the insurer a statement containing the information required by this section and §§ 23-63-507 - 23-63-513 ; and

(B) The offer, request, invitation, agreement, or acquisition has been approved by the commissioner in the manner prescribed in this section and §§ 23-63-507 - 23-63-513 .

(b) (1) For purposes of this section, any person controlling a domestic insurer seeking to divest its controlling interest in the domestic insurer in any manner, shall file with the commissioner, with a copy to the insurer, confidential notice of its proposed divestiture at least thirty (30) days prior to the cessation of control. (2) The commissioner shall determine those instances in which the person seeking to divest or to acquire a controlling interest in an insurer will be required to file for and obtain approval of the transaction.

(1) For purposes of this section, any person controlling a domestic insurer seeking to divest its controlling interest in the domestic insurer in any manner, shall file with the commissioner, with a copy to the insurer, confidential notice of its proposed divestiture at least thirty (30) days prior to the cessation of control.

(2) The commissioner shall determine those instances in which the person seeking to divest or to acquire a controlling interest in an insurer will be required to file for and obtain approval of the transaction.

(c) (1) For the purposes of this section and §§ 23-63-507 - 23-63-513 , a domestic insurer shall include any person controlling a domestic insurer unless the person, as determined by the commissioner, is either directly or through its affiliates primarily engaged in business other than the business of insurance. However, the person shall file a preacquisition notification with the commissioner containing the information set forth in § 23-63-527(b) , sixty (60) days prior to the proposed effective date of the acquisition. Failure to file is subject to § 23-63-529(c) . (2) As used in this section, "person" shall not include any securities broker holding, in the usual and customary brokers' function, less than twenty percent (20%) of the voting securities of an insurance company or of any person which controls an insurance company.

(1) For the purposes of this section and §§ 23-63-507 - 23-63-513 , a domestic insurer shall include any person controlling a domestic insurer unless the person, as determined by the commissioner, is either directly or through its affiliates primarily engaged in business other than the business of insurance. However, the person shall file a preacquisition notification with the commissioner containing the information set forth in § 23-63-527(b) , sixty (60) days prior to the proposed effective date of the acquisition. Failure to file is subject to § 23-63-529(c) .

(2) As used in this section, "person" shall not include any securities broker holding, in the usual and customary brokers' function, less than twenty percent (20%) of the voting securities of an insurance company or of any person which controls an insurance company.

Amended by Act 2017, No. 386,§ 1, eff. 8/1/2017.

Acts 1971, No. 288, § 5; A.S.A. 1947, § 66-5005; Acts 1991, No. 723, § 21; 2001, No. 1604, § 33; 2005, No. 506, § 21.
Ark. Code Ann. § 23-32-302 — AR Code / Title 23 / Chapter 32 / Subchapter 3 / Section 23-32-302
Purpose
Status: in_force

The purpose of this subchapter is to exempt state and federal savings and loan associations from being required to furnish security in the form of cash, bond, or otherwise, ensuring proper performance of their duties and obligations in the business transactions set forth in § 23-32-304 . This purpose is based on the premise that savings and loan associations are so thoroughly governed by state and federal law, rule, and regulation that there is an insignificant risk of such an institution's being unable to adequately compensate an injured or damaged party. Acts 1997, No. 84, § 2.

The purpose of this subchapter is to exempt state and federal savings and loan associations from being required to furnish security in the form of cash, bond, or otherwise, ensuring proper performance of their duties and obligations in the business transactions set forth in § 23-32-304 . This purpose is based on the premise that savings and loan associations are so thoroughly governed by state and federal law, rule, and regulation that there is an insignificant risk of such an institution's being unable to adequately compensate an injured or damaged party.

Acts 1997, No. 84, § 2.
Ark. Code Ann. § 23-94-204 — AR Code / Title 23 / Chapter 94 / Subchapter 2 / Section 23-94-204
Domestic risk retention groups - Definitions
Status: in_force

