Ark. Code Ann. § 23-51-102 — AR Code / Title 23 / Chapter 51 / Section 23-51-102
Certain definitions
Status: in_force

(a) For the purposes of this chapter: (1) "Account" means the client relationship established with a trust company involving the transfer of funds or property to the trust company, including a relationship in which the trust company acts as trustee, executor, administrator, guardian, custodian, conservator, bailee, receiver, registrar, or agent, but excluding a relationship in which the trust company acts solely in an advisory capacity; (2) "Act as a fiduciary" or "acting as a fiduciary" means to: (A) Accept or execute trusts, including to: (i) Act as trustee under a written agreement; (ii) Receive money or other property in its capacity as trustee for investment in real or personal property; (iii) Act as trustee and perform the fiduciary duties committed or transferred to it by order of a court of competent jurisdiction; (iv) Act as trustee of the estate of a deceased person; or (v) Act as trustee for a minor or incapacitated person; (B) Administer in any other fiduciary capacity real or tangible personal property; or (C) Act pursuant to an order of a court of competent jurisdiction as executor or administrator of the estate of a deceased person or as a guardian or conservator for a minor or incapacitated person; (3) "Administer" with respect to real or tangible personal property means, as an agent or in another representative capacity, to possess, purchase, sell, lease or insure, safekeep or otherwise manage the property; (4) "Affiliate" means a company that directly or indirectly controls, is controlled by, or is under common control with a trust institution or other company; (5) "Authorized trust institutions" means any state trust company, subsidiary trust company, or trust office of a trust institution located in Arkansas; (6) "Bank" means a state bank, national bank, any bank chartered by any state of the United States or any foreign bank organized under the laws of a territory of the United States, the Commonwealth of Puerto Rico, Guam, American Samoa or the United States Virgin Islands, the deposits of which are insured by the Federal Deposit Insurance Corporation; (7) "Bank supervisory agency" means: (A) Any agency of another state with primary responsibility for chartering and supervising a trust institution; and (B) The United States Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the Office of Thrift Supervision [abolished] and any successor to these agencies; (8) "Branch" with respect to a depository institution has the meaning set forth in § 23-48-702 ; (9) "Capital" means: (A) The sum of: (i) The par value of all shares of the state trust company having a par value that have been issued; (ii) The consideration fixed by the board in the manner provided by the Arkansas Business Corporation Act of 1987, § 4-27-101 et seq., for all shares of the state trust company without par value that have been issued, except a part of that consideration that: (a) Has been actually received; (b) Is less than all of that consideration; and (c) The board, by resolution adopted not later than sixty (60) days after the date of issuance of those shares, has allocated to surplus with the prior approval of the commissioner; and (iii) An amount not included in subdivisions (a)(9)(A)(i) and (ii) of this section that has been transferred to capital of the state trust company, on the payment of a share dividend or on adoption by the board of a resolution directing that all or part of surplus be transferred to capital, minus each reduction made as permitted by law; less (B) All amounts otherwise included in subdivisions (a)(9)(A)(i) and (ii) of this section that are attributable to the issuance of securities by the state trust company and that the commissioner determines, after notice and an opportunity for hearing, should be classified as debt rather than equity securities; (10) "Capital base" means the sum of capital, surplus, and undivided profits, plus any additions and less any subtractions which the commissioner may by rule prescribe; (11) "Charter" means a charter, license or other authority issued by the commissioner or a bank supervisory agency authorizing a trust institution to act as a fiduciary in its home state; (12) "Client" means a person to whom a trust institution owes a duty or obligation under a trust or other account administered by the trust institution or as an advisor or agent, regardless of whether the trust institution owes a fiduciary duty to the person. The term includes the non-contingent beneficiaries of an account; (13) "Commissioner" means the Bank Commissioner then in office and, where appropriate, all of his or her successors and predecessors in office; (14) "Company" includes a bank, trust company, subsidiary trust company, corporation, limited liability company, partnership, association, business trust, foundation, or another trust; (15) "Control" means: (A) The ownership of or ability or power to vote, directly, acting through one or more other persons, or otherwise indirectly, more than twenty-five percent (25%) of the outstanding shares of a class of voting securities of a state trust company or other company; (B) The ability to control the election of a majority of the board of a state trust company or other company; and (C) The power to exercise, directly or indirectly, a controlling influence over the management or policies of the state trust company or other company as determined by the commissioner after notice and an opportunity for hearing; (16) "Department" means the State Bank Department; (17) "Depository institution" means any company chartered to act as a fiduciary and included for any purpose within any of the definitions of "insured depository institution" as set forth in 12 U.S.C. §§ 1813(c)(2) and (3) ; (18) "Equity capital" means the amount by which the total assets of a state trust company exceed the total liabilities of the state trust company; (19) "Equity security" means: (A) Stock, other than adjustable rate preferred stock and money market (auction rate) preferred stock; (B) A certificate of interest or participation in a profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share or participation share, investment contract, voting-trust certificate, or partnership interest; (C) A security immediately convertible at the option of the holder without payment of significant additional consideration into a security described by this subdivision (a)(19); (D) A security carrying a warrant or right to subscribe to or purchase a security described by this subdivision (a)(19); and (E) A certificate of interest or participation in, temporary or interim certificate for, or receipt for a security described by this subdivision (a)(19) that evidences an existing or contingent equity ownership interest; (20) "Fiduciary record" means a matter written, transcribed, recorded, received or otherwise in the possession or control of a trust company, whether in physical or electromagnetic form, that is necessary to preserve information concerning an act or event relevant to an account or a client of a trust company; (21) "Hazardous condition" with respect to a trust company means: (A) A refusal by the trust company to permit examination of its books, papers, accounts, records, or affairs by the commissioner; (B) Violation by a trust company of a condition of its chartering or an agreement entered into between the trust company and the commissioner; or (C) A circumstance or condition in which an unreasonable risk of loss is threatened to clients or creditors of a trust company, excluding risk of loss to a client that arises as a result of the client's decisions or actions, but including a circumstance or condition in which a trust company: (i) Is unable or lacks the means to meet its current obligations as they come due in the regular and ordinary course of business, even though the book or fair market value of its assets may exceed its liabilities; (ii) Has equity capital less than the amount of capital the trust company is required to maintain under § 23-51-110 , or the adequacy of its equity capital is threatened, as determined under regulatory accounting principles; (iii) Has concentrated an excessive or unreasonable portion of its assets in a particular type or character of investment; (iv) Violates or refuses to comply with this chapter, another statute or rule applicable to trust companies, or any final and enforceable order of the commissioner; (v) Is in a condition that renders the continuation of a particular business practice hazardous to its clients and creditors; or (vi) Conducts business in an unsafe or unsound manner, which includes, but is not limited to conducting business with: (a) Inexperienced or inattentive management; (b) Potentially dangerous operating practices; (c) Infrequent or inadequate audits; (d) Administration of assets that is notably deficient in relation to the volume and character or responsibility for asset holdings; (e) Failure to adhere to sound administrative practices; (f) Frequent occurrences of violations of laws, rules, or terms of the governing instruments; or (g) Engaging in self-dealing or evidencing a notable degree of potential or actual conflicts of interest; (22) "Insider" means: (A) Each director, officer or principal shareholder of the trust company; (B) Any company controlled by a person described by subdivision (a)(23)(A) of this section; or (C) Any person who participates or has authority to participate, other than in the capacity of a director, in major policy-making functions of the state trust company, whether or not the person has an official title or the officer is serving without salary or compensation; (23) "Insolvent" means a circumstance or condition in which a state trust company: (A) Is unable or lacks the means to meet its current obligations as they come due in the regular and ordinary course of business, even if the value of its assets exceeds its liabilities; (B) Has equity capital less than one million dollars ($1,000,000), as determined under regulatory accounting principles; (C) Fails to maintain deposit insurance with the Federal Deposit Insurance Corporation or its successor if the commissioner determines that deposit insurance is necessary for the safe and sound operation of the state trust company, or maintains adequate security for its deposits in accordance with § 23-51-130 ; (D) Sells or attempts to sell substantially all of its assets or merges or attempts to merge substantially all of its assets or business with another entity other than as provided by §§ 23-51-150 - 23-51-155 ; or (E) Attempts to dissolve or liquidate other than as provided by §§ 23-51-156 - 23-51-161 ; (24) "Investment security" means a marketable obligation evidencing indebtedness of a person in the form of a bond, note, debenture, or other debt instrument not otherwise classified as a loan or extension of credit; (25) "License" means the authority granted by the commissioner pursuant to this chapter to establish, acquire or maintain a trust office; (26) "Loans and extensions of credit" means direct or indirect advances of funds by a state trust company to a person that are conditioned on the obligation of the person to repay the funds or that are repayable from specific property pledged by or on behalf of the person; (27) "New trust office" means a trust office located in a host state which: (A) Is originally established by the trust institution as a trust office; and (B) Does not become a trust office of the trust institution as a result of: (i) The acquisition of another trust institution or trust office of another trust institution; or (ii) A merger, consolidation, or conversion involving any such trust institution or trust office; (28) "Office" with respect to a trust institution means the principal office, a trust office or a representative trust office, but not a branch; (29) "Officer" means the presiding officer of the board, the principal executive officer, or another officer appointed by the board of a state trust company or other company, or a person or group of persons acting in a comparable capacity for the state trust company or other company; (30) "Operating subsidiary" means a company for which a state trust company has the ownership, ability, or power to vote, directly, acting through one or more other persons, or otherwise indirectly, more than fifty percent (50%) of the outstanding shares of each class of voting securities or its equivalent of the company; (31) "Out-of-state bank" means a bank chartered to act as a fiduciary in any state or states other than this state; (32) "Out-of-state trust company" means either a trust company that is not a state trust company or a savings association whose principal office is not located in this state; (33) "Out-of-state trust institution" means a trust institution that is not a state trust institution; (34) "Person" means an individual, a company or any other legal entity; (35) "Principal office" with respect to: (A) A state trust company, means a location registered with the commissioner as the state trust company's home office at which: (i) The state trust company does business; (ii) The state trust company keeps its corporate books and a set of its material records, including material fiduciary records; and (iii) At least one executive officer of the state trust company maintains an office; or (B) A trust institution other than a state trust company, means its principal place of business in the United States; (36) "Principal shareholder" means a person who owns or has the ability or power to vote, directly, acting through one or more other persons, or otherwise indirectly, ten percent (10%) or more of the outstanding shares of any class of voting securities of a state trust company or other company; (37) "Private trust company" means a trust company that does not engage in a trust business with the general public; (38) "Receiver" means the commissioner, an agent of the commissioner or any federal or other governmental agency exercising the powers and duties of a receiver pursuant to § 23-51-164 ; (39) "Savings association" means a depository institution that is neither a bank nor a foreign bank; (40) "Shareholder" means an owner of a share in a state trust company; (41) "Shares" means the units into which the proprietary interests of a state trust company are divided or subdivided by means of classes, series, relative rights, or preferences; (42) "State" means any state of the United States, the District of Columbia, any territory of the United States, the Commonwealth of Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the United States Virgin Islands, and the Northern Mariana Islands; (43) "State bank" means a bank chartered to act as a fiduciary by this state; (44) "State trust company" means a corporation organized or reorganized under this chapter; (45) "State trust institution" means a trust institution having its principal office in this state; (46) "Subsidiary" means a company that is controlled by another person. The term includes a subsidiary of a subsidiary; (47) "Subsidiary trust company" means a corporation organized under the Arkansas Business Corporation Act of 1987, § 4-27-101 et seq. and authorized by the commissioner pursuant to § 23-47-801 et seq. or the Bank Holding Company Subsidiary Trust Company Formation Act of 1989, § 23-32-1901 et seq. [repealed], to conduct trust business and business incidental to trust business in this state, of which more than fifty percent (50%) of the voting stock is owned, directly or indirectly, by a bank holding company which also owns, directly or indirectly, an affiliated bank, as that term is defined in § 23-47-801 et seq.; (48) "Surplus" means the amount by which the assets of a state trust company exceeds its liabilities, capital, and undivided profits; (49) "Trust business" means the holding out by a person to the public by advertising, solicitation or other means that the person is available to perform any service of a fiduciary in this or another state, including but not limited to: (A) Acting as a fiduciary, or (B) To the extent not acting as a fiduciary, any of the following: (i) Receiving for safekeeping personal property of every description; (ii) Acting as assignee, bailee, conservator, custodian, escrow agent, registrar, receiver or transfer agent; or (iii) Acting as financial advisor, investment advisor or manager, agent or attorney-in-fact in any agreed upon capacity; (50) "Trust company" means a state trust company, subsidiary trust company or any other company chartered to act as a fiduciary that is neither a depository institution nor a foreign bank; (51) "Trust deposits" means the client funds held by a state trust company and authorized to be deposited with itself pending investment, distribution, or payment of debts on behalf of the client; (52) "Trust institution" means a depository institution, state bank or trust company; (53) "Trust office" means an office, other than the principal office, at which a trust institution is licensed by the commissioner to act as a fiduciary; (54) (A) "Unauthorized trust activity" means: (i) A company, other than one identified in § 23-51-165(a) , acting as a fiduciary within this state; (ii) A company engaging in a trust business in this state at any office of the company that is not its principal office, if the company is a state trust institution, or that is not a trust office or a representative trust office of the company; or (iii) An out-of-state trust institution engaging in a trust business in this state at any time an order issued by the commissioner under § 23-51-182 is in effect. (B) "Unauthorized trust activity" does not include a foundation serving as a fiduciary; (55) "Undivided profits" means the part of equity capital of a state trust company equal to the balance of its net profits, income, gains, and losses since the date of its formation, minus subsequent distributions to shareholders and transfers to surplus or capital under share dividends or appropriate board resolutions. The term includes amounts allocated to undivided profits as a result of a merger; and (56) "Voting security" means a share, or other evidence of proprietary interest in a state trust company or other company that has as an attribute the right to vote or participate in the election of the board of the state trust company or other company, regardless of whether the right is limited to the election of fewer than all of the board members. The term includes a security that is convertible or exchangeable into a voting security. (57) (A) "Foundation" means an organization that: (i) Is organized and operated for religious, educational, or charitable purposes, as defined in section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3) , as it existed on January 1, 2019; (ii) Has equity capital of at least one million dollars ($1,000,000); (iii) Has fiduciary liability insurance coverage with policy limits of not less than two million dollars ($2,000,000); (iv) Adopts and maintains written fiduciary policies and procedures; (v) Has an annual independent audit that covers fiduciary activities and assets; and (vi) (a) Is serving as a fiduciary for a trust or estate whose assets are less than seven hundred fifty thousand dollars ($750,000). (b) Subdivision (a)(57)(A)(vi) (a) of this section does not apply if: (1) The foundation is the sole remainder beneficiary of the trust or estate; or (2) The remainder beneficiary is an organization that is supported by the foundation. (B) "Foundation" does not include a private foundation as defined in section 509(a) of the Internal Revenue Code of 1986, 26 U.S.C. § 509(a) . (b) These definitions shall be liberally construed to accomplish the purposes of this chapter. The commissioner by rule may adopt other definitions to accomplish the purposes of this chapter. Amended by Act 2019, No. 315,§ 2563, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 2562, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 2561, eff. 7/24/2019. Amended by Act 2019, No. 836,§ 3, eff. 7/24/2019. Amended by Act 2019, No. 836,§ 2, eff. 7/24/2019. Amended by Act 2019, No. 836,§ 1, eff. 7/24/2019. Acts 1997, No. 940, § 2.

