Ark. Code Ann. § 23-81-809 — AR Code / Title 23 / Chapter 81 / Subchapter 8 / Section 23-81-809
Disclosures to owners
Status: in_force

(a) The provider or broker shall provide in writing in a separate document that is signed by the owner and provider or broker the following information to the owner no later than the date of the application for a life settlement contract: (1) The fact that possible alternatives to life settlement contracts exist, including without limitation accelerated benefits offered by the issuer of the life insurance policy; (2) The fact that some or all of the proceeds of a life settlement contract may be taxable and that assistance should be sought from a professional tax advisor; (3) The fact that the proceeds from a life settlement contract could be subject to the claims of creditors; (4) The fact that receipt of proceeds from a life settlement contract may adversely affect a recipient's eligibility for public assistance or other government benefits or entitlements and that advice should be obtained from the appropriate agencies; (5) (A) The fact that the owner has a right to terminate a life settlement contract within fifteen (15) days of the date it is executed by all parties and the owner has received the disclosures required by this section. (B) Rescission, if exercised by the owner, is effective only if both notice of the rescission is given and the owner repays all proceeds and any premiums, loans, and loan interest paid on account of the provider within the rescission period. (C) If the insured dies during the rescission period, the contract shall be deemed to have been rescinded subject to repayment by the owner or the owner's estate of all proceeds and any premiums, loans, and loan interest to the provider; (6) The fact that proceeds will be sent to the owner within three (3) business days after the provider has received the insurer or group administrator's acknowledgement that ownership of the policy or interest in the certificate has been transferred and the beneficiary has been designated in accordance with the terms of the life settlement contract; (7) The fact that entering into a life settlement contract may cause other rights or benefits, including conversion rights and waiver of premium benefits that may exist under the policy or certificate of a group policy to be forfeited by the owner, and that assistance should be sought from a professional financial advisor; (8) The amount and method of calculating the compensation paid or to be paid to the broker or any other person acting for the owner in connection with the transaction, wherein the term "compensation" includes anything of value paid or given; (9) The date by which the funds will be available to the owner and the transmitter of the funds; (10) The fact that the Insurance Commissioner shall require delivery of a buyer's guide or a similar consumer advisory package in the form prescribed by the commissioner to owners during the solicitation process; (11) The following language: "All medical, financial, or personal information solicited or obtained by a provider or broker about an insured, including the insured's identity or the identity of family members, a spouse, or a significant other may be disclosed as necessary to effect the life settlement contract between the owner and provider. If you are asked to provide this information, you will be asked to consent to the disclosure. The information may be provided to someone who buys the policy or provides funds for the purchase. You may be asked to renew your permission to share information every two years."; (12) The fact that the commissioner shall require providers and brokers to print separate signed fraud warnings on their applications and on their life settlement contracts as follows: "Any person who knowingly presents false information in an application for insurance or life settlement contract is guilty of a crime and may be subject to fines and confinement in prison."; (13) (A) The fact that the insured may be contacted by either the provider or broker or its authorized representative for the purpose of determining the insured's health status or to verify the insured's address. (B) This contact is limited to one (1) time every three (3) months if the insured has a life expectancy of more than one (1) year and no more than one (1) time per month if the insured has a life expectancy of one (1) year or less; (14) The affiliation, if any, between the provider and the issuer of the insurance policy to be settled; (15) That a broker represents exclusively the owner and not the insurer or the provider or any other person and owes a fiduciary duty to the owner, including a duty to act according to the owner's instructions and in the best interest of the owner; (16) The name, address, and telephone number of the provider; (17) The name, business address, and telephone number of the independent third-party escrow agent and the fact that the owner may inspect or receive copies of the relevant escrow or trust agreements or documents; and (18) The fact that a change of ownership could in the future limit the insured's ability to purchase future insurance on the insured's life because there is a limit to how much coverage insurers will issue on one (1) life. (b) The written disclosures shall be conspicuously displayed in any life settlement contract furnished to the owner by a provider, including any affiliations or contractual arrangements between the provider and the broker. (c) A broker shall provide the owner and the provider with at least the following disclosures no later than the date the life settlement contract is signed by all parties. The disclosures shall be conspicuously displayed in the life settlement contract or in a separate document signed by the owner and provide the following information: (1) The name, business address, and telephone number of the broker; (2) A full, complete, and accurate description of all the offers, counteroffers, acceptances, and rejections relating to the proposed life settlement contract; (3) A written disclosure of any affiliations or contractual arrangements between the broker and any person making an offer in connection with the proposed life settlement contracts; (4) The name of each broker who receives compensation and the amount of compensation received by that broker. The compensation includes anything of value paid or given to the broker in connection with the life settlement contract; (5) (A) A complete reconciliation of the gross offer or bid by the provider to the net amount of proceeds or value to be received by the owner. (B) For the purpose of subdivision (c)(5)(A) of this section, "gross offer or bid" means the total amount or value offered by the provider for the purchase of one (1) or more life insurance policies, inclusive of commissions and fees; and (6) The failure to provide the disclosures or rights described in this section shall be deemed an unfair trade practice pursuant to § 23-81-817 . Acts 2009, No. 796, § 1.

(a) The provider or broker shall provide in writing in a separate document that is signed by the owner and provider or broker the following information to the owner no later than the date of the application for a life settlement contract: (1) The fact that possible alternatives to life settlement contracts exist, including without limitation accelerated benefits offered by the issuer of the life insurance policy; (2) The fact that some or all of the proceeds of a life settlement contract may be taxable and that assistance should be sought from a professional tax advisor; (3) The fact that the proceeds from a life settlement contract could be subject to the claims of creditors; (4) The fact that receipt of proceeds from a life settlement contract may adversely affect a recipient's eligibility for public assistance or other government benefits or entitlements and that advice should be obtained from the appropriate agencies; (5) (A) The fact that the owner has a right to terminate a life settlement contract within fifteen (15) days of the date it is executed by all parties and the owner has received the disclosures required by this section. (B) Rescission, if exercised by the owner, is effective only if both notice of the rescission is given and the owner repays all proceeds and any premiums, loans, and loan interest paid on account of the provider within the rescission period. (C) If the insured dies during the rescission period, the contract shall be deemed to have been rescinded subject to repayment by the owner or the owner's estate of all proceeds and any premiums, loans, and loan interest to the provider; (6) The fact that proceeds will be sent to the owner within three (3) business days after the provider has received the insurer or group administrator's acknowledgement that ownership of the policy or interest in the certificate has been transferred and the beneficiary has been designated in accordance with the terms of the life settlement contract; (7) The fact that entering into a life settlement contract may cause other rights or benefits, including conversion rights and waiver of premium benefits that may exist under the policy or certificate of a group policy to be forfeited by the owner, and that assistance should be sought from a professional financial advisor; (8) The amount and method of calculating the compensation paid or to be paid to the broker or any other person acting for the owner in connection with the transaction, wherein the term "compensation" includes anything of value paid or given; (9) The date by which the funds will be available to the owner and the transmitter of the funds; (10) The fact that the Insurance Commissioner shall require delivery of a buyer's guide or a similar consumer advisory package in the form prescribed by the commissioner to owners during the solicitation process; (11) The following language: "All medical, financial, or personal information solicited or obtained by a provider or broker about an insured, including the insured's identity or the identity of family members, a spouse, or a significant other may be disclosed as necessary to effect the life settlement contract between the owner and provider. If you are asked to provide this information, you will be asked to consent to the disclosure. The information may be provided to someone who buys the policy or provides funds for the purchase. You may be asked to renew your permission to share information every two years."; (12) The fact that the commissioner shall require providers and brokers to print separate signed fraud warnings on their applications and on their life settlement contracts as follows: "Any person who knowingly presents false information in an application for insurance or life settlement contract is guilty of a crime and may be subject to fines and confinement in prison."; (13) (A) The fact that the insured may be contacted by either the provider or broker or its authorized representative for the purpose of determining the insured's health status or to verify the insured's address. (B) This contact is limited to one (1) time every three (3) months if the insured has a life expectancy of more than one (1) year and no more than one (1) time per month if the insured has a life expectancy of one (1) year or less; (14) The affiliation, if any, between the provider and the issuer of the insurance policy to be settled; (15) That a broker represents exclusively the owner and not the insurer or the provider or any other person and owes a fiduciary duty to the owner, including a duty to act according to the owner's instructions and in the best interest of the owner; (16) The name, address, and telephone number of the provider; (17) The name, business address, and telephone number of the independent third-party escrow agent and the fact that the owner may inspect or receive copies of the relevant escrow or trust agreements or documents; and (18) The fact that a change of ownership could in the future limit the insured's ability to purchase future insurance on the insured's life because there is a limit to how much coverage insurers will issue on one (1) life.

(1) The fact that possible alternatives to life settlement contracts exist, including without limitation accelerated benefits offered by the issuer of the life insurance policy;

(2) The fact that some or all of the proceeds of a life settlement contract may be taxable and that assistance should be sought from a professional tax advisor;

(3) The fact that the proceeds from a life settlement contract could be subject to the claims of creditors;

(4) The fact that receipt of proceeds from a life settlement contract may adversely affect a recipient's eligibility for public assistance or other government benefits or entitlements and that advice should be obtained from the appropriate agencies;

(5) (A) The fact that the owner has a right to terminate a life settlement contract within fifteen (15) days of the date it is executed by all parties and the owner has received the disclosures required by this section. (B) Rescission, if exercised by the owner, is effective only if both notice of the rescission is given and the owner repays all proceeds and any premiums, loans, and loan interest paid on account of the provider within the rescission period. (C) If the insured dies during the rescission period, the contract shall be deemed to have been rescinded subject to repayment by the owner or the owner's estate of all proceeds and any premiums, loans, and loan interest to the provider;

(A) The fact that the owner has a right to terminate a life settlement contract within fifteen (15) days of the date it is executed by all parties and the owner has received the disclosures required by this section.

(B) Rescission, if exercised by the owner, is effective only if both notice of the rescission is given and the owner repays all proceeds and any premiums, loans, and loan interest paid on account of the provider within the rescission period.

(C) If the insured dies during the rescission period, the contract shall be deemed to have been rescinded subject to repayment by the owner or the owner's estate of all proceeds and any premiums, loans, and loan interest to the provider;

(6) The fact that proceeds will be sent to the owner within three (3) business days after the provider has received the insurer or group administrator's acknowledgement that ownership of the policy or interest in the certificate has been transferred and the beneficiary has been designated in accordance with the terms of the life settlement contract;

(7) The fact that entering into a life settlement contract may cause other rights or benefits, including conversion rights and waiver of premium benefits that may exist under the policy or certificate of a group policy to be forfeited by the owner, and that assistance should be sought from a professional financial advisor;

(8) The amount and method of calculating the compensation paid or to be paid to the broker or any other person acting for the owner in connection with the transaction, wherein the term "compensation" includes anything of value paid or given;

(9) The date by which the funds will be available to the owner and the transmitter of the funds;

(10) The fact that the Insurance Commissioner shall require delivery of a buyer's guide or a similar consumer advisory package in the form prescribed by the commissioner to owners during the solicitation process;

(11) The following language: "All medical, financial, or personal information solicited or obtained by a provider or broker about an insured, including the insured's identity or the identity of family members, a spouse, or a significant other may be disclosed as necessary to effect the life settlement contract between the owner and provider. If you are asked to provide this information, you will be asked to consent to the disclosure. The information may be provided to someone who buys the policy or provides funds for the purchase. You may be asked to renew your permission to share information every two years.";

"All medical, financial, or personal information solicited or obtained by a provider or broker about an insured, including the insured's identity or the identity of family members, a spouse, or a significant other may be disclosed as necessary to effect the life settlement contract between the owner and provider. If you are asked to provide this information, you will be asked to consent to the disclosure. The information may be provided to someone who buys the policy or provides funds for the purchase. You may be asked to renew your permission to share information every two years.";

(12) The fact that the commissioner shall require providers and brokers to print separate signed fraud warnings on their applications and on their life settlement contracts as follows: "Any person who knowingly presents false information in an application for insurance or life settlement contract is guilty of a crime and may be subject to fines and confinement in prison.";

"Any person who knowingly presents false information in an application for insurance or life settlement contract is guilty of a crime and may be subject to fines and confinement in prison.";

(13) (A) The fact that the insured may be contacted by either the provider or broker or its authorized representative for the purpose of determining the insured's health status or to verify the insured's address. (B) This contact is limited to one (1) time every three (3) months if the insured has a life expectancy of more than one (1) year and no more than one (1) time per month if the insured has a life expectancy of one (1) year or less;

(A) The fact that the insured may be contacted by either the provider or broker or its authorized representative for the purpose of determining the insured's health status or to verify the insured's address.

(B) This contact is limited to one (1) time every three (3) months if the insured has a life expectancy of more than one (1) year and no more than one (1) time per month if the insured has a life expectancy of one (1) year or less;

(14) The affiliation, if any, between the provider and the issuer of the insurance policy to be settled;

(15) That a broker represents exclusively the owner and not the insurer or the provider or any other person and owes a fiduciary duty to the owner, including a duty to act according to the owner's instructions and in the best interest of the owner;

(16) The name, address, and telephone number of the provider;

(17) The name, business address, and telephone number of the independent third-party escrow agent and the fact that the owner may inspect or receive copies of the relevant escrow or trust agreements or documents; and

(18) The fact that a change of ownership could in the future limit the insured's ability to purchase future insurance on the insured's life because there is a limit to how much coverage insurers will issue on one (1) life.

(b) The written disclosures shall be conspicuously displayed in any life settlement contract furnished to the owner by a provider, including any affiliations or contractual arrangements between the provider and the broker.

(c) A broker shall provide the owner and the provider with at least the following disclosures no later than the date the life settlement contract is signed by all parties. The disclosures shall be conspicuously displayed in the life settlement contract or in a separate document signed by the owner and provide the following information: (1) The name, business address, and telephone number of the broker; (2) A full, complete, and accurate description of all the offers, counteroffers, acceptances, and rejections relating to the proposed life settlement contract; (3) A written disclosure of any affiliations or contractual arrangements between the broker and any person making an offer in connection with the proposed life settlement contracts; (4) The name of each broker who receives compensation and the amount of compensation received by that broker. The compensation includes anything of value paid or given to the broker in connection with the life settlement contract; (5) (A) A complete reconciliation of the gross offer or bid by the provider to the net amount of proceeds or value to be received by the owner. (B) For the purpose of subdivision (c)(5)(A) of this section, "gross offer or bid" means the total amount or value offered by the provider for the purchase of one (1) or more life insurance policies, inclusive of commissions and fees; and (6) The failure to provide the disclosures or rights described in this section shall be deemed an unfair trade practice pursuant to § 23-81-817 .

(1) The name, business address, and telephone number of the broker;

(2) A full, complete, and accurate description of all the offers, counteroffers, acceptances, and rejections relating to the proposed life settlement contract;

(3) A written disclosure of any affiliations or contractual arrangements between the broker and any person making an offer in connection with the proposed life settlement contracts;

(4) The name of each broker who receives compensation and the amount of compensation received by that broker. The compensation includes anything of value paid or given to the broker in connection with the life settlement contract;

(5) (A) A complete reconciliation of the gross offer or bid by the provider to the net amount of proceeds or value to be received by the owner. (B) For the purpose of subdivision (c)(5)(A) of this section, "gross offer or bid" means the total amount or value offered by the provider for the purchase of one (1) or more life insurance policies, inclusive of commissions and fees; and

(A) A complete reconciliation of the gross offer or bid by the provider to the net amount of proceeds or value to be received by the owner.

(B) For the purpose of subdivision (c)(5)(A) of this section, "gross offer or bid" means the total amount or value offered by the provider for the purchase of one (1) or more life insurance policies, inclusive of commissions and fees; and

(6) The failure to provide the disclosures or rights described in this section shall be deemed an unfair trade practice pursuant to § 23-81-817 .

Acts 2009, No. 796, § 1.
Ark. Code Ann. § 23-17-307 — AR Code / Title 23 / Chapter 17 / Subchapter 3 / Section 23-17-307
Administration of fund
Status: in_force

The Arkansas Public Service Commission may collect, administer, and distribute the Universal Telephone Service Fund, itself, or it may delegate to a trustee or other agent acting under its supervision the administration and distribution of the fund upon such conditions and security as the commission may require. Acts 1983, No. 483, § 6; A.S.A. 1947, § 73-2606.

The Arkansas Public Service Commission may collect, administer, and distribute the Universal Telephone Service Fund, itself, or it may delegate to a trustee or other agent acting under its supervision the administration and distribution of the fund upon such conditions and security as the commission may require.