(a) (1) To be organized as a risk retention group in this state, the risk retention group must be organized and licensed to write only casualty insurance pursuant to this subchapter and, except as provided elsewhere in this subchapter, must comply with all of the laws, rules, and requirements applicable to such insurers licensed in this state and with § 23-94-205 to the extent such requirements are not a limitation on laws, rules, or requirements of this state. The commissioner shall issue a certificate of registration to a risk retention group organized, formed, or domiciled under the laws of this state when the commissioner is satisfied that the applicant group has fully complied with the provisions of this subchapter. No risk retention group organized, formed, or domiciled under the laws of this state shall transact business in this state unless so authorized by a subsisting certificate of registration issued by the commissioner. (2) Notwithstanding any other provision to the contrary, all risk retention groups domiciled in this state shall file, annually on or before March 1, or within any extension of time therefor which the commissioner for good cause may have granted, with the State Insurance Department and the National Association of Insurance Commissioners, an annual statement in a form prescribed by the National Association of Insurance Commissioners and in diskette form, if required by the commissioner and completed in accordance with its instructions and the National Association of Insurance Commissioners' Accounting Practices and Procedures Manual. (b) Before it may offer insurance in any state, each risk retention group shall also submit for approval to the commissioner of this state a plan of operation or feasibility study. The risk retention group shall submit an appropriate revision in the event of any subsequent material change in any item of the plan of operation or feasibility study, within ten (10) days of any such change. The risk retention group shall not offer any additional kinds of casualty insurance, in this state or in any other state, until a revision of the plan of operation or feasibility study is approved by the commissioner. (c) At the time of filing its application for a certificate of registration, the risk retention group shall provide to the commissioner in summary form the following information: the identity of the initial members of the risk retention group, the identity of those individuals who organized the risk retention group or who will provide administrative services or otherwise influence or control the activities of the risk retention group, the amount and nature of initial capitalization, the coverages to be afforded, and the states in which the risk retention group intends to operate. Upon receipt of this information, the commissioner shall forward such information to the National Association of Insurance Commissioners. Providing notification to the National Association of Insurance Commissioners is in addition to and shall not be sufficient to satisfy the requirements of § 23-94-205 or any other sections of this subchapter. (d) (1) Beginning July 1, 2018, an existing risk retention group shall comply with the governance standards in subsections (e)-(j) of this section. (2) A risk retention group applying for initial licensure in this state shall comply with the governance standards in this section at the time of licensure. (e) As used in this section: (1) "Board of directors" means a governing body of a risk retention group that is elected by the shareholders or members of the risk retention group to: (A) Establish policy; (B) Elect or appoint officers and committees; and (C) Make other governing decisions for the risk retention group; and (2) "Director" means an individual designated in the articles of the risk retention group, or designated, elected, or appointed by any other manner, name, or title to act as a director. (f) (1) (A) The board of directors of a risk retention group shall have a majority of independent directors. (B) (i) If the risk retention group is a reciprocal risk retention group, then an appointed attorney-in-fact of the reciprocal risk retention group is required to adhere to the same standards described in this section regarding independence of operation and governance as imposed on the board of directors or on the subscribers' advisory committee of the risk retention group. (ii) To the extent permissible under state law, a service provider of a reciprocal risk retention group shall contract with the risk retention group and not the attorney-in-fact. (2) (A) A director shall not qualify as independent unless the board of directors affirmatively determines that the director does not have a material relationship with the risk retention group. (B) A risk retention group shall annually disclose to the commissioner of the domiciliary state of the risk retention group the determinations made by the board of directors under subdivision (f)(2)(A) of this section. (3) (A) A director who is a direct or indirect owner of or subscriber in the risk retention group is independent for purposes of subdivision (f)(1)(A) of this section. (B) Subdivision (f)(3)(A) of this section includes an officer, director, or employee of a direct or indirect owner of or subscriber in the risk retention group, unless a different position of the officer, director, or employee constitutes a material relationship, as contemplated by section 3901(a)(4)(E)(ii) of the Liability Risk Retention Act of 1986, 15 U.S.C. § 3901 et seq., as it existed on January 1, 2017. (4) A person has a material relationship with a risk retention group if the person, a member of the person's immediate family, or any business with which the person is affiliated, has received from the risk retention group or a consultant or service provider to the risk retention group in the previous twelve-month period, any compensation, payment, or any other item of value, that is greater than or equal to five percent (5%) of the risk retention group's gross written premium for the same twelve-month period or two percent (2%) of its surplus, whichever is greater, as measured at the end of any fiscal quarter falling in the twelve-month period. (5) To determine whether or not a person is independent for the purposes of this section: (A) A person or an immediate family member of the person under subdivision (f)(4) of this section shall not be independent until at least one (1) year after receipt of any compensation from the risk retention group that falls below the threshold; (B) A director or an immediate family member of a director who is affiliated with or employed in a professional capacity by a present or former internal or external auditor of the risk retention group shall not be independent until one (1) year after the end of the affiliation, employment, or auditing relationship; or (C) A director or immediate family member of a director who is employed as an executive officer of another company where any of the risk retention group's present executives serve on that other company's board of directors shall not be independent until one (1) year after the end of the service or the employment relationship. (g) (1) The term of any material service provider contract with the risk retention group shall not exceed five (5) years. (2) A material service provider contract, or its renewal, requires the approval of the majority of the risk retention group's independent directors. (3) The board of directors may terminate any service provider, audit, or actuarial contracts at any time for cause after providing adequate notice as defined in the contract. (4) The service provider contract is deemed material if the amount to be paid for a contract is greater than or equal to five percent (5%) of the risk retention group's annual gross written premium or two percent (2%) of its surplus, whichever is greater. (5) A service provider contract that qualifies as a material relationship described in subdivision (f)(4) of this section shall not be entered into unless the risk retention group has notified the commissioner in writing of its intention to enter into a transaction at least thirty (30) days before the transaction and the commissioner has not disapproved it within that period. (6) (A) As used in this subsection, "service provider" includes a captive manager, auditor, accountant, actuary, investment advisor, lawyer, managing general underwriter, or other party responsible for underwriting, determining rates, collecting premiums, adjusting and settling claims, or preparing financial statements. (B) "Service provider" does not include a lawyer who is retained as defense counsel by the risk retention group to defend claims unless the amount of fees paid to a lawyer qualifies as a material relationship described in subdivision (f)(4) of this section. (h) (1) The board of directors shall adopt a written policy in the plan of operation as approved by the board of directors. (2) The written policy described in subdivision (h)(1) of this section shall require the board of directors to: (A) Assure that an owner or insured of the risk retention group receives evidence of ownership interest; (B) Develop a set of governance standards applicable to the risk retention group; (C) Oversee the evaluation of the risk retention group's management, including without limitation the performance of the captive manager, managing general underwriter, or other party responsible for underwriting, determining rates, collecting premiums, adjusting or settling claims, or preparing financial statements; (D) Review and approve the amount to be paid for all material service providers; and (E) Annually review and approve: (i) Goals and objectives of the risk retention group relevant to the compensation of officers and service providers; (ii) The performance of officers and service providers in light of the goals and objectives described in subdivision (h)(2)(E)(i) of this section; and (iii) The continued engagement of the officers and material service providers. (i) (1) (A) A risk retention group shall have an audit committee composed of at least three (3) independent members of the board of directors as defined in subdivision (f)(1) of this section. (B) (i) A member of the board of directors who is not independent shall not be a member of an audit committee of a risk retention group. (ii) A member of the board of directors who is not independent may participate in the activities of the audit committee if invited by members of the audit committee. (2) The audit committee shall have a written charter that defines the purpose of the audit committee, as follows: (A) Assist the board of directors in oversight of: (i) The integrity of the financial statements of the risk retention group; (ii) Compliance with legal and regulatory requirements; and (iii) The qualifications, independence, and performance of the independent auditor and actuary of the risk retention group; (B) Discuss the annual audited financial statements and quarterly financial statements with the management of the risk retention group; (C) Discuss with the independent auditor of the risk retention group: (i) The annual audited financial statements of the risk retention group; and (ii) If advisable, the quarterly financial statements; (D) Discuss policies with respect to risk assessment and risk management; (E) Have meetings with the management of the risk retention group and the independent auditor separately and periodically, either directly or through a designated representative of the audit committee; (F) Review any audit problems or difficulties and the response by the management of the risk retention group with the independent auditor; (G) Set clear hiring policies of the risk retention group as to the hiring of an employee or former employee of the independent auditor; (H) Require the external auditor to rotate the lead or coordinating audit partner that has primary responsibility for the audit of the risk retention group and the audit partner that is responsible for reviewing the audit of the risk retention group so that neither individual performs the audit services for more than five (5) consecutive fiscal years; and (I) Report regularly to the board of directors. (3) The commissioner of the domiciliary state of the risk retention group may waive the requirement to establish an audit committee required in subdivision (i)(1)(A) of this section if the risk retention group is able to demonstrate to the commissioner of the domiciliary state of the risk retention group that: (A) It is impracticable to do so; and (B) The board of directors is able to accomplish the purposes of an audit committee as described in subdivision (i)(2) of this section. (j) (1) (A) The board of directors shall adopt and disclose its governance standards by making the information available through electronic methods, including without limitation by posting the information on the public website of the risk retention group, or by other means and providing the information to members or insureds upon request. (B) The information under subdivision (j)(1)(A) of this section shall include: (i) A process by which the directors are elected by the owners or insureds; (ii) Director qualification standards; (iii) Director responsibilities; (iv) Director access to the management of the risk retention group and, as necessary and appropriate, to independent advisors; (v) Director compensation; (vi) Director orientation and continuing education; (vii) The policies and procedures that are followed for management succession; and (viii) The policies and procedures that are followed for annual performance evaluation of the board of directors. (2) (A) (i) The board of directors shall adopt and disclose a code of business conduct and ethics for directors, officers, and employees. (ii) The code of business conduct and ethics for directors, officers, and employees shall include the following topics: (a) Conflicts of interest; (b) Matters covered under the corporate opportunities doctrine under the state of domicile; (c) Confidentiality; (d) Fair dealing; (e) Protection and proper use of risk retention group assets; (f) Compliance with all applicable laws and rules; and (g) Requiring the reporting of any illegal or unethical behavior that affects the operation of the risk retention group. (iii) The captive manager, president, or chief executive officer of the risk retention group shall promptly notify the commissioner of the domiciliary state of the risk retention group in writing if he or she becomes aware of any material noncompliance with any of the governance standards in this section. (B) Any waivers of the code of business conduct and ethics for directors or executive officers shall promptly be disclosed to the board of directors. Amended by Act 2019, No. 315,§ 2784, eff. 7/24/2019. Amended by Act 2019, No. 391,§ 13, eff. 7/24/2019. Amended by Act 2019, No. 391,§ 12, eff. 7/24/2019. Amended by Act 2017, No. 283,§ 19, eff. 8/1/2017. Acts 1995, No. 623, § 1.