(a) For the purposes of this chapter: (1) "Account" means the client relationship established with a trust company involving the transfer of funds or property to the trust company, including a relationship in which the trust company acts as trustee, executor, administrator, guardian, custodian, conservator, bailee, receiver, registrar, or agent, but excluding a relationship in which the trust company acts solely in an advisory capacity; (2) "Act as a fiduciary" or "acting as a fiduciary" means to: (A) Accept or execute trusts, including to: (i) Act as trustee under a written agreement; (ii) Receive money or other property in its capacity as trustee for investment in real or personal property; (iii) Act as trustee and perform the fiduciary duties committed or transferred to it by order of a court of competent jurisdiction; (iv) Act as trustee of the estate of a deceased person; or (v) Act as trustee for a minor or incapacitated person; (B) Administer in any other fiduciary capacity real or tangible personal property; or (C) Act pursuant to an order of a court of competent jurisdiction as executor or administrator of the estate of a deceased person or as a guardian or conservator for a minor or incapacitated person; (3) "Administer" with respect to real or tangible personal property means, as an agent or in another representative capacity, to possess, purchase, sell, lease or insure, safekeep or otherwise manage the property; (4) "Affiliate" means a company that directly or indirectly controls, is controlled by, or is under common control with a trust institution or other company; (5) "Authorized trust institutions" means any state trust company, subsidiary trust company, or trust office of a trust institution located in Arkansas; (6) "Bank" means a state bank, national bank, any bank chartered by any state of the United States or any foreign bank organized under the laws of a territory of the United States, the Commonwealth of Puerto Rico, Guam, American Samoa or the United States Virgin Islands, the deposits of which are insured by the Federal Deposit Insurance Corporation; (7) "Bank supervisory agency" means: (A) Any agency of another state with primary responsibility for chartering and supervising a trust institution; and (B) The United States Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the Office of Thrift Supervision [abolished] and any successor to these agencies; (8) "Branch" with respect to a depository institution has the meaning set forth in § 23-48-702 ; (9) "Capital" means: (A) The sum of: (i) The par value of all shares of the state trust company having a par value that have been issued; (ii) The consideration fixed by the board in the manner provided by the Arkansas Business Corporation Act of 1987, § 4-27-101 et seq., for all shares of the state trust company without par value that have been issued, except a part of that consideration that: (a) Has been actually received; (b) Is less than all of that consideration; and (c) The board, by resolution adopted not later than sixty (60) days after the date of issuance of those shares, has allocated to surplus with the prior approval of the commissioner; and (iii) An amount not included in subdivisions (a)(9)(A)(i) and (ii) of this section that has been transferred to capital of the state trust company, on the payment of a share dividend or on adoption by the board of a resolution directing that all or part of surplus be transferred to capital, minus each reduction made as permitted by law; less (B) All amounts otherwise included in subdivisions (a)(9)(A)(i) and (ii) of this section that are attributable to the issuance of securities by the state trust company and that the commissioner determines, after notice and an opportunity for hearing, should be classified as debt rather than equity securities; (10) "Capital base" means the sum of capital, surplus, and undivided profits, plus any additions and less any subtractions which the commissioner may by rule prescribe; (11) "Charter" means a charter, license or other authority issued by the commissioner or a bank supervisory agency authorizing a trust institution to act as a fiduciary in its home state; (12) "Client" means a person to whom a trust institution owes a duty or obligation under a trust or other account administered by the trust institution or as an advisor or agent, regardless of whether the trust institution owes a fiduciary duty to the person. The term includes the non-contingent beneficiaries of an account; (13) "Commissioner" means the Bank Commissioner then in office and, where appropriate, all of his or her successors and predecessors in office; (14) "Company" includes a bank, trust company, subsidiary trust company, corporation, limited liability company, partnership, association, business trust, foundation, or another trust; (15) "Control" means: (A) The ownership of or ability or power to vote, directly, acting through one or more other persons, or otherwise indirectly, more than twenty-five percent (25%) of the outstanding shares of a class of voting securities of a state trust company or other company; (B) The ability to control the election of a majority of the board of a state trust company or other company; and (C) The power to exercise, directly or indirectly, a controlling influence over the management or policies of the state trust company or other company as determined by the commissioner after notice and an opportunity for hearing; (16) "Department" means the State Bank Department; (17) "Depository institution" means any company chartered to act as a fiduciary and included for any purpose within any of the definitions of "insured depository institution" as set forth in 12 U.S.C. §§ 1813(c)(2) and (3) ; (18) "Equity capital" means the amount by which the total assets of a state trust company exceed the total liabilities of the state trust company; (19) "Equity security" means: (A) Stock, other than adjustable rate preferred stock and money market (auction rate) preferred stock; (B) A certificate of interest or participation in a profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share or participation share, investment contract, voting-trust certificate, or partnership interest; (C) A security immediately convertible at the option of the holder without payment of significant additional consideration into a security described by this subdivision (a)(19); (D) A security carrying a warrant or right to subscribe to or purchase a security described by this subdivision (a)(19); and (E) A certificate of interest or participation in, temporary or interim certificate for, or receipt for a security described by this subdivision (a)(19) that evidences an existing or contingent equity ownership interest; (20) "Fiduciary record" means a matter written, transcribed, recorded, received or otherwise in the possession or control of a trust company, whether in physical or electromagnetic form, that is necessary to preserve information concerning an act or event relevant to an account or a client of a trust company; (21) "Hazardous condition" with respect to a trust company means: (A) A refusal by the trust company to permit examination of its books, papers, accounts, records, or affairs by the commissioner; (B) Violation by a trust company of a condition of its chartering or an agreement entered into between the trust company and the commissioner; or (C) A circumstance or condition in which an unreasonable risk of loss is threatened to clients or creditors of a trust company, excluding risk of loss to a client that arises as a result of the client's decisions or actions, but including a circumstance or condition in which a trust company: (i) Is unable or lacks the means to meet its current obligations as they come due in the regular and ordinary course of business, even though the book or fair market value of its assets may exceed its liabilities; (ii) Has equity capital less than the amount of capital the trust company is required to maintain under § 23-51-110 , or the adequacy of its equity capital is threatened, as determined under regulatory accounting principles; (iii) Has concentrated an excessive or unreasonable portion of its assets in a particular type or character of investment; (iv) Violates or refuses to comply with this chapter, another statute or rule applicable to trust companies, or any final and enforceable order of the commissioner; (v) Is in a condition that renders the continuation of a particular business practice hazardous to its clients and creditors; or (vi) Conducts business in an unsafe or unsound manner, which includes, but is not limited to conducting business with: (a) Inexperienced or inattentive management; (b) Potentially dangerous operating practices; (c) Infrequent or inadequate audits; (d) Administration of assets that is notably deficient in relation to the volume and character or responsibility for asset holdings; (e) Failure to adhere to sound administrative practices; (f) Frequent occurrences of violations of laws, rules, or terms of the governing instruments; or (g) Engaging in self-dealing or evidencing a notable degree of potential or actual conflicts of interest; (22) "Insider" means: (A) Each director, officer or principal shareholder of the trust company; (B) Any company controlled by a person described by subdivision (a)(23)(A) of this section; or (C) Any person who participates or has authority to participate, other than in the capacity of a director, in major policy-making functions of the state trust company, whether or not the person has an official title or the officer is serving without salary or compensation; (23) "Insolvent" means a circumstance or condition in which a state trust company: (A) Is unable or lacks the means to meet its current obligations as they come due in the regular and ordinary course of business, even if the value of its assets exceeds its liabilities; (B) Has equity capital less than one million dollars ($1,000,000), as determined under regulatory accounting principles; (C) Fails to maintain deposit insurance with the Federal Deposit Insurance Corporation or its successor if the commissioner determines that deposit insurance is necessary for the safe and sound operation of the state trust company, or maintains adequate security for its deposits in accordance with § 23-51-130 ; (D) Sells or attempts to sell substantially all of its assets or merges or attempts to merge substantially all of its assets or business with another entity other than as provided by §§ 23-51-150 - 23-51-155 ; or (E) Attempts to dissolve or liquidate other than as provided by §§ 23-51-156 - 23-51-161 ; (24) "Investment security" means a marketable obligation evidencing indebtedness of a person in the form of a bond, note, debenture, or other debt instrument not otherwise classified as a loan or extension of credit; (25) "License" means the authority granted by the commissioner pursuant to this chapter to establish, acquire or maintain a trust office; (26) "Loans and extensions of credit" means direct or indirect advances of funds by a state trust company to a person that are conditioned on the obligation of the person to repay the funds or that are repayable from specific property pledged by or on behalf of the person; (27) "New trust office" means a trust office located in a host state which: (A) Is originally established by the trust institution as a trust office; and (B) Does not become a trust office of the trust institution as a result of: (i) The acquisition of another trust institution or trust office of another trust institution; or (ii) A merger, consolidation, or conversion involving any such trust institution or trust office; (28) "Office" with respect to a trust institution means the principal office, a trust office or a representative trust office, but not a branch; (29) "Officer" means the presiding officer of the board, the principal executive officer, or another officer appointed by the board of a state trust company or other company, or a person or group of persons acting in a comparable capacity for the state trust company or other company; (30) "Operating subsidiary" means a company for which a state trust company has the ownership, ability, or power to vote, directly, acting through one or more other persons, or otherwise indirectly, more than fifty percent (50%) of the outstanding shares of each class of voting securities or its equivalent of the company; (31) "Out-of-state bank" means a bank chartered to act as a fiduciary in any state or states other than this state; (32) "Out-of-state trust company" means either a trust company that is not a state trust company or a savings association whose principal office is not located in this state; (33) "Out-of-state trust institution" means a trust institution that is not a state trust institution; (34) "Person" means an individual, a company or any other legal entity; (35) "Principal office" with respect to: (A) A state trust company, means a location registered with the commissioner as the state trust company's home office at which: (i) The state trust company does business; (ii) The state trust company keeps its corporate books and a set of its material records, including material fiduciary records; and (iii) At least one executive officer of the state trust company maintains an office; or (B) A trust institution other than a state trust company, means its principal place of business in the United States; (36) "Principal shareholder" means a person who owns or has the ability or power to vote, directly, acting through one or more other persons, or otherwise indirectly, ten percent (10%) or more of the outstanding shares of any class of voting securities of a state trust company or other company; (37) "Private trust company" means a trust company that does not engage in a trust business with the general public; (38) "Receiver" means the commissioner, an agent of the commissioner or any federal or other governmental agency exercising the powers and duties of a receiver pursuant to § 23-51-164 ; (39) "Savings association" means a depository institution that is neither a bank nor a foreign bank; (40) "Shareholder" means an owner of a share in a state trust company; (41) "Shares" means the units into which the proprietary interests of a state trust company are divided or subdivided by means of classes, series, relative rights, or preferences; (42) "State" means any state of the United States, the District of Columbia, any territory of the United States, the Commonwealth of Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the United States Virgin Islands, and the Northern Mariana Islands; (43) "State bank" means a bank chartered to act as a fiduciary by this state; (44) "State trust company" means a corporation organized or reorganized under this chapter; (45) "State trust institution" means a trust institution having its principal office in this state; (46) "Subsidiary" means a company that is controlled by another person. The term includes a subsidiary of a subsidiary; (47) "Subsidiary trust company" means a corporation organized under the Arkansas Business Corporation Act of 1987, § 4-27-101 et seq. and authorized by the commissioner pursuant to § 23-47-801 et seq. or the Bank Holding Company Subsidiary Trust Company Formation Act of 1989, § 23-32-1901 et seq. [repealed], to conduct trust business and business incidental to trust business in this state, of which more than fifty percent (50%) of the voting stock is owned, directly or indirectly, by a bank holding company which also owns, directly or indirectly, an affiliated bank, as that term is defined in § 23-47-801 et seq.; (48) "Surplus" means the amount by which the assets of a state trust company exceeds its liabilities, capital, and undivided profits; (49) "Trust business" means the holding out by a person to the public by advertising, solicitation or other means that the person is available to perform any service of a fiduciary in this or another state, including but not limited to: (A) Acting as a fiduciary, or (B) To the extent not acting as a fiduciary, any of the following: (i) Receiving for safekeeping personal property of every description; (ii) Acting as assignee, bailee, conservator, custodian, escrow agent, registrar, receiver or transfer agent; or (iii) Acting as financial advisor, investment advisor or manager, agent or attorney-in-fact in any agreed upon capacity; (50) "Trust company" means a state trust company, subsidiary trust company or any other company chartered to act as a fiduciary that is neither a depository institution nor a foreign bank; (51) "Trust deposits" means the client funds held by a state trust company and authorized to be deposited with itself pending investment, distribution, or payment of debts on behalf of the client; (52) "Trust institution" means a depository institution, state bank or trust company; (53) "Trust office" means an office, other than the principal office, at which a trust institution is licensed by the commissioner to act as a fiduciary; (54) (A) "Unauthorized trust activity" means: (i) A company, other than one identified in § 23-51-165(a) , acting as a fiduciary within this state; (ii) A company engaging in a trust business in this state at any office of the company that is not its principal office, if the company is a state trust institution, or that is not a trust office or a representative trust office of the company; or (iii) An out-of-state trust institution engaging in a trust business in this state at any time an order issued by the commissioner under § 23-51-182 is in effect. (B) "Unauthorized trust activity" does not include a foundation serving as a fiduciary; (55) "Undivided profits" means the part of equity capital of a state trust company equal to the balance of its net profits, income, gains, and losses since the date of its formation, minus subsequent distributions to shareholders and transfers to surplus or capital under share dividends or appropriate board resolutions. The term includes amounts allocated to undivided profits as a result of a merger; and (56) "Voting security" means a share, or other evidence of proprietary interest in a state trust company or other company that has as an attribute the right to vote or participate in the election of the board of the state trust company or other company, regardless of whether the right is limited to the election of fewer than all of the board members. The term includes a security that is convertible or exchangeable into a voting security. (57) (A) "Foundation" means an organization that: (i) Is organized and operated for religious, educational, or charitable purposes, as defined in section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3) , as it existed on January 1, 2019; (ii) Has equity capital of at least one million dollars ($1,000,000); (iii) Has fiduciary liability insurance coverage with policy limits of not less than two million dollars ($2,000,000); (iv) Adopts and maintains written fiduciary policies and procedures; (v) Has an annual independent audit that covers fiduciary activities and assets; and (vi) (a) Is serving as a fiduciary for a trust or estate whose assets are less than seven hundred fifty thousand dollars ($750,000). (b) Subdivision (a)(57)(A)(vi) (a) of this section does not apply if: (1) The foundation is the sole remainder beneficiary of the trust or estate; or (2) The remainder beneficiary is an organization that is supported by the foundation. (B) "Foundation" does not include a private foundation as defined in section 509(a) of the Internal Revenue Code of 1986, 26 U.S.C. § 509(a) .