Acts 1983, No. 483, § 6; A.S.A. 1947, § 73-2606.
Ark. Code Ann. § 23-61-708 — AR Code / Title 23 / Chapter 61 / Subchapter 7 / Section 23-61-708
Fees for various other departmental services and products
Status: in_force

(a) (1) Notwithstanding other provisions of this subchapter and notwithstanding other provisions of the Arkansas Insurance Code or other applicable Arkansas laws, the Insurance Commissioner shall by companion rule to this subchapter prescribe the amount and manner of payment of new, additional, or increased but nonrefundable fees due as special revenues to the State Insurance Department Trust Fund for the following services, documents, or publications provided by the State Insurance Department, including, but not limited to: (A) Filing by insurers of each agent appointment termination form; (B) Application for or issuance of original certification to be a course provider for agent prelicensing or continuing education in this state; (C) Application for or issuance of renewal certification to be a course provider for agent prelicensing or continuing education in this state; (D) Filing fees for applications filed for original examinations and retake examinations administered by the department; (E) Filing of initial and renewal insurer appointments of resident insurance agencies, corporations, or firms and partnerships; (F) Annual renewal of each certificate of registration issued to a third party administrator; (G) A filing and processing fee for filing legal process with the department wherein the commissioner is serving as official agent for service of process; (H) Filing and processing fees for filing specimen insurance policy and contract forms of all types with the department; (I) A filing fee for obtaining department lists of various kinds of licensees or registrants; and (J) Similar department services and products. (2) In the event the commissioner is required by laws enacted contemporaneously with or subsequent to this subchapter to perform other duties or incur other obligations, and in the event current revenues of the department, including, but not limited to, those revenues produced by this subchapter, are not sufficient for the commissioner to perform those new or additional duties efficiently and promptly or to the extent the commissioner deems necessary, then the commissioner shall enact new or additional or increased fees for departmental services, documents, and publications, but such fees shall only be adopted and imposed in a rule promulgated by the commissioner after notice and a hearing pursuant to the Arkansas Administrative Procedure Act, § 25-15-201 et seq., and other applicable sections of the Arkansas Insurance Code and other laws. (3) The fees described in this section and prescribed in amount and frequency of payment in the commissioner's companion rule to this subchapter shall be payable to the fund as special revenues for the support and operation of the State Insurance Department. (b) (1) (A) The fees for various department services, documents, or publications shall be divided into two (2) categories, Category A fees and Category B fees, and shall be so specified in the companion rule to this subchapter. (B) Category A fees at a maximum of one thousand five hundred dollars ($1,500) per transaction shall consist of those fees representing material or substantive corporate transactions of licensees, including, but not limited to, holding company changes in control of insurers or similar entities, corporate mergers and consolidation, bulk, or assumptive reinsurance transactions, as well as department products and services which would require a substantial commitment of department resources per transaction. (C) Category B fees at a maximum of fifty dollars ($50.00) per transaction shall consist of those fees representing other transactions of licensees, as well as department products and services which would not require a substantial commitment of department resources per transaction. (2) In no event shall any one (1) Category A fee or Category B fee for any department service, document, or publication per transaction pursuant to this section and the commissioner's companion rule and regulation exceed the maximums listed herein. (c) The commissioner may from time to time alter the fee amounts by rule amendment pursuant to the Arkansas Administrative Procedure Act, § 25-15-201 et seq., but in no event shall such fee amendments necessary for continued support and operation of the department exceed the limitations set forth in this section. (d) Insurers obligated to secure or renew agent appointments using department forms one through forty-eight (1-48) for their agent representatives on the licensing records of the State Insurance Department pursuant to the provisions of § 23-64-514 on a new or biennial renewal basis shall no longer collect such licensure expenses, directly or indirectly, from the agent licensee, or exact any form of reimbursement for the statutory appointment fees, or pass such costs along to the agent licensee, directly or indirectly, as any other type of charge, notwithstanding the provision of any agency, brokerage, or employment contract or agreement with the agent to the contrary. Amended by Act 2019, No. 315,§ 2622, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 2621, eff. 7/24/2019. Acts 1993, No. 652, § 9; 2001, No. 580, § 2.

(a) (1) Notwithstanding other provisions of this subchapter and notwithstanding other provisions of the Arkansas Insurance Code or other applicable Arkansas laws, the Insurance Commissioner shall by companion rule to this subchapter prescribe the amount and manner of payment of new, additional, or increased but nonrefundable fees due as special revenues to the State Insurance Department Trust Fund for the following services, documents, or publications provided by the State Insurance Department, including, but not limited to: (A) Filing by insurers of each agent appointment termination form; (B) Application for or issuance of original certification to be a course provider for agent prelicensing or continuing education in this state; (C) Application for or issuance of renewal certification to be a course provider for agent prelicensing or continuing education in this state; (D) Filing fees for applications filed for original examinations and retake examinations administered by the department; (E) Filing of initial and renewal insurer appointments of resident insurance agencies, corporations, or firms and partnerships; (F) Annual renewal of each certificate of registration issued to a third party administrator; (G) A filing and processing fee for filing legal process with the department wherein the commissioner is serving as official agent for service of process; (H) Filing and processing fees for filing specimen insurance policy and contract forms of all types with the department; (I) A filing fee for obtaining department lists of various kinds of licensees or registrants; and (J) Similar department services and products. (2) In the event the commissioner is required by laws enacted contemporaneously with or subsequent to this subchapter to perform other duties or incur other obligations, and in the event current revenues of the department, including, but not limited to, those revenues produced by this subchapter, are not sufficient for the commissioner to perform those new or additional duties efficiently and promptly or to the extent the commissioner deems necessary, then the commissioner shall enact new or additional or increased fees for departmental services, documents, and publications, but such fees shall only be adopted and imposed in a rule promulgated by the commissioner after notice and a hearing pursuant to the Arkansas Administrative Procedure Act, § 25-15-201 et seq., and other applicable sections of the Arkansas Insurance Code and other laws. (3) The fees described in this section and prescribed in amount and frequency of payment in the commissioner's companion rule to this subchapter shall be payable to the fund as special revenues for the support and operation of the State Insurance Department.

(1) Notwithstanding other provisions of this subchapter and notwithstanding other provisions of the Arkansas Insurance Code or other applicable Arkansas laws, the Insurance Commissioner shall by companion rule to this subchapter prescribe the amount and manner of payment of new, additional, or increased but nonrefundable fees due as special revenues to the State Insurance Department Trust Fund for the following services, documents, or publications provided by the State Insurance Department, including, but not limited to: (A) Filing by insurers of each agent appointment termination form; (B) Application for or issuance of original certification to be a course provider for agent prelicensing or continuing education in this state; (C) Application for or issuance of renewal certification to be a course provider for agent prelicensing or continuing education in this state; (D) Filing fees for applications filed for original examinations and retake examinations administered by the department; (E) Filing of initial and renewal insurer appointments of resident insurance agencies, corporations, or firms and partnerships; (F) Annual renewal of each certificate of registration issued to a third party administrator; (G) A filing and processing fee for filing legal process with the department wherein the commissioner is serving as official agent for service of process; (H) Filing and processing fees for filing specimen insurance policy and contract forms of all types with the department; (I) A filing fee for obtaining department lists of various kinds of licensees or registrants; and (J) Similar department services and products.

(A) Filing by insurers of each agent appointment termination form;

(B) Application for or issuance of original certification to be a course provider for agent prelicensing or continuing education in this state;

(C) Application for or issuance of renewal certification to be a course provider for agent prelicensing or continuing education in this state;

(D) Filing fees for applications filed for original examinations and retake examinations administered by the department;

(E) Filing of initial and renewal insurer appointments of resident insurance agencies, corporations, or firms and partnerships;

(F) Annual renewal of each certificate of registration issued to a third party administrator;

(G) A filing and processing fee for filing legal process with the department wherein the commissioner is serving as official agent for service of process;

(H) Filing and processing fees for filing specimen insurance policy and contract forms of all types with the department;

(I) A filing fee for obtaining department lists of various kinds of licensees or registrants; and

(J) Similar department services and products.

(2) In the event the commissioner is required by laws enacted contemporaneously with or subsequent to this subchapter to perform other duties or incur other obligations, and in the event current revenues of the department, including, but not limited to, those revenues produced by this subchapter, are not sufficient for the commissioner to perform those new or additional duties efficiently and promptly or to the extent the commissioner deems necessary, then the commissioner shall enact new or additional or increased fees for departmental services, documents, and publications, but such fees shall only be adopted and imposed in a rule promulgated by the commissioner after notice and a hearing pursuant to the Arkansas Administrative Procedure Act, § 25-15-201 et seq., and other applicable sections of the Arkansas Insurance Code and other laws.

(3) The fees described in this section and prescribed in amount and frequency of payment in the commissioner's companion rule to this subchapter shall be payable to the fund as special revenues for the support and operation of the State Insurance Department.

(b) (1) (A) The fees for various department services, documents, or publications shall be divided into two (2) categories, Category A fees and Category B fees, and shall be so specified in the companion rule to this subchapter. (B) Category A fees at a maximum of one thousand five hundred dollars ($1,500) per transaction shall consist of those fees representing material or substantive corporate transactions of licensees, including, but not limited to, holding company changes in control of insurers or similar entities, corporate mergers and consolidation, bulk, or assumptive reinsurance transactions, as well as department products and services which would require a substantial commitment of department resources per transaction. (C) Category B fees at a maximum of fifty dollars ($50.00) per transaction shall consist of those fees representing other transactions of licensees, as well as department products and services which would not require a substantial commitment of department resources per transaction. (2) In no event shall any one (1) Category A fee or Category B fee for any department service, document, or publication per transaction pursuant to this section and the commissioner's companion rule and regulation exceed the maximums listed herein.

(1) (A) The fees for various department services, documents, or publications shall be divided into two (2) categories, Category A fees and Category B fees, and shall be so specified in the companion rule to this subchapter. (B) Category A fees at a maximum of one thousand five hundred dollars ($1,500) per transaction shall consist of those fees representing material or substantive corporate transactions of licensees, including, but not limited to, holding company changes in control of insurers or similar entities, corporate mergers and consolidation, bulk, or assumptive reinsurance transactions, as well as department products and services which would require a substantial commitment of department resources per transaction. (C) Category B fees at a maximum of fifty dollars ($50.00) per transaction shall consist of those fees representing other transactions of licensees, as well as department products and services which would not require a substantial commitment of department resources per transaction.

(A) The fees for various department services, documents, or publications shall be divided into two (2) categories, Category A fees and Category B fees, and shall be so specified in the companion rule to this subchapter.

(B) Category A fees at a maximum of one thousand five hundred dollars ($1,500) per transaction shall consist of those fees representing material or substantive corporate transactions of licensees, including, but not limited to, holding company changes in control of insurers or similar entities, corporate mergers and consolidation, bulk, or assumptive reinsurance transactions, as well as department products and services which would require a substantial commitment of department resources per transaction.

(C) Category B fees at a maximum of fifty dollars ($50.00) per transaction shall consist of those fees representing other transactions of licensees, as well as department products and services which would not require a substantial commitment of department resources per transaction.

(2) In no event shall any one (1) Category A fee or Category B fee for any department service, document, or publication per transaction pursuant to this section and the commissioner's companion rule and regulation exceed the maximums listed herein.

(c) The commissioner may from time to time alter the fee amounts by rule amendment pursuant to the Arkansas Administrative Procedure Act, § 25-15-201 et seq., but in no event shall such fee amendments necessary for continued support and operation of the department exceed the limitations set forth in this section.

(d) Insurers obligated to secure or renew agent appointments using department forms one through forty-eight (1-48) for their agent representatives on the licensing records of the State Insurance Department pursuant to the provisions of § 23-64-514 on a new or biennial renewal basis shall no longer collect such licensure expenses, directly or indirectly, from the agent licensee, or exact any form of reimbursement for the statutory appointment fees, or pass such costs along to the agent licensee, directly or indirectly, as any other type of charge, notwithstanding the provision of any agency, brokerage, or employment contract or agreement with the agent to the contrary.

Amended by Act 2019, No. 315,§ 2622, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 2621, eff. 7/24/2019.

Acts 1993, No. 652, § 9; 2001, No. 580, § 2.
Ark. Code Ann. § 23-75-106 — AR Code / Title 23 / Chapter 75 / Section 23-75-106
Incorporation - Amendments to articles or bylaws
Status: in_force

(a) Any corporation shall hereafter be organized under the laws of this state relating to private corporations not for pecuniary profit, insofar as the laws are not inconsistent with this chapter. (b) (1) Upon adoption of an amendment to its articles of incorporation or bylaws, the corporation shall make in duplicate under its corporate seal a certificate setting forth the amendment and the date and manner of its adoption. (2) The certificate shall be: (A) Executed by the corporation's president or vice president and secretary or assistant secretary; and (B) Acknowledged before an officer authorized by law to take acknowledgments of deeds. (3) The corporation shall deliver to the Insurance Commissioner: (A) A duplicate original of the certificate; and (B) (i) The filing fee that is: (a) Specified in § 23-61-401 ; or (b) Established by rule of the commissioner. (ii) The filing fee is not refundable. (4) If the commissioner finds that the certificate and the amendment comply with the law, the commissioner shall: (A) Endorse his or her approval upon each of the duplicate originals; (B) Place one (1) set on file in his or her office; and (C) Return the remaining set to the corporation for its corporate records. (5) The amendment shall be effective when the commissioner has endorsed his or her approval on the certificate. (6) If the commissioner finds that the proposed amendment or certificate does not comply with the law, the commissioner shall: (A) Not approve the certificate; (B) Return the duplicate certificate to the corporation with his or her written statement of reasons for not approving the certificate; and (C) Retain the filing fee. Acts 1959, No. 148, § 673; A.S.A. 1947, § 66-4903; Acts 2009, No. 726, § 36.

(a) Any corporation shall hereafter be organized under the laws of this state relating to private corporations not for pecuniary profit, insofar as the laws are not inconsistent with this chapter.

(b) (1) Upon adoption of an amendment to its articles of incorporation or bylaws, the corporation shall make in duplicate under its corporate seal a certificate setting forth the amendment and the date and manner of its adoption. (2) The certificate shall be: (A) Executed by the corporation's president or vice president and secretary or assistant secretary; and (B) Acknowledged before an officer authorized by law to take acknowledgments of deeds. (3) The corporation shall deliver to the Insurance Commissioner: (A) A duplicate original of the certificate; and (B) (i) The filing fee that is: (a) Specified in § 23-61-401 ; or (b) Established by rule of the commissioner. (ii) The filing fee is not refundable. (4) If the commissioner finds that the certificate and the amendment comply with the law, the commissioner shall: (A) Endorse his or her approval upon each of the duplicate originals; (B) Place one (1) set on file in his or her office; and (C) Return the remaining set to the corporation for its corporate records. (5) The amendment shall be effective when the commissioner has endorsed his or her approval on the certificate. (6) If the commissioner finds that the proposed amendment or certificate does not comply with the law, the commissioner shall: (A) Not approve the certificate; (B) Return the duplicate certificate to the corporation with his or her written statement of reasons for not approving the certificate; and (C) Retain the filing fee.

(1) Upon adoption of an amendment to its articles of incorporation or bylaws, the corporation shall make in duplicate under its corporate seal a certificate setting forth the amendment and the date and manner of its adoption.

(2) The certificate shall be: (A) Executed by the corporation's president or vice president and secretary or assistant secretary; and (B) Acknowledged before an officer authorized by law to take acknowledgments of deeds.

(A) Executed by the corporation's president or vice president and secretary or assistant secretary; and

(B) Acknowledged before an officer authorized by law to take acknowledgments of deeds.

(3) The corporation shall deliver to the Insurance Commissioner: (A) A duplicate original of the certificate; and (B) (i) The filing fee that is: (a) Specified in § 23-61-401 ; or (b) Established by rule of the commissioner. (ii) The filing fee is not refundable.

(A) A duplicate original of the certificate; and

(B) (i) The filing fee that is: (a) Specified in § 23-61-401 ; or (b) Established by rule of the commissioner. (ii) The filing fee is not refundable.

(i) The filing fee that is: (a) Specified in § 23-61-401 ; or (b) Established by rule of the commissioner.

(a) Specified in § 23-61-401 ; or

(b) Established by rule of the commissioner.

(ii) The filing fee is not refundable.

(4) If the commissioner finds that the certificate and the amendment comply with the law, the commissioner shall: (A) Endorse his or her approval upon each of the duplicate originals; (B) Place one (1) set on file in his or her office; and (C) Return the remaining set to the corporation for its corporate records.

(A) Endorse his or her approval upon each of the duplicate originals;

(B) Place one (1) set on file in his or her office; and

(C) Return the remaining set to the corporation for its corporate records.

(5) The amendment shall be effective when the commissioner has endorsed his or her approval on the certificate.

(6) If the commissioner finds that the proposed amendment or certificate does not comply with the law, the commissioner shall: (A) Not approve the certificate; (B) Return the duplicate certificate to the corporation with his or her written statement of reasons for not approving the certificate; and (C) Retain the filing fee.

(A) Not approve the certificate;

(B) Return the duplicate certificate to the corporation with his or her written statement of reasons for not approving the certificate; and

(C) Retain the filing fee.

Acts 1959, No. 148, § 673; A.S.A. 1947, § 66-4903; Acts 2009, No. 726, § 36.
Ark. Code Ann. § 23-79-139 — AR Code / Title 23 / Chapter 79 / Subchapter 1 / Section 23-79-139
Benefits for alcohol or drug dependency treatment - Definition
Status: in_force

(a) (1) Every insurer, hospital and medical service corporation, and health maintenance organization transacting accident and health insurance in this state shall offer and make available under all group policies, contracts, and plans providing hospital and medical coverage on an expense incurred, service, or prepaid basis benefits for the necessary care and treatment of alcohol and other drug dependency that are not less favorable than for physical illness generally, subject to the same durational limits, dollar limits, deductibles, and coinsurance factors, except as provided in this section. (2) (A) The offer for these benefits shall be subject to the right of the policy or contract holder to reject the coverage or select any alternative level of benefits. (B) The rejection by the policy or contract holder shall be in writing. (b) Any benefits provided under alcohol or drug dependency coverage shall be determined as necessary care and treatment in an alcohol or drug dependency treatment facility or care and treatment in a hospital. (c) Treatment may include detoxification, administration of a therapeutic regimen for the treatment of alcohol or drug dependent or substance abusing persons, and related services. (d) The facility or unit may be: (1) A unit within a general hospital or an attached or freestanding unit of a general hospital; (2) A unit within a psychiatric hospital or an attached or freestanding unit of a psychiatric hospital; or (3) A freestanding facility specializing in treatment of persons who are substance abusers or are alcohol or drug dependent, and may be identified as "chemical dependency, substance abuse, alcoholism, or drug abuse facilities", "social setting detoxification facilities", and "medical detoxification facilities", or by other names if the purpose is to provide treatment of alcohol or drug dependent or substance abusing persons, but shall not include halfway houses or recovery farms. (e) Every policy or contract of insurance that provides benefits for alcohol or drug dependency treatment and that provides total annual benefits for all illnesses in excess of six thousand dollars ($6,000) is subject to the following conditions: (1) The policy or contract shall provide, for each twenty-four-month period, a minimum benefit of six thousand dollars ($6,000) for the necessary care and treatment of alcohol or drug dependency; (2) No more than one-half (1/2) of the policy's or contract's maximum benefits for alcohol or drug dependency for a twenty-four-month period shall be paid for the necessary care and treatment of alcohol or drug dependency in any thirty-consecutive-day period; and (3) The policy or contract shall provide a minimum benefit of twelve thousand dollars ($12,000) for the necessary care and treatment of alcohol or drug dependency for the life of the recipient of benefits. (f) For the purposes of this section, the term "alcohol or drug dependency treatment facility" means a public or private facility or unit in a facility that provides treatment twenty-four (24) hours a day for alcohol or drug dependency or substance abuse, that provides a program for the treatment of alcohol or other drug dependency under a written treatment plan approved and monitored by a physician, and that is also properly licensed or accredited to provide those services by the Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services. (g) Nothing in this section shall prohibit any certificate or contract from requiring the most cost-effective treatment setting to be utilized by the person undergoing necessary care and treatment for alcohol or drug dependency. (h) As used in this section, "alcohol or drug dependency" means the pathological use or abuse of alcohol or other drugs in a manner or to a degree that produces an impairment in personal, social, or occupational functioning and that may, but need not, include a pattern of tolerance and withdrawal. (i) This section shall apply to group policies or contracts delivered or issued for delivery or renewed in this state after November 17, 1987, but shall not apply to blanket short-term travel accident only, limited or specified disease, conversion policies or contracts, nor to policies or contracts referred to as Medicare supplement policies, designed for issuance to persons eligible for coverage under Title XVIII of the Social Security Act. Amended by Act 2017, No. 913,§ 118, eff. 8/1/2017. Amended by Act 2013, No. 1107,§ 43, eff. 8/16/2013. Acts 1987, No. 1047, §§ 1-6; 2001, No. 1604, § 103.