(a) (1) To be organized as a risk retention group in this state, the risk retention group must be organized and licensed to write only casualty insurance pursuant to this subchapter and, except as provided elsewhere in this subchapter, must comply with all of the laws, rules, and requirements applicable to such insurers licensed in this state and with § 23-94-205 to the extent such requirements are not a limitation on laws, rules, or requirements of this state. The commissioner shall issue a certificate of registration to a risk retention group organized, formed, or domiciled under the laws of this state when the commissioner is satisfied that the applicant group has fully complied with the provisions of this subchapter. No risk retention group organized, formed, or domiciled under the laws of this state shall transact business in this state unless so authorized by a subsisting certificate of registration issued by the commissioner. (2) Notwithstanding any other provision to the contrary, all risk retention groups domiciled in this state shall file, annually on or before March 1, or within any extension of time therefor which the commissioner for good cause may have granted, with the State Insurance Department and the National Association of Insurance Commissioners, an annual statement in a form prescribed by the National Association of Insurance Commissioners and in diskette form, if required by the commissioner and completed in accordance with its instructions and the National Association of Insurance Commissioners' Accounting Practices and Procedures Manual.

(1) To be organized as a risk retention group in this state, the risk retention group must be organized and licensed to write only casualty insurance pursuant to this subchapter and, except as provided elsewhere in this subchapter, must comply with all of the laws, rules, and requirements applicable to such insurers licensed in this state and with § 23-94-205 to the extent such requirements are not a limitation on laws, rules, or requirements of this state. The commissioner shall issue a certificate of registration to a risk retention group organized, formed, or domiciled under the laws of this state when the commissioner is satisfied that the applicant group has fully complied with the provisions of this subchapter. No risk retention group organized, formed, or domiciled under the laws of this state shall transact business in this state unless so authorized by a subsisting certificate of registration issued by the commissioner.

(2) Notwithstanding any other provision to the contrary, all risk retention groups domiciled in this state shall file, annually on or before March 1, or within any extension of time therefor which the commissioner for good cause may have granted, with the State Insurance Department and the National Association of Insurance Commissioners, an annual statement in a form prescribed by the National Association of Insurance Commissioners and in diskette form, if required by the commissioner and completed in accordance with its instructions and the National Association of Insurance Commissioners' Accounting Practices and Procedures Manual.