(1) "Account" means the client relationship established with a trust company involving the transfer of funds or property to the trust company, including a relationship in which the trust company acts as trustee, executor, administrator, guardian, custodian, conservator, bailee, receiver, registrar, or agent, but excluding a relationship in which the trust company acts solely in an advisory capacity;

(2) "Act as a fiduciary" or "acting as a fiduciary" means to: (A) Accept or execute trusts, including to: (i) Act as trustee under a written agreement; (ii) Receive money or other property in its capacity as trustee for investment in real or personal property; (iii) Act as trustee and perform the fiduciary duties committed or transferred to it by order of a court of competent jurisdiction; (iv) Act as trustee of the estate of a deceased person; or (v) Act as trustee for a minor or incapacitated person; (B) Administer in any other fiduciary capacity real or tangible personal property; or (C) Act pursuant to an order of a court of competent jurisdiction as executor or administrator of the estate of a deceased person or as a guardian or conservator for a minor or incapacitated person;

(A) Accept or execute trusts, including to: (i) Act as trustee under a written agreement; (ii) Receive money or other property in its capacity as trustee for investment in real or personal property; (iii) Act as trustee and perform the fiduciary duties committed or transferred to it by order of a court of competent jurisdiction; (iv) Act as trustee of the estate of a deceased person; or (v) Act as trustee for a minor or incapacitated person;

(i) Act as trustee under a written agreement;

(ii) Receive money or other property in its capacity as trustee for investment in real or personal property;

(iii) Act as trustee and perform the fiduciary duties committed or transferred to it by order of a court of competent jurisdiction;

(iv) Act as trustee of the estate of a deceased person; or

(v) Act as trustee for a minor or incapacitated person;

(B) Administer in any other fiduciary capacity real or tangible personal property; or

(C) Act pursuant to an order of a court of competent jurisdiction as executor or administrator of the estate of a deceased person or as a guardian or conservator for a minor or incapacitated person;

(3) "Administer" with respect to real or tangible personal property means, as an agent or in another representative capacity, to possess, purchase, sell, lease or insure, safekeep or otherwise manage the property;

(4) "Affiliate" means a company that directly or indirectly controls, is controlled by, or is under common control with a trust institution or other company;

(5) "Authorized trust institutions" means any state trust company, subsidiary trust company, or trust office of a trust institution located in Arkansas;

(6) "Bank" means a state bank, national bank, any bank chartered by any state of the United States or any foreign bank organized under the laws of a territory of the United States, the Commonwealth of Puerto Rico, Guam, American Samoa or the United States Virgin Islands, the deposits of which are insured by the Federal Deposit Insurance Corporation;

(7) "Bank supervisory agency" means: (A) Any agency of another state with primary responsibility for chartering and supervising a trust institution; and (B) The United States Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the Office of Thrift Supervision [abolished] and any successor to these agencies;

(A) Any agency of another state with primary responsibility for chartering and supervising a trust institution; and

(B) The United States Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the Office of Thrift Supervision [abolished] and any successor to these agencies;

(8) "Branch" with respect to a depository institution has the meaning set forth in § 23-48-702 ;

(9) "Capital" means: (A) The sum of: (i) The par value of all shares of the state trust company having a par value that have been issued; (ii) The consideration fixed by the board in the manner provided by the Arkansas Business Corporation Act of 1987, § 4-27-101 et seq., for all shares of the state trust company without par value that have been issued, except a part of that consideration that: (a) Has been actually received; (b) Is less than all of that consideration; and (c) The board, by resolution adopted not later than sixty (60) days after the date of issuance of those shares, has allocated to surplus with the prior approval of the commissioner; and (iii) An amount not included in subdivisions (a)(9)(A)(i) and (ii) of this section that has been transferred to capital of the state trust company, on the payment of a share dividend or on adoption by the board of a resolution directing that all or part of surplus be transferred to capital, minus each reduction made as permitted by law; less (B) All amounts otherwise included in subdivisions (a)(9)(A)(i) and (ii) of this section that are attributable to the issuance of securities by the state trust company and that the commissioner determines, after notice and an opportunity for hearing, should be classified as debt rather than equity securities;

(A) The sum of: (i) The par value of all shares of the state trust company having a par value that have been issued; (ii) The consideration fixed by the board in the manner provided by the Arkansas Business Corporation Act of 1987, § 4-27-101 et seq., for all shares of the state trust company without par value that have been issued, except a part of that consideration that: (a) Has been actually received; (b) Is less than all of that consideration; and (c) The board, by resolution adopted not later than sixty (60) days after the date of issuance of those shares, has allocated to surplus with the prior approval of the commissioner; and (iii) An amount not included in subdivisions (a)(9)(A)(i) and (ii) of this section that has been transferred to capital of the state trust company, on the payment of a share dividend or on adoption by the board of a resolution directing that all or part of surplus be transferred to capital, minus each reduction made as permitted by law; less

(i) The par value of all shares of the state trust company having a par value that have been issued;

(ii) The consideration fixed by the board in the manner provided by the Arkansas Business Corporation Act of 1987, § 4-27-101 et seq., for all shares of the state trust company without par value that have been issued, except a part of that consideration that: (a) Has been actually received; (b) Is less than all of that consideration; and (c) The board, by resolution adopted not later than sixty (60) days after the date of issuance of those shares, has allocated to surplus with the prior approval of the commissioner; and

(a) Has been actually received;

(b) Is less than all of that consideration; and

(c) The board, by resolution adopted not later than sixty (60) days after the date of issuance of those shares, has allocated to surplus with the prior approval of the commissioner; and

(iii) An amount not included in subdivisions (a)(9)(A)(i) and (ii) of this section that has been transferred to capital of the state trust company, on the payment of a share dividend or on adoption by the board of a resolution directing that all or part of surplus be transferred to capital, minus each reduction made as permitted by law; less

(B) All amounts otherwise included in subdivisions (a)(9)(A)(i) and (ii) of this section that are attributable to the issuance of securities by the state trust company and that the commissioner determines, after notice and an opportunity for hearing, should be classified as debt rather than equity securities;

(10) "Capital base" means the sum of capital, surplus, and undivided profits, plus any additions and less any subtractions which the commissioner may by rule prescribe;

(11) "Charter" means a charter, license or other authority issued by the commissioner or a bank supervisory agency authorizing a trust institution to act as a fiduciary in its home state;

(12) "Client" means a person to whom a trust institution owes a duty or obligation under a trust or other account administered by the trust institution or as an advisor or agent, regardless of whether the trust institution owes a fiduciary duty to the person. The term includes the non-contingent beneficiaries of an account;

(13) "Commissioner" means the Bank Commissioner then in office and, where appropriate, all of his or her successors and predecessors in office;

(14) "Company" includes a bank, trust company, subsidiary trust company, corporation, limited liability company, partnership, association, business trust, foundation, or another trust;

(15) "Control" means: (A) The ownership of or ability or power to vote, directly, acting through one or more other persons, or otherwise indirectly, more than twenty-five percent (25%) of the outstanding shares of a class of voting securities of a state trust company or other company; (B) The ability to control the election of a majority of the board of a state trust company or other company; and (C) The power to exercise, directly or indirectly, a controlling influence over the management or policies of the state trust company or other company as determined by the commissioner after notice and an opportunity for hearing;

(A) The ownership of or ability or power to vote, directly, acting through one or more other persons, or otherwise indirectly, more than twenty-five percent (25%) of the outstanding shares of a class of voting securities of a state trust company or other company;

(B) The ability to control the election of a majority of the board of a state trust company or other company; and

(C) The power to exercise, directly or indirectly, a controlling influence over the management or policies of the state trust company or other company as determined by the commissioner after notice and an opportunity for hearing;

(16) "Department" means the State Bank Department;

(17) "Depository institution" means any company chartered to act as a fiduciary and included for any purpose within any of the definitions of "insured depository institution" as set forth in 12 U.S.C. §§ 1813(c)(2) and (3) ;

(18) "Equity capital" means the amount by which the total assets of a state trust company exceed the total liabilities of the state trust company;

(19) "Equity security" means: (A) Stock, other than adjustable rate preferred stock and money market (auction rate) preferred stock; (B) A certificate of interest or participation in a profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share or participation share, investment contract, voting-trust certificate, or partnership interest; (C) A security immediately convertible at the option of the holder without payment of significant additional consideration into a security described by this subdivision (a)(19); (D) A security carrying a warrant or right to subscribe to or purchase a security described by this subdivision (a)(19); and (E) A certificate of interest or participation in, temporary or interim certificate for, or receipt for a security described by this subdivision (a)(19) that evidences an existing or contingent equity ownership interest;

(A) Stock, other than adjustable rate preferred stock and money market (auction rate) preferred stock;

(B) A certificate of interest or participation in a profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share or participation share, investment contract, voting-trust certificate, or partnership interest;

(C) A security immediately convertible at the option of the holder without payment of significant additional consideration into a security described by this subdivision (a)(19);

(D) A security carrying a warrant or right to subscribe to or purchase a security described by this subdivision (a)(19); and

(E) A certificate of interest or participation in, temporary or interim certificate for, or receipt for a security described by this subdivision (a)(19) that evidences an existing or contingent equity ownership interest;

(20) "Fiduciary record" means a matter written, transcribed, recorded, received or otherwise in the possession or control of a trust company, whether in physical or electromagnetic form, that is necessary to preserve information concerning an act or event relevant to an account or a client of a trust company;

(21) "Hazardous condition" with respect to a trust company means: (A) A refusal by the trust company to permit examination of its books, papers, accounts, records, or affairs by the commissioner; (B) Violation by a trust company of a condition of its chartering or an agreement entered into between the trust company and the commissioner; or (C) A circumstance or condition in which an unreasonable risk of loss is threatened to clients or creditors of a trust company, excluding risk of loss to a client that arises as a result of the client's decisions or actions, but including a circumstance or condition in which a trust company: (i) Is unable or lacks the means to meet its current obligations as they come due in the regular and ordinary course of business, even though the book or fair market value of its assets may exceed its liabilities; (ii) Has equity capital less than the amount of capital the trust company is required to maintain under § 23-51-110 , or the adequacy of its equity capital is threatened, as determined under regulatory accounting principles; (iii) Has concentrated an excessive or unreasonable portion of its assets in a particular type or character of investment; (iv) Violates or refuses to comply with this chapter, another statute or rule applicable to trust companies, or any final and enforceable order of the commissioner; (v) Is in a condition that renders the continuation of a particular business practice hazardous to its clients and creditors; or (vi) Conducts business in an unsafe or unsound manner, which includes, but is not limited to conducting business with: (a) Inexperienced or inattentive management; (b) Potentially dangerous operating practices; (c) Infrequent or inadequate audits; (d) Administration of assets that is notably deficient in relation to the volume and character or responsibility for asset holdings; (e) Failure to adhere to sound administrative practices; (f) Frequent occurrences of violations of laws, rules, or terms of the governing instruments; or (g) Engaging in self-dealing or evidencing a notable degree of potential or actual conflicts of interest;

(A) A refusal by the trust company to permit examination of its books, papers, accounts, records, or affairs by the commissioner;

(B) Violation by a trust company of a condition of its chartering or an agreement entered into between the trust company and the commissioner; or

(C) A circumstance or condition in which an unreasonable risk of loss is threatened to clients or creditors of a trust company, excluding risk of loss to a client that arises as a result of the client's decisions or actions, but including a circumstance or condition in which a trust company: (i) Is unable or lacks the means to meet its current obligations as they come due in the regular and ordinary course of business, even though the book or fair market value of its assets may exceed its liabilities; (ii) Has equity capital less than the amount of capital the trust company is required to maintain under § 23-51-110 , or the adequacy of its equity capital is threatened, as determined under regulatory accounting principles; (iii) Has concentrated an excessive or unreasonable portion of its assets in a particular type or character of investment; (iv) Violates or refuses to comply with this chapter, another statute or rule applicable to trust companies, or any final and enforceable order of the commissioner; (v) Is in a condition that renders the continuation of a particular business practice hazardous to its clients and creditors; or (vi) Conducts business in an unsafe or unsound manner, which includes, but is not limited to conducting business with: (a) Inexperienced or inattentive management; (b) Potentially dangerous operating practices; (c) Infrequent or inadequate audits; (d) Administration of assets that is notably deficient in relation to the volume and character or responsibility for asset holdings; (e) Failure to adhere to sound administrative practices; (f) Frequent occurrences of violations of laws, rules, or terms of the governing instruments; or (g) Engaging in self-dealing or evidencing a notable degree of potential or actual conflicts of interest;

(i) Is unable or lacks the means to meet its current obligations as they come due in the regular and ordinary course of business, even though the book or fair market value of its assets may exceed its liabilities;

(ii) Has equity capital less than the amount of capital the trust company is required to maintain under § 23-51-110 , or the adequacy of its equity capital is threatened, as determined under regulatory accounting principles;

(iii) Has concentrated an excessive or unreasonable portion of its assets in a particular type or character of investment;

(iv) Violates or refuses to comply with this chapter, another statute or rule applicable to trust companies, or any final and enforceable order of the commissioner;

(v) Is in a condition that renders the continuation of a particular business practice hazardous to its clients and creditors; or

(vi) Conducts business in an unsafe or unsound manner, which includes, but is not limited to conducting business with: (a) Inexperienced or inattentive management; (b) Potentially dangerous operating practices; (c) Infrequent or inadequate audits; (d) Administration of assets that is notably deficient in relation to the volume and character or responsibility for asset holdings; (e) Failure to adhere to sound administrative practices; (f) Frequent occurrences of violations of laws, rules, or terms of the governing instruments; or (g) Engaging in self-dealing or evidencing a notable degree of potential or actual conflicts of interest;

(a) Inexperienced or inattentive management;

(b) Potentially dangerous operating practices;

(c) Infrequent or inadequate audits;

(d) Administration of assets that is notably deficient in relation to the volume and character or responsibility for asset holdings;

(e) Failure to adhere to sound administrative practices;

(f) Frequent occurrences of violations of laws, rules, or terms of the governing instruments; or

(g) Engaging in self-dealing or evidencing a notable degree of potential or actual conflicts of interest;

(22) "Insider" means: (A) Each director, officer or principal shareholder of the trust company; (B) Any company controlled by a person described by subdivision (a)(23)(A) of this section; or (C) Any person who participates or has authority to participate, other than in the capacity of a director, in major policy-making functions of the state trust company, whether or not the person has an official title or the officer is serving without salary or compensation;

(A) Each director, officer or principal shareholder of the trust company;

(B) Any company controlled by a person described by subdivision (a)(23)(A) of this section; or

(C) Any person who participates or has authority to participate, other than in the capacity of a director, in major policy-making functions of the state trust company, whether or not the person has an official title or the officer is serving without salary or compensation;

(23) "Insolvent" means a circumstance or condition in which a state trust company: (A) Is unable or lacks the means to meet its current obligations as they come due in the regular and ordinary course of business, even if the value of its assets exceeds its liabilities; (B) Has equity capital less than one million dollars ($1,000,000), as determined under regulatory accounting principles; (C) Fails to maintain deposit insurance with the Federal Deposit Insurance Corporation or its successor if the commissioner determines that deposit insurance is necessary for the safe and sound operation of the state trust company, or maintains adequate security for its deposits in accordance with § 23-51-130 ; (D) Sells or attempts to sell substantially all of its assets or merges or attempts to merge substantially all of its assets or business with another entity other than as provided by §§ 23-51-150 - 23-51-155 ; or (E) Attempts to dissolve or liquidate other than as provided by §§ 23-51-156 - 23-51-161 ;

(A) Is unable or lacks the means to meet its current obligations as they come due in the regular and ordinary course of business, even if the value of its assets exceeds its liabilities;

(B) Has equity capital less than one million dollars ($1,000,000), as determined under regulatory accounting principles;

(C) Fails to maintain deposit insurance with the Federal Deposit Insurance Corporation or its successor if the commissioner determines that deposit insurance is necessary for the safe and sound operation of the state trust company, or maintains adequate security for its deposits in accordance with § 23-51-130 ;

(D) Sells or attempts to sell substantially all of its assets or merges or attempts to merge substantially all of its assets or business with another entity other than as provided by §§ 23-51-150 - 23-51-155 ; or

(E) Attempts to dissolve or liquidate other than as provided by §§ 23-51-156 - 23-51-161 ;

(24) "Investment security" means a marketable obligation evidencing indebtedness of a person in the form of a bond, note, debenture, or other debt instrument not otherwise classified as a loan or extension of credit;

(25) "License" means the authority granted by the commissioner pursuant to this chapter to establish, acquire or maintain a trust office;

(26) "Loans and extensions of credit" means direct or indirect advances of funds by a state trust company to a person that are conditioned on the obligation of the person to repay the funds or that are repayable from specific property pledged by or on behalf of the person;

(27) "New trust office" means a trust office located in a host state which: (A) Is originally established by the trust institution as a trust office; and (B) Does not become a trust office of the trust institution as a result of: (i) The acquisition of another trust institution or trust office of another trust institution; or (ii) A merger, consolidation, or conversion involving any such trust institution or trust office;

(A) Is originally established by the trust institution as a trust office; and

(B) Does not become a trust office of the trust institution as a result of: (i) The acquisition of another trust institution or trust office of another trust institution; or (ii) A merger, consolidation, or conversion involving any such trust institution or trust office;

(i) The acquisition of another trust institution or trust office of another trust institution; or

(ii) A merger, consolidation, or conversion involving any such trust institution or trust office;

(28) "Office" with respect to a trust institution means the principal office, a trust office or a representative trust office, but not a branch;

(29) "Officer" means the presiding officer of the board, the principal executive officer, or another officer appointed by the board of a state trust company or other company, or a person or group of persons acting in a comparable capacity for the state trust company or other company;