(a) (1) Every insurer, hospital and medical service corporation, and health maintenance organization transacting accident and health insurance in this state shall offer and make available under all group policies, contracts, and plans providing hospital and medical coverage on an expense incurred, service, or prepaid basis benefits for the necessary care and treatment of alcohol and other drug dependency that are not less favorable than for physical illness generally, subject to the same durational limits, dollar limits, deductibles, and coinsurance factors, except as provided in this section. (2) (A) The offer for these benefits shall be subject to the right of the policy or contract holder to reject the coverage or select any alternative level of benefits. (B) The rejection by the policy or contract holder shall be in writing.

(1) Every insurer, hospital and medical service corporation, and health maintenance organization transacting accident and health insurance in this state shall offer and make available under all group policies, contracts, and plans providing hospital and medical coverage on an expense incurred, service, or prepaid basis benefits for the necessary care and treatment of alcohol and other drug dependency that are not less favorable than for physical illness generally, subject to the same durational limits, dollar limits, deductibles, and coinsurance factors, except as provided in this section.

(2) (A) The offer for these benefits shall be subject to the right of the policy or contract holder to reject the coverage or select any alternative level of benefits. (B) The rejection by the policy or contract holder shall be in writing.

(A) The offer for these benefits shall be subject to the right of the policy or contract holder to reject the coverage or select any alternative level of benefits.

(B) The rejection by the policy or contract holder shall be in writing.

(b) Any benefits provided under alcohol or drug dependency coverage shall be determined as necessary care and treatment in an alcohol or drug dependency treatment facility or care and treatment in a hospital.

(c) Treatment may include detoxification, administration of a therapeutic regimen for the treatment of alcohol or drug dependent or substance abusing persons, and related services.

(d) The facility or unit may be: (1) A unit within a general hospital or an attached or freestanding unit of a general hospital; (2) A unit within a psychiatric hospital or an attached or freestanding unit of a psychiatric hospital; or (3) A freestanding facility specializing in treatment of persons who are substance abusers or are alcohol or drug dependent, and may be identified as "chemical dependency, substance abuse, alcoholism, or drug abuse facilities", "social setting detoxification facilities", and "medical detoxification facilities", or by other names if the purpose is to provide treatment of alcohol or drug dependent or substance abusing persons, but shall not include halfway houses or recovery farms.

(1) A unit within a general hospital or an attached or freestanding unit of a general hospital;

(2) A unit within a psychiatric hospital or an attached or freestanding unit of a psychiatric hospital; or

(3) A freestanding facility specializing in treatment of persons who are substance abusers or are alcohol or drug dependent, and may be identified as "chemical dependency, substance abuse, alcoholism, or drug abuse facilities", "social setting detoxification facilities", and "medical detoxification facilities", or by other names if the purpose is to provide treatment of alcohol or drug dependent or substance abusing persons, but shall not include halfway houses or recovery farms.

(e) Every policy or contract of insurance that provides benefits for alcohol or drug dependency treatment and that provides total annual benefits for all illnesses in excess of six thousand dollars ($6,000) is subject to the following conditions: (1) The policy or contract shall provide, for each twenty-four-month period, a minimum benefit of six thousand dollars ($6,000) for the necessary care and treatment of alcohol or drug dependency; (2) No more than one-half (1/2) of the policy's or contract's maximum benefits for alcohol or drug dependency for a twenty-four-month period shall be paid for the necessary care and treatment of alcohol or drug dependency in any thirty-consecutive-day period; and (3) The policy or contract shall provide a minimum benefit of twelve thousand dollars ($12,000) for the necessary care and treatment of alcohol or drug dependency for the life of the recipient of benefits.

(1) The policy or contract shall provide, for each twenty-four-month period, a minimum benefit of six thousand dollars ($6,000) for the necessary care and treatment of alcohol or drug dependency;

(2) No more than one-half (1/2) of the policy's or contract's maximum benefits for alcohol or drug dependency for a twenty-four-month period shall be paid for the necessary care and treatment of alcohol or drug dependency in any thirty-consecutive-day period; and

(3) The policy or contract shall provide a minimum benefit of twelve thousand dollars ($12,000) for the necessary care and treatment of alcohol or drug dependency for the life of the recipient of benefits.

(f) For the purposes of this section, the term "alcohol or drug dependency treatment facility" means a public or private facility or unit in a facility that provides treatment twenty-four (24) hours a day for alcohol or drug dependency or substance abuse, that provides a program for the treatment of alcohol or other drug dependency under a written treatment plan approved and monitored by a physician, and that is also properly licensed or accredited to provide those services by the Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services.

(g) Nothing in this section shall prohibit any certificate or contract from requiring the most cost-effective treatment setting to be utilized by the person undergoing necessary care and treatment for alcohol or drug dependency.

(h) As used in this section, "alcohol or drug dependency" means the pathological use or abuse of alcohol or other drugs in a manner or to a degree that produces an impairment in personal, social, or occupational functioning and that may, but need not, include a pattern of tolerance and withdrawal.

(i) This section shall apply to group policies or contracts delivered or issued for delivery or renewed in this state after November 17, 1987, but shall not apply to blanket short-term travel accident only, limited or specified disease, conversion policies or contracts, nor to policies or contracts referred to as Medicare supplement policies, designed for issuance to persons eligible for coverage under Title XVIII of the Social Security Act.

Amended by Act 2017, No. 913,§ 118, eff. 8/1/2017.

Amended by Act 2013, No. 1107,§ 43, eff. 8/16/2013.

Acts 1987, No. 1047, §§ 1-6; 2001, No. 1604, § 103.
Ark. Code Ann. § 23-79-510 — AR Code / Title 23 / Chapter 79 / Subchapter 5 / Section 23-79-510
Outline of benefits
Status: in_force

(a) (1) Subject to the contractual policy form language adopted by the Board of Directors of the Arkansas Comprehensive Health Insurance Pool, expenses for the following services, supplies, drugs, or articles when prescribed by a physician and determined by the plan to be medically necessary shall be covered, subject to provisions of subsection (b) of this section: (A) Hospital services; (B) Professional services for the diagnosis or treatment of injuries, illnesses, or conditions, other than mental or dental, that are rendered by a physician or by other licensed professionals at his or her direction; (C) Drugs requiring a physician's prescription; (D) Skilled nursing services of a licensed skilled nursing facility for not more than one hundred twenty (120) days during a policy year; (E) Services of a home health agency up to a maximum of two hundred seventy (270) services per year; (F) Use of radium or other radioactive materials; (G) Oxygen; (H) Prostheses other than dental; (I) Rental of durable medical equipment, other than eyeglasses and hearing aids, for which there is no personal use in the absence of the conditions for which such equipment is prescribed; (J) Diagnostic X rays and laboratory tests; (K) Oral surgery for excision of partially or completely unerupted, impacted teeth or the gums and tissues of the mouth when not performed in connection with the extraction or repair of teeth; (L) Services of a physical therapist; (M) Emergency and other medically necessary transportation provided by a licensed ambulance service to the nearest facility qualified to treat a covered condition; (N) Services for diagnosis and treatment of mental and nervous disorders or chemical and drug dependency, provided that a covered person shall be required to make a fifty percent (50%) copayment and that the plan's payment shall not exceed four thousand dollars ($4,000) annually; and (O) Such additional benefits deemed appropriate by the board in accordance with the provisions of subsection (b) of this section. (2) Exclusions. Unless the contractual policy form language adopted by the board provides otherwise, the following services, supplies, drugs, or articles whether or not prescribed by a physician, shall not be covered: (A) Any charge for treatment for cosmetic purposes other than surgery for the repair or treatment of an injury or a congenital bodily defect to restore normal bodily functions; (B) Care that is primarily for custodial or domiciliary purposes; (C) Any charge for confinement in a private room to the extent it is in excess of the institution's charge for its most common semiprivate room unless a private room is medically necessary; (D) That part of any charge for services rendered or articles prescribed by a physician, dentist, or other healthcare personnel that exceeds the prevailing charge in the locality or for any charge not medically necessary; (E) Any charge for services or articles the provision of which is not within the scope of authorized practice of the institution or individual providing the services or articles; (F) Any expense incurred prior to the effective date of coverage by the plan for the person on whose behalf the expense is incurred; (G) Dental care except as provided in subdivision (a)(1)(K) of this section; (H) Eyeglasses and hearing aids; (I) Illness or injury due to acts of war; (J) Services of blood donors and any fee for failure to replace the first three (3) pints of blood provided to a covered person each policy year; (K) Personal supplies or services provided by a hospital or nursing home or any other nonmedical or nonprescribed supply or service; (L) Any expense or charge for services, articles, drugs, or supplies that are not provided in accord with generally accepted standards of current medical practice; (M) Any expense for which a charge is not made in the absence of insurance or for which there is no legal obligation on the part of the patient to pay; (N) Any expense incurred for benefits provided under the laws of the United States and the State of Arkansas, including Medicare and Medicaid and other medical assistance, military service-connected disability payments, medical services provided for members of the armed forces and their dependents or employees of the United States Armed Forces, and medical services financed on behalf of all citizens by the United States; (O) Any expense or charge for in vitro fertilization, artificial insemination, or any other artificial means used to cause pregnancy; (P) Any expense or charge for oral contraceptives used for birth control or any other temporary birth control measures; (Q) Any expense or charge for sterilization or sterilization reversals; (R) Any expense or charge for weight-loss programs, exercise equipment, or treatment of obesity except when certified by a physician as morbid obesity, i.e., at least two (2) times normal body weight; (S) Any expense or charge for acupuncture treatment unless used as an anesthetic agent for a covered surgery; (T) Any expense or charge for organ or bone marrow transplants other than those performed at a hospital with a board-approved organ transplant program that has been designated by the board as a preferred provider organization for that specific organ or bone marrow transplant; (U) Any expense or charge for procedures, treatments, equipment, or services that are provided in special settings for research purposes or in a controlled environment, are being studied for safety, efficiency, and effectiveness, and are awaiting endorsement by the appropriate national medical specialty college for general use within the medical community; (V) Such additional exclusions deemed appropriate by the board in accordance with the provisions of subsection (b) of this section; and (W) (i) Any benefits that exceed the maximum lifetime benefit for plan coverage established by the board under § 23-79-506(a)(1)(N) . (ii) The maximum lifetime benefit shall not be less than one million dollars ($1,000,000) and shall not exceed three million dollars ($3,000,000). (b) In establishing the plan coverage, the board shall take into consideration the levels of health insurance provided in the state and medical economic factors as may be deemed appropriate and promulgate benefits, deductibles, copayments, coinsurance factors, exclusions, and limitations determined to be generally reflective of and commensurate with health insurance provided through a representative number of large employers in the state. (c) The board may adjust any deductibles, copayments, and coinsurance factors annually according to the medical component of the Consumer Price Index for All Urban Consumers. (d) Nonduplication of Benefits. (1) (A) The pool shall be payer of last resort of benefits whenever any other benefit or source of third-party payment is available. (B) Benefits otherwise payable under plan coverage shall be reduced by all amounts paid or payable through any other health insurance or any other source providing benefits because of a sickness or injury and by all hospital and medical expense benefits paid or payable under any workers' compensation coverage, automobile medical payment, or liability insurance whether provided on the basis of fault or nonfault and by any hospital or medical benefits paid or payable under or provided pursuant to any state or federal law or program. (2) The pool shall have a cause of action against a covered person for the recovery of the amount of benefits paid that are not covered by the pool. Benefits due from the pool may be reduced or refused as a set-off against any amount recoverable under this subdivision (d)(2). (e) Right of Subrogation - Recoveries. (1) (A) Whenever the pool has paid benefits because of sickness or an injury to any covered person resulting from a third party's wrongful act or negligence or for which an insurance company or self-insured entity is liable in accordance with the provisions of any policy of insurance, and the covered person has recovered or may recover damages from a third party that is liable for damages, the pool shall have the right to recover the benefits it paid from any amounts that the covered person has received or may receive regardless of the date of the sickness or injury or the date of any settlement, judgment, or award resulting from the sickness or injury. (B) The pool shall be subrogated to any right of recovery the covered person may have under the terms of any private or public healthcare coverage or liability coverage including coverage under a workers' compensation act without the necessity of assignment of claim or other authorization to secure the right of recovery. (C) To enforce its subrogation right, the pool may: (i) Intervene or join in an action or proceeding brought by the covered person or his or her personal representative, including his or her guardian, conservator, estate, dependents, or survivors, against any third party or the third party's insurance carrier or self-insured entity that may be liable; or (ii) Institute and prosecute legal proceedings against any third party or the third party's insurance carrier or self-insured entity that may be liable for the sickness or injury in an appropriate court either in the name of the pool or in the name of the covered person or his or her personal representative including his or her guardian, conservator, estate, dependents, or survivors. (2) (A) (i) If any action or claim is brought by or on behalf of a covered person against a third party or the third party's insurance carrier or self-insured entity, the covered person or his or her personal representative, including his or her guardian, conservator, estate, dependents, or survivors, shall notify the pool by personal service or registered mail of the action or claim and of the name of the court in which the action or claim is brought, filing proof thereof in the action or claim. (ii) The pool may, at any time thereafter, join in the action or claim upon its motion so that all orders of court after hearing and judgment shall be made for its protection. (B) No release or settlement of a claim for damages and no satisfaction of judgment in the action shall be valid without the written consent of the pool to the extent of its interest in the settlement or judgment and of the covered person or his or her personal representative. (3) (A) In the event that the covered person or his or her personal representative fails to institute a proceeding against any appropriate third party before the fifth month before the action would be barred, the pool, in its own name or in the name of the covered person or personal representative, may commence a proceeding against any appropriate third party for the recovery of damages on account of any sickness, injury, or death to the covered person. (B) The covered person shall cooperate in doing what is reasonably necessary to assist the pool in any recovery and shall not take any action that would prejudice the pool's right to recovery. (C) The pool shall pay to the covered person or his or her personal representative all sums collected from any third party by judgment or otherwise in excess of amounts paid in benefits under the pool and amounts paid or to be paid as costs, attorney's fees, and reasonable expenses incurred by the pool in making the collection or enforcing the judgment. (4) (A) (i) In the event of judgment or award in either a suit or claim against a third party, the court shall first order paid from any judgment or award the reasonable litigation expenses incurred in preparation and prosecution of the action or claim, together with reasonable attorney's fees. (ii) After payment of those expenses and attorney's fees, the court shall apply out of the balance of the judgment or award an amount sufficient to reimburse the pool the full amount of benefits paid on behalf of the covered person under this subchapter, provided that the court may reduce and apportion the pool's portion of the judgment proportionately to the recovery of the covered person. (B) (i) The burden of producing sufficient evidence to support the exercise by the court of its discretion to reduce the amount of a proven charge sought to be enforced against the recovery shall rest with the party seeking the reduction. (ii) The court may consider the nature and extent of the injury, economic and noneconomic loss, settlement offers, comparative or contributory negligence as it applies to the case at hand, hospital costs, physician costs, and all other appropriate costs. (C) The pool shall pay its pro rata share of the attorney's fees based on the pool's recovery as it compares to the total judgment. (D) Any reimbursement rights of the pool shall take priority over all other liens and charges existing under the laws of the State of Arkansas. (5) The pool may compromise or settle and release any claim for benefits provided under this subchapter or waive any claims for benefits, in whole or in part, for the convenience of the pool or if the pool determines that collection will result in undue hardship upon the covered person. (f) Preexisting Conditions. (1) Except for federally eligible individuals or qualified trade adjustment assistance eligible persons qualifying for plan coverage under § 23-79-509(b) or resident eligible persons or trade adjustment assistance eligible persons who qualify for and elect to purchase the waiver authorized in subdivision (f)(2) of this section, plan coverage shall exclude charges or expenses incurred during the first six (6) months following the effective date of coverage as to any condition if: (A) The condition has manifested itself within the six-month period immediately preceding the effective date of coverage in such a manner as would cause an ordinary prudent person to seek diagnosis, care, or treatment; or (B) Medical advice, care, or treatment was recommended or received within the six-month period immediately preceding the effective date of the coverage. (2) Waiver. The preexisting condition exclusions as set forth in subdivision (f)(1) of this section will be waived to the extent to which the resident eligible person or trade adjustment assistance eligible person: (A) Has satisfied similar exclusions under any prior individual health insurance coverage that was involuntarily terminated; and (B) (i) Has applied for plan coverage not later than thirty (30) days following the involuntary termination. (ii) For each resident eligible person or trade adjustment assistance eligible person who qualifies for and elects this waiver, there shall be added on a prorated basis to each payment of premium a surcharge of up to ten percent (10%) of the otherwise applicable annual premium for as long as that individual's coverage under the plan remains in effect or sixty (60) months, whichever is less. (3) (A) Whenever benefits are due from the plan because of sickness or an injury to a covered person resulting from a third party's wrongful act or negligence and the covered person has recovered or may recover damages from a third party or its insurance carrier or self-insured entity, the plan shall have the right to reduce benefits or to refuse to pay benefits that otherwise may be payable in the amount of damages that the covered person has recovered or may recover regardless of the date of the sickness or injury or the date of any settlement, judgment, or award resulting from that sickness or injury. (B) (i) During the pendency of any action or claim that is brought by or on behalf of a covered person against a third party or its insurance carrier or self-insured entity, any benefits that would otherwise be payable except for the provisions of this subsection shall be paid if payment by or for the third party has not yet been made and the covered person or, if capable, that person's legal representative agrees in writing to pay back properly the benefits paid as a result of the sickness or injury to the extent of any future payments made by or for the third party for the sickness or injury. (ii) This agreement is to apply whether or not liability for the payments is established or admitted by the third party or whether those payments are itemized. (C) Any amounts due the plan to repay benefits may be deducted from other benefits payable by the plan after payments by or for the third party are made. (4) Benefits due from the plan may be reduced or refused as an offset against any amount otherwise recoverable under this section. Acts 1997, No. 292, § 10; 2003, No. 1327, § 5; 2009, No. 726, § 44.