(b) Before it may offer insurance in any state, each risk retention group shall also submit for approval to the commissioner of this state a plan of operation or feasibility study. The risk retention group shall submit an appropriate revision in the event of any subsequent material change in any item of the plan of operation or feasibility study, within ten (10) days of any such change. The risk retention group shall not offer any additional kinds of casualty insurance, in this state or in any other state, until a revision of the plan of operation or feasibility study is approved by the commissioner.

(c) At the time of filing its application for a certificate of registration, the risk retention group shall provide to the commissioner in summary form the following information: the identity of the initial members of the risk retention group, the identity of those individuals who organized the risk retention group or who will provide administrative services or otherwise influence or control the activities of the risk retention group, the amount and nature of initial capitalization, the coverages to be afforded, and the states in which the risk retention group intends to operate. Upon receipt of this information, the commissioner shall forward such information to the National Association of Insurance Commissioners. Providing notification to the National Association of Insurance Commissioners is in addition to and shall not be sufficient to satisfy the requirements of § 23-94-205 or any other sections of this subchapter.

(d) (1) Beginning July 1, 2018, an existing risk retention group shall comply with the governance standards in subsections (e)-(j) of this section. (2) A risk retention group applying for initial licensure in this state shall comply with the governance standards in this section at the time of licensure.

(1) Beginning July 1, 2018, an existing risk retention group shall comply with the governance standards in subsections (e)-(j) of this section.

(2) A risk retention group applying for initial licensure in this state shall comply with the governance standards in this section at the time of licensure.

(e) As used in this section: (1) "Board of directors" means a governing body of a risk retention group that is elected by the shareholders or members of the risk retention group to: (A) Establish policy; (B) Elect or appoint officers and committees; and (C) Make other governing decisions for the risk retention group; and (2) "Director" means an individual designated in the articles of the risk retention group, or designated, elected, or appointed by any other manner, name, or title to act as a director.

(1) "Board of directors" means a governing body of a risk retention group that is elected by the shareholders or members of the risk retention group to: (A) Establish policy; (B) Elect or appoint officers and committees; and (C) Make other governing decisions for the risk retention group; and

(A) Establish policy;

(B) Elect or appoint officers and committees; and

(C) Make other governing decisions for the risk retention group; and

(2) "Director" means an individual designated in the articles of the risk retention group, or designated, elected, or appointed by any other manner, name, or title to act as a director.

(f) (1) (A) The board of directors of a risk retention group shall have a majority of independent directors. (B) (i) If the risk retention group is a reciprocal risk retention group, then an appointed attorney-in-fact of the reciprocal risk retention group is required to adhere to the same standards described in this section regarding independence of operation and governance as imposed on the board of directors or on the subscribers' advisory committee of the risk retention group. (ii) To the extent permissible under state law, a service provider of a reciprocal risk retention group shall contract with the risk retention group and not the attorney-in-fact. (2) (A) A director shall not qualify as independent unless the board of directors affirmatively determines that the director does not have a material relationship with the risk retention group. (B) A risk retention group shall annually disclose to the commissioner of the domiciliary state of the risk retention group the determinations made by the board of directors under subdivision (f)(2)(A) of this section. (3) (A) A director who is a direct or indirect owner of or subscriber in the risk retention group is independent for purposes of subdivision (f)(1)(A) of this section. (B) Subdivision (f)(3)(A) of this section includes an officer, director, or employee of a direct or indirect owner of or subscriber in the risk retention group, unless a different position of the officer, director, or employee constitutes a material relationship, as contemplated by section 3901(a)(4)(E)(ii) of the Liability Risk Retention Act of 1986, 15 U.S.C. § 3901 et seq., as it existed on January 1, 2017. (4) A person has a material relationship with a risk retention group if the person, a member of the person's immediate family, or any business with which the person is affiliated, has received from the risk retention group or a consultant or service provider to the risk retention group in the previous twelve-month period, any compensation, payment, or any other item of value, that is greater than or equal to five percent (5%) of the risk retention group's gross written premium for the same twelve-month period or two percent (2%) of its surplus, whichever is greater, as measured at the end of any fiscal quarter falling in the twelve-month period. (5) To determine whether or not a person is independent for the purposes of this section: (A) A person or an immediate family member of the person under subdivision (f)(4) of this section shall not be independent until at least one (1) year after receipt of any compensation from the risk retention group that falls below the threshold; (B) A director or an immediate family member of a director who is affiliated with or employed in a professional capacity by a present or former internal or external auditor of the risk retention group shall not be independent until one (1) year after the end of the affiliation, employment, or auditing relationship; or (C) A director or immediate family member of a director who is employed as an executive officer of another company where any of the risk retention group's present executives serve on that other company's board of directors shall not be independent until one (1) year after the end of the service or the employment relationship.

(1) (A) The board of directors of a risk retention group shall have a majority of independent directors. (B) (i) If the risk retention group is a reciprocal risk retention group, then an appointed attorney-in-fact of the reciprocal risk retention group is required to adhere to the same standards described in this section regarding independence of operation and governance as imposed on the board of directors or on the subscribers' advisory committee of the risk retention group. (ii) To the extent permissible under state law, a service provider of a reciprocal risk retention group shall contract with the risk retention group and not the attorney-in-fact.

(A) The board of directors of a risk retention group shall have a majority of independent directors.

(B) (i) If the risk retention group is a reciprocal risk retention group, then an appointed attorney-in-fact of the reciprocal risk retention group is required to adhere to the same standards described in this section regarding independence of operation and governance as imposed on the board of directors or on the subscribers' advisory committee of the risk retention group. (ii) To the extent permissible under state law, a service provider of a reciprocal risk retention group shall contract with the risk retention group and not the attorney-in-fact.