(30) "Operating subsidiary" means a company for which a state trust company has the ownership, ability, or power to vote, directly, acting through one or more other persons, or otherwise indirectly, more than fifty percent (50%) of the outstanding shares of each class of voting securities or its equivalent of the company;

(31) "Out-of-state bank" means a bank chartered to act as a fiduciary in any state or states other than this state;

(32) "Out-of-state trust company" means either a trust company that is not a state trust company or a savings association whose principal office is not located in this state;

(33) "Out-of-state trust institution" means a trust institution that is not a state trust institution;

(34) "Person" means an individual, a company or any other legal entity;

(35) "Principal office" with respect to: (A) A state trust company, means a location registered with the commissioner as the state trust company's home office at which: (i) The state trust company does business; (ii) The state trust company keeps its corporate books and a set of its material records, including material fiduciary records; and (iii) At least one executive officer of the state trust company maintains an office; or (B) A trust institution other than a state trust company, means its principal place of business in the United States;

(A) A state trust company, means a location registered with the commissioner as the state trust company's home office at which: (i) The state trust company does business; (ii) The state trust company keeps its corporate books and a set of its material records, including material fiduciary records; and (iii) At least one executive officer of the state trust company maintains an office; or

(i) The state trust company does business;

(ii) The state trust company keeps its corporate books and a set of its material records, including material fiduciary records; and

(iii) At least one executive officer of the state trust company maintains an office; or

(B) A trust institution other than a state trust company, means its principal place of business in the United States;

(36) "Principal shareholder" means a person who owns or has the ability or power to vote, directly, acting through one or more other persons, or otherwise indirectly, ten percent (10%) or more of the outstanding shares of any class of voting securities of a state trust company or other company;

(37) "Private trust company" means a trust company that does not engage in a trust business with the general public;

(38) "Receiver" means the commissioner, an agent of the commissioner or any federal or other governmental agency exercising the powers and duties of a receiver pursuant to § 23-51-164 ;

(39) "Savings association" means a depository institution that is neither a bank nor a foreign bank;

(40) "Shareholder" means an owner of a share in a state trust company;

(41) "Shares" means the units into which the proprietary interests of a state trust company are divided or subdivided by means of classes, series, relative rights, or preferences;

(42) "State" means any state of the United States, the District of Columbia, any territory of the United States, the Commonwealth of Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the United States Virgin Islands, and the Northern Mariana Islands;

(43) "State bank" means a bank chartered to act as a fiduciary by this state;

(44) "State trust company" means a corporation organized or reorganized under this chapter;

(45) "State trust institution" means a trust institution having its principal office in this state;

(46) "Subsidiary" means a company that is controlled by another person. The term includes a subsidiary of a subsidiary;

(47) "Subsidiary trust company" means a corporation organized under the Arkansas Business Corporation Act of 1987, § 4-27-101 et seq. and authorized by the commissioner pursuant to § 23-47-801 et seq. or the Bank Holding Company Subsidiary Trust Company Formation Act of 1989, § 23-32-1901 et seq. [repealed], to conduct trust business and business incidental to trust business in this state, of which more than fifty percent (50%) of the voting stock is owned, directly or indirectly, by a bank holding company which also owns, directly or indirectly, an affiliated bank, as that term is defined in § 23-47-801 et seq.;

(48) "Surplus" means the amount by which the assets of a state trust company exceeds its liabilities, capital, and undivided profits;

(49) "Trust business" means the holding out by a person to the public by advertising, solicitation or other means that the person is available to perform any service of a fiduciary in this or another state, including but not limited to: (A) Acting as a fiduciary, or (B) To the extent not acting as a fiduciary, any of the following: (i) Receiving for safekeeping personal property of every description; (ii) Acting as assignee, bailee, conservator, custodian, escrow agent, registrar, receiver or transfer agent; or (iii) Acting as financial advisor, investment advisor or manager, agent or attorney-in-fact in any agreed upon capacity;

(A) Acting as a fiduciary, or

(B) To the extent not acting as a fiduciary, any of the following: (i) Receiving for safekeeping personal property of every description; (ii) Acting as assignee, bailee, conservator, custodian, escrow agent, registrar, receiver or transfer agent; or (iii) Acting as financial advisor, investment advisor or manager, agent or attorney-in-fact in any agreed upon capacity;

(i) Receiving for safekeeping personal property of every description;

(ii) Acting as assignee, bailee, conservator, custodian, escrow agent, registrar, receiver or transfer agent; or

(iii) Acting as financial advisor, investment advisor or manager, agent or attorney-in-fact in any agreed upon capacity;

(50) "Trust company" means a state trust company, subsidiary trust company or any other company chartered to act as a fiduciary that is neither a depository institution nor a foreign bank;

(51) "Trust deposits" means the client funds held by a state trust company and authorized to be deposited with itself pending investment, distribution, or payment of debts on behalf of the client;

(52) "Trust institution" means a depository institution, state bank or trust company;

(53) "Trust office" means an office, other than the principal office, at which a trust institution is licensed by the commissioner to act as a fiduciary;

(54) (A) "Unauthorized trust activity" means: (i) A company, other than one identified in § 23-51-165(a) , acting as a fiduciary within this state; (ii) A company engaging in a trust business in this state at any office of the company that is not its principal office, if the company is a state trust institution, or that is not a trust office or a representative trust office of the company; or (iii) An out-of-state trust institution engaging in a trust business in this state at any time an order issued by the commissioner under § 23-51-182 is in effect. (B) "Unauthorized trust activity" does not include a foundation serving as a fiduciary;

(A) "Unauthorized trust activity" means: (i) A company, other than one identified in § 23-51-165(a) , acting as a fiduciary within this state; (ii) A company engaging in a trust business in this state at any office of the company that is not its principal office, if the company is a state trust institution, or that is not a trust office or a representative trust office of the company; or (iii) An out-of-state trust institution engaging in a trust business in this state at any time an order issued by the commissioner under § 23-51-182 is in effect.

(i) A company, other than one identified in § 23-51-165(a) , acting as a fiduciary within this state;

(ii) A company engaging in a trust business in this state at any office of the company that is not its principal office, if the company is a state trust institution, or that is not a trust office or a representative trust office of the company; or

(iii) An out-of-state trust institution engaging in a trust business in this state at any time an order issued by the commissioner under § 23-51-182 is in effect.

(B) "Unauthorized trust activity" does not include a foundation serving as a fiduciary;

(55) "Undivided profits" means the part of equity capital of a state trust company equal to the balance of its net profits, income, gains, and losses since the date of its formation, minus subsequent distributions to shareholders and transfers to surplus or capital under share dividends or appropriate board resolutions. The term includes amounts allocated to undivided profits as a result of a merger; and

(56) "Voting security" means a share, or other evidence of proprietary interest in a state trust company or other company that has as an attribute the right to vote or participate in the election of the board of the state trust company or other company, regardless of whether the right is limited to the election of fewer than all of the board members. The term includes a security that is convertible or exchangeable into a voting security.

(57) (A) "Foundation" means an organization that: (i) Is organized and operated for religious, educational, or charitable purposes, as defined in section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3) , as it existed on January 1, 2019; (ii) Has equity capital of at least one million dollars ($1,000,000); (iii) Has fiduciary liability insurance coverage with policy limits of not less than two million dollars ($2,000,000); (iv) Adopts and maintains written fiduciary policies and procedures; (v) Has an annual independent audit that covers fiduciary activities and assets; and (vi) (a) Is serving as a fiduciary for a trust or estate whose assets are less than seven hundred fifty thousand dollars ($750,000). (b) Subdivision (a)(57)(A)(vi) (a) of this section does not apply if: (1) The foundation is the sole remainder beneficiary of the trust or estate; or (2) The remainder beneficiary is an organization that is supported by the foundation. (B) "Foundation" does not include a private foundation as defined in section 509(a) of the Internal Revenue Code of 1986, 26 U.S.C. § 509(a) .

(A) "Foundation" means an organization that: (i) Is organized and operated for religious, educational, or charitable purposes, as defined in section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3) , as it existed on January 1, 2019; (ii) Has equity capital of at least one million dollars ($1,000,000); (iii) Has fiduciary liability insurance coverage with policy limits of not less than two million dollars ($2,000,000); (iv) Adopts and maintains written fiduciary policies and procedures; (v) Has an annual independent audit that covers fiduciary activities and assets; and (vi) (a) Is serving as a fiduciary for a trust or estate whose assets are less than seven hundred fifty thousand dollars ($750,000). (b) Subdivision (a)(57)(A)(vi) (a) of this section does not apply if: (1) The foundation is the sole remainder beneficiary of the trust or estate; or (2) The remainder beneficiary is an organization that is supported by the foundation.

(i) Is organized and operated for religious, educational, or charitable purposes, as defined in section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3) , as it existed on January 1, 2019;

(ii) Has equity capital of at least one million dollars ($1,000,000);

(iii) Has fiduciary liability insurance coverage with policy limits of not less than two million dollars ($2,000,000);

(iv) Adopts and maintains written fiduciary policies and procedures;

(v) Has an annual independent audit that covers fiduciary activities and assets; and

(vi) (a) Is serving as a fiduciary for a trust or estate whose assets are less than seven hundred fifty thousand dollars ($750,000). (b) Subdivision (a)(57)(A)(vi) (a) of this section does not apply if: (1) The foundation is the sole remainder beneficiary of the trust or estate; or (2) The remainder beneficiary is an organization that is supported by the foundation.

(a) Is serving as a fiduciary for a trust or estate whose assets are less than seven hundred fifty thousand dollars ($750,000).

(b) Subdivision (a)(57)(A)(vi) (a) of this section does not apply if: (1) The foundation is the sole remainder beneficiary of the trust or estate; or (2) The remainder beneficiary is an organization that is supported by the foundation.

(1) The foundation is the sole remainder beneficiary of the trust or estate; or

(2) The remainder beneficiary is an organization that is supported by the foundation.

(B) "Foundation" does not include a private foundation as defined in section 509(a) of the Internal Revenue Code of 1986, 26 U.S.C. § 509(a) .

(b) These definitions shall be liberally construed to accomplish the purposes of this chapter. The commissioner by rule may adopt other definitions to accomplish the purposes of this chapter.

Amended by Act 2019, No. 315,§ 2563, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 2562, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 2561, eff. 7/24/2019.

Amended by Act 2019, No. 836,§ 3, eff. 7/24/2019.

Amended by Act 2019, No. 836,§ 2, eff. 7/24/2019.

Amended by Act 2019, No. 836,§ 1, eff. 7/24/2019.

Acts 1997, No. 940, § 2.
Ark. Code Ann. § 23-63-511 — AR Code / Title 23 / Chapter 63 / Subchapter 5 / Section 23-63-511
Control of or merger with domestic insurer - Mailings
Status: in_force

(a) All statements, amendments, or other materials filed pursuant to § 23-63-506 or § 23-63-508 and all notices of public hearings held pursuant to § 23-63-510 shall be mailed by the insurer to its shareholders within five (5) business days after the insurer has received the statements, amendments, other material, or notices. (b) The expenses of mailing shall be borne by the person making the filing. (c) As security for the payment of the expenses, the person shall file with the Insurance Commissioner an acceptable bond or other deposit in an amount to be determined by the commissioner. Acts 1971, No. 288, § 5; A.S.A. 1947, § 66-5005.

(a) All statements, amendments, or other materials filed pursuant to § 23-63-506 or § 23-63-508 and all notices of public hearings held pursuant to § 23-63-510 shall be mailed by the insurer to its shareholders within five (5) business days after the insurer has received the statements, amendments, other material, or notices.

(b) The expenses of mailing shall be borne by the person making the filing.

(c) As security for the payment of the expenses, the person shall file with the Insurance Commissioner an acceptable bond or other deposit in an amount to be determined by the commissioner.

Acts 1971, No. 288, § 5; A.S.A. 1947, § 66-5005.
Ark. Code Ann. § 23-12-412 — AR Code / Title 23 / Chapter 12 / Subchapter 4 / Section 23-12-412
Stock guards required when railroad passes through enclosure
Status: in_force

(a) (1) It shall be the duty of all railroad companies organized under the laws of this state or any other state, which have constructed or may construct a railroad which may pass through or upon any enclosed lands of another, whether such lands were enclosed at the time of the construction of the railroad or were enclosed thereafter, upon receiving ten (10) days' notice in writing from the owner or agent of the lands to construct suitable and safe stock guards on either side of the enclosure where the railroad enters the enclosure and to keep the guards in good repair. (2) The notice as provided in this subsection may be had by the persons aggrieved or their agent serving a written notice upon a station agent, or upon any person upon whom service may be had in the employ of the railroad company, or any officer thereof. Proof that the written notice was delivered as required in this subdivision (a)(2) shall be sufficient. (b) (1) Any railroad company failing to comply with the requirements of subdivision (a)(1) of this section shall be liable to the persons aggrieved thereby for the actual damages caused to the persons by reason of the failure of any railroad company to properly construct, keep, and maintain in good repair the stock guards. (2) In addition to the actual damages, the railroad company shall be liable for a penalty of not less than twenty-five dollars ($25.00) nor more than one hundred dollars ($100) for each offense. (3) The penalty may be collected, together with the actual damages, by a civil suit in any court having jurisdiction thereof. Acts 1893, No. 140, §§ 1, 2, p. 244; 1909, No. 53, §§ 1, 2, p. 135; C. & M. Dig., §§ 8478, 8479; Pope's Dig., §§ 11052, 11053; A.S.A. 1947, §§ 73-623, 73-624.

(a) (1) It shall be the duty of all railroad companies organized under the laws of this state or any other state, which have constructed or may construct a railroad which may pass through or upon any enclosed lands of another, whether such lands were enclosed at the time of the construction of the railroad or were enclosed thereafter, upon receiving ten (10) days' notice in writing from the owner or agent of the lands to construct suitable and safe stock guards on either side of the enclosure where the railroad enters the enclosure and to keep the guards in good repair. (2) The notice as provided in this subsection may be had by the persons aggrieved or their agent serving a written notice upon a station agent, or upon any person upon whom service may be had in the employ of the railroad company, or any officer thereof. Proof that the written notice was delivered as required in this subdivision (a)(2) shall be sufficient.

(1) It shall be the duty of all railroad companies organized under the laws of this state or any other state, which have constructed or may construct a railroad which may pass through or upon any enclosed lands of another, whether such lands were enclosed at the time of the construction of the railroad or were enclosed thereafter, upon receiving ten (10) days' notice in writing from the owner or agent of the lands to construct suitable and safe stock guards on either side of the enclosure where the railroad enters the enclosure and to keep the guards in good repair.

(2) The notice as provided in this subsection may be had by the persons aggrieved or their agent serving a written notice upon a station agent, or upon any person upon whom service may be had in the employ of the railroad company, or any officer thereof. Proof that the written notice was delivered as required in this subdivision (a)(2) shall be sufficient.

(b) (1) Any railroad company failing to comply with the requirements of subdivision (a)(1) of this section shall be liable to the persons aggrieved thereby for the actual damages caused to the persons by reason of the failure of any railroad company to properly construct, keep, and maintain in good repair the stock guards. (2) In addition to the actual damages, the railroad company shall be liable for a penalty of not less than twenty-five dollars ($25.00) nor more than one hundred dollars ($100) for each offense. (3) The penalty may be collected, together with the actual damages, by a civil suit in any court having jurisdiction thereof.

(1) Any railroad company failing to comply with the requirements of subdivision (a)(1) of this section shall be liable to the persons aggrieved thereby for the actual damages caused to the persons by reason of the failure of any railroad company to properly construct, keep, and maintain in good repair the stock guards.

(2) In addition to the actual damages, the railroad company shall be liable for a penalty of not less than twenty-five dollars ($25.00) nor more than one hundred dollars ($100) for each offense.

(3) The penalty may be collected, together with the actual damages, by a civil suit in any court having jurisdiction thereof.