(a) (1) Subject to the contractual policy form language adopted by the Board of Directors of the Arkansas Comprehensive Health Insurance Pool, expenses for the following services, supplies, drugs, or articles when prescribed by a physician and determined by the plan to be medically necessary shall be covered, subject to provisions of subsection (b) of this section: (A) Hospital services; (B) Professional services for the diagnosis or treatment of injuries, illnesses, or conditions, other than mental or dental, that are rendered by a physician or by other licensed professionals at his or her direction; (C) Drugs requiring a physician's prescription; (D) Skilled nursing services of a licensed skilled nursing facility for not more than one hundred twenty (120) days during a policy year; (E) Services of a home health agency up to a maximum of two hundred seventy (270) services per year; (F) Use of radium or other radioactive materials; (G) Oxygen; (H) Prostheses other than dental; (I) Rental of durable medical equipment, other than eyeglasses and hearing aids, for which there is no personal use in the absence of the conditions for which such equipment is prescribed; (J) Diagnostic X rays and laboratory tests; (K) Oral surgery for excision of partially or completely unerupted, impacted teeth or the gums and tissues of the mouth when not performed in connection with the extraction or repair of teeth; (L) Services of a physical therapist; (M) Emergency and other medically necessary transportation provided by a licensed ambulance service to the nearest facility qualified to treat a covered condition; (N) Services for diagnosis and treatment of mental and nervous disorders or chemical and drug dependency, provided that a covered person shall be required to make a fifty percent (50%) copayment and that the plan's payment shall not exceed four thousand dollars ($4,000) annually; and (O) Such additional benefits deemed appropriate by the board in accordance with the provisions of subsection (b) of this section. (2) Exclusions. Unless the contractual policy form language adopted by the board provides otherwise, the following services, supplies, drugs, or articles whether or not prescribed by a physician, shall not be covered: (A) Any charge for treatment for cosmetic purposes other than surgery for the repair or treatment of an injury or a congenital bodily defect to restore normal bodily functions; (B) Care that is primarily for custodial or domiciliary purposes; (C) Any charge for confinement in a private room to the extent it is in excess of the institution's charge for its most common semiprivate room unless a private room is medically necessary; (D) That part of any charge for services rendered or articles prescribed by a physician, dentist, or other healthcare personnel that exceeds the prevailing charge in the locality or for any charge not medically necessary; (E) Any charge for services or articles the provision of which is not within the scope of authorized practice of the institution or individual providing the services or articles; (F) Any expense incurred prior to the effective date of coverage by the plan for the person on whose behalf the expense is incurred; (G) Dental care except as provided in subdivision (a)(1)(K) of this section; (H) Eyeglasses and hearing aids; (I) Illness or injury due to acts of war; (J) Services of blood donors and any fee for failure to replace the first three (3) pints of blood provided to a covered person each policy year; (K) Personal supplies or services provided by a hospital or nursing home or any other nonmedical or nonprescribed supply or service; (L) Any expense or charge for services, articles, drugs, or supplies that are not provided in accord with generally accepted standards of current medical practice; (M) Any expense for which a charge is not made in the absence of insurance or for which there is no legal obligation on the part of the patient to pay; (N) Any expense incurred for benefits provided under the laws of the United States and the State of Arkansas, including Medicare and Medicaid and other medical assistance, military service-connected disability payments, medical services provided for members of the armed forces and their dependents or employees of the United States Armed Forces, and medical services financed on behalf of all citizens by the United States; (O) Any expense or charge for in vitro fertilization, artificial insemination, or any other artificial means used to cause pregnancy; (P) Any expense or charge for oral contraceptives used for birth control or any other temporary birth control measures; (Q) Any expense or charge for sterilization or sterilization reversals; (R) Any expense or charge for weight-loss programs, exercise equipment, or treatment of obesity except when certified by a physician as morbid obesity, i.e., at least two (2) times normal body weight; (S) Any expense or charge for acupuncture treatment unless used as an anesthetic agent for a covered surgery; (T) Any expense or charge for organ or bone marrow transplants other than those performed at a hospital with a board-approved organ transplant program that has been designated by the board as a preferred provider organization for that specific organ or bone marrow transplant; (U) Any expense or charge for procedures, treatments, equipment, or services that are provided in special settings for research purposes or in a controlled environment, are being studied for safety, efficiency, and effectiveness, and are awaiting endorsement by the appropriate national medical specialty college for general use within the medical community; (V) Such additional exclusions deemed appropriate by the board in accordance with the provisions of subsection (b) of this section; and (W) (i) Any benefits that exceed the maximum lifetime benefit for plan coverage established by the board under § 23-79-506(a)(1)(N) . (ii) The maximum lifetime benefit shall not be less than one million dollars ($1,000,000) and shall not exceed three million dollars ($3,000,000).

(1) Subject to the contractual policy form language adopted by the Board of Directors of the Arkansas Comprehensive Health Insurance Pool, expenses for the following services, supplies, drugs, or articles when prescribed by a physician and determined by the plan to be medically necessary shall be covered, subject to provisions of subsection (b) of this section: (A) Hospital services; (B) Professional services for the diagnosis or treatment of injuries, illnesses, or conditions, other than mental or dental, that are rendered by a physician or by other licensed professionals at his or her direction; (C) Drugs requiring a physician's prescription; (D) Skilled nursing services of a licensed skilled nursing facility for not more than one hundred twenty (120) days during a policy year; (E) Services of a home health agency up to a maximum of two hundred seventy (270) services per year; (F) Use of radium or other radioactive materials; (G) Oxygen; (H) Prostheses other than dental; (I) Rental of durable medical equipment, other than eyeglasses and hearing aids, for which there is no personal use in the absence of the conditions for which such equipment is prescribed; (J) Diagnostic X rays and laboratory tests; (K) Oral surgery for excision of partially or completely unerupted, impacted teeth or the gums and tissues of the mouth when not performed in connection with the extraction or repair of teeth; (L) Services of a physical therapist; (M) Emergency and other medically necessary transportation provided by a licensed ambulance service to the nearest facility qualified to treat a covered condition; (N) Services for diagnosis and treatment of mental and nervous disorders or chemical and drug dependency, provided that a covered person shall be required to make a fifty percent (50%) copayment and that the plan's payment shall not exceed four thousand dollars ($4,000) annually; and (O) Such additional benefits deemed appropriate by the board in accordance with the provisions of subsection (b) of this section.

(A) Hospital services;

(B) Professional services for the diagnosis or treatment of injuries, illnesses, or conditions, other than mental or dental, that are rendered by a physician or by other licensed professionals at his or her direction;

(C) Drugs requiring a physician's prescription;

(D) Skilled nursing services of a licensed skilled nursing facility for not more than one hundred twenty (120) days during a policy year;

(E) Services of a home health agency up to a maximum of two hundred seventy (270) services per year;

(F) Use of radium or other radioactive materials;

(G) Oxygen;

(H) Prostheses other than dental;

(I) Rental of durable medical equipment, other than eyeglasses and hearing aids, for which there is no personal use in the absence of the conditions for which such equipment is prescribed;

(J) Diagnostic X rays and laboratory tests;

(K) Oral surgery for excision of partially or completely unerupted, impacted teeth or the gums and tissues of the mouth when not performed in connection with the extraction or repair of teeth;

(L) Services of a physical therapist;

(M) Emergency and other medically necessary transportation provided by a licensed ambulance service to the nearest facility qualified to treat a covered condition;

(N) Services for diagnosis and treatment of mental and nervous disorders or chemical and drug dependency, provided that a covered person shall be required to make a fifty percent (50%) copayment and that the plan's payment shall not exceed four thousand dollars ($4,000) annually; and

(O) Such additional benefits deemed appropriate by the board in accordance with the provisions of subsection (b) of this section.

(2) Exclusions. Unless the contractual policy form language adopted by the board provides otherwise, the following services, supplies, drugs, or articles whether or not prescribed by a physician, shall not be covered: (A) Any charge for treatment for cosmetic purposes other than surgery for the repair or treatment of an injury or a congenital bodily defect to restore normal bodily functions; (B) Care that is primarily for custodial or domiciliary purposes; (C) Any charge for confinement in a private room to the extent it is in excess of the institution's charge for its most common semiprivate room unless a private room is medically necessary; (D) That part of any charge for services rendered or articles prescribed by a physician, dentist, or other healthcare personnel that exceeds the prevailing charge in the locality or for any charge not medically necessary; (E) Any charge for services or articles the provision of which is not within the scope of authorized practice of the institution or individual providing the services or articles; (F) Any expense incurred prior to the effective date of coverage by the plan for the person on whose behalf the expense is incurred; (G) Dental care except as provided in subdivision (a)(1)(K) of this section; (H) Eyeglasses and hearing aids; (I) Illness or injury due to acts of war; (J) Services of blood donors and any fee for failure to replace the first three (3) pints of blood provided to a covered person each policy year; (K) Personal supplies or services provided by a hospital or nursing home or any other nonmedical or nonprescribed supply or service; (L) Any expense or charge for services, articles, drugs, or supplies that are not provided in accord with generally accepted standards of current medical practice; (M) Any expense for which a charge is not made in the absence of insurance or for which there is no legal obligation on the part of the patient to pay; (N) Any expense incurred for benefits provided under the laws of the United States and the State of Arkansas, including Medicare and Medicaid and other medical assistance, military service-connected disability payments, medical services provided for members of the armed forces and their dependents or employees of the United States Armed Forces, and medical services financed on behalf of all citizens by the United States; (O) Any expense or charge for in vitro fertilization, artificial insemination, or any other artificial means used to cause pregnancy; (P) Any expense or charge for oral contraceptives used for birth control or any other temporary birth control measures; (Q) Any expense or charge for sterilization or sterilization reversals; (R) Any expense or charge for weight-loss programs, exercise equipment, or treatment of obesity except when certified by a physician as morbid obesity, i.e., at least two (2) times normal body weight; (S) Any expense or charge for acupuncture treatment unless used as an anesthetic agent for a covered surgery; (T) Any expense or charge for organ or bone marrow transplants other than those performed at a hospital with a board-approved organ transplant program that has been designated by the board as a preferred provider organization for that specific organ or bone marrow transplant; (U) Any expense or charge for procedures, treatments, equipment, or services that are provided in special settings for research purposes or in a controlled environment, are being studied for safety, efficiency, and effectiveness, and are awaiting endorsement by the appropriate national medical specialty college for general use within the medical community; (V) Such additional exclusions deemed appropriate by the board in accordance with the provisions of subsection (b) of this section; and (W) (i) Any benefits that exceed the maximum lifetime benefit for plan coverage established by the board under § 23-79-506(a)(1)(N) . (ii) The maximum lifetime benefit shall not be less than one million dollars ($1,000,000) and shall not exceed three million dollars ($3,000,000).

(A) Any charge for treatment for cosmetic purposes other than surgery for the repair or treatment of an injury or a congenital bodily defect to restore normal bodily functions;

(B) Care that is primarily for custodial or domiciliary purposes;

(C) Any charge for confinement in a private room to the extent it is in excess of the institution's charge for its most common semiprivate room unless a private room is medically necessary;

(D) That part of any charge for services rendered or articles prescribed by a physician, dentist, or other healthcare personnel that exceeds the prevailing charge in the locality or for any charge not medically necessary;

(E) Any charge for services or articles the provision of which is not within the scope of authorized practice of the institution or individual providing the services or articles;

(F) Any expense incurred prior to the effective date of coverage by the plan for the person on whose behalf the expense is incurred;

(G) Dental care except as provided in subdivision (a)(1)(K) of this section;

(H) Eyeglasses and hearing aids;

(I) Illness or injury due to acts of war;

(J) Services of blood donors and any fee for failure to replace the first three (3) pints of blood provided to a covered person each policy year;

(K) Personal supplies or services provided by a hospital or nursing home or any other nonmedical or nonprescribed supply or service;

(L) Any expense or charge for services, articles, drugs, or supplies that are not provided in accord with generally accepted standards of current medical practice;

(M) Any expense for which a charge is not made in the absence of insurance or for which there is no legal obligation on the part of the patient to pay;

(N) Any expense incurred for benefits provided under the laws of the United States and the State of Arkansas, including Medicare and Medicaid and other medical assistance, military service-connected disability payments, medical services provided for members of the armed forces and their dependents or employees of the United States Armed Forces, and medical services financed on behalf of all citizens by the United States;

(O) Any expense or charge for in vitro fertilization, artificial insemination, or any other artificial means used to cause pregnancy;

(P) Any expense or charge for oral contraceptives used for birth control or any other temporary birth control measures;

(Q) Any expense or charge for sterilization or sterilization reversals;

(R) Any expense or charge for weight-loss programs, exercise equipment, or treatment of obesity except when certified by a physician as morbid obesity, i.e., at least two (2) times normal body weight;

(S) Any expense or charge for acupuncture treatment unless used as an anesthetic agent for a covered surgery;

(T) Any expense or charge for organ or bone marrow transplants other than those performed at a hospital with a board-approved organ transplant program that has been designated by the board as a preferred provider organization for that specific organ or bone marrow transplant;

(U) Any expense or charge for procedures, treatments, equipment, or services that are provided in special settings for research purposes or in a controlled environment, are being studied for safety, efficiency, and effectiveness, and are awaiting endorsement by the appropriate national medical specialty college for general use within the medical community;

(V) Such additional exclusions deemed appropriate by the board in accordance with the provisions of subsection (b) of this section; and

(W) (i) Any benefits that exceed the maximum lifetime benefit for plan coverage established by the board under § 23-79-506(a)(1)(N) . (ii) The maximum lifetime benefit shall not be less than one million dollars ($1,000,000) and shall not exceed three million dollars ($3,000,000).

(i) Any benefits that exceed the maximum lifetime benefit for plan coverage established by the board under § 23-79-506(a)(1)(N) .

(ii) The maximum lifetime benefit shall not be less than one million dollars ($1,000,000) and shall not exceed three million dollars ($3,000,000).

(b) In establishing the plan coverage, the board shall take into consideration the levels of health insurance provided in the state and medical economic factors as may be deemed appropriate and promulgate benefits, deductibles, copayments, coinsurance factors, exclusions, and limitations determined to be generally reflective of and commensurate with health insurance provided through a representative number of large employers in the state.

(c) The board may adjust any deductibles, copayments, and coinsurance factors annually according to the medical component of the Consumer Price Index for All Urban Consumers.

(d) Nonduplication of Benefits. (1) (A) The pool shall be payer of last resort of benefits whenever any other benefit or source of third-party payment is available. (B) Benefits otherwise payable under plan coverage shall be reduced by all amounts paid or payable through any other health insurance or any other source providing benefits because of a sickness or injury and by all hospital and medical expense benefits paid or payable under any workers' compensation coverage, automobile medical payment, or liability insurance whether provided on the basis of fault or nonfault and by any hospital or medical benefits paid or payable under or provided pursuant to any state or federal law or program. (2) The pool shall have a cause of action against a covered person for the recovery of the amount of benefits paid that are not covered by the pool. Benefits due from the pool may be reduced or refused as a set-off against any amount recoverable under this subdivision (d)(2).

(1) (A) The pool shall be payer of last resort of benefits whenever any other benefit or source of third-party payment is available. (B) Benefits otherwise payable under plan coverage shall be reduced by all amounts paid or payable through any other health insurance or any other source providing benefits because of a sickness or injury and by all hospital and medical expense benefits paid or payable under any workers' compensation coverage, automobile medical payment, or liability insurance whether provided on the basis of fault or nonfault and by any hospital or medical benefits paid or payable under or provided pursuant to any state or federal law or program.

(A) The pool shall be payer of last resort of benefits whenever any other benefit or source of third-party payment is available.

(B) Benefits otherwise payable under plan coverage shall be reduced by all amounts paid or payable through any other health insurance or any other source providing benefits because of a sickness or injury and by all hospital and medical expense benefits paid or payable under any workers' compensation coverage, automobile medical payment, or liability insurance whether provided on the basis of fault or nonfault and by any hospital or medical benefits paid or payable under or provided pursuant to any state or federal law or program.

(2) The pool shall have a cause of action against a covered person for the recovery of the amount of benefits paid that are not covered by the pool. Benefits due from the pool may be reduced or refused as a set-off against any amount recoverable under this subdivision (d)(2).