(i) If the risk retention group is a reciprocal risk retention group, then an appointed attorney-in-fact of the reciprocal risk retention group is required to adhere to the same standards described in this section regarding independence of operation and governance as imposed on the board of directors or on the subscribers' advisory committee of the risk retention group.

(ii) To the extent permissible under state law, a service provider of a reciprocal risk retention group shall contract with the risk retention group and not the attorney-in-fact.

(2) (A) A director shall not qualify as independent unless the board of directors affirmatively determines that the director does not have a material relationship with the risk retention group. (B) A risk retention group shall annually disclose to the commissioner of the domiciliary state of the risk retention group the determinations made by the board of directors under subdivision (f)(2)(A) of this section.

(A) A director shall not qualify as independent unless the board of directors affirmatively determines that the director does not have a material relationship with the risk retention group.

(B) A risk retention group shall annually disclose to the commissioner of the domiciliary state of the risk retention group the determinations made by the board of directors under subdivision (f)(2)(A) of this section.

(3) (A) A director who is a direct or indirect owner of or subscriber in the risk retention group is independent for purposes of subdivision (f)(1)(A) of this section. (B) Subdivision (f)(3)(A) of this section includes an officer, director, or employee of a direct or indirect owner of or subscriber in the risk retention group, unless a different position of the officer, director, or employee constitutes a material relationship, as contemplated by section 3901(a)(4)(E)(ii) of the Liability Risk Retention Act of 1986, 15 U.S.C. § 3901 et seq., as it existed on January 1, 2017.

(A) A director who is a direct or indirect owner of or subscriber in the risk retention group is independent for purposes of subdivision (f)(1)(A) of this section.

(B) Subdivision (f)(3)(A) of this section includes an officer, director, or employee of a direct or indirect owner of or subscriber in the risk retention group, unless a different position of the officer, director, or employee constitutes a material relationship, as contemplated by section 3901(a)(4)(E)(ii) of the Liability Risk Retention Act of 1986, 15 U.S.C. § 3901 et seq., as it existed on January 1, 2017.

(4) A person has a material relationship with a risk retention group if the person, a member of the person's immediate family, or any business with which the person is affiliated, has received from the risk retention group or a consultant or service provider to the risk retention group in the previous twelve-month period, any compensation, payment, or any other item of value, that is greater than or equal to five percent (5%) of the risk retention group's gross written premium for the same twelve-month period or two percent (2%) of its surplus, whichever is greater, as measured at the end of any fiscal quarter falling in the twelve-month period.

(5) To determine whether or not a person is independent for the purposes of this section: (A) A person or an immediate family member of the person under subdivision (f)(4) of this section shall not be independent until at least one (1) year after receipt of any compensation from the risk retention group that falls below the threshold; (B) A director or an immediate family member of a director who is affiliated with or employed in a professional capacity by a present or former internal or external auditor of the risk retention group shall not be independent until one (1) year after the end of the affiliation, employment, or auditing relationship; or (C) A director or immediate family member of a director who is employed as an executive officer of another company where any of the risk retention group's present executives serve on that other company's board of directors shall not be independent until one (1) year after the end of the service or the employment relationship.

(A) A person or an immediate family member of the person under subdivision (f)(4) of this section shall not be independent until at least one (1) year after receipt of any compensation from the risk retention group that falls below the threshold;

(B) A director or an immediate family member of a director who is affiliated with or employed in a professional capacity by a present or former internal or external auditor of the risk retention group shall not be independent until one (1) year after the end of the affiliation, employment, or auditing relationship; or

(C) A director or immediate family member of a director who is employed as an executive officer of another company where any of the risk retention group's present executives serve on that other company's board of directors shall not be independent until one (1) year after the end of the service or the employment relationship.

(g) (1) The term of any material service provider contract with the risk retention group shall not exceed five (5) years. (2) A material service provider contract, or its renewal, requires the approval of the majority of the risk retention group's independent directors. (3) The board of directors may terminate any service provider, audit, or actuarial contracts at any time for cause after providing adequate notice as defined in the contract. (4) The service provider contract is deemed material if the amount to be paid for a contract is greater than or equal to five percent (5%) of the risk retention group's annual gross written premium or two percent (2%) of its surplus, whichever is greater. (5) A service provider contract that qualifies as a material relationship described in subdivision (f)(4) of this section shall not be entered into unless the risk retention group has notified the commissioner in writing of its intention to enter into a transaction at least thirty (30) days before the transaction and the commissioner has not disapproved it within that period. (6) (A) As used in this subsection, "service provider" includes a captive manager, auditor, accountant, actuary, investment advisor, lawyer, managing general underwriter, or other party responsible for underwriting, determining rates, collecting premiums, adjusting and settling claims, or preparing financial statements. (B) "Service provider" does not include a lawyer who is retained as defense counsel by the risk retention group to defend claims unless the amount of fees paid to a lawyer qualifies as a material relationship described in subdivision (f)(4) of this section.

(1) The term of any material service provider contract with the risk retention group shall not exceed five (5) years.

(2) A material service provider contract, or its renewal, requires the approval of the majority of the risk retention group's independent directors.

(3) The board of directors may terminate any service provider, audit, or actuarial contracts at any time for cause after providing adequate notice as defined in the contract.

(4) The service provider contract is deemed material if the amount to be paid for a contract is greater than or equal to five percent (5%) of the risk retention group's annual gross written premium or two percent (2%) of its surplus, whichever is greater.

(5) A service provider contract that qualifies as a material relationship described in subdivision (f)(4) of this section shall not be entered into unless the risk retention group has notified the commissioner in writing of its intention to enter into a transaction at least thirty (30) days before the transaction and the commissioner has not disapproved it within that period.