Acts 1893, No. 140, §§ 1, 2, p. 244; 1909, No. 53, §§ 1, 2, p. 135; C. & M. Dig., §§ 8478, 8479; Pope's Dig., §§ 11052, 11053; A.S.A. 1947, §§ 73-623, 73-624.
Ark. Code Ann. § 23-64-202 — AR Code / Title 23 / Chapter 64 / Subchapter 2 / Section 23-64-202
General qualifications for licensure - Exemptions - Definitions
Status: in_force

(a) For the protection of the people of this state, the Insurance Commissioner shall not, at or before completion of application processing, issue, continue, or permit to exist any license as to insurance unless the licensee is in compliance with this chapter and other applicable laws of this state, and as to any individual who does not also meet the following qualifications: (1) To obtain a license as an agent or broker, he or she shall have complied with the Producer Licensing Model Act, § 23-64-501 et seq., and subsection (b) of this section; and (2) To obtain a license as an adjuster or insurance consultant, he or she must be: (A) Of legal age of majority or must have had disabilities of minority removed for all general purposes and provide evidence of same; (B) (i) A resident of this state or of a city or town through which passes the boundary of this state, qualified as to residence under § 23-64-102(2)(B) and must have been a resident for not less than the thirty (30) days immediately prior to the date of application for the license. (ii) However, upon written request by the applicant, the commissioner in his or her discretion may waive the thirty-day residence requirement as to any applicant for license who is a bona fide resident of this state and who furnishes proof satisfactory to the commissioner that he or she is and intends to be a permanent resident of Arkansas; and (C) (i) Deemed by the commissioner to be competent, trustworthy, financially responsible, and of good personal and business reputation, and these qualifications must continue in order to remain licensed. (ii) On a case-by-case basis, the commissioner may require documentation to verify qualifications for licensure under this section. (b) All applicants for a license as an agent, broker, adjuster, or insurance consultant shall: (1) Pass a written examination for the license if required under this chapter and attest that he or she is familiar with the insurance laws of this state and will keep himself or herself familiar despite changes in the law; and (2) (A) (i) Before licensure or examination, if examination is required, complete specific courses of instruction in the field of insurance as the commissioner shall by rule prescribe for the license. (ii) Proof of completion must be presented before testing is administered. (iii) (a) The courses of instruction shall consist, in the aggregate, of not less than twenty (20) hours of classroom instruction or electronic instruction per line of insurance authority. However, an applicant shall not be required to repeat the hours of instruction on Arkansas laws and rules within two (2) years of taking those hours for a previous line of authority. (b) All instruction shall be administered by or under the supervision of persons qualifying with and approved by the commissioner for that purpose. (c) An instructor deemed qualified and approved by the commissioner shall monitor attendance and participation and shall sign a certificate evidencing the licensee's completion of the hours. (d) An applicant for an insurance consultant license is exempt from prelicensing education, as are nonresident applicants for producer and adjuster licenses from states that engage in reciprocal licensing with Arkansas. (iv) Successful completion of the courses of instruction shall be certified to the commissioner, on forms prescribed by him or her, by the person under whose supervision the instruction was administered. (v) The courses of instruction shall provide the applicant with basic knowledge of the broad principles of insurance, licensing, and regulatory laws of this state, and the obligations and duties of an agent, broker, or consultant. (vi) Programs of instruction may be provided by any authorized insurer, agents' association, or trade association recognized by the commissioner or by any university, college, or any other institution in this state having a comprehensive course of instruction approved and certified by the commissioner. (vii) The commissioner shall issue appropriate rules to implement the educational requirements and standards prescribed in this subdivision (b)(2) and to prescribe the general curriculum of courses of instruction. (viii) The curriculum shall include not less than five (5) hours of instruction relative to the licensing of agents and insurance regulatory laws of this state, criteria for approval of the providers of the courses of instruction, and certifications contemplated hereunder. (B) None of the provisions of this subsection shall apply to and no examination or educational requirements contained in this subsection shall be required of any applicant for a license presently exempted by law from an examination. (C) The provisions of subdivision (b)(2)(A) of this section shall not apply to persons making application for license as an agent or broker for crop hail insurance, mobile home physical damage insurance, mortgagor's decreasing term life and disability insurance, prepaid legal insurance, and fire and marine insurance written in connection with credit transactions, or any line exempted by law, for which only a limited license is issued, nor any other insurance for which only a limited license may be issued and the commissioner, by order or regulation, exempts from the educational requirements of subdivision (b)(2)(A) of this section. (c) No written examination shall be required for: (1) Any applicant for a license as a limited line credit insurance producer as defined in § 23-64-502 ; (2) Automobile dealers or automobile finance companies or their employees applying for licenses covering auto physical damage or the vendor's single interest on motor vehicles only; (3) Limited lines travel insurance producers and their travel retailers; (4) Applicants for licenses as nonresident agents or nonresident brokers, but subject to reciprocal arrangements as provided for in this chapter; (5) Any applicant for a temporary license under this chapter; (6) Applicants for licenses to sell credit property insurance; (7) (A) Applicants for licenses to sell funeral expense insurance exclusively. (B) "Funeral expense insurance" shall be defined in rules adopted by the commissioner; (8) Applicants for licenses to sell mortgagor's decreasing term life insurance or mortgagor's decreasing term disability insurance to debtors of the applicants or of their employers; or (9) Applicants for licenses to sell for farmers' mutual aid associations. (d) (1) The commissioner may issue to a rental company that has complied with the requirements of this subsection a limited license authorizing the limited licensee to offer or sell insurance in connection with the rental of vehicles. (2) As used in this subsection: (A) "Limited license" means the authority of a person or entity authorized to sell certain coverages relating to the rental of vehicles pursuant to the provisions of this subsection; (B) "Rental agreement" means any written agreement setting forth the terms and conditions governing the use of a vehicle provided by the rental company for rental or lease; (C) "Rental company" means any person or entity in the business of providing primarily private passenger vehicles to the public under a rental agreement for a period not to exceed ninety (90) days; (D) "Rental period" means the term of the rental agreement; (E) "Renter" means any person obtaining the use of a vehicle from a rental company under the terms of a rental agreement for a period not to exceed ninety (90) days; and (F) "Vehicle" or "rental vehicle" means a motor vehicle of the private passenger type, including passenger vans, minivans, and sport utility vehicles and of the cargo type, including cargo vans, pickup trucks, and trucks with a gross vehicle weight of less than twenty-six thousand pounds (26,000 lbs.) and that do not require the operator to possess a commercial driver's license. (3) As a prerequisite for issuance of a limited license under this subsection, there shall be filed with the commissioner a written application for a limited license signed by an officer of the applicant, in such form or forms and supplements thereto, and containing such information as the commissioner may prescribe. (4) In the event that any provision of this subsection is violated by a limited licensee, the commissioner may: (A) After notice and hearing, revoke or suspend a limited license issued under this subsection in accordance with the provisions of law; or (B) After notice and hearing, impose other penalties, including suspending the transaction of insurance at specific rental locations where violations of this subsection have occurred, as the commissioner deems to be necessary or convenient to carry out the purposes of this subsection. (5) The rental company licensed pursuant to this subsection may offer or sell insurance underwritten by a licensed insurer or authorized surplus lines carrier only in connection with and incidental to the rental of vehicles, whether at the rental office or by preselection coverage in a master, corporate, group rental, or individual agreement in any of the following general categories: (A) Personal accident insurance covering the risks of travel, including, but not limited to, accident and health insurance that provides coverage, as applicable, to renters and other rental vehicle occupants for accidental death or dismemberment and reimbursement for medical expenses resulting from an accident that occurs during the rental period; (B) Liability insurance that at the exclusive option of the rental company may include uninsured and underinsured motorist coverage whether offered separately or in combination with other liability insurance that provides coverage, as applicable, to renters and other authorized drivers of rental vehicles for liability arising from the operation of the rental vehicle; (C) Personal effects insurance that provides coverage, as applicable, to renters and other vehicle occupants for the loss of or damage to personal effects that occurs during the rental period; (D) Roadside assistance and emergency sickness protection programs; and (E) Any other travel or auto-related coverage that a rental company offers in connection with and incidental to the rental of vehicles. (6) No insurance may be issued by a limited licensee pursuant to this subsection unless: (A) The rental period of the rental agreement does not exceed ninety (90) consecutive days; (B) At every rental location where rental agreements are executed, brochures or other written materials are readily available to the prospective renter that: (i) Summarize clearly and correctly the material terms of coverage offered to renters, including the identity of the insurer; (ii) Disclose that the coverage offered by the rental company may provide a duplication of coverage already provided by a renter's personal automobile insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage; (iii) State that the purchase by the renter of the kinds of coverage specified in this subsection is not required in order to rent a vehicle; and (iv) Describe the process for filing a claim in the event the renter elects to purchase coverage and in the event of a claim; and (C) Evidence of coverage is disclosed within the rental agreement provided to every renter who elects to purchase such coverage. (7) Any limited license issued under this subsection shall also authorize any employee of the limited licensee to act individually on behalf of and under the supervision of the limited licensee with respect to the kinds of coverage specified in this subsection. (8) Each rental company licensed pursuant to this subsection shall conduct a training program in which employees being trained shall receive basic instruction about the kinds of coverage specified in this subsection and offered for purchase by prospective renters of rental vehicles. (9) Notwithstanding any other provision of this subsection or any rule adopted by the commissioner, a limited licensee pursuant to this subsection shall not be required to treat moneys collected from renters purchasing such insurance when renting vehicles as funds received in a fiduciary capacity, provided that the charges for coverages shall be itemized and be ancillary to a rental transaction. The sale of insurance not in conjunction with a rental transaction shall not be permitted. (10) No limited licensee under this subsection shall advertise, represent, or otherwise hold itself or any of its employees out as licensed insurers, insurance agents, or insurance brokers. Amended by Act 2021, No. 397,§ 1, eff. 7/28/2021. Amended by Act 2019, No. 698,§ 2, eff. for travel insurance sold on or after 10/1/2019. Amended by Act 2019, No. 315,§ 2648, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 2647, eff. 7/24/2019. Amended by Act 2013, No. 1494,§ 2, eff. 8/16/2013. Amended by Act 2013, No. 1494,§ 1, eff. 8/16/2013. Acts 1959, No. 148, § 153; 1975, No. 547, § 1; 1983, No. 522, §§ 10, 11; 1983, No. 534, §§ 1, 4, 5; A.S.A. 1947, §§ 66-2810, 66-2811.2, 66-2811.3; Acts 1987, No. 927, § 2; 1993, No. 523, § 1; 1993, No. 901, §§ 14-16; 1995, No. 592, § 1; 1997, No. 1004, § 1; 2001, No. 580, § 6; 2003, No. 1203, § 2; 2005, No. 1948, § 1.

(a) For the protection of the people of this state, the Insurance Commissioner shall not, at or before completion of application processing, issue, continue, or permit to exist any license as to insurance unless the licensee is in compliance with this chapter and other applicable laws of this state, and as to any individual who does not also meet the following qualifications: (1) To obtain a license as an agent or broker, he or she shall have complied with the Producer Licensing Model Act, § 23-64-501 et seq., and subsection (b) of this section; and (2) To obtain a license as an adjuster or insurance consultant, he or she must be: (A) Of legal age of majority or must have had disabilities of minority removed for all general purposes and provide evidence of same; (B) (i) A resident of this state or of a city or town through which passes the boundary of this state, qualified as to residence under § 23-64-102(2)(B) and must have been a resident for not less than the thirty (30) days immediately prior to the date of application for the license. (ii) However, upon written request by the applicant, the commissioner in his or her discretion may waive the thirty-day residence requirement as to any applicant for license who is a bona fide resident of this state and who furnishes proof satisfactory to the commissioner that he or she is and intends to be a permanent resident of Arkansas; and (C) (i) Deemed by the commissioner to be competent, trustworthy, financially responsible, and of good personal and business reputation, and these qualifications must continue in order to remain licensed. (ii) On a case-by-case basis, the commissioner may require documentation to verify qualifications for licensure under this section.

(1) To obtain a license as an agent or broker, he or she shall have complied with the Producer Licensing Model Act, § 23-64-501 et seq., and subsection (b) of this section; and

(2) To obtain a license as an adjuster or insurance consultant, he or she must be: (A) Of legal age of majority or must have had disabilities of minority removed for all general purposes and provide evidence of same; (B) (i) A resident of this state or of a city or town through which passes the boundary of this state, qualified as to residence under § 23-64-102(2)(B) and must have been a resident for not less than the thirty (30) days immediately prior to the date of application for the license. (ii) However, upon written request by the applicant, the commissioner in his or her discretion may waive the thirty-day residence requirement as to any applicant for license who is a bona fide resident of this state and who furnishes proof satisfactory to the commissioner that he or she is and intends to be a permanent resident of Arkansas; and (C) (i) Deemed by the commissioner to be competent, trustworthy, financially responsible, and of good personal and business reputation, and these qualifications must continue in order to remain licensed. (ii) On a case-by-case basis, the commissioner may require documentation to verify qualifications for licensure under this section.

(A) Of legal age of majority or must have had disabilities of minority removed for all general purposes and provide evidence of same;

(B) (i) A resident of this state or of a city or town through which passes the boundary of this state, qualified as to residence under § 23-64-102(2)(B) and must have been a resident for not less than the thirty (30) days immediately prior to the date of application for the license. (ii) However, upon written request by the applicant, the commissioner in his or her discretion may waive the thirty-day residence requirement as to any applicant for license who is a bona fide resident of this state and who furnishes proof satisfactory to the commissioner that he or she is and intends to be a permanent resident of Arkansas; and

(i) A resident of this state or of a city or town through which passes the boundary of this state, qualified as to residence under § 23-64-102(2)(B) and must have been a resident for not less than the thirty (30) days immediately prior to the date of application for the license.

(ii) However, upon written request by the applicant, the commissioner in his or her discretion may waive the thirty-day residence requirement as to any applicant for license who is a bona fide resident of this state and who furnishes proof satisfactory to the commissioner that he or she is and intends to be a permanent resident of Arkansas; and

(C) (i) Deemed by the commissioner to be competent, trustworthy, financially responsible, and of good personal and business reputation, and these qualifications must continue in order to remain licensed. (ii) On a case-by-case basis, the commissioner may require documentation to verify qualifications for licensure under this section.

(i) Deemed by the commissioner to be competent, trustworthy, financially responsible, and of good personal and business reputation, and these qualifications must continue in order to remain licensed.

(ii) On a case-by-case basis, the commissioner may require documentation to verify qualifications for licensure under this section.

(b) All applicants for a license as an agent, broker, adjuster, or insurance consultant shall: (1) Pass a written examination for the license if required under this chapter and attest that he or she is familiar with the insurance laws of this state and will keep himself or herself familiar despite changes in the law; and (2) (A) (i) Before licensure or examination, if examination is required, complete specific courses of instruction in the field of insurance as the commissioner shall by rule prescribe for the license. (ii) Proof of completion must be presented before testing is administered. (iii) (a) The courses of instruction shall consist, in the aggregate, of not less than twenty (20) hours of classroom instruction or electronic instruction per line of insurance authority. However, an applicant shall not be required to repeat the hours of instruction on Arkansas laws and rules within two (2) years of taking those hours for a previous line of authority. (b) All instruction shall be administered by or under the supervision of persons qualifying with and approved by the commissioner for that purpose. (c) An instructor deemed qualified and approved by the commissioner shall monitor attendance and participation and shall sign a certificate evidencing the licensee's completion of the hours. (d) An applicant for an insurance consultant license is exempt from prelicensing education, as are nonresident applicants for producer and adjuster licenses from states that engage in reciprocal licensing with Arkansas. (iv) Successful completion of the courses of instruction shall be certified to the commissioner, on forms prescribed by him or her, by the person under whose supervision the instruction was administered. (v) The courses of instruction shall provide the applicant with basic knowledge of the broad principles of insurance, licensing, and regulatory laws of this state, and the obligations and duties of an agent, broker, or consultant. (vi) Programs of instruction may be provided by any authorized insurer, agents' association, or trade association recognized by the commissioner or by any university, college, or any other institution in this state having a comprehensive course of instruction approved and certified by the commissioner. (vii) The commissioner shall issue appropriate rules to implement the educational requirements and standards prescribed in this subdivision (b)(2) and to prescribe the general curriculum of courses of instruction. (viii) The curriculum shall include not less than five (5) hours of instruction relative to the licensing of agents and insurance regulatory laws of this state, criteria for approval of the providers of the courses of instruction, and certifications contemplated hereunder. (B) None of the provisions of this subsection shall apply to and no examination or educational requirements contained in this subsection shall be required of any applicant for a license presently exempted by law from an examination. (C) The provisions of subdivision (b)(2)(A) of this section shall not apply to persons making application for license as an agent or broker for crop hail insurance, mobile home physical damage insurance, mortgagor's decreasing term life and disability insurance, prepaid legal insurance, and fire and marine insurance written in connection with credit transactions, or any line exempted by law, for which only a limited license is issued, nor any other insurance for which only a limited license may be issued and the commissioner, by order or regulation, exempts from the educational requirements of subdivision (b)(2)(A) of this section.