(e) Right of Subrogation - Recoveries. (1) (A) Whenever the pool has paid benefits because of sickness or an injury to any covered person resulting from a third party's wrongful act or negligence or for which an insurance company or self-insured entity is liable in accordance with the provisions of any policy of insurance, and the covered person has recovered or may recover damages from a third party that is liable for damages, the pool shall have the right to recover the benefits it paid from any amounts that the covered person has received or may receive regardless of the date of the sickness or injury or the date of any settlement, judgment, or award resulting from the sickness or injury. (B) The pool shall be subrogated to any right of recovery the covered person may have under the terms of any private or public healthcare coverage or liability coverage including coverage under a workers' compensation act without the necessity of assignment of claim or other authorization to secure the right of recovery. (C) To enforce its subrogation right, the pool may: (i) Intervene or join in an action or proceeding brought by the covered person or his or her personal representative, including his or her guardian, conservator, estate, dependents, or survivors, against any third party or the third party's insurance carrier or self-insured entity that may be liable; or (ii) Institute and prosecute legal proceedings against any third party or the third party's insurance carrier or self-insured entity that may be liable for the sickness or injury in an appropriate court either in the name of the pool or in the name of the covered person or his or her personal representative including his or her guardian, conservator, estate, dependents, or survivors. (2) (A) (i) If any action or claim is brought by or on behalf of a covered person against a third party or the third party's insurance carrier or self-insured entity, the covered person or his or her personal representative, including his or her guardian, conservator, estate, dependents, or survivors, shall notify the pool by personal service or registered mail of the action or claim and of the name of the court in which the action or claim is brought, filing proof thereof in the action or claim. (ii) The pool may, at any time thereafter, join in the action or claim upon its motion so that all orders of court after hearing and judgment shall be made for its protection. (B) No release or settlement of a claim for damages and no satisfaction of judgment in the action shall be valid without the written consent of the pool to the extent of its interest in the settlement or judgment and of the covered person or his or her personal representative. (3) (A) In the event that the covered person or his or her personal representative fails to institute a proceeding against any appropriate third party before the fifth month before the action would be barred, the pool, in its own name or in the name of the covered person or personal representative, may commence a proceeding against any appropriate third party for the recovery of damages on account of any sickness, injury, or death to the covered person. (B) The covered person shall cooperate in doing what is reasonably necessary to assist the pool in any recovery and shall not take any action that would prejudice the pool's right to recovery. (C) The pool shall pay to the covered person or his or her personal representative all sums collected from any third party by judgment or otherwise in excess of amounts paid in benefits under the pool and amounts paid or to be paid as costs, attorney's fees, and reasonable expenses incurred by the pool in making the collection or enforcing the judgment. (4) (A) (i) In the event of judgment or award in either a suit or claim against a third party, the court shall first order paid from any judgment or award the reasonable litigation expenses incurred in preparation and prosecution of the action or claim, together with reasonable attorney's fees. (ii) After payment of those expenses and attorney's fees, the court shall apply out of the balance of the judgment or award an amount sufficient to reimburse the pool the full amount of benefits paid on behalf of the covered person under this subchapter, provided that the court may reduce and apportion the pool's portion of the judgment proportionately to the recovery of the covered person. (B) (i) The burden of producing sufficient evidence to support the exercise by the court of its discretion to reduce the amount of a proven charge sought to be enforced against the recovery shall rest with the party seeking the reduction. (ii) The court may consider the nature and extent of the injury, economic and noneconomic loss, settlement offers, comparative or contributory negligence as it applies to the case at hand, hospital costs, physician costs, and all other appropriate costs. (C) The pool shall pay its pro rata share of the attorney's fees based on the pool's recovery as it compares to the total judgment. (D) Any reimbursement rights of the pool shall take priority over all other liens and charges existing under the laws of the State of Arkansas. (5) The pool may compromise or settle and release any claim for benefits provided under this subchapter or waive any claims for benefits, in whole or in part, for the convenience of the pool or if the pool determines that collection will result in undue hardship upon the covered person.

(1) (A) Whenever the pool has paid benefits because of sickness or an injury to any covered person resulting from a third party's wrongful act or negligence or for which an insurance company or self-insured entity is liable in accordance with the provisions of any policy of insurance, and the covered person has recovered or may recover damages from a third party that is liable for damages, the pool shall have the right to recover the benefits it paid from any amounts that the covered person has received or may receive regardless of the date of the sickness or injury or the date of any settlement, judgment, or award resulting from the sickness or injury. (B) The pool shall be subrogated to any right of recovery the covered person may have under the terms of any private or public healthcare coverage or liability coverage including coverage under a workers' compensation act without the necessity of assignment of claim or other authorization to secure the right of recovery. (C) To enforce its subrogation right, the pool may: (i) Intervene or join in an action or proceeding brought by the covered person or his or her personal representative, including his or her guardian, conservator, estate, dependents, or survivors, against any third party or the third party's insurance carrier or self-insured entity that may be liable; or (ii) Institute and prosecute legal proceedings against any third party or the third party's insurance carrier or self-insured entity that may be liable for the sickness or injury in an appropriate court either in the name of the pool or in the name of the covered person or his or her personal representative including his or her guardian, conservator, estate, dependents, or survivors.

(A) Whenever the pool has paid benefits because of sickness or an injury to any covered person resulting from a third party's wrongful act or negligence or for which an insurance company or self-insured entity is liable in accordance with the provisions of any policy of insurance, and the covered person has recovered or may recover damages from a third party that is liable for damages, the pool shall have the right to recover the benefits it paid from any amounts that the covered person has received or may receive regardless of the date of the sickness or injury or the date of any settlement, judgment, or award resulting from the sickness or injury.

(B) The pool shall be subrogated to any right of recovery the covered person may have under the terms of any private or public healthcare coverage or liability coverage including coverage under a workers' compensation act without the necessity of assignment of claim or other authorization to secure the right of recovery.

(C) To enforce its subrogation right, the pool may: (i) Intervene or join in an action or proceeding brought by the covered person or his or her personal representative, including his or her guardian, conservator, estate, dependents, or survivors, against any third party or the third party's insurance carrier or self-insured entity that may be liable; or (ii) Institute and prosecute legal proceedings against any third party or the third party's insurance carrier or self-insured entity that may be liable for the sickness or injury in an appropriate court either in the name of the pool or in the name of the covered person or his or her personal representative including his or her guardian, conservator, estate, dependents, or survivors.

(i) Intervene or join in an action or proceeding brought by the covered person or his or her personal representative, including his or her guardian, conservator, estate, dependents, or survivors, against any third party or the third party's insurance carrier or self-insured entity that may be liable; or

(ii) Institute and prosecute legal proceedings against any third party or the third party's insurance carrier or self-insured entity that may be liable for the sickness or injury in an appropriate court either in the name of the pool or in the name of the covered person or his or her personal representative including his or her guardian, conservator, estate, dependents, or survivors.

(2) (A) (i) If any action or claim is brought by or on behalf of a covered person against a third party or the third party's insurance carrier or self-insured entity, the covered person or his or her personal representative, including his or her guardian, conservator, estate, dependents, or survivors, shall notify the pool by personal service or registered mail of the action or claim and of the name of the court in which the action or claim is brought, filing proof thereof in the action or claim. (ii) The pool may, at any time thereafter, join in the action or claim upon its motion so that all orders of court after hearing and judgment shall be made for its protection. (B) No release or settlement of a claim for damages and no satisfaction of judgment in the action shall be valid without the written consent of the pool to the extent of its interest in the settlement or judgment and of the covered person or his or her personal representative.

(A) (i) If any action or claim is brought by or on behalf of a covered person against a third party or the third party's insurance carrier or self-insured entity, the covered person or his or her personal representative, including his or her guardian, conservator, estate, dependents, or survivors, shall notify the pool by personal service or registered mail of the action or claim and of the name of the court in which the action or claim is brought, filing proof thereof in the action or claim. (ii) The pool may, at any time thereafter, join in the action or claim upon its motion so that all orders of court after hearing and judgment shall be made for its protection.

(i) If any action or claim is brought by or on behalf of a covered person against a third party or the third party's insurance carrier or self-insured entity, the covered person or his or her personal representative, including his or her guardian, conservator, estate, dependents, or survivors, shall notify the pool by personal service or registered mail of the action or claim and of the name of the court in which the action or claim is brought, filing proof thereof in the action or claim.

(ii) The pool may, at any time thereafter, join in the action or claim upon its motion so that all orders of court after hearing and judgment shall be made for its protection.

(B) No release or settlement of a claim for damages and no satisfaction of judgment in the action shall be valid without the written consent of the pool to the extent of its interest in the settlement or judgment and of the covered person or his or her personal representative.

(3) (A) In the event that the covered person or his or her personal representative fails to institute a proceeding against any appropriate third party before the fifth month before the action would be barred, the pool, in its own name or in the name of the covered person or personal representative, may commence a proceeding against any appropriate third party for the recovery of damages on account of any sickness, injury, or death to the covered person. (B) The covered person shall cooperate in doing what is reasonably necessary to assist the pool in any recovery and shall not take any action that would prejudice the pool's right to recovery. (C) The pool shall pay to the covered person or his or her personal representative all sums collected from any third party by judgment or otherwise in excess of amounts paid in benefits under the pool and amounts paid or to be paid as costs, attorney's fees, and reasonable expenses incurred by the pool in making the collection or enforcing the judgment.

(A) In the event that the covered person or his or her personal representative fails to institute a proceeding against any appropriate third party before the fifth month before the action would be barred, the pool, in its own name or in the name of the covered person or personal representative, may commence a proceeding against any appropriate third party for the recovery of damages on account of any sickness, injury, or death to the covered person.

(B) The covered person shall cooperate in doing what is reasonably necessary to assist the pool in any recovery and shall not take any action that would prejudice the pool's right to recovery.

(C) The pool shall pay to the covered person or his or her personal representative all sums collected from any third party by judgment or otherwise in excess of amounts paid in benefits under the pool and amounts paid or to be paid as costs, attorney's fees, and reasonable expenses incurred by the pool in making the collection or enforcing the judgment.

(4) (A) (i) In the event of judgment or award in either a suit or claim against a third party, the court shall first order paid from any judgment or award the reasonable litigation expenses incurred in preparation and prosecution of the action or claim, together with reasonable attorney's fees. (ii) After payment of those expenses and attorney's fees, the court shall apply out of the balance of the judgment or award an amount sufficient to reimburse the pool the full amount of benefits paid on behalf of the covered person under this subchapter, provided that the court may reduce and apportion the pool's portion of the judgment proportionately to the recovery of the covered person. (B) (i) The burden of producing sufficient evidence to support the exercise by the court of its discretion to reduce the amount of a proven charge sought to be enforced against the recovery shall rest with the party seeking the reduction. (ii) The court may consider the nature and extent of the injury, economic and noneconomic loss, settlement offers, comparative or contributory negligence as it applies to the case at hand, hospital costs, physician costs, and all other appropriate costs. (C) The pool shall pay its pro rata share of the attorney's fees based on the pool's recovery as it compares to the total judgment. (D) Any reimbursement rights of the pool shall take priority over all other liens and charges existing under the laws of the State of Arkansas.

(A) (i) In the event of judgment or award in either a suit or claim against a third party, the court shall first order paid from any judgment or award the reasonable litigation expenses incurred in preparation and prosecution of the action or claim, together with reasonable attorney's fees. (ii) After payment of those expenses and attorney's fees, the court shall apply out of the balance of the judgment or award an amount sufficient to reimburse the pool the full amount of benefits paid on behalf of the covered person under this subchapter, provided that the court may reduce and apportion the pool's portion of the judgment proportionately to the recovery of the covered person.

(i) In the event of judgment or award in either a suit or claim against a third party, the court shall first order paid from any judgment or award the reasonable litigation expenses incurred in preparation and prosecution of the action or claim, together with reasonable attorney's fees.

(ii) After payment of those expenses and attorney's fees, the court shall apply out of the balance of the judgment or award an amount sufficient to reimburse the pool the full amount of benefits paid on behalf of the covered person under this subchapter, provided that the court may reduce and apportion the pool's portion of the judgment proportionately to the recovery of the covered person.

(B) (i) The burden of producing sufficient evidence to support the exercise by the court of its discretion to reduce the amount of a proven charge sought to be enforced against the recovery shall rest with the party seeking the reduction. (ii) The court may consider the nature and extent of the injury, economic and noneconomic loss, settlement offers, comparative or contributory negligence as it applies to the case at hand, hospital costs, physician costs, and all other appropriate costs.

(i) The burden of producing sufficient evidence to support the exercise by the court of its discretion to reduce the amount of a proven charge sought to be enforced against the recovery shall rest with the party seeking the reduction.

(ii) The court may consider the nature and extent of the injury, economic and noneconomic loss, settlement offers, comparative or contributory negligence as it applies to the case at hand, hospital costs, physician costs, and all other appropriate costs.

(C) The pool shall pay its pro rata share of the attorney's fees based on the pool's recovery as it compares to the total judgment.

(D) Any reimbursement rights of the pool shall take priority over all other liens and charges existing under the laws of the State of Arkansas.

(5) The pool may compromise or settle and release any claim for benefits provided under this subchapter or waive any claims for benefits, in whole or in part, for the convenience of the pool or if the pool determines that collection will result in undue hardship upon the covered person.

(f) Preexisting Conditions. (1) Except for federally eligible individuals or qualified trade adjustment assistance eligible persons qualifying for plan coverage under § 23-79-509(b) or resident eligible persons or trade adjustment assistance eligible persons who qualify for and elect to purchase the waiver authorized in subdivision (f)(2) of this section, plan coverage shall exclude charges or expenses incurred during the first six (6) months following the effective date of coverage as to any condition if: (A) The condition has manifested itself within the six-month period immediately preceding the effective date of coverage in such a manner as would cause an ordinary prudent person to seek diagnosis, care, or treatment; or (B) Medical advice, care, or treatment was recommended or received within the six-month period immediately preceding the effective date of the coverage. (2) Waiver. The preexisting condition exclusions as set forth in subdivision (f)(1) of this section will be waived to the extent to which the resident eligible person or trade adjustment assistance eligible person: (A) Has satisfied similar exclusions under any prior individual health insurance coverage that was involuntarily terminated; and (B) (i) Has applied for plan coverage not later than thirty (30) days following the involuntary termination. (ii) For each resident eligible person or trade adjustment assistance eligible person who qualifies for and elects this waiver, there shall be added on a prorated basis to each payment of premium a surcharge of up to ten percent (10%) of the otherwise applicable annual premium for as long as that individual's coverage under the plan remains in effect or sixty (60) months, whichever is less. (3) (A) Whenever benefits are due from the plan because of sickness or an injury to a covered person resulting from a third party's wrongful act or negligence and the covered person has recovered or may recover damages from a third party or its insurance carrier or self-insured entity, the plan shall have the right to reduce benefits or to refuse to pay benefits that otherwise may be payable in the amount of damages that the covered person has recovered or may recover regardless of the date of the sickness or injury or the date of any settlement, judgment, or award resulting from that sickness or injury. (B) (i) During the pendency of any action or claim that is brought by or on behalf of a covered person against a third party or its insurance carrier or self-insured entity, any benefits that would otherwise be payable except for the provisions of this subsection shall be paid if payment by or for the third party has not yet been made and the covered person or, if capable, that person's legal representative agrees in writing to pay back properly the benefits paid as a result of the sickness or injury to the extent of any future payments made by or for the third party for the sickness or injury. (ii) This agreement is to apply whether or not liability for the payments is established or admitted by the third party or whether those payments are itemized. (C) Any amounts due the plan to repay benefits may be deducted from other benefits payable by the plan after payments by or for the third party are made. (4) Benefits due from the plan may be reduced or refused as an offset against any amount otherwise recoverable under this section.

(1) Except for federally eligible individuals or qualified trade adjustment assistance eligible persons qualifying for plan coverage under § 23-79-509(b) or resident eligible persons or trade adjustment assistance eligible persons who qualify for and elect to purchase the waiver authorized in subdivision (f)(2) of this section, plan coverage shall exclude charges or expenses incurred during the first six (6) months following the effective date of coverage as to any condition if: (A) The condition has manifested itself within the six-month period immediately preceding the effective date of coverage in such a manner as would cause an ordinary prudent person to seek diagnosis, care, or treatment; or (B) Medical advice, care, or treatment was recommended or received within the six-month period immediately preceding the effective date of the coverage.

(A) The condition has manifested itself within the six-month period immediately preceding the effective date of coverage in such a manner as would cause an ordinary prudent person to seek diagnosis, care, or treatment; or

(B) Medical advice, care, or treatment was recommended or received within the six-month period immediately preceding the effective date of the coverage.

(2) Waiver. The preexisting condition exclusions as set forth in subdivision (f)(1) of this section will be waived to the extent to which the resident eligible person or trade adjustment assistance eligible person: (A) Has satisfied similar exclusions under any prior individual health insurance coverage that was involuntarily terminated; and (B) (i) Has applied for plan coverage not later than thirty (30) days following the involuntary termination. (ii) For each resident eligible person or trade adjustment assistance eligible person who qualifies for and elects this waiver, there shall be added on a prorated basis to each payment of premium a surcharge of up to ten percent (10%) of the otherwise applicable annual premium for as long as that individual's coverage under the plan remains in effect or sixty (60) months, whichever is less.

(A) Has satisfied similar exclusions under any prior individual health insurance coverage that was involuntarily terminated; and

(B) (i) Has applied for plan coverage not later than thirty (30) days following the involuntary termination. (ii) For each resident eligible person or trade adjustment assistance eligible person who qualifies for and elects this waiver, there shall be added on a prorated basis to each payment of premium a surcharge of up to ten percent (10%) of the otherwise applicable annual premium for as long as that individual's coverage under the plan remains in effect or sixty (60) months, whichever is less.

(i) Has applied for plan coverage not later than thirty (30) days following the involuntary termination.

(ii) For each resident eligible person or trade adjustment assistance eligible person who qualifies for and elects this waiver, there shall be added on a prorated basis to each payment of premium a surcharge of up to ten percent (10%) of the otherwise applicable annual premium for as long as that individual's coverage under the plan remains in effect or sixty (60) months, whichever is less.

(3) (A) Whenever benefits are due from the plan because of sickness or an injury to a covered person resulting from a third party's wrongful act or negligence and the covered person has recovered or may recover damages from a third party or its insurance carrier or self-insured entity, the plan shall have the right to reduce benefits or to refuse to pay benefits that otherwise may be payable in the amount of damages that the covered person has recovered or may recover regardless of the date of the sickness or injury or the date of any settlement, judgment, or award resulting from that sickness or injury. (B) (i) During the pendency of any action or claim that is brought by or on behalf of a covered person against a third party or its insurance carrier or self-insured entity, any benefits that would otherwise be payable except for the provisions of this subsection shall be paid if payment by or for the third party has not yet been made and the covered person or, if capable, that person's legal representative agrees in writing to pay back properly the benefits paid as a result of the sickness or injury to the extent of any future payments made by or for the third party for the sickness or injury. (ii) This agreement is to apply whether or not liability for the payments is established or admitted by the third party or whether those payments are itemized. (C) Any amounts due the plan to repay benefits may be deducted from other benefits payable by the plan after payments by or for the third party are made.

(A) Whenever benefits are due from the plan because of sickness or an injury to a covered person resulting from a third party's wrongful act or negligence and the covered person has recovered or may recover damages from a third party or its insurance carrier or self-insured entity, the plan shall have the right to reduce benefits or to refuse to pay benefits that otherwise may be payable in the amount of damages that the covered person has recovered or may recover regardless of the date of the sickness or injury or the date of any settlement, judgment, or award resulting from that sickness or injury.

(B) (i) During the pendency of any action or claim that is brought by or on behalf of a covered person against a third party or its insurance carrier or self-insured entity, any benefits that would otherwise be payable except for the provisions of this subsection shall be paid if payment by or for the third party has not yet been made and the covered person or, if capable, that person's legal representative agrees in writing to pay back properly the benefits paid as a result of the sickness or injury to the extent of any future payments made by or for the third party for the sickness or injury. (ii) This agreement is to apply whether or not liability for the payments is established or admitted by the third party or whether those payments are itemized.