(6) (A) As used in this subsection, "service provider" includes a captive manager, auditor, accountant, actuary, investment advisor, lawyer, managing general underwriter, or other party responsible for underwriting, determining rates, collecting premiums, adjusting and settling claims, or preparing financial statements. (B) "Service provider" does not include a lawyer who is retained as defense counsel by the risk retention group to defend claims unless the amount of fees paid to a lawyer qualifies as a material relationship described in subdivision (f)(4) of this section.

(A) As used in this subsection, "service provider" includes a captive manager, auditor, accountant, actuary, investment advisor, lawyer, managing general underwriter, or other party responsible for underwriting, determining rates, collecting premiums, adjusting and settling claims, or preparing financial statements.

(B) "Service provider" does not include a lawyer who is retained as defense counsel by the risk retention group to defend claims unless the amount of fees paid to a lawyer qualifies as a material relationship described in subdivision (f)(4) of this section.

(h) (1) The board of directors shall adopt a written policy in the plan of operation as approved by the board of directors. (2) The written policy described in subdivision (h)(1) of this section shall require the board of directors to: (A) Assure that an owner or insured of the risk retention group receives evidence of ownership interest; (B) Develop a set of governance standards applicable to the risk retention group; (C) Oversee the evaluation of the risk retention group's management, including without limitation the performance of the captive manager, managing general underwriter, or other party responsible for underwriting, determining rates, collecting premiums, adjusting or settling claims, or preparing financial statements; (D) Review and approve the amount to be paid for all material service providers; and (E) Annually review and approve: (i) Goals and objectives of the risk retention group relevant to the compensation of officers and service providers; (ii) The performance of officers and service providers in light of the goals and objectives described in subdivision (h)(2)(E)(i) of this section; and (iii) The continued engagement of the officers and material service providers.

(1) The board of directors shall adopt a written policy in the plan of operation as approved by the board of directors.

(2) The written policy described in subdivision (h)(1) of this section shall require the board of directors to: (A) Assure that an owner or insured of the risk retention group receives evidence of ownership interest; (B) Develop a set of governance standards applicable to the risk retention group; (C) Oversee the evaluation of the risk retention group's management, including without limitation the performance of the captive manager, managing general underwriter, or other party responsible for underwriting, determining rates, collecting premiums, adjusting or settling claims, or preparing financial statements; (D) Review and approve the amount to be paid for all material service providers; and (E) Annually review and approve: (i) Goals and objectives of the risk retention group relevant to the compensation of officers and service providers; (ii) The performance of officers and service providers in light of the goals and objectives described in subdivision (h)(2)(E)(i) of this section; and (iii) The continued engagement of the officers and material service providers.

(A) Assure that an owner or insured of the risk retention group receives evidence of ownership interest;

(B) Develop a set of governance standards applicable to the risk retention group;

(C) Oversee the evaluation of the risk retention group's management, including without limitation the performance of the captive manager, managing general underwriter, or other party responsible for underwriting, determining rates, collecting premiums, adjusting or settling claims, or preparing financial statements;

(D) Review and approve the amount to be paid for all material service providers; and

(E) Annually review and approve: (i) Goals and objectives of the risk retention group relevant to the compensation of officers and service providers; (ii) The performance of officers and service providers in light of the goals and objectives described in subdivision (h)(2)(E)(i) of this section; and (iii) The continued engagement of the officers and material service providers.

(i) Goals and objectives of the risk retention group relevant to the compensation of officers and service providers;

(ii) The performance of officers and service providers in light of the goals and objectives described in subdivision (h)(2)(E)(i) of this section; and

(iii) The continued engagement of the officers and material service providers.

(i) (1) (A) A risk retention group shall have an audit committee composed of at least three (3) independent members of the board of directors as defined in subdivision (f)(1) of this section. (B) (i) A member of the board of directors who is not independent shall not be a member of an audit committee of a risk retention group. (ii) A member of the board of directors who is not independent may participate in the activities of the audit committee if invited by members of the audit committee. (2) The audit committee shall have a written charter that defines the purpose of the audit committee, as follows: (A) Assist the board of directors in oversight of: (i) The integrity of the financial statements of the risk retention group; (ii) Compliance with legal and regulatory requirements; and (iii) The qualifications, independence, and performance of the independent auditor and actuary of the risk retention group; (B) Discuss the annual audited financial statements and quarterly financial statements with the management of the risk retention group; (C) Discuss with the independent auditor of the risk retention group: (i) The annual audited financial statements of the risk retention group; and (ii) If advisable, the quarterly financial statements; (D) Discuss policies with respect to risk assessment and risk management; (E) Have meetings with the management of the risk retention group and the independent auditor separately and periodically, either directly or through a designated representative of the audit committee; (F) Review any audit problems or difficulties and the response by the management of the risk retention group with the independent auditor; (G) Set clear hiring policies of the risk retention group as to the hiring of an employee or former employee of the independent auditor; (H) Require the external auditor to rotate the lead or coordinating audit partner that has primary responsibility for the audit of the risk retention group and the audit partner that is responsible for reviewing the audit of the risk retention group so that neither individual performs the audit services for more than five (5) consecutive fiscal years; and (I) Report regularly to the board of directors. (3) The commissioner of the domiciliary state of the risk retention group may waive the requirement to establish an audit committee required in subdivision (i)(1)(A) of this section if the risk retention group is able to demonstrate to the commissioner of the domiciliary state of the risk retention group that: (A) It is impracticable to do so; and (B) The board of directors is able to accomplish the purposes of an audit committee as described in subdivision (i)(2) of this section.

(1) (A) A risk retention group shall have an audit committee composed of at least three (3) independent members of the board of directors as defined in subdivision (f)(1) of this section. (B) (i) A member of the board of directors who is not independent shall not be a member of an audit committee of a risk retention group. (ii) A member of the board of directors who is not independent may participate in the activities of the audit committee if invited by members of the audit committee.

(A) A risk retention group shall have an audit committee composed of at least three (3) independent members of the board of directors as defined in subdivision (f)(1) of this section.