(1) Pass a written examination for the license if required under this chapter and attest that he or she is familiar with the insurance laws of this state and will keep himself or herself familiar despite changes in the law; and

(2) (A) (i) Before licensure or examination, if examination is required, complete specific courses of instruction in the field of insurance as the commissioner shall by rule prescribe for the license. (ii) Proof of completion must be presented before testing is administered. (iii) (a) The courses of instruction shall consist, in the aggregate, of not less than twenty (20) hours of classroom instruction or electronic instruction per line of insurance authority. However, an applicant shall not be required to repeat the hours of instruction on Arkansas laws and rules within two (2) years of taking those hours for a previous line of authority. (b) All instruction shall be administered by or under the supervision of persons qualifying with and approved by the commissioner for that purpose. (c) An instructor deemed qualified and approved by the commissioner shall monitor attendance and participation and shall sign a certificate evidencing the licensee's completion of the hours. (d) An applicant for an insurance consultant license is exempt from prelicensing education, as are nonresident applicants for producer and adjuster licenses from states that engage in reciprocal licensing with Arkansas. (iv) Successful completion of the courses of instruction shall be certified to the commissioner, on forms prescribed by him or her, by the person under whose supervision the instruction was administered. (v) The courses of instruction shall provide the applicant with basic knowledge of the broad principles of insurance, licensing, and regulatory laws of this state, and the obligations and duties of an agent, broker, or consultant. (vi) Programs of instruction may be provided by any authorized insurer, agents' association, or trade association recognized by the commissioner or by any university, college, or any other institution in this state having a comprehensive course of instruction approved and certified by the commissioner. (vii) The commissioner shall issue appropriate rules to implement the educational requirements and standards prescribed in this subdivision (b)(2) and to prescribe the general curriculum of courses of instruction. (viii) The curriculum shall include not less than five (5) hours of instruction relative to the licensing of agents and insurance regulatory laws of this state, criteria for approval of the providers of the courses of instruction, and certifications contemplated hereunder. (B) None of the provisions of this subsection shall apply to and no examination or educational requirements contained in this subsection shall be required of any applicant for a license presently exempted by law from an examination. (C) The provisions of subdivision (b)(2)(A) of this section shall not apply to persons making application for license as an agent or broker for crop hail insurance, mobile home physical damage insurance, mortgagor's decreasing term life and disability insurance, prepaid legal insurance, and fire and marine insurance written in connection with credit transactions, or any line exempted by law, for which only a limited license is issued, nor any other insurance for which only a limited license may be issued and the commissioner, by order or regulation, exempts from the educational requirements of subdivision (b)(2)(A) of this section.

(A) (i) Before licensure or examination, if examination is required, complete specific courses of instruction in the field of insurance as the commissioner shall by rule prescribe for the license. (ii) Proof of completion must be presented before testing is administered. (iii) (a) The courses of instruction shall consist, in the aggregate, of not less than twenty (20) hours of classroom instruction or electronic instruction per line of insurance authority. However, an applicant shall not be required to repeat the hours of instruction on Arkansas laws and rules within two (2) years of taking those hours for a previous line of authority. (b) All instruction shall be administered by or under the supervision of persons qualifying with and approved by the commissioner for that purpose. (c) An instructor deemed qualified and approved by the commissioner shall monitor attendance and participation and shall sign a certificate evidencing the licensee's completion of the hours. (d) An applicant for an insurance consultant license is exempt from prelicensing education, as are nonresident applicants for producer and adjuster licenses from states that engage in reciprocal licensing with Arkansas. (iv) Successful completion of the courses of instruction shall be certified to the commissioner, on forms prescribed by him or her, by the person under whose supervision the instruction was administered. (v) The courses of instruction shall provide the applicant with basic knowledge of the broad principles of insurance, licensing, and regulatory laws of this state, and the obligations and duties of an agent, broker, or consultant. (vi) Programs of instruction may be provided by any authorized insurer, agents' association, or trade association recognized by the commissioner or by any university, college, or any other institution in this state having a comprehensive course of instruction approved and certified by the commissioner. (vii) The commissioner shall issue appropriate rules to implement the educational requirements and standards prescribed in this subdivision (b)(2) and to prescribe the general curriculum of courses of instruction. (viii) The curriculum shall include not less than five (5) hours of instruction relative to the licensing of agents and insurance regulatory laws of this state, criteria for approval of the providers of the courses of instruction, and certifications contemplated hereunder.

(i) Before licensure or examination, if examination is required, complete specific courses of instruction in the field of insurance as the commissioner shall by rule prescribe for the license.

(ii) Proof of completion must be presented before testing is administered.

(iii) (a) The courses of instruction shall consist, in the aggregate, of not less than twenty (20) hours of classroom instruction or electronic instruction per line of insurance authority. However, an applicant shall not be required to repeat the hours of instruction on Arkansas laws and rules within two (2) years of taking those hours for a previous line of authority. (b) All instruction shall be administered by or under the supervision of persons qualifying with and approved by the commissioner for that purpose. (c) An instructor deemed qualified and approved by the commissioner shall monitor attendance and participation and shall sign a certificate evidencing the licensee's completion of the hours. (d) An applicant for an insurance consultant license is exempt from prelicensing education, as are nonresident applicants for producer and adjuster licenses from states that engage in reciprocal licensing with Arkansas.

(a) The courses of instruction shall consist, in the aggregate, of not less than twenty (20) hours of classroom instruction or electronic instruction per line of insurance authority. However, an applicant shall not be required to repeat the hours of instruction on Arkansas laws and rules within two (2) years of taking those hours for a previous line of authority.

(b) All instruction shall be administered by or under the supervision of persons qualifying with and approved by the commissioner for that purpose.

(c) An instructor deemed qualified and approved by the commissioner shall monitor attendance and participation and shall sign a certificate evidencing the licensee's completion of the hours.

(d) An applicant for an insurance consultant license is exempt from prelicensing education, as are nonresident applicants for producer and adjuster licenses from states that engage in reciprocal licensing with Arkansas.

(iv) Successful completion of the courses of instruction shall be certified to the commissioner, on forms prescribed by him or her, by the person under whose supervision the instruction was administered.

(v) The courses of instruction shall provide the applicant with basic knowledge of the broad principles of insurance, licensing, and regulatory laws of this state, and the obligations and duties of an agent, broker, or consultant.

(vi) Programs of instruction may be provided by any authorized insurer, agents' association, or trade association recognized by the commissioner or by any university, college, or any other institution in this state having a comprehensive course of instruction approved and certified by the commissioner.

(vii) The commissioner shall issue appropriate rules to implement the educational requirements and standards prescribed in this subdivision (b)(2) and to prescribe the general curriculum of courses of instruction.

(viii) The curriculum shall include not less than five (5) hours of instruction relative to the licensing of agents and insurance regulatory laws of this state, criteria for approval of the providers of the courses of instruction, and certifications contemplated hereunder.

(B) None of the provisions of this subsection shall apply to and no examination or educational requirements contained in this subsection shall be required of any applicant for a license presently exempted by law from an examination.

(C) The provisions of subdivision (b)(2)(A) of this section shall not apply to persons making application for license as an agent or broker for crop hail insurance, mobile home physical damage insurance, mortgagor's decreasing term life and disability insurance, prepaid legal insurance, and fire and marine insurance written in connection with credit transactions, or any line exempted by law, for which only a limited license is issued, nor any other insurance for which only a limited license may be issued and the commissioner, by order or regulation, exempts from the educational requirements of subdivision (b)(2)(A) of this section.

(c) No written examination shall be required for: (1) Any applicant for a license as a limited line credit insurance producer as defined in § 23-64-502 ; (2) Automobile dealers or automobile finance companies or their employees applying for licenses covering auto physical damage or the vendor's single interest on motor vehicles only; (3) Limited lines travel insurance producers and their travel retailers; (4) Applicants for licenses as nonresident agents or nonresident brokers, but subject to reciprocal arrangements as provided for in this chapter; (5) Any applicant for a temporary license under this chapter; (6) Applicants for licenses to sell credit property insurance; (7) (A) Applicants for licenses to sell funeral expense insurance exclusively. (B) "Funeral expense insurance" shall be defined in rules adopted by the commissioner; (8) Applicants for licenses to sell mortgagor's decreasing term life insurance or mortgagor's decreasing term disability insurance to debtors of the applicants or of their employers; or (9) Applicants for licenses to sell for farmers' mutual aid associations.

(1) Any applicant for a license as a limited line credit insurance producer as defined in § 23-64-502 ;

(2) Automobile dealers or automobile finance companies or their employees applying for licenses covering auto physical damage or the vendor's single interest on motor vehicles only;

(3) Limited lines travel insurance producers and their travel retailers;

(4) Applicants for licenses as nonresident agents or nonresident brokers, but subject to reciprocal arrangements as provided for in this chapter;

(5) Any applicant for a temporary license under this chapter;

(6) Applicants for licenses to sell credit property insurance;

(7) (A) Applicants for licenses to sell funeral expense insurance exclusively. (B) "Funeral expense insurance" shall be defined in rules adopted by the commissioner;

(A) Applicants for licenses to sell funeral expense insurance exclusively.

(B) "Funeral expense insurance" shall be defined in rules adopted by the commissioner;

(8) Applicants for licenses to sell mortgagor's decreasing term life insurance or mortgagor's decreasing term disability insurance to debtors of the applicants or of their employers; or

(9) Applicants for licenses to sell for farmers' mutual aid associations.

(d) (1) The commissioner may issue to a rental company that has complied with the requirements of this subsection a limited license authorizing the limited licensee to offer or sell insurance in connection with the rental of vehicles. (2) As used in this subsection: (A) "Limited license" means the authority of a person or entity authorized to sell certain coverages relating to the rental of vehicles pursuant to the provisions of this subsection; (B) "Rental agreement" means any written agreement setting forth the terms and conditions governing the use of a vehicle provided by the rental company for rental or lease; (C) "Rental company" means any person or entity in the business of providing primarily private passenger vehicles to the public under a rental agreement for a period not to exceed ninety (90) days; (D) "Rental period" means the term of the rental agreement; (E) "Renter" means any person obtaining the use of a vehicle from a rental company under the terms of a rental agreement for a period not to exceed ninety (90) days; and (F) "Vehicle" or "rental vehicle" means a motor vehicle of the private passenger type, including passenger vans, minivans, and sport utility vehicles and of the cargo type, including cargo vans, pickup trucks, and trucks with a gross vehicle weight of less than twenty-six thousand pounds (26,000 lbs.) and that do not require the operator to possess a commercial driver's license. (3) As a prerequisite for issuance of a limited license under this subsection, there shall be filed with the commissioner a written application for a limited license signed by an officer of the applicant, in such form or forms and supplements thereto, and containing such information as the commissioner may prescribe. (4) In the event that any provision of this subsection is violated by a limited licensee, the commissioner may: (A) After notice and hearing, revoke or suspend a limited license issued under this subsection in accordance with the provisions of law; or (B) After notice and hearing, impose other penalties, including suspending the transaction of insurance at specific rental locations where violations of this subsection have occurred, as the commissioner deems to be necessary or convenient to carry out the purposes of this subsection. (5) The rental company licensed pursuant to this subsection may offer or sell insurance underwritten by a licensed insurer or authorized surplus lines carrier only in connection with and incidental to the rental of vehicles, whether at the rental office or by preselection coverage in a master, corporate, group rental, or individual agreement in any of the following general categories: (A) Personal accident insurance covering the risks of travel, including, but not limited to, accident and health insurance that provides coverage, as applicable, to renters and other rental vehicle occupants for accidental death or dismemberment and reimbursement for medical expenses resulting from an accident that occurs during the rental period; (B) Liability insurance that at the exclusive option of the rental company may include uninsured and underinsured motorist coverage whether offered separately or in combination with other liability insurance that provides coverage, as applicable, to renters and other authorized drivers of rental vehicles for liability arising from the operation of the rental vehicle; (C) Personal effects insurance that provides coverage, as applicable, to renters and other vehicle occupants for the loss of or damage to personal effects that occurs during the rental period; (D) Roadside assistance and emergency sickness protection programs; and (E) Any other travel or auto-related coverage that a rental company offers in connection with and incidental to the rental of vehicles. (6) No insurance may be issued by a limited licensee pursuant to this subsection unless: (A) The rental period of the rental agreement does not exceed ninety (90) consecutive days; (B) At every rental location where rental agreements are executed, brochures or other written materials are readily available to the prospective renter that: (i) Summarize clearly and correctly the material terms of coverage offered to renters, including the identity of the insurer; (ii) Disclose that the coverage offered by the rental company may provide a duplication of coverage already provided by a renter's personal automobile insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage; (iii) State that the purchase by the renter of the kinds of coverage specified in this subsection is not required in order to rent a vehicle; and (iv) Describe the process for filing a claim in the event the renter elects to purchase coverage and in the event of a claim; and (C) Evidence of coverage is disclosed within the rental agreement provided to every renter who elects to purchase such coverage. (7) Any limited license issued under this subsection shall also authorize any employee of the limited licensee to act individually on behalf of and under the supervision of the limited licensee with respect to the kinds of coverage specified in this subsection. (8) Each rental company licensed pursuant to this subsection shall conduct a training program in which employees being trained shall receive basic instruction about the kinds of coverage specified in this subsection and offered for purchase by prospective renters of rental vehicles. (9) Notwithstanding any other provision of this subsection or any rule adopted by the commissioner, a limited licensee pursuant to this subsection shall not be required to treat moneys collected from renters purchasing such insurance when renting vehicles as funds received in a fiduciary capacity, provided that the charges for coverages shall be itemized and be ancillary to a rental transaction. The sale of insurance not in conjunction with a rental transaction shall not be permitted. (10) No limited licensee under this subsection shall advertise, represent, or otherwise hold itself or any of its employees out as licensed insurers, insurance agents, or insurance brokers.

(1) The commissioner may issue to a rental company that has complied with the requirements of this subsection a limited license authorizing the limited licensee to offer or sell insurance in connection with the rental of vehicles.

(2) As used in this subsection: (A) "Limited license" means the authority of a person or entity authorized to sell certain coverages relating to the rental of vehicles pursuant to the provisions of this subsection; (B) "Rental agreement" means any written agreement setting forth the terms and conditions governing the use of a vehicle provided by the rental company for rental or lease; (C) "Rental company" means any person or entity in the business of providing primarily private passenger vehicles to the public under a rental agreement for a period not to exceed ninety (90) days; (D) "Rental period" means the term of the rental agreement; (E) "Renter" means any person obtaining the use of a vehicle from a rental company under the terms of a rental agreement for a period not to exceed ninety (90) days; and (F) "Vehicle" or "rental vehicle" means a motor vehicle of the private passenger type, including passenger vans, minivans, and sport utility vehicles and of the cargo type, including cargo vans, pickup trucks, and trucks with a gross vehicle weight of less than twenty-six thousand pounds (26,000 lbs.) and that do not require the operator to possess a commercial driver's license.