(i) During the pendency of any action or claim that is brought by or on behalf of a covered person against a third party or its insurance carrier or self-insured entity, any benefits that would otherwise be payable except for the provisions of this subsection shall be paid if payment by or for the third party has not yet been made and the covered person or, if capable, that person's legal representative agrees in writing to pay back properly the benefits paid as a result of the sickness or injury to the extent of any future payments made by or for the third party for the sickness or injury.

(ii) This agreement is to apply whether or not liability for the payments is established or admitted by the third party or whether those payments are itemized.

(C) Any amounts due the plan to repay benefits may be deducted from other benefits payable by the plan after payments by or for the third party are made.

(4) Benefits due from the plan may be reduced or refused as an offset against any amount otherwise recoverable under this section.

Acts 1997, No. 292, § 10; 2003, No. 1327, § 5; 2009, No. 726, § 44.
Ark. Code Ann. § 23-112-308 — AR Code / Title 23 / Chapter 112 / Subchapter 3 / Section 23-112-308
Denial, revocation, and suspension
Status: in_force

(a) Notwithstanding any other statute, the Arkansas Motor Vehicle Commission may deny an application for a license or revoke or suspend a license after it has been granted for any of the following reasons: (1) (A) For selling or soliciting sales of a motor vehicle without: (i) A motor vehicle dealer license issued by the commission; or (ii) Being a bona fide employee or agent of a licensed motor vehicle dealer. (B) The unlawful sale or solicitation of each motor vehicle shall constitute a separate offense; (2) On satisfactory proof of the unfitness of the applicant or the licensee, as the case may be, under the standards established and set out in this chapter; (3) For fraud practiced or any material misstatement made by an applicant in any application for license under the provisions of this chapter; (4) For failure to comply with any provision of this chapter or with any rule promulgated by the commission under authority vested in it by this chapter; (5) Change of condition after license is granted or failure to maintain the qualifications for license; (6) Continued violation of any of the provisions of this chapter or of any of the rules of the commission; (7) For any violation of any law relating to the sale, distribution, or financing of motor vehicles; (8) Defrauding any retail buyer to the buyer's damage; (9) Failure to perform any written agreement with any retail buyer; (10) Selling, attempting to sell, or advertising for sale vehicles from a location other than that set forth on the license; (11) Falsifying, altering, or neglecting to endorse or deliver a certificate of title to a transferee or lawful owner or failing to properly designate a transferee on a document of assignment or certificate of title; (12) Knowingly purchasing, selling, or otherwise acquiring or disposing of a stolen motor vehicle; (13) Submitting a false affidavit setting forth that a title has been lost or destroyed; (14) Passing title or reassigning title as a dealer without a dealer's license or when the dealer's license has been suspended or revoked; (15) For a person representing that he or she is a dealer or salesperson, either verbally or in any advertisement, when the person is not licensed as such; (16) Assisting any person in the sale of a motor vehicle who is not licensed as a dealer by the commission; (17) Being a manufacturer who fails to specify the delivery and preparation obligations of its motor vehicle dealers, as is required for the protection of the buying public, prior to delivery of new motor vehicles to retail buyers; (18) (A) On satisfactory proof that any manufacturer, distributor, distributor branch or division, or factory branch or division has unfairly and without due regard to the equities of the parties or to the detriment of the public welfare failed to properly fulfill any warranty agreement or to adequately and fairly compensate any of its motor vehicle dealers for labor, parts, or incidental expenses incurred by the dealer with regard to factory warranty agreements performed by the dealer. (B) Compensation for parts for two-wheeled, three-wheeled, and four-wheeled motorcycles and motor-driven all-terrain vehicles must be at the manufacturer's suggested retail price; (19) For the commission of any act prohibited by §§ 23-112-301 - 23-112-307 , 23-112-402 , and 23-112-403 , or the failure to perform any of the requirements of those sections; (20) Using or permitting the use of special license plates assigned to him or her for any other purpose than those permitted by law; (21) Disconnecting, turning back, or resetting the odometer of any motor vehicle in violation of state or federal law; (22) Accepting an open assignment of title or bill of sale for a motor vehicle which is not completed by identifying the licensee as the purchaser or assignee of the motor vehicle; (23) (A) Failure to notify the commission of a change in ownership, location, or franchise, or any other matters the commission may require by regulation. (B) The notification shall be in written form and submitted to the commission at least fifteen (15) days prior to the effective date of the change; (24) Failure to endorse and deliver an assignment and warranty of title to the buyer pursuant to § 27-14-902 ; (25) Using or permitting the use of a temporary cardboard buyer's tag assigned to the dealer for any purpose other than permitted under § 27-14-1705 ; and (26) Failure of a dealer to submit or deliver a certificate of title or manufacturer's certificate of origin within a reasonable period of time. (b) The revocation or suspension of the license of a manufacturer, factory branch or division, distributor, or distributor branch or division may be limited to: (1) One (1) or more municipalities or counties; (2) (A) The sales area of any dealer whose franchise is unfairly cancelled or terminated within the purview of this chapter or whose franchise is not renewed in violation of the provisions of this chapter. (B) However, when a franchise is unfairly cancelled or terminated within the purview of this chapter or is not renewed in violation of the provisions of this chapter in a metropolitan area serviced by several motor vehicle dealers handling the same motor vehicles, the revocation or suspension shall not be applicable to the remaining motor vehicle dealers in the metropolitan area. Amended by Act 2021, No. 504,§ 10, eff. 7/28/2021. Amended by Act 2019, No. 315,§ 2831, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 2830, eff. 7/24/2019. Acts 1975, No. 388, § 6; 1985, No. 1032, § 5; 1985, No. 1058, § 5; A.S.A. 1947, § 75-2306; Acts 1991, No. 411, § 1; 1993, No. 383, § 4; 2001, No. 1053, § 9; 2009, No. 756, § 9.

(a) Notwithstanding any other statute, the Arkansas Motor Vehicle Commission may deny an application for a license or revoke or suspend a license after it has been granted for any of the following reasons: (1) (A) For selling or soliciting sales of a motor vehicle without: (i) A motor vehicle dealer license issued by the commission; or (ii) Being a bona fide employee or agent of a licensed motor vehicle dealer. (B) The unlawful sale or solicitation of each motor vehicle shall constitute a separate offense; (2) On satisfactory proof of the unfitness of the applicant or the licensee, as the case may be, under the standards established and set out in this chapter; (3) For fraud practiced or any material misstatement made by an applicant in any application for license under the provisions of this chapter; (4) For failure to comply with any provision of this chapter or with any rule promulgated by the commission under authority vested in it by this chapter; (5) Change of condition after license is granted or failure to maintain the qualifications for license; (6) Continued violation of any of the provisions of this chapter or of any of the rules of the commission; (7) For any violation of any law relating to the sale, distribution, or financing of motor vehicles; (8) Defrauding any retail buyer to the buyer's damage; (9) Failure to perform any written agreement with any retail buyer; (10) Selling, attempting to sell, or advertising for sale vehicles from a location other than that set forth on the license; (11) Falsifying, altering, or neglecting to endorse or deliver a certificate of title to a transferee or lawful owner or failing to properly designate a transferee on a document of assignment or certificate of title; (12) Knowingly purchasing, selling, or otherwise acquiring or disposing of a stolen motor vehicle; (13) Submitting a false affidavit setting forth that a title has been lost or destroyed; (14) Passing title or reassigning title as a dealer without a dealer's license or when the dealer's license has been suspended or revoked; (15) For a person representing that he or she is a dealer or salesperson, either verbally or in any advertisement, when the person is not licensed as such; (16) Assisting any person in the sale of a motor vehicle who is not licensed as a dealer by the commission; (17) Being a manufacturer who fails to specify the delivery and preparation obligations of its motor vehicle dealers, as is required for the protection of the buying public, prior to delivery of new motor vehicles to retail buyers; (18) (A) On satisfactory proof that any manufacturer, distributor, distributor branch or division, or factory branch or division has unfairly and without due regard to the equities of the parties or to the detriment of the public welfare failed to properly fulfill any warranty agreement or to adequately and fairly compensate any of its motor vehicle dealers for labor, parts, or incidental expenses incurred by the dealer with regard to factory warranty agreements performed by the dealer. (B) Compensation for parts for two-wheeled, three-wheeled, and four-wheeled motorcycles and motor-driven all-terrain vehicles must be at the manufacturer's suggested retail price; (19) For the commission of any act prohibited by §§ 23-112-301 - 23-112-307 , 23-112-402 , and 23-112-403 , or the failure to perform any of the requirements of those sections; (20) Using or permitting the use of special license plates assigned to him or her for any other purpose than those permitted by law; (21) Disconnecting, turning back, or resetting the odometer of any motor vehicle in violation of state or federal law; (22) Accepting an open assignment of title or bill of sale for a motor vehicle which is not completed by identifying the licensee as the purchaser or assignee of the motor vehicle; (23) (A) Failure to notify the commission of a change in ownership, location, or franchise, or any other matters the commission may require by regulation. (B) The notification shall be in written form and submitted to the commission at least fifteen (15) days prior to the effective date of the change; (24) Failure to endorse and deliver an assignment and warranty of title to the buyer pursuant to § 27-14-902 ; (25) Using or permitting the use of a temporary cardboard buyer's tag assigned to the dealer for any purpose other than permitted under § 27-14-1705 ; and (26) Failure of a dealer to submit or deliver a certificate of title or manufacturer's certificate of origin within a reasonable period of time.

(1) (A) For selling or soliciting sales of a motor vehicle without: (i) A motor vehicle dealer license issued by the commission; or (ii) Being a bona fide employee or agent of a licensed motor vehicle dealer. (B) The unlawful sale or solicitation of each motor vehicle shall constitute a separate offense;

(A) For selling or soliciting sales of a motor vehicle without: (i) A motor vehicle dealer license issued by the commission; or (ii) Being a bona fide employee or agent of a licensed motor vehicle dealer.

(i) A motor vehicle dealer license issued by the commission; or

(ii) Being a bona fide employee or agent of a licensed motor vehicle dealer.

(B) The unlawful sale or solicitation of each motor vehicle shall constitute a separate offense;

(2) On satisfactory proof of the unfitness of the applicant or the licensee, as the case may be, under the standards established and set out in this chapter;

(3) For fraud practiced or any material misstatement made by an applicant in any application for license under the provisions of this chapter;

(4) For failure to comply with any provision of this chapter or with any rule promulgated by the commission under authority vested in it by this chapter;

(5) Change of condition after license is granted or failure to maintain the qualifications for license;

(6) Continued violation of any of the provisions of this chapter or of any of the rules of the commission;

(7) For any violation of any law relating to the sale, distribution, or financing of motor vehicles;

(8) Defrauding any retail buyer to the buyer's damage;

(9) Failure to perform any written agreement with any retail buyer;

(10) Selling, attempting to sell, or advertising for sale vehicles from a location other than that set forth on the license;

(11) Falsifying, altering, or neglecting to endorse or deliver a certificate of title to a transferee or lawful owner or failing to properly designate a transferee on a document of assignment or certificate of title;

(12) Knowingly purchasing, selling, or otherwise acquiring or disposing of a stolen motor vehicle;

(13) Submitting a false affidavit setting forth that a title has been lost or destroyed;

(14) Passing title or reassigning title as a dealer without a dealer's license or when the dealer's license has been suspended or revoked;

(15) For a person representing that he or she is a dealer or salesperson, either verbally or in any advertisement, when the person is not licensed as such;

(16) Assisting any person in the sale of a motor vehicle who is not licensed as a dealer by the commission;

(17) Being a manufacturer who fails to specify the delivery and preparation obligations of its motor vehicle dealers, as is required for the protection of the buying public, prior to delivery of new motor vehicles to retail buyers;

(18) (A) On satisfactory proof that any manufacturer, distributor, distributor branch or division, or factory branch or division has unfairly and without due regard to the equities of the parties or to the detriment of the public welfare failed to properly fulfill any warranty agreement or to adequately and fairly compensate any of its motor vehicle dealers for labor, parts, or incidental expenses incurred by the dealer with regard to factory warranty agreements performed by the dealer. (B) Compensation for parts for two-wheeled, three-wheeled, and four-wheeled motorcycles and motor-driven all-terrain vehicles must be at the manufacturer's suggested retail price;

(A) On satisfactory proof that any manufacturer, distributor, distributor branch or division, or factory branch or division has unfairly and without due regard to the equities of the parties or to the detriment of the public welfare failed to properly fulfill any warranty agreement or to adequately and fairly compensate any of its motor vehicle dealers for labor, parts, or incidental expenses incurred by the dealer with regard to factory warranty agreements performed by the dealer.

(B) Compensation for parts for two-wheeled, three-wheeled, and four-wheeled motorcycles and motor-driven all-terrain vehicles must be at the manufacturer's suggested retail price;

(19) For the commission of any act prohibited by §§ 23-112-301 - 23-112-307 , 23-112-402 , and 23-112-403 , or the failure to perform any of the requirements of those sections;

(20) Using or permitting the use of special license plates assigned to him or her for any other purpose than those permitted by law;

(21) Disconnecting, turning back, or resetting the odometer of any motor vehicle in violation of state or federal law;

(22) Accepting an open assignment of title or bill of sale for a motor vehicle which is not completed by identifying the licensee as the purchaser or assignee of the motor vehicle;

(23) (A) Failure to notify the commission of a change in ownership, location, or franchise, or any other matters the commission may require by regulation. (B) The notification shall be in written form and submitted to the commission at least fifteen (15) days prior to the effective date of the change;

(A) Failure to notify the commission of a change in ownership, location, or franchise, or any other matters the commission may require by regulation.

(B) The notification shall be in written form and submitted to the commission at least fifteen (15) days prior to the effective date of the change;

(24) Failure to endorse and deliver an assignment and warranty of title to the buyer pursuant to § 27-14-902 ;

(25) Using or permitting the use of a temporary cardboard buyer's tag assigned to the dealer for any purpose other than permitted under § 27-14-1705 ; and

(26) Failure of a dealer to submit or deliver a certificate of title or manufacturer's certificate of origin within a reasonable period of time.

(b) The revocation or suspension of the license of a manufacturer, factory branch or division, distributor, or distributor branch or division may be limited to: (1) One (1) or more municipalities or counties; (2) (A) The sales area of any dealer whose franchise is unfairly cancelled or terminated within the purview of this chapter or whose franchise is not renewed in violation of the provisions of this chapter. (B) However, when a franchise is unfairly cancelled or terminated within the purview of this chapter or is not renewed in violation of the provisions of this chapter in a metropolitan area serviced by several motor vehicle dealers handling the same motor vehicles, the revocation or suspension shall not be applicable to the remaining motor vehicle dealers in the metropolitan area.

(1) One (1) or more municipalities or counties;

(2) (A) The sales area of any dealer whose franchise is unfairly cancelled or terminated within the purview of this chapter or whose franchise is not renewed in violation of the provisions of this chapter. (B) However, when a franchise is unfairly cancelled or terminated within the purview of this chapter or is not renewed in violation of the provisions of this chapter in a metropolitan area serviced by several motor vehicle dealers handling the same motor vehicles, the revocation or suspension shall not be applicable to the remaining motor vehicle dealers in the metropolitan area.

(A) The sales area of any dealer whose franchise is unfairly cancelled or terminated within the purview of this chapter or whose franchise is not renewed in violation of the provisions of this chapter.

(B) However, when a franchise is unfairly cancelled or terminated within the purview of this chapter or is not renewed in violation of the provisions of this chapter in a metropolitan area serviced by several motor vehicle dealers handling the same motor vehicles, the revocation or suspension shall not be applicable to the remaining motor vehicle dealers in the metropolitan area.

Amended by Act 2021, No. 504,§ 10, eff. 7/28/2021.

Amended by Act 2019, No. 315,§ 2831, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 2830, eff. 7/24/2019.

Acts 1975, No. 388, § 6; 1985, No. 1032, § 5; 1985, No. 1058, § 5; A.S.A. 1947, § 75-2306; Acts 1991, No. 411, § 1; 1993, No. 383, § 4; 2001, No. 1053, § 9; 2009, No. 756, § 9.
Ark. Code Ann. § 23-3-117 — AR Code / Title 23 / Chapter 3 / Subchapter 1 / Section 23-3-117
Contracts for interruptible service
Status: in_force

(a) (1) A public utility may contract for the sale, on an interruptible basis, of utility services at agreed prices for a definite term not to exceed twenty-five (25) years with customers whose use of the service is for manufacturing, generation, processing, preparation of products, or industrial purposes. (2) A contract under subdivision (a)(1) of this section: (A) Before becoming effective, shall: (i) Be subject to approval by the Arkansas Public Service Commission; and (ii) Demonstrate that the contract is in the public interest; (B) After approval by the Arkansas Public Service Commission, shall continue in full force and effect for the term of the contract; and (C) (i) Shall specify the amount of interruptible load to be achieved by the customer. (ii) The amount under subdivision (a)(2)(C)(i) of this section shall be permitted to be altered only one (1) time per year. (b) (1) An electric utility shall have a schedule that offers interruptible service when the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as the class existed on January 1, 2023, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh). (2) The rate schedule shall be consistent with and permitted by applicable regional transmission organization tariffs and any applicable order, rule, or regulation issued by the Federal Energy Regulatory Commission and the Arkansas Public Service Commission, in order to the greatest extent possible to qualify as a resource in the regional transmission organization's wholesale market. (3) If permitted by the applicable regional transmission organization tariffs, the Federal Energy Regulatory Commission, and the Arkansas Public Service Commission, then the rate schedule's pricing shall be: (A) Based on the embedded costs of the electric utility; and (B) Consistent with the cost-of-service study and underlying allocation methods used to set the other rates of the electric utility. (4) The rate schedule shall include the demand rate discount developed consistent with the method used in Order No. 35 issued by the Arkansas Public Service Commission in Docket No. 96-360-U, on October 16, 1998. (c) (1) Except as otherwise provided or required by the applicable regional transmission organization or an applicable Federal Energy Regulatory Commission order, rule, or regulation, an electric utility shall not prohibit a customer from taking interruptible service based solely upon a fuel source the customer uses to meet the customer's contracted interruptible requirements. (2) An electric utility customer's accounts that are taking interruptible service under an electric utility's rate schedule for interruptible service shall not be eligible for net-metering or be allowed to participate in net-metering under the Arkansas Cost-Shifting Prevention Act of 2023, § 23-18-601 et seq., unless the Arkansas Public Service Commission has: (A) On or before December 31, 2022, issued an order addressing an individual net-metering customer's application for approval of a net-metering facility with a name plate generating capacity in excess of ten thousand kilowatts (10,000 kW) if an individual net-metering customer takes service under an electric utility's rate schedule for interruptible service; and (B) Determined that it is in the public interest for that individual interruptible customer to be a net-metering customer. Amended by Act 2023, No. 701,§ 1, eff. 8/1/2023. Acts 1965, No. 4, § 1; A.S.A. 1947, § 73-275.