(B) (i) A member of the board of directors who is not independent shall not be a member of an audit committee of a risk retention group. (ii) A member of the board of directors who is not independent may participate in the activities of the audit committee if invited by members of the audit committee.

(i) A member of the board of directors who is not independent shall not be a member of an audit committee of a risk retention group.

(ii) A member of the board of directors who is not independent may participate in the activities of the audit committee if invited by members of the audit committee.

(2) The audit committee shall have a written charter that defines the purpose of the audit committee, as follows: (A) Assist the board of directors in oversight of: (i) The integrity of the financial statements of the risk retention group; (ii) Compliance with legal and regulatory requirements; and (iii) The qualifications, independence, and performance of the independent auditor and actuary of the risk retention group; (B) Discuss the annual audited financial statements and quarterly financial statements with the management of the risk retention group; (C) Discuss with the independent auditor of the risk retention group: (i) The annual audited financial statements of the risk retention group; and (ii) If advisable, the quarterly financial statements; (D) Discuss policies with respect to risk assessment and risk management; (E) Have meetings with the management of the risk retention group and the independent auditor separately and periodically, either directly or through a designated representative of the audit committee; (F) Review any audit problems or difficulties and the response by the management of the risk retention group with the independent auditor; (G) Set clear hiring policies of the risk retention group as to the hiring of an employee or former employee of the independent auditor; (H) Require the external auditor to rotate the lead or coordinating audit partner that has primary responsibility for the audit of the risk retention group and the audit partner that is responsible for reviewing the audit of the risk retention group so that neither individual performs the audit services for more than five (5) consecutive fiscal years; and (I) Report regularly to the board of directors.

(A) Assist the board of directors in oversight of: (i) The integrity of the financial statements of the risk retention group; (ii) Compliance with legal and regulatory requirements; and (iii) The qualifications, independence, and performance of the independent auditor and actuary of the risk retention group;

(i) The integrity of the financial statements of the risk retention group;

(ii) Compliance with legal and regulatory requirements; and

(iii) The qualifications, independence, and performance of the independent auditor and actuary of the risk retention group;

(B) Discuss the annual audited financial statements and quarterly financial statements with the management of the risk retention group;

(C) Discuss with the independent auditor of the risk retention group: (i) The annual audited financial statements of the risk retention group; and (ii) If advisable, the quarterly financial statements;

(i) The annual audited financial statements of the risk retention group; and

(ii) If advisable, the quarterly financial statements;

(D) Discuss policies with respect to risk assessment and risk management;

(E) Have meetings with the management of the risk retention group and the independent auditor separately and periodically, either directly or through a designated representative of the audit committee;

(F) Review any audit problems or difficulties and the response by the management of the risk retention group with the independent auditor;

(G) Set clear hiring policies of the risk retention group as to the hiring of an employee or former employee of the independent auditor;

(H) Require the external auditor to rotate the lead or coordinating audit partner that has primary responsibility for the audit of the risk retention group and the audit partner that is responsible for reviewing the audit of the risk retention group so that neither individual performs the audit services for more than five (5) consecutive fiscal years; and

(I) Report regularly to the board of directors.

(3) The commissioner of the domiciliary state of the risk retention group may waive the requirement to establish an audit committee required in subdivision (i)(1)(A) of this section if the risk retention group is able to demonstrate to the commissioner of the domiciliary state of the risk retention group that: (A) It is impracticable to do so; and (B) The board of directors is able to accomplish the purposes of an audit committee as described in subdivision (i)(2) of this section.

(A) It is impracticable to do so; and

(B) The board of directors is able to accomplish the purposes of an audit committee as described in subdivision (i)(2) of this section.

(j) (1) (A) The board of directors shall adopt and disclose its governance standards by making the information available through electronic methods, including without limitation by posting the information on the public website of the risk retention group, or by other means and providing the information to members or insureds upon request. (B) The information under subdivision (j)(1)(A) of this section shall include: (i) A process by which the directors are elected by the owners or insureds; (ii) Director qualification standards; (iii) Director responsibilities; (iv) Director access to the management of the risk retention group and, as necessary and appropriate, to independent advisors; (v) Director compensation; (vi) Director orientation and continuing education; (vii) The policies and procedures that are followed for management succession; and (viii) The policies and procedures that are followed for annual performance evaluation of the board of directors. (2) (A) (i) The board of directors shall adopt and disclose a code of business conduct and ethics for directors, officers, and employees. (ii) The code of business conduct and ethics for directors, officers, and employees shall include the following topics: (a) Conflicts of interest; (b) Matters covered under the corporate opportunities doctrine under the state of domicile; (c) Confidentiality; (d) Fair dealing; (e) Protection and proper use of risk retention group assets; (f) Compliance with all applicable laws and rules; and (g) Requiring the reporting of any illegal or unethical behavior that affects the operation of the risk retention group. (iii) The captive manager, president, or chief executive officer of the risk retention group shall promptly notify the commissioner of the domiciliary state of the risk retention group in writing if he or she becomes aware of any material noncompliance with any of the governance standards in this section. (B) Any waivers of the code of business conduct and ethics for directors or executive officers shall promptly be disclosed to the board of directors.

(1) (A) The board of directors shall adopt and disclose its governance standards by making the information available through electronic methods, including without limitation by posting the information on the public website of the risk retention group, or by other means and providing the information to members or insureds upon request. (B) The information under subdivision (j)(1)(A) of this section shall include: (i) A process by which the directors are elected by the owners or insureds; (ii) Director qualification standards; (iii) Director responsibilities; (iv) Director access to the management of the risk retention group and, as necessary and appropriate, to independent advisors; (v) Director compensation; (vi) Director orientation and continuing education; (vii) The policies and procedures that are followed for management succession; and (viii) The policies and procedures that are followed for annual performance evaluation of the board of directors.