(A) "Limited license" means the authority of a person or entity authorized to sell certain coverages relating to the rental of vehicles pursuant to the provisions of this subsection;

(B) "Rental agreement" means any written agreement setting forth the terms and conditions governing the use of a vehicle provided by the rental company for rental or lease;

(C) "Rental company" means any person or entity in the business of providing primarily private passenger vehicles to the public under a rental agreement for a period not to exceed ninety (90) days;

(D) "Rental period" means the term of the rental agreement;

(E) "Renter" means any person obtaining the use of a vehicle from a rental company under the terms of a rental agreement for a period not to exceed ninety (90) days; and

(F) "Vehicle" or "rental vehicle" means a motor vehicle of the private passenger type, including passenger vans, minivans, and sport utility vehicles and of the cargo type, including cargo vans, pickup trucks, and trucks with a gross vehicle weight of less than twenty-six thousand pounds (26,000 lbs.) and that do not require the operator to possess a commercial driver's license.

(3) As a prerequisite for issuance of a limited license under this subsection, there shall be filed with the commissioner a written application for a limited license signed by an officer of the applicant, in such form or forms and supplements thereto, and containing such information as the commissioner may prescribe.

(4) In the event that any provision of this subsection is violated by a limited licensee, the commissioner may: (A) After notice and hearing, revoke or suspend a limited license issued under this subsection in accordance with the provisions of law; or (B) After notice and hearing, impose other penalties, including suspending the transaction of insurance at specific rental locations where violations of this subsection have occurred, as the commissioner deems to be necessary or convenient to carry out the purposes of this subsection.

(A) After notice and hearing, revoke or suspend a limited license issued under this subsection in accordance with the provisions of law; or

(B) After notice and hearing, impose other penalties, including suspending the transaction of insurance at specific rental locations where violations of this subsection have occurred, as the commissioner deems to be necessary or convenient to carry out the purposes of this subsection.

(5) The rental company licensed pursuant to this subsection may offer or sell insurance underwritten by a licensed insurer or authorized surplus lines carrier only in connection with and incidental to the rental of vehicles, whether at the rental office or by preselection coverage in a master, corporate, group rental, or individual agreement in any of the following general categories: (A) Personal accident insurance covering the risks of travel, including, but not limited to, accident and health insurance that provides coverage, as applicable, to renters and other rental vehicle occupants for accidental death or dismemberment and reimbursement for medical expenses resulting from an accident that occurs during the rental period; (B) Liability insurance that at the exclusive option of the rental company may include uninsured and underinsured motorist coverage whether offered separately or in combination with other liability insurance that provides coverage, as applicable, to renters and other authorized drivers of rental vehicles for liability arising from the operation of the rental vehicle; (C) Personal effects insurance that provides coverage, as applicable, to renters and other vehicle occupants for the loss of or damage to personal effects that occurs during the rental period; (D) Roadside assistance and emergency sickness protection programs; and (E) Any other travel or auto-related coverage that a rental company offers in connection with and incidental to the rental of vehicles.

(A) Personal accident insurance covering the risks of travel, including, but not limited to, accident and health insurance that provides coverage, as applicable, to renters and other rental vehicle occupants for accidental death or dismemberment and reimbursement for medical expenses resulting from an accident that occurs during the rental period;

(B) Liability insurance that at the exclusive option of the rental company may include uninsured and underinsured motorist coverage whether offered separately or in combination with other liability insurance that provides coverage, as applicable, to renters and other authorized drivers of rental vehicles for liability arising from the operation of the rental vehicle;

(C) Personal effects insurance that provides coverage, as applicable, to renters and other vehicle occupants for the loss of or damage to personal effects that occurs during the rental period;

(D) Roadside assistance and emergency sickness protection programs; and

(E) Any other travel or auto-related coverage that a rental company offers in connection with and incidental to the rental of vehicles.

(6) No insurance may be issued by a limited licensee pursuant to this subsection unless: (A) The rental period of the rental agreement does not exceed ninety (90) consecutive days; (B) At every rental location where rental agreements are executed, brochures or other written materials are readily available to the prospective renter that: (i) Summarize clearly and correctly the material terms of coverage offered to renters, including the identity of the insurer; (ii) Disclose that the coverage offered by the rental company may provide a duplication of coverage already provided by a renter's personal automobile insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage; (iii) State that the purchase by the renter of the kinds of coverage specified in this subsection is not required in order to rent a vehicle; and (iv) Describe the process for filing a claim in the event the renter elects to purchase coverage and in the event of a claim; and (C) Evidence of coverage is disclosed within the rental agreement provided to every renter who elects to purchase such coverage.

(A) The rental period of the rental agreement does not exceed ninety (90) consecutive days;

(B) At every rental location where rental agreements are executed, brochures or other written materials are readily available to the prospective renter that: (i) Summarize clearly and correctly the material terms of coverage offered to renters, including the identity of the insurer; (ii) Disclose that the coverage offered by the rental company may provide a duplication of coverage already provided by a renter's personal automobile insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage; (iii) State that the purchase by the renter of the kinds of coverage specified in this subsection is not required in order to rent a vehicle; and (iv) Describe the process for filing a claim in the event the renter elects to purchase coverage and in the event of a claim; and

(i) Summarize clearly and correctly the material terms of coverage offered to renters, including the identity of the insurer;

(ii) Disclose that the coverage offered by the rental company may provide a duplication of coverage already provided by a renter's personal automobile insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage;

(iii) State that the purchase by the renter of the kinds of coverage specified in this subsection is not required in order to rent a vehicle; and

(iv) Describe the process for filing a claim in the event the renter elects to purchase coverage and in the event of a claim; and

(C) Evidence of coverage is disclosed within the rental agreement provided to every renter who elects to purchase such coverage.

(7) Any limited license issued under this subsection shall also authorize any employee of the limited licensee to act individually on behalf of and under the supervision of the limited licensee with respect to the kinds of coverage specified in this subsection.

(8) Each rental company licensed pursuant to this subsection shall conduct a training program in which employees being trained shall receive basic instruction about the kinds of coverage specified in this subsection and offered for purchase by prospective renters of rental vehicles.

(9) Notwithstanding any other provision of this subsection or any rule adopted by the commissioner, a limited licensee pursuant to this subsection shall not be required to treat moneys collected from renters purchasing such insurance when renting vehicles as funds received in a fiduciary capacity, provided that the charges for coverages shall be itemized and be ancillary to a rental transaction. The sale of insurance not in conjunction with a rental transaction shall not be permitted.

(10) No limited licensee under this subsection shall advertise, represent, or otherwise hold itself or any of its employees out as licensed insurers, insurance agents, or insurance brokers.

Amended by Act 2021, No. 397,§ 1, eff. 7/28/2021.

Amended by Act 2019, No. 698,§ 2, eff. for travel insurance sold on or after 10/1/2019.

Amended by Act 2019, No. 315,§ 2648, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 2647, eff. 7/24/2019.

Amended by Act 2013, No. 1494,§ 2, eff. 8/16/2013.

Amended by Act 2013, No. 1494,§ 1, eff. 8/16/2013.

Acts 1959, No. 148, § 153; 1975, No. 547, § 1; 1983, No. 522, §§ 10, 11; 1983, No. 534, §§ 1, 4, 5; A.S.A. 1947, §§ 66-2810, 66-2811.2, 66-2811.3; Acts 1987, No. 927, § 2; 1993, No. 523, § 1; 1993, No. 901, §§ 14-16; 1995, No. 592, § 1; 1997, No. 1004, § 1; 2001, No. 580, § 6; 2003, No. 1203, § 2; 2005, No. 1948, § 1.
Ark. Code Ann. § 23-90-123 — AR Code / Title 23 / Chapter 90 / Section 23-90-123
Appeal of orders
Status: in_force

Any order of the Insurance Commissioner under this chapter may be appealed as provided by § 23-61-307 . Acts 1977, No. 871, § 19; A.S.A. 1947, § 66-5519; Acts 1987, No. 738, § 8.

Any order of the Insurance Commissioner under this chapter may be appealed as provided by § 23-61-307 .

Acts 1977, No. 871, § 19; A.S.A. 1947, § 66-5519; Acts 1987, No. 738, § 8.
Ark. Code Ann. § 23-78-114 — AR Code / Title 23 / Chapter 78 / Section 23-78-114
False claim, promise, or representation of agent
Status: in_force

Any burial association official or agent or any representative of a burial association who for the purpose of inducing a member of one (1) association to change membership to another association shall make any false claim, promise, or representation not authorized in the bylaws of the association represented by him or her shall be guilty of a Class A misdemeanor. Acts 1953, No. 91, § 18; A.S.A. 1947, § 66-1818; Acts 2005, No. 1994, § 359.

Any burial association official or agent or any representative of a burial association who for the purpose of inducing a member of one (1) association to change membership to another association shall make any false claim, promise, or representation not authorized in the bylaws of the association represented by him or her shall be guilty of a Class A misdemeanor.

Acts 1953, No. 91, § 18; A.S.A. 1947, § 66-1818; Acts 2005, No. 1994, § 359.
Ark. Code Ann. § 23-79-1208 — AR Code / Title 23 / Chapter 79 / Subchapter 12 / Section 23-79-1208
Referrals to participating providers
Status: in_force

A healthcare policy is not required to provide a referral under this subchapter to a nonparticipating healthcare provider unless the plan or carrier does not have a participating healthcare provider that is available and accessible to administer the screening, examination, or treatment of colorectal cancer. Acts 2005, No. 2236, § 2.

A healthcare policy is not required to provide a referral under this subchapter to a nonparticipating healthcare provider unless the plan or carrier does not have a participating healthcare provider that is available and accessible to administer the screening, examination, or treatment of colorectal cancer.

Acts 2005, No. 2236, § 2.
Ark. Code Ann. § 23-63-1508 — AR Code / Title 23 / Chapter 63 / Subchapter 15 / Section 23-63-1508
Confidentiality and prohibition on announcements - Prohibition on use in ratemaking
Status: in_force

(a) An RBC report, to the extent the information is not required to be stated in a publicly available annual statement schedule, and RBC plans, including the results or report of an examination or analysis of a health organization performed under this subchapter and a corrective order issued by the Insurance Commissioner under examination or analysis, with respect to a domestic health organization or foreign health organization that are filed with the commissioner constitute information that may be damaging to the health organization if made available to its competitors and shall be kept confidential by the commissioner. This information shall not be made public or be subject to subpoena other than by the commissioner and then only for the purpose of enforcement actions taken by the commissioner under this subchapter or any other insurance laws of this state. (b) (1) It is the judgment of the General Assembly that the comparison of a health organization's total adjusted capital to any of its RBC levels is a regulatory tool that may indicate the need for corrective action with respect to the health organization and is not intended as a means to rank health organizations generally. The making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over a radio or television station, or in any other way, of an advertisement, announcement, or statement containing an assertion, representation, or statement with regard to the RBC levels of a health organization, or of a component derived in the calculation, by a health organization, agent, broker, or other person engaged in any way in the insurance business would be misleading and is prohibited. (2) However, if a materially false statement with respect to the comparison regarding a health organization's total adjusted capital to its RBC levels, or any of them, or an inappropriate comparison of any other amount to the health organization's RBC levels is published in a written publication and the health organization is able to demonstrate to the commissioner with substantial proof the falsity or inappropriateness of the statement, the health organization may publish an announcement in a written publication if the sole purpose of the announcement is to rebut the materially false statement. (c) It is the further judgment of the General Assembly that the RBC instructions, RBC reports, adjusted RBC reports, RBC plans, and revised RBC plans are intended solely for use by the commissioner in monitoring the solvency of health organizations and the need for possible corrective action with respect to health organizations and shall not be used by the commissioner for ratemaking nor considered or introduced as evidence in a rate proceeding nor used by the commissioner to calculate or derive any elements of an appropriate premium level or rate of return for any line of insurance that a health organization or an affiliate is authorized to write. Acts 1999, No. 580, § 8; 2011, No. 760, § 5.

(a) An RBC report, to the extent the information is not required to be stated in a publicly available annual statement schedule, and RBC plans, including the results or report of an examination or analysis of a health organization performed under this subchapter and a corrective order issued by the Insurance Commissioner under examination or analysis, with respect to a domestic health organization or foreign health organization that are filed with the commissioner constitute information that may be damaging to the health organization if made available to its competitors and shall be kept confidential by the commissioner. This information shall not be made public or be subject to subpoena other than by the commissioner and then only for the purpose of enforcement actions taken by the commissioner under this subchapter or any other insurance laws of this state.

(b) (1) It is the judgment of the General Assembly that the comparison of a health organization's total adjusted capital to any of its RBC levels is a regulatory tool that may indicate the need for corrective action with respect to the health organization and is not intended as a means to rank health organizations generally. The making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over a radio or television station, or in any other way, of an advertisement, announcement, or statement containing an assertion, representation, or statement with regard to the RBC levels of a health organization, or of a component derived in the calculation, by a health organization, agent, broker, or other person engaged in any way in the insurance business would be misleading and is prohibited. (2) However, if a materially false statement with respect to the comparison regarding a health organization's total adjusted capital to its RBC levels, or any of them, or an inappropriate comparison of any other amount to the health organization's RBC levels is published in a written publication and the health organization is able to demonstrate to the commissioner with substantial proof the falsity or inappropriateness of the statement, the health organization may publish an announcement in a written publication if the sole purpose of the announcement is to rebut the materially false statement.

(1) It is the judgment of the General Assembly that the comparison of a health organization's total adjusted capital to any of its RBC levels is a regulatory tool that may indicate the need for corrective action with respect to the health organization and is not intended as a means to rank health organizations generally. The making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over a radio or television station, or in any other way, of an advertisement, announcement, or statement containing an assertion, representation, or statement with regard to the RBC levels of a health organization, or of a component derived in the calculation, by a health organization, agent, broker, or other person engaged in any way in the insurance business would be misleading and is prohibited.

(2) However, if a materially false statement with respect to the comparison regarding a health organization's total adjusted capital to its RBC levels, or any of them, or an inappropriate comparison of any other amount to the health organization's RBC levels is published in a written publication and the health organization is able to demonstrate to the commissioner with substantial proof the falsity or inappropriateness of the statement, the health organization may publish an announcement in a written publication if the sole purpose of the announcement is to rebut the materially false statement.

(c) It is the further judgment of the General Assembly that the RBC instructions, RBC reports, adjusted RBC reports, RBC plans, and revised RBC plans are intended solely for use by the commissioner in monitoring the solvency of health organizations and the need for possible corrective action with respect to health organizations and shall not be used by the commissioner for ratemaking nor considered or introduced as evidence in a rate proceeding nor used by the commissioner to calculate or derive any elements of an appropriate premium level or rate of return for any line of insurance that a health organization or an affiliate is authorized to write.

Acts 1999, No. 580, § 8; 2011, No. 760, § 5.
Ark. Code Ann. § 23-14-122 — AR Code / Title 23 / Chapter 14 / Section 23-14-122
Free or reduced-rate transportation
Status: in_force

(a) Nothing in this chapter shall prohibit common carriers by aircraft, under such terms and conditions as the Arkansas Department of Transportation may prescribe, from issuing or interchanging tickets or passes for free or reduced-rate transportation to: (1) Their directors, officers, and employees and their immediate families; (2) Witnesses and attorneys attending any legal investigation in which the carrier is interested; (3) Persons injured in aircraft accidents and physicians and nurses attending such persons; and (4) Any person or property with the object of providing relief in cases of general epidemic, pestilence, or other calamitous visitation. (b) The members of the department and its employees when in the performance of their official duties under this chapter shall have the right to pass free of charge on all common carriers by aircraft as defined in this chapter. (c) No such carrier shall provide free or reduced-rate transportation to any other persons or under any other circumstances. Amended by Act 2017, No. 707,§ 250, eff. 8/1/2017. Acts 1945, No. 252, § 14; A.S.A. 1947, § 74-415.