(a) (1) A public utility may contract for the sale, on an interruptible basis, of utility services at agreed prices for a definite term not to exceed twenty-five (25) years with customers whose use of the service is for manufacturing, generation, processing, preparation of products, or industrial purposes. (2) A contract under subdivision (a)(1) of this section: (A) Before becoming effective, shall: (i) Be subject to approval by the Arkansas Public Service Commission; and (ii) Demonstrate that the contract is in the public interest; (B) After approval by the Arkansas Public Service Commission, shall continue in full force and effect for the term of the contract; and (C) (i) Shall specify the amount of interruptible load to be achieved by the customer. (ii) The amount under subdivision (a)(2)(C)(i) of this section shall be permitted to be altered only one (1) time per year.

(1) A public utility may contract for the sale, on an interruptible basis, of utility services at agreed prices for a definite term not to exceed twenty-five (25) years with customers whose use of the service is for manufacturing, generation, processing, preparation of products, or industrial purposes.

(2) A contract under subdivision (a)(1) of this section: (A) Before becoming effective, shall: (i) Be subject to approval by the Arkansas Public Service Commission; and (ii) Demonstrate that the contract is in the public interest; (B) After approval by the Arkansas Public Service Commission, shall continue in full force and effect for the term of the contract; and (C) (i) Shall specify the amount of interruptible load to be achieved by the customer. (ii) The amount under subdivision (a)(2)(C)(i) of this section shall be permitted to be altered only one (1) time per year.

(A) Before becoming effective, shall: (i) Be subject to approval by the Arkansas Public Service Commission; and (ii) Demonstrate that the contract is in the public interest;

(i) Be subject to approval by the Arkansas Public Service Commission; and

(ii) Demonstrate that the contract is in the public interest;

(B) After approval by the Arkansas Public Service Commission, shall continue in full force and effect for the term of the contract; and

(C) (i) Shall specify the amount of interruptible load to be achieved by the customer. (ii) The amount under subdivision (a)(2)(C)(i) of this section shall be permitted to be altered only one (1) time per year.

(i) Shall specify the amount of interruptible load to be achieved by the customer.

(ii) The amount under subdivision (a)(2)(C)(i) of this section shall be permitted to be altered only one (1) time per year.

(b) (1) An electric utility shall have a schedule that offers interruptible service when the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as the class existed on January 1, 2023, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh). (2) The rate schedule shall be consistent with and permitted by applicable regional transmission organization tariffs and any applicable order, rule, or regulation issued by the Federal Energy Regulatory Commission and the Arkansas Public Service Commission, in order to the greatest extent possible to qualify as a resource in the regional transmission organization's wholesale market. (3) If permitted by the applicable regional transmission organization tariffs, the Federal Energy Regulatory Commission, and the Arkansas Public Service Commission, then the rate schedule's pricing shall be: (A) Based on the embedded costs of the electric utility; and (B) Consistent with the cost-of-service study and underlying allocation methods used to set the other rates of the electric utility. (4) The rate schedule shall include the demand rate discount developed consistent with the method used in Order No. 35 issued by the Arkansas Public Service Commission in Docket No. 96-360-U, on October 16, 1998.

(1) An electric utility shall have a schedule that offers interruptible service when the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as the class existed on January 1, 2023, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh).

(2) The rate schedule shall be consistent with and permitted by applicable regional transmission organization tariffs and any applicable order, rule, or regulation issued by the Federal Energy Regulatory Commission and the Arkansas Public Service Commission, in order to the greatest extent possible to qualify as a resource in the regional transmission organization's wholesale market.

(3) If permitted by the applicable regional transmission organization tariffs, the Federal Energy Regulatory Commission, and the Arkansas Public Service Commission, then the rate schedule's pricing shall be: (A) Based on the embedded costs of the electric utility; and (B) Consistent with the cost-of-service study and underlying allocation methods used to set the other rates of the electric utility.

(A) Based on the embedded costs of the electric utility; and

(B) Consistent with the cost-of-service study and underlying allocation methods used to set the other rates of the electric utility.

(4) The rate schedule shall include the demand rate discount developed consistent with the method used in Order No. 35 issued by the Arkansas Public Service Commission in Docket No. 96-360-U, on October 16, 1998.

(c) (1) Except as otherwise provided or required by the applicable regional transmission organization or an applicable Federal Energy Regulatory Commission order, rule, or regulation, an electric utility shall not prohibit a customer from taking interruptible service based solely upon a fuel source the customer uses to meet the customer's contracted interruptible requirements. (2) An electric utility customer's accounts that are taking interruptible service under an electric utility's rate schedule for interruptible service shall not be eligible for net-metering or be allowed to participate in net-metering under the Arkansas Cost-Shifting Prevention Act of 2023, § 23-18-601 et seq., unless the Arkansas Public Service Commission has: (A) On or before December 31, 2022, issued an order addressing an individual net-metering customer's application for approval of a net-metering facility with a name plate generating capacity in excess of ten thousand kilowatts (10,000 kW) if an individual net-metering customer takes service under an electric utility's rate schedule for interruptible service; and (B) Determined that it is in the public interest for that individual interruptible customer to be a net-metering customer.

(1) Except as otherwise provided or required by the applicable regional transmission organization or an applicable Federal Energy Regulatory Commission order, rule, or regulation, an electric utility shall not prohibit a customer from taking interruptible service based solely upon a fuel source the customer uses to meet the customer's contracted interruptible requirements.

(2) An electric utility customer's accounts that are taking interruptible service under an electric utility's rate schedule for interruptible service shall not be eligible for net-metering or be allowed to participate in net-metering under the Arkansas Cost-Shifting Prevention Act of 2023, § 23-18-601 et seq., unless the Arkansas Public Service Commission has: (A) On or before December 31, 2022, issued an order addressing an individual net-metering customer's application for approval of a net-metering facility with a name plate generating capacity in excess of ten thousand kilowatts (10,000 kW) if an individual net-metering customer takes service under an electric utility's rate schedule for interruptible service; and (B) Determined that it is in the public interest for that individual interruptible customer to be a net-metering customer.

(A) On or before December 31, 2022, issued an order addressing an individual net-metering customer's application for approval of a net-metering facility with a name plate generating capacity in excess of ten thousand kilowatts (10,000 kW) if an individual net-metering customer takes service under an electric utility's rate schedule for interruptible service; and

(B) Determined that it is in the public interest for that individual interruptible customer to be a net-metering customer.

Amended by Act 2023, No. 701,§ 1, eff. 8/1/2023.

Acts 1965, No. 4, § 1; A.S.A. 1947, § 73-275.
Ark. Code Ann. § 23-2-427 — AR Code / Title 23 / Chapter 2 / Subchapter 4 / Section 23-2-427
Orders, rules, etc., of department not controverted in actions between private person and railroad company
Status: in_force

In all actions between private parties and railroad companies brought under Acts 1899, No. 53, the rates, charges, orders, rules, regulations, and classifications prescribed by the Arkansas Department of Transportation before the institution of the action shall be held, deemed, and accepted to be reasonable, fair, and just, and in such respects shall not be controverted therein. Amended by Act 2017, No. 707,§ 104, eff. 8/1/2017. Acts 1901, No. 24, § 1, p. 53; C. & M. Dig., § 858; Pope's Dig., § 1062; A.S.A. 1947, § 73-137.

In all actions between private parties and railroad companies brought under Acts 1899, No. 53, the rates, charges, orders, rules, regulations, and classifications prescribed by the Arkansas Department of Transportation before the institution of the action shall be held, deemed, and accepted to be reasonable, fair, and just, and in such respects shall not be controverted therein.

Amended by Act 2017, No. 707,§ 104, eff. 8/1/2017.

Acts 1901, No. 24, § 1, p. 53; C. & M. Dig., § 858; Pope's Dig., § 1062; A.S.A. 1947, § 73-137.
Ark. Code Ann. § 23-86-508 — AR Code / Title 23 / Chapter 86 / Subchapter 5 / Section 23-86-508
Prevention of conflicts of interest
Status: in_force

(a) A member of a board of directors of a health insurance purchasing group shall not serve as an employee or paid consultant to the health insurance purchasing group but may receive reasonable reimbursement for travel expenses for purposes of attending meetings of the board or committees thereof. (b) An individual is not eligible to serve in a paid or unpaid capacity on the board of directors of a health insurance purchasing group or as an employee of the health insurance purchasing group if the individual is employed by, represents in any capacity, owns, or controls any ownership interest in an organization from whom the health insurance purchasing group receives contributions, grants, or other funds, unless the organization has purchased a contract for coverage through the health insurance purchasing group. (c) (1) An individual who is serving on a board of directors of a health insurance purchasing group as a representative described in subsection (b) of this section shall not be employed by or affiliated with a health insurance purchasing group health carrier. (2) As used in subdivision (c)(1) of this section, "affiliated" does not include membership in a health benefits plan or the obtaining of health benefits coverage offered by a health insurance purchasing group health carrier. Acts 2001, No. 925, § 8; 2005, No. 506, § 46.

(a) A member of a board of directors of a health insurance purchasing group shall not serve as an employee or paid consultant to the health insurance purchasing group but may receive reasonable reimbursement for travel expenses for purposes of attending meetings of the board or committees thereof.

(b) An individual is not eligible to serve in a paid or unpaid capacity on the board of directors of a health insurance purchasing group or as an employee of the health insurance purchasing group if the individual is employed by, represents in any capacity, owns, or controls any ownership interest in an organization from whom the health insurance purchasing group receives contributions, grants, or other funds, unless the organization has purchased a contract for coverage through the health insurance purchasing group.

(c) (1) An individual who is serving on a board of directors of a health insurance purchasing group as a representative described in subsection (b) of this section shall not be employed by or affiliated with a health insurance purchasing group health carrier. (2) As used in subdivision (c)(1) of this section, "affiliated" does not include membership in a health benefits plan or the obtaining of health benefits coverage offered by a health insurance purchasing group health carrier.

(1) An individual who is serving on a board of directors of a health insurance purchasing group as a representative described in subsection (b) of this section shall not be employed by or affiliated with a health insurance purchasing group health carrier.

(2) As used in subdivision (c)(1) of this section, "affiliated" does not include membership in a health benefits plan or the obtaining of health benefits coverage offered by a health insurance purchasing group health carrier.

Acts 2001, No. 925, § 8; 2005, No. 506, § 46.
Ark. Code Ann. § 23-96-117 — AR Code / Title 23 / Chapter 96 / Section 23-96-117
Detection and prevention of insolvencies or impairments
Status: in_force

To aid in the detection and prevention of member insurer insolvencies or impairments: (1) The Insurance Commissioner shall: (A) (i) Notify the commissioners of all the other states, territories of the United States, and the District of Columbia when he or she takes any of the following actions against a member insurer: (a) Revocation of license; (b) Suspension of license; or (c) Makes any formal order that the member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from the state, reinsure all or any part of its business, or increase capital, surplus, or any other account for the security of policy owners, contract owners, certificate holders, or creditors. (ii) The notice shall be mailed to all commissioners within thirty (30) days following the action taken or the date on which the action occurs; (B) (i) Report to the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association when he or she has taken any of the actions stated in subdivision (1)(A) of this section or has received a report from any other commissioner indicating that any such action has been taken in another state. (ii) The report to the board shall contain all significant details of the action taken or the report received from another commissioner; (C) Report to the board when he or she has reasonable cause to believe from any examination, whether completed or in process, of any member insurer that the insurer may be an impaired insurer or insolvent insurer; and (D) (i) Furnish to the board the National Association of Insurance Commissioners' Insurance Regulatory Information System (IRIS) ratios and listings of companies not included in the ratios developed by the National Association of Insurance Commissioners, and the board may use the information contained therein in carrying out its duties and responsibilities under this section. (ii) The report and the information contained therein shall be kept confidential by the board until such time as made public by the Insurance Commissioner or other lawful authority; (2) The Insurance Commissioner may seek the advice and recommendations of the board concerning any matter affecting his or her duties and responsibilities regarding the financial condition of member insurers, insurers, or health maintenance organizations seeking admission to transact business in this state; and (3) Upon majority vote, the board may: (A) (i) Make reports and recommendations to the Insurance Commissioner upon any matter germane to the solvency, liquidation, rehabilitation, or conservation of any member insurer or germane to the solvency of any insurer or health maintenance organization seeking to do business in this state. (ii) The reports and recommendations are not public documents; (B) Notify the Insurance Commissioner of any information indicating any member insurer may be an impaired insurer or insolvent insurer; and (C) Make recommendations to the Insurance Commissioner for the detection and prevention of member insurer insolvencies. Amended by Act 2019, No. 520,§ 2, eff. 7/24/2019. Acts 1989, No. 444, § 12; 1997, No. 950, § 1.

To aid in the detection and prevention of member insurer insolvencies or impairments:

(1) The Insurance Commissioner shall: (A) (i) Notify the commissioners of all the other states, territories of the United States, and the District of Columbia when he or she takes any of the following actions against a member insurer: (a) Revocation of license; (b) Suspension of license; or (c) Makes any formal order that the member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from the state, reinsure all or any part of its business, or increase capital, surplus, or any other account for the security of policy owners, contract owners, certificate holders, or creditors. (ii) The notice shall be mailed to all commissioners within thirty (30) days following the action taken or the date on which the action occurs; (B) (i) Report to the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association when he or she has taken any of the actions stated in subdivision (1)(A) of this section or has received a report from any other commissioner indicating that any such action has been taken in another state. (ii) The report to the board shall contain all significant details of the action taken or the report received from another commissioner; (C) Report to the board when he or she has reasonable cause to believe from any examination, whether completed or in process, of any member insurer that the insurer may be an impaired insurer or insolvent insurer; and (D) (i) Furnish to the board the National Association of Insurance Commissioners' Insurance Regulatory Information System (IRIS) ratios and listings of companies not included in the ratios developed by the National Association of Insurance Commissioners, and the board may use the information contained therein in carrying out its duties and responsibilities under this section. (ii) The report and the information contained therein shall be kept confidential by the board until such time as made public by the Insurance Commissioner or other lawful authority;

(A) (i) Notify the commissioners of all the other states, territories of the United States, and the District of Columbia when he or she takes any of the following actions against a member insurer: (a) Revocation of license; (b) Suspension of license; or (c) Makes any formal order that the member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from the state, reinsure all or any part of its business, or increase capital, surplus, or any other account for the security of policy owners, contract owners, certificate holders, or creditors. (ii) The notice shall be mailed to all commissioners within thirty (30) days following the action taken or the date on which the action occurs;

(i) Notify the commissioners of all the other states, territories of the United States, and the District of Columbia when he or she takes any of the following actions against a member insurer: (a) Revocation of license; (b) Suspension of license; or (c) Makes any formal order that the member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from the state, reinsure all or any part of its business, or increase capital, surplus, or any other account for the security of policy owners, contract owners, certificate holders, or creditors.

(a) Revocation of license;

(b) Suspension of license; or

(c) Makes any formal order that the member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from the state, reinsure all or any part of its business, or increase capital, surplus, or any other account for the security of policy owners, contract owners, certificate holders, or creditors.

(ii) The notice shall be mailed to all commissioners within thirty (30) days following the action taken or the date on which the action occurs;

(B) (i) Report to the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association when he or she has taken any of the actions stated in subdivision (1)(A) of this section or has received a report from any other commissioner indicating that any such action has been taken in another state. (ii) The report to the board shall contain all significant details of the action taken or the report received from another commissioner;

(i) Report to the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association when he or she has taken any of the actions stated in subdivision (1)(A) of this section or has received a report from any other commissioner indicating that any such action has been taken in another state.

(ii) The report to the board shall contain all significant details of the action taken or the report received from another commissioner;

(C) Report to the board when he or she has reasonable cause to believe from any examination, whether completed or in process, of any member insurer that the insurer may be an impaired insurer or insolvent insurer; and

(D) (i) Furnish to the board the National Association of Insurance Commissioners' Insurance Regulatory Information System (IRIS) ratios and listings of companies not included in the ratios developed by the National Association of Insurance Commissioners, and the board may use the information contained therein in carrying out its duties and responsibilities under this section. (ii) The report and the information contained therein shall be kept confidential by the board until such time as made public by the Insurance Commissioner or other lawful authority;

(i) Furnish to the board the National Association of Insurance Commissioners' Insurance Regulatory Information System (IRIS) ratios and listings of companies not included in the ratios developed by the National Association of Insurance Commissioners, and the board may use the information contained therein in carrying out its duties and responsibilities under this section.

(ii) The report and the information contained therein shall be kept confidential by the board until such time as made public by the Insurance Commissioner or other lawful authority;

(2) The Insurance Commissioner may seek the advice and recommendations of the board concerning any matter affecting his or her duties and responsibilities regarding the financial condition of member insurers, insurers, or health maintenance organizations seeking admission to transact business in this state; and

(3) Upon majority vote, the board may: (A) (i) Make reports and recommendations to the Insurance Commissioner upon any matter germane to the solvency, liquidation, rehabilitation, or conservation of any member insurer or germane to the solvency of any insurer or health maintenance organization seeking to do business in this state. (ii) The reports and recommendations are not public documents; (B) Notify the Insurance Commissioner of any information indicating any member insurer may be an impaired insurer or insolvent insurer; and (C) Make recommendations to the Insurance Commissioner for the detection and prevention of member insurer insolvencies.

(A) (i) Make reports and recommendations to the Insurance Commissioner upon any matter germane to the solvency, liquidation, rehabilitation, or conservation of any member insurer or germane to the solvency of any insurer or health maintenance organization seeking to do business in this state. (ii) The reports and recommendations are not public documents;

(i) Make reports and recommendations to the Insurance Commissioner upon any matter germane to the solvency, liquidation, rehabilitation, or conservation of any member insurer or germane to the solvency of any insurer or health maintenance organization seeking to do business in this state.