(A) The board of directors shall adopt and disclose its governance standards by making the information available through electronic methods, including without limitation by posting the information on the public website of the risk retention group, or by other means and providing the information to members or insureds upon request.

(B) The information under subdivision (j)(1)(A) of this section shall include: (i) A process by which the directors are elected by the owners or insureds; (ii) Director qualification standards; (iii) Director responsibilities; (iv) Director access to the management of the risk retention group and, as necessary and appropriate, to independent advisors; (v) Director compensation; (vi) Director orientation and continuing education; (vii) The policies and procedures that are followed for management succession; and (viii) The policies and procedures that are followed for annual performance evaluation of the board of directors.

(i) A process by which the directors are elected by the owners or insureds;

(ii) Director qualification standards;

(iii) Director responsibilities;

(iv) Director access to the management of the risk retention group and, as necessary and appropriate, to independent advisors;

(v) Director compensation;

(vi) Director orientation and continuing education;

(vii) The policies and procedures that are followed for management succession; and

(viii) The policies and procedures that are followed for annual performance evaluation of the board of directors.

(2) (A) (i) The board of directors shall adopt and disclose a code of business conduct and ethics for directors, officers, and employees. (ii) The code of business conduct and ethics for directors, officers, and employees shall include the following topics: (a) Conflicts of interest; (b) Matters covered under the corporate opportunities doctrine under the state of domicile; (c) Confidentiality; (d) Fair dealing; (e) Protection and proper use of risk retention group assets; (f) Compliance with all applicable laws and rules; and (g) Requiring the reporting of any illegal or unethical behavior that affects the operation of the risk retention group. (iii) The captive manager, president, or chief executive officer of the risk retention group shall promptly notify the commissioner of the domiciliary state of the risk retention group in writing if he or she becomes aware of any material noncompliance with any of the governance standards in this section. (B) Any waivers of the code of business conduct and ethics for directors or executive officers shall promptly be disclosed to the board of directors.

(A) (i) The board of directors shall adopt and disclose a code of business conduct and ethics for directors, officers, and employees. (ii) The code of business conduct and ethics for directors, officers, and employees shall include the following topics: (a) Conflicts of interest; (b) Matters covered under the corporate opportunities doctrine under the state of domicile; (c) Confidentiality; (d) Fair dealing; (e) Protection and proper use of risk retention group assets; (f) Compliance with all applicable laws and rules; and (g) Requiring the reporting of any illegal or unethical behavior that affects the operation of the risk retention group. (iii) The captive manager, president, or chief executive officer of the risk retention group shall promptly notify the commissioner of the domiciliary state of the risk retention group in writing if he or she becomes aware of any material noncompliance with any of the governance standards in this section.

(i) The board of directors shall adopt and disclose a code of business conduct and ethics for directors, officers, and employees.

(ii) The code of business conduct and ethics for directors, officers, and employees shall include the following topics: (a) Conflicts of interest; (b) Matters covered under the corporate opportunities doctrine under the state of domicile; (c) Confidentiality; (d) Fair dealing; (e) Protection and proper use of risk retention group assets; (f) Compliance with all applicable laws and rules; and (g) Requiring the reporting of any illegal or unethical behavior that affects the operation of the risk retention group.

(a) Conflicts of interest;

(b) Matters covered under the corporate opportunities doctrine under the state of domicile;

(c) Confidentiality;

(d) Fair dealing;

(e) Protection and proper use of risk retention group assets;

(f) Compliance with all applicable laws and rules; and

(g) Requiring the reporting of any illegal or unethical behavior that affects the operation of the risk retention group.

(iii) The captive manager, president, or chief executive officer of the risk retention group shall promptly notify the commissioner of the domiciliary state of the risk retention group in writing if he or she becomes aware of any material noncompliance with any of the governance standards in this section.

(B) Any waivers of the code of business conduct and ethics for directors or executive officers shall promptly be disclosed to the board of directors.

Amended by Act 2019, No. 315,§ 2784, eff. 7/24/2019.

Amended by Act 2019, No. 391,§ 13, eff. 7/24/2019.

Amended by Act 2019, No. 391,§ 12, eff. 7/24/2019.

Amended by Act 2017, No. 283,§ 19, eff. 8/1/2017.

Acts 1995, No. 623, § 1.
Ark. Code Ann. § 23-17-502 — AR Code / Title 23 / Chapter 17 / Subchapter 5 / Section 23-17-502
Title
Status: in_force

This subchapter shall be known and may be cited as the "Small Wireless Facility Deployment Act". Added by Act 2019, No. 999,§ 1, eff. 9/1/2019. Added by Act 2019, No. 797,§ 1, eff. 9/1/2019.

This subchapter shall be known and may be cited as the "Small Wireless Facility Deployment Act".

Added by Act 2019, No. 999,§ 1, eff. 9/1/2019.

Added by Act 2019, No. 797,§ 1, eff. 9/1/2019.
Ark. Code Ann. § 23-70-113 — AR Code / Title 23 / Chapter 70 / Section 23-70-113
Annual statement
Status: in_force

(a) The annual statement of a reciprocal insurer shall be made and filed by its attorney. (b) The statement shall be supplemented by such information as may be required by the Insurance Commissioner relative to the affairs and transactions of the attorney insofar as they pertain to the reciprocal insurer. Acts 1959, No. 148, § 526; A.S.A. 1947, § 66-4317.

(a) The annual statement of a reciprocal insurer shall be made and filed by its attorney.

(b) The statement shall be supplemented by such information as may be required by the Insurance Commissioner relative to the affairs and transactions of the attorney insofar as they pertain to the reciprocal insurer.

Acts 1959, No. 148, § 526; A.S.A. 1947, § 66-4317.