(a) Nothing in this chapter shall prohibit common carriers by aircraft, under such terms and conditions as the Arkansas Department of Transportation may prescribe, from issuing or interchanging tickets or passes for free or reduced-rate transportation to: (1) Their directors, officers, and employees and their immediate families; (2) Witnesses and attorneys attending any legal investigation in which the carrier is interested; (3) Persons injured in aircraft accidents and physicians and nurses attending such persons; and (4) Any person or property with the object of providing relief in cases of general epidemic, pestilence, or other calamitous visitation.

(1) Their directors, officers, and employees and their immediate families;

(2) Witnesses and attorneys attending any legal investigation in which the carrier is interested;

(3) Persons injured in aircraft accidents and physicians and nurses attending such persons; and

(4) Any person or property with the object of providing relief in cases of general epidemic, pestilence, or other calamitous visitation.

(b) The members of the department and its employees when in the performance of their official duties under this chapter shall have the right to pass free of charge on all common carriers by aircraft as defined in this chapter.

(c) No such carrier shall provide free or reduced-rate transportation to any other persons or under any other circumstances.

Amended by Act 2017, No. 707,§ 250, eff. 8/1/2017.

Acts 1945, No. 252, § 14; A.S.A. 1947, § 74-415.
Ark. Code Ann. § 23-79-1602 — AR Code / Title 23 / Chapter 79 / Subchapter 16 / Section 23-79-1602
Coverage for telemedicine
Status: in_force

(a) (1) This subchapter applies to all health benefit plans delivered, issued for delivery, reissued, or extended in Arkansas on or after January 1, 2016, or at any time when any term of the health benefit plan is changed or any premium adjustment is made thereafter. (2) Notwithstanding subdivision (a)(1) of this section, this subchapter applies to the Arkansas Medicaid Program on and after January 1, 2016. (b) A healthcare professional providing a healthcare service provided through telemedicine shall comply with the requirements of the Telemedicine Act, § 17-80-401 et seq. (c) (1) A health benefit plan shall provide coverage and reimbursement for healthcare services provided through telemedicine on the same basis as the health benefit plan provides coverage and reimbursement for health services provided in person, unless this subchapter specifically provides otherwise. (2) A health benefit plan is not required to reimburse for a healthcare service provided through telemedicine that is not comparable to the same service provided in person. (3) A health benefit plan may voluntarily reimburse for healthcare services provided through means described in § 23-79-1601(7)(C) . (d) (1) A health benefit plan shall provide a reasonable facility fee to an originating site operated by a healthcare professional or a licensed healthcare entity if the healthcare professional or licensed healthcare entity is authorized to bill the health benefit plan directly for healthcare services. (2) The combined amount of reimbursement that a health benefit plan allows for the compensation to the distant site and the originating site shall not be less than the total amount allowed for healthcare services provided in person. (3) Payment for healthcare services provided through telemedicine shall be provided to the distant site and the originating site upon submission of the appropriate procedure codes. (4) This section does not: (A) Prohibit a health benefit plan from paying a facility fee to a provider at the distant site in addition to a fee paid to the healthcare professional; or (B) Require a health benefit plan to pay more for a healthcare service provided through telemedicine than would have been paid if the healthcare service was delivered in person. (e) A health benefit plan shall not impose on coverage for healthcare services provided through telemedicine: (1) An annual or lifetime dollar maximum on coverage for services provided through telemedicine other than an annual or lifetime dollar maximum that applies to the aggregate of all items and services covered; (2) A deductible, copayment, coinsurance, benefit limitation, or maximum benefit that is not equally imposed upon all healthcare services covered under the health benefit plan; (3) A prior authorization requirement for services provided through telemedicine that exceeds the prior authorization requirement for in-person healthcare services under the health benefit plan; (4) A requirement for a covered person to choose any commercial telemedicine service provider or a restricted network of telemedicine-only providers rather than the covered person's regular doctor or provider of choice; or (5) A copayment, coinsurance, or deductible that is not equally imposed upon commercial telemedicine providers as those imposed on network providers. (f) This subchapter does not prohibit a health benefit plan from: (1) Limiting coverage of healthcare services provided through telemedicine to medically necessary services, subject to the same terms and conditions of the covered person's health benefit plan that apply to services provided in person; or (2) (A) Undertaking utilization review, including prior authorization, to determine the appropriateness of healthcare services provided through telemedicine, provided that: (i) The determination of appropriateness is made in the same manner as determinations are made for the treatment of any illness, condition, or disorder covered by the health benefit plan whether the service was provided in-person or through telemedicine; and (ii) All adverse determinations for healthcare services, medications, or equipment prescribed by a physician are made by a physician who possesses a current and valid unrestricted license to practice medicine in Arkansas. (B) Utilization review shall not require prior authorization of emergent telemedicine services. (g) (1) A health benefit plan may adopt policies to ensure that healthcare services provided through telemedicine submitted for payment comply with the same coding, documentation, and other requirements necessary for payment as an in-person service other than the in-person requirement. (2) If deemed necessary, the State Insurance Department may promulgate rules containing additional standards and procedures for the utilization of telemedicine to provide healthcare services through health benefit plans if the additional standards and procedures do not conflict with this subchapter or § 17-80-117 and are applied uniformly by all health benefit plans. (h) A health benefit plan shall not prohibit a healthcare professional from charging a patient enrolled in a health benefit plan for healthcare services provided by audio-only communication that are not reimbursed under the health benefit plan. Amended by Act 2021, No. 829,§ 5, eff. 4/21/2021. Amended by Act 2017, No. 203,§ 4, eff. 8/1/2017. Added by Act 2015, No. 887,§ 4, eff. 4/1/2015.

(a) (1) This subchapter applies to all health benefit plans delivered, issued for delivery, reissued, or extended in Arkansas on or after January 1, 2016, or at any time when any term of the health benefit plan is changed or any premium adjustment is made thereafter. (2) Notwithstanding subdivision (a)(1) of this section, this subchapter applies to the Arkansas Medicaid Program on and after January 1, 2016.

(1) This subchapter applies to all health benefit plans delivered, issued for delivery, reissued, or extended in Arkansas on or after January 1, 2016, or at any time when any term of the health benefit plan is changed or any premium adjustment is made thereafter.

(2) Notwithstanding subdivision (a)(1) of this section, this subchapter applies to the Arkansas Medicaid Program on and after January 1, 2016.

(b) A healthcare professional providing a healthcare service provided through telemedicine shall comply with the requirements of the Telemedicine Act, § 17-80-401 et seq.

(c) (1) A health benefit plan shall provide coverage and reimbursement for healthcare services provided through telemedicine on the same basis as the health benefit plan provides coverage and reimbursement for health services provided in person, unless this subchapter specifically provides otherwise. (2) A health benefit plan is not required to reimburse for a healthcare service provided through telemedicine that is not comparable to the same service provided in person. (3) A health benefit plan may voluntarily reimburse for healthcare services provided through means described in § 23-79-1601(7)(C) .

(1) A health benefit plan shall provide coverage and reimbursement for healthcare services provided through telemedicine on the same basis as the health benefit plan provides coverage and reimbursement for health services provided in person, unless this subchapter specifically provides otherwise.

(2) A health benefit plan is not required to reimburse for a healthcare service provided through telemedicine that is not comparable to the same service provided in person.

(3) A health benefit plan may voluntarily reimburse for healthcare services provided through means described in § 23-79-1601(7)(C) .

(d) (1) A health benefit plan shall provide a reasonable facility fee to an originating site operated by a healthcare professional or a licensed healthcare entity if the healthcare professional or licensed healthcare entity is authorized to bill the health benefit plan directly for healthcare services. (2) The combined amount of reimbursement that a health benefit plan allows for the compensation to the distant site and the originating site shall not be less than the total amount allowed for healthcare services provided in person. (3) Payment for healthcare services provided through telemedicine shall be provided to the distant site and the originating site upon submission of the appropriate procedure codes. (4) This section does not: (A) Prohibit a health benefit plan from paying a facility fee to a provider at the distant site in addition to a fee paid to the healthcare professional; or (B) Require a health benefit plan to pay more for a healthcare service provided through telemedicine than would have been paid if the healthcare service was delivered in person.

(1) A health benefit plan shall provide a reasonable facility fee to an originating site operated by a healthcare professional or a licensed healthcare entity if the healthcare professional or licensed healthcare entity is authorized to bill the health benefit plan directly for healthcare services.

(2) The combined amount of reimbursement that a health benefit plan allows for the compensation to the distant site and the originating site shall not be less than the total amount allowed for healthcare services provided in person.

(3) Payment for healthcare services provided through telemedicine shall be provided to the distant site and the originating site upon submission of the appropriate procedure codes.

(4) This section does not: (A) Prohibit a health benefit plan from paying a facility fee to a provider at the distant site in addition to a fee paid to the healthcare professional; or (B) Require a health benefit plan to pay more for a healthcare service provided through telemedicine than would have been paid if the healthcare service was delivered in person.

(A) Prohibit a health benefit plan from paying a facility fee to a provider at the distant site in addition to a fee paid to the healthcare professional; or

(B) Require a health benefit plan to pay more for a healthcare service provided through telemedicine than would have been paid if the healthcare service was delivered in person.

(e) A health benefit plan shall not impose on coverage for healthcare services provided through telemedicine: (1) An annual or lifetime dollar maximum on coverage for services provided through telemedicine other than an annual or lifetime dollar maximum that applies to the aggregate of all items and services covered; (2) A deductible, copayment, coinsurance, benefit limitation, or maximum benefit that is not equally imposed upon all healthcare services covered under the health benefit plan; (3) A prior authorization requirement for services provided through telemedicine that exceeds the prior authorization requirement for in-person healthcare services under the health benefit plan; (4) A requirement for a covered person to choose any commercial telemedicine service provider or a restricted network of telemedicine-only providers rather than the covered person's regular doctor or provider of choice; or (5) A copayment, coinsurance, or deductible that is not equally imposed upon commercial telemedicine providers as those imposed on network providers.

(1) An annual or lifetime dollar maximum on coverage for services provided through telemedicine other than an annual or lifetime dollar maximum that applies to the aggregate of all items and services covered;

(2) A deductible, copayment, coinsurance, benefit limitation, or maximum benefit that is not equally imposed upon all healthcare services covered under the health benefit plan;

(3) A prior authorization requirement for services provided through telemedicine that exceeds the prior authorization requirement for in-person healthcare services under the health benefit plan;

(4) A requirement for a covered person to choose any commercial telemedicine service provider or a restricted network of telemedicine-only providers rather than the covered person's regular doctor or provider of choice; or

(5) A copayment, coinsurance, or deductible that is not equally imposed upon commercial telemedicine providers as those imposed on network providers.

(f) This subchapter does not prohibit a health benefit plan from: (1) Limiting coverage of healthcare services provided through telemedicine to medically necessary services, subject to the same terms and conditions of the covered person's health benefit plan that apply to services provided in person; or (2) (A) Undertaking utilization review, including prior authorization, to determine the appropriateness of healthcare services provided through telemedicine, provided that: (i) The determination of appropriateness is made in the same manner as determinations are made for the treatment of any illness, condition, or disorder covered by the health benefit plan whether the service was provided in-person or through telemedicine; and (ii) All adverse determinations for healthcare services, medications, or equipment prescribed by a physician are made by a physician who possesses a current and valid unrestricted license to practice medicine in Arkansas. (B) Utilization review shall not require prior authorization of emergent telemedicine services.

(1) Limiting coverage of healthcare services provided through telemedicine to medically necessary services, subject to the same terms and conditions of the covered person's health benefit plan that apply to services provided in person; or

(2) (A) Undertaking utilization review, including prior authorization, to determine the appropriateness of healthcare services provided through telemedicine, provided that: (i) The determination of appropriateness is made in the same manner as determinations are made for the treatment of any illness, condition, or disorder covered by the health benefit plan whether the service was provided in-person or through telemedicine; and (ii) All adverse determinations for healthcare services, medications, or equipment prescribed by a physician are made by a physician who possesses a current and valid unrestricted license to practice medicine in Arkansas. (B) Utilization review shall not require prior authorization of emergent telemedicine services.

(A) Undertaking utilization review, including prior authorization, to determine the appropriateness of healthcare services provided through telemedicine, provided that: (i) The determination of appropriateness is made in the same manner as determinations are made for the treatment of any illness, condition, or disorder covered by the health benefit plan whether the service was provided in-person or through telemedicine; and (ii) All adverse determinations for healthcare services, medications, or equipment prescribed by a physician are made by a physician who possesses a current and valid unrestricted license to practice medicine in Arkansas.

(i) The determination of appropriateness is made in the same manner as determinations are made for the treatment of any illness, condition, or disorder covered by the health benefit plan whether the service was provided in-person or through telemedicine; and

(ii) All adverse determinations for healthcare services, medications, or equipment prescribed by a physician are made by a physician who possesses a current and valid unrestricted license to practice medicine in Arkansas.

(B) Utilization review shall not require prior authorization of emergent telemedicine services.

(g) (1) A health benefit plan may adopt policies to ensure that healthcare services provided through telemedicine submitted for payment comply with the same coding, documentation, and other requirements necessary for payment as an in-person service other than the in-person requirement. (2) If deemed necessary, the State Insurance Department may promulgate rules containing additional standards and procedures for the utilization of telemedicine to provide healthcare services through health benefit plans if the additional standards and procedures do not conflict with this subchapter or § 17-80-117 and are applied uniformly by all health benefit plans.

(1) A health benefit plan may adopt policies to ensure that healthcare services provided through telemedicine submitted for payment comply with the same coding, documentation, and other requirements necessary for payment as an in-person service other than the in-person requirement.

(2) If deemed necessary, the State Insurance Department may promulgate rules containing additional standards and procedures for the utilization of telemedicine to provide healthcare services through health benefit plans if the additional standards and procedures do not conflict with this subchapter or § 17-80-117 and are applied uniformly by all health benefit plans.

(h) A health benefit plan shall not prohibit a healthcare professional from charging a patient enrolled in a health benefit plan for healthcare services provided by audio-only communication that are not reimbursed under the health benefit plan.

Amended by Act 2021, No. 829,§ 5, eff. 4/21/2021.

Amended by Act 2017, No. 203,§ 4, eff. 8/1/2017.

Added by Act 2015, No. 887,§ 4, eff. 4/1/2015.
Ark. Code Ann. § 23-81-304 — AR Code / Title 23 / Chapter 81 / Subchapter 3 / Section 23-81-304
Minimum values
Status: in_force

(a) (1) Prior to July 15, 2006, a company may elect to comply with the provisions of: (A) Subsections (b) and (c) of this section; or (B) Subsections (d)-(f) of this section. (2) On and after July 15, 2006, all companies shall comply with the provisions of subsections (d)-(f) of this section. (b) The minimum values as specified in §§ 23-81-305 - 23-81-308 and 23-81-310 of any paid-up annuity, cash surrender, or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in this subchapter. (c) (1) (A) With respect to contracts providing for flexible considerations, the minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at a rate of interest of one and one-half percent (1.5%) per annum of percentages of the net considerations paid prior to the time, decreased by the sum of: (i) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of one and one-half percent (1.5%) per annum; and (ii) The amount of any indebtedness to the insurer on the contract, including interest due and accrued and increased by any existing additional amounts credited by the insurer to the contract. (B) (i) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount not less than zero (0) and shall be equal to the corresponding gross considerations credited to the contract during that contract year less an annual contract charge of thirty dollars ($30.00) and less a collection charge of one dollar and twenty-five cents ($1.25) per consideration credited to the contract during that contract year. (ii) The percentages of net considerations shall be sixty-five percent (65%) of the net consideration for the first contract year and eighty-seven and one-half percent (87.5%) of the net considerations for the second and later contract years. (iii) Notwithstanding the provisions of subdivision (c)(1)(B)(ii) of this section, the percentage shall be sixty-five percent (65%) of the portion of the total net consideration for any renewal contract year that exceeds by not more than two (2) multiplied by the sum of those portions of the net considerations in all prior contract years for which the percentage was sixty-five percent (65%). (2) With respect to contracts providing for fixed scheduled considerations