(ii) The reports and recommendations are not public documents;

(B) Notify the Insurance Commissioner of any information indicating any member insurer may be an impaired insurer or insolvent insurer; and

(C) Make recommendations to the Insurance Commissioner for the detection and prevention of member insurer insolvencies.

Amended by Act 2019, No. 520,§ 2, eff. 7/24/2019.

Acts 1989, No. 444, § 12; 1997, No. 950, § 1.
Ark. Code Ann. § 23-89-510 — AR Code / Title 23 / Chapter 89 / Subchapter 5 / Section 23-89-510
Accidents - Reporting injuries or death - Investigations
Status: in_force

(a) Any mechanical, structural, or electrical defects directly affecting patron safety for which an amusement ride is closed to patron use for a period of time more than three (3) hours must be reported in writing personally or by facsimile by the owner or operator to the Division of Labor within twenty-four (24) hours after the closing of the amusement ride. (b) (1) The operator of an amusement ride shall immediately cease to operate any ride involved in a fatality or serious physical injury. The owner or operator shall notify the division of such an accident within four (4) hours of its occurrence by telephone or facsimile. The owner or operator shall file a written accident report personally or by facsimile with the division within twenty-four (24) hours of the accident. Within twenty-four (24) hours after receipt of such a report, the division shall initiate an investigation of the occurrence and an inspection of the ride. The division shall perform the inspection in a manner that proceeds with all practicable speed and minimizes the disruption of the amusement facility at which the amusement ride is located. (2) Unless authorized in writing by the division, no amusement ride may be operated, moved, altered, repaired, or tampered with, except to protect life, limb, and property following an accident involving a serious injury or death until the division has completed its inspection and investigation. Amended by Act 2019, No. 910,§ 5515, eff. 7/1/2019. Acts 2001, No. 1365, § 6.

(a) Any mechanical, structural, or electrical defects directly affecting patron safety for which an amusement ride is closed to patron use for a period of time more than three (3) hours must be reported in writing personally or by facsimile by the owner or operator to the Division of Labor within twenty-four (24) hours after the closing of the amusement ride.

(b) (1) The operator of an amusement ride shall immediately cease to operate any ride involved in a fatality or serious physical injury. The owner or operator shall notify the division of such an accident within four (4) hours of its occurrence by telephone or facsimile. The owner or operator shall file a written accident report personally or by facsimile with the division within twenty-four (24) hours of the accident. Within twenty-four (24) hours after receipt of such a report, the division shall initiate an investigation of the occurrence and an inspection of the ride. The division shall perform the inspection in a manner that proceeds with all practicable speed and minimizes the disruption of the amusement facility at which the amusement ride is located. (2) Unless authorized in writing by the division, no amusement ride may be operated, moved, altered, repaired, or tampered with, except to protect life, limb, and property following an accident involving a serious injury or death until the division has completed its inspection and investigation.

(1) The operator of an amusement ride shall immediately cease to operate any ride involved in a fatality or serious physical injury. The owner or operator shall notify the division of such an accident within four (4) hours of its occurrence by telephone or facsimile. The owner or operator shall file a written accident report personally or by facsimile with the division within twenty-four (24) hours of the accident. Within twenty-four (24) hours after receipt of such a report, the division shall initiate an investigation of the occurrence and an inspection of the ride. The division shall perform the inspection in a manner that proceeds with all practicable speed and minimizes the disruption of the amusement facility at which the amusement ride is located.

(2) Unless authorized in writing by the division, no amusement ride may be operated, moved, altered, repaired, or tampered with, except to protect life, limb, and property following an accident involving a serious injury or death until the division has completed its inspection and investigation.

Amended by Act 2019, No. 910,§ 5515, eff. 7/1/2019.

Acts 2001, No. 1365, § 6.
Ark. Code Ann. § 23-92-508 — AR Code / Title 23 / Chapter 92 / Subchapter 5 / Section 23-92-508
Enforcement
Status: in_force

(a) The Insurance Commissioner shall enforce this subchapter. (b) (1) The commissioner may examine or audit the books and records of a pharmacy benefits manager providing claims processing services or other prescription drug or device services for a health benefit plan to determine if the pharmacy benefits manager is in compliance with this subchapter. (2) The information or data acquired during an examination under subdivision (b)(1) of this section is: (A) Considered proprietary and confidential under § 23-61-107(a)(4) and § 23-61-207 ; and (B) Not subject to the Freedom of Information Act of 1967, § 25-19-101 et seq. (c) After notice and opportunity for hearing, the commissioner may: (1) Impose a penalty of up to five thousand dollars ($5,000) per violation against a pharmacy benefits manager if the commissioner finds that the pharmacy benefits manager has not: (A) Followed the process established for determining pricing or costs under the Maximum Allowable Cost List under § 17-92-507 ; or (B) Used the national average drug acquisition cost under § 23-92-506(b) ; or (2) Revoke or suspend the license of a pharmacy benefits manager if the commissioner finds that the pharmacy benefits manager: (A) Has committed a pattern of violations of this subchapter; (B) Has not followed the process established for determining pricing and costs under the Maximum Allowable Cost List under § 17-92-507 ; or (C) Has not used the national average drug acquisition cost under § 23-92-506(b) . Amended by Act 2023, No. 302,§ 5, eff. 8/1/2023. Added by Act 2018EX2, No. 1,§ 1, eff. 3/15/2018. Added by Act 2018EX2, No. 3,§ 1, eff. 3/19/2018.

(a) The Insurance Commissioner shall enforce this subchapter.

(b) (1) The commissioner may examine or audit the books and records of a pharmacy benefits manager providing claims processing services or other prescription drug or device services for a health benefit plan to determine if the pharmacy benefits manager is in compliance with this subchapter. (2) The information or data acquired during an examination under subdivision (b)(1) of this section is: (A) Considered proprietary and confidential under § 23-61-107(a)(4) and § 23-61-207 ; and (B) Not subject to the Freedom of Information Act of 1967, § 25-19-101 et seq.

(1) The commissioner may examine or audit the books and records of a pharmacy benefits manager providing claims processing services or other prescription drug or device services for a health benefit plan to determine if the pharmacy benefits manager is in compliance with this subchapter.

(2) The information or data acquired during an examination under subdivision (b)(1) of this section is: (A) Considered proprietary and confidential under § 23-61-107(a)(4) and § 23-61-207 ; and (B) Not subject to the Freedom of Information Act of 1967, § 25-19-101 et seq.

(A) Considered proprietary and confidential under § 23-61-107(a)(4) and § 23-61-207 ; and

(B) Not subject to the Freedom of Information Act of 1967, § 25-19-101 et seq.

(c) After notice and opportunity for hearing, the commissioner may: (1) Impose a penalty of up to five thousand dollars ($5,000) per violation against a pharmacy benefits manager if the commissioner finds that the pharmacy benefits manager has not: (A) Followed the process established for determining pricing or costs under the Maximum Allowable Cost List under § 17-92-507 ; or (B) Used the national average drug acquisition cost under § 23-92-506(b) ; or (2) Revoke or suspend the license of a pharmacy benefits manager if the commissioner finds that the pharmacy benefits manager: (A) Has committed a pattern of violations of this subchapter; (B) Has not followed the process established for determining pricing and costs under the Maximum Allowable Cost List under § 17-92-507 ; or (C) Has not used the national average drug acquisition cost under § 23-92-506(b) .

(1) Impose a penalty of up to five thousand dollars ($5,000) per violation against a pharmacy benefits manager if the commissioner finds that the pharmacy benefits manager has not: (A) Followed the process established for determining pricing or costs under the Maximum Allowable Cost List under § 17-92-507 ; or (B) Used the national average drug acquisition cost under § 23-92-506(b) ; or

(A) Followed the process established for determining pricing or costs under the Maximum Allowable Cost List under § 17-92-507 ; or

(B) Used the national average drug acquisition cost under § 23-92-506(b) ; or

(2) Revoke or suspend the license of a pharmacy benefits manager if the commissioner finds that the pharmacy benefits manager: (A) Has committed a pattern of violations of this subchapter; (B) Has not followed the process established for determining pricing and costs under the Maximum Allowable Cost List under § 17-92-507 ; or (C) Has not used the national average drug acquisition cost under § 23-92-506(b) .

(A) Has committed a pattern of violations of this subchapter;

(B) Has not followed the process established for determining pricing and costs under the Maximum Allowable Cost List under § 17-92-507 ; or

(C) Has not used the national average drug acquisition cost under § 23-92-506(b) .

Amended by Act 2023, No. 302,§ 5, eff. 8/1/2023.

Added by Act 2018EX2, No. 1,§ 1, eff. 3/15/2018.

Added by Act 2018EX2, No. 3,§ 1, eff. 3/19/2018.
Ark. Code Ann. § 23-53-102 — AR Code / Title 23 / Chapter 53 / Section 23-53-102
Legislative intent
Status: in_force

(a) The General Assembly finds that: (1) Abusive mortgage lending has become an increasing problem in this state, exacerbating the loss of equity in homes and causing the number of foreclosures to increase in recent years; (2) One of the most common forms of abusive lending is the making of loans that are equity-based, rather than income-based; (3) The financing of points and fees in the loans provides immediate income to the originator and encourages lenders to repeatedly refinance home loans; (4) The lender's ability to sell loans reduces the incentive to ensure that the homeowner can afford the payments of the loan; (5) As long as there is sufficient equity in the home, an abusive lender benefits even if the borrower is unable to make the payments and is forced to refinance; (6) The financing of high points and fees causes the loss of precious equity in each refinancing and often leads to foreclosure; (7) Abusive lending has threatened the viability of many communities and caused decreases in homeownership; (8) While the marketplace appears to operate effectively for conventional mortgages, too many homeowners find themselves victims of overreaching lenders who provide loans with unnecessarily high costs and terms that are unnecessary to secure repayment of the loan; and (9) As competition and self-regulation have not eliminated the abusive terms from home-secured loans, the consumer protection provisions of this chapter are necessary to encourage lending at reasonable rates with reasonable terms. (b) This chapter shall be liberally construed: (1) To effectuate its purpose of protecting the homes and the equity of individual borrowers; and (2) As a consumer protection statute for all purposes. Acts 2003, No. 1340, § 2.

(a) The General Assembly finds that: (1) Abusive mortgage lending has become an increasing problem in this state, exacerbating the loss of equity in homes and causing the number of foreclosures to increase in recent years; (2) One of the most common forms of abusive lending is the making of loans that are equity-based, rather than income-based; (3) The financing of points and fees in the loans provides immediate income to the originator and encourages lenders to repeatedly refinance home loans; (4) The lender's ability to sell loans reduces the incentive to ensure that the homeowner can afford the payments of the loan; (5) As long as there is sufficient equity in the home, an abusive lender benefits even if the borrower is unable to make the payments and is forced to refinance; (6) The financing of high points and fees causes the loss of precious equity in each refinancing and often leads to foreclosure; (7) Abusive lending has threatened the viability of many communities and caused decreases in homeownership; (8) While the marketplace appears to operate effectively for conventional mortgages, too many homeowners find themselves victims of overreaching lenders who provide loans with unnecessarily high costs and terms that are unnecessary to secure repayment of the loan; and (9) As competition and self-regulation have not eliminated the abusive terms from home-secured loans, the consumer protection provisions of this chapter are necessary to encourage lending at reasonable rates with reasonable terms.

(1) Abusive mortgage lending has become an increasing problem in this state, exacerbating the loss of equity in homes and causing the number of foreclosures to increase in recent years;

(2) One of the most common forms of abusive lending is the making of loans that are equity-based, rather than income-based;

(3) The financing of points and fees in the loans provides immediate income to the originator and encourages lenders to repeatedly refinance home loans;

(4) The lender's ability to sell loans reduces the incentive to ensure that the homeowner can afford the payments of the loan;

(5) As long as there is sufficient equity in the home, an abusive lender benefits even if the borrower is unable to make the payments and is forced to refinance;

(6) The financing of high points and fees causes the loss of precious equity in each refinancing and often leads to foreclosure;

(7) Abusive lending has threatened the viability of many communities and caused decreases in homeownership;

(8) While the marketplace appears to operate effectively for conventional mortgages, too many homeowners find themselves victims of overreaching lenders who provide loans with unnecessarily high costs and terms that are unnecessary to secure repayment of the loan; and

(9) As competition and self-regulation have not eliminated the abusive terms from home-secured loans, the consumer protection provisions of this chapter are necessary to encourage lending at reasonable rates with reasonable terms.

(b) This chapter shall be liberally construed: (1) To effectuate its purpose of protecting the homes and the equity of individual borrowers; and (2) As a consumer protection statute for all purposes.

(1) To effectuate its purpose of protecting the homes and the equity of individual borrowers; and

(2) As a consumer protection statute for all purposes.

Acts 2003, No. 1340, § 2.
Ark. Code Ann. § 23-98-102 — AR Code / Title 23 / Chapter 98 / Section 23-98-102
Definitions
Status: in_force

As used in this chapter: (1) "Children's preventive healthcare services" means physician-delivered or physician-supervised services for eligible dependents from birth through age six (6), with periodic physical examinations including medical history, physical examination, developmental assessment, anticipatory guidance and appropriate immunizations, and laboratory tests, in keeping with prevailing medical standards for the purposes of this section; (2) "COBRA" means the "Consolidated Omnibus Budget Reconciliation Act of 1985"; (3) "Commissioner" means the Insurance Commissioner; (4) "Insured" means any individual or group insured under a minimum basic benefit policy issued pursuant to the provisions of this chapter; (5) "Insurer" means an insurer, health maintenance organization, hospital, or medical service corporation offering a minimum basic benefit policy pursuant to this chapter; (6) "Loss ratio" means the percentage derived by dividing incurred claims, both reported and not reported, by total premiums earned; (7) "Minimum basic benefit policy" means a policy or subscription contract which an insurer may choose to offer to a qualified individual, qualified family, or qualified group pursuant to the provisions of this chapter; (8) "Periodic physical examinations" means the routine tests and procedures for the purpose of detection of abnormalities or malfunctions of bodily systems and parts according to accepted medical practice; (9) "Permitted coverages" means health or hospitalization coverage under a minimum basic benefit policy issued pursuant to this chapter, under Medicaid, Medicare, limited benefit policies as defined by rules of the commissioner, the Consolidated Omnibus Budget Reconciliation Act of 1985, or the provisions of § 23-86-114 , § 23-86-115 , or § 23-86-116 ; (10) "Qualified family" means individuals all of whom are qualified individuals and all of whom are related by blood, marriage, or adoption; (11) "Qualified group" means a group, organized other than pursuant to § 23-98-109 , in which each covered individual, or covered dependent of such a covered individual, within the group is a qualified individual. A qualified group may include less than all employees of an employer; (12) (A) "Qualified individual" means an individual who is employed in or is a resident of Arkansas and who has been without health insurance coverage, other than permitted coverage, for the twelve-month period immediately preceding the effective date of a minimum basic benefit policy issued pursuant to this chapter and who meets reasonable underwriting standards. (B) However, children newborn to or adopted by an insured after the effective date of a policy issued to the insured pursuant to this chapter which covers the insured and members of the insured's family, shall be considered qualified individuals; and (13) "Qualified trust" means a group organized pursuant to § 23-98-104 in which each covered individual, or covered dependent of such a covered individual, within the group is a qualified individual. Amended by Act 2019, No. 315,§ 2793, eff. 7/24/2019. Acts 1991, No. 238, § 2.

As used in this chapter:

(1) "Children's preventive healthcare services" means physician-delivered or physician-supervised services for eligible dependents from birth through age six (6), with periodic physical examinations including medical history, physical examination, developmental assessment, anticipatory guidance and appropriate immunizations, and laboratory tests, in keeping with prevailing medical standards for the purposes of this section;

(2) "COBRA" means the "Consolidated Omnibus Budget Reconciliation Act of 1985";

(3) "Commissioner" means the Insurance Commissioner;

(4) "Insured" means any individual or group insured under a minimum basic benefit policy issued pursuant to the provisions of this chapter;

(5) "Insurer" means an insurer, health maintenance organization, hospital, or medical service corporation offering a minimum basic benefit policy pursuant to this chapter;

(6) "Loss ratio" means the percentage derived by dividing incurred claims, both reported and not reported, by total premiums earned;

(7) "Minimum basic benefit policy" means a policy or subscription contract which an insurer may choose to offer to a qualified individual, qualified family, or qualified group pursuant to the provisions of this chapter;

(8) "Periodic physical examinations" means the routine tests and procedures for the purpose of detection of abnormalities or malfunctions of bodily systems and parts according to accepted medical practice;

(9) "Permitted coverages" means health or hospitalization coverage under a minimum basic benefit policy issued pursuant to this chapter, under Medicaid, Medicare, limited benefit policies as defined by rules of the commissioner, the Consolidated Omnibus Budget Reconciliation Act of 1985, or the provisions of § 23-86-114 , § 23-86-115 , or § 23-86-116 ;

(10) "Qualified family" means individuals all of whom are qualified individuals and all of whom are related by blood, marriage, or adoption;

(11) "Qualified group" means a group, organized other than pursuant to § 23-98-109 , in which each covered individual, or covered dependent of such a covered individual, within the group is a qualified individual. A qualified group may include less than all employees of an employer;

(12) (A) "Qualified individual" means an individual who is employed in or is a resident of Arkansas and who has been without health insurance coverage, other than permitted coverage, for the twelve-month period immediately preceding the effective date of a minimum basic benefit policy issued pursuant to this chapter and who meets reasonable underwriting standards. (B) However, children newborn to or adopted by an insured after the effective date of a policy issued to the insured pursuant to this chapter which covers the insured and members of the insured's family, shall be considered qualified individuals; and

(A) "Qualified individual" means an individual who is employed in or is a resident of Arkansas and who has been without health insurance coverage, other than permitted coverage, for the twelve-month period immediately preceding the effective date of a minimum basic benefit policy issued pursuant to this chapter and who meets reasonable underwriting standards.

(B) However, children newborn to or adopted by an insured after the effective date of a policy issued to the insured pursuant to this chapter which covers the insured and members of the insured's family, shall be considered qualified individuals; and

(13) "Qualified trust" means a group organized pursuant to § 23-98-104 in which each covered individual, or covered dependent of such a covered individual, within the group is a qualified individual.

Amended by Act 2019, No. 315,§ 2793, eff. 7/24/2019.

Acts 1991, No. 238, § 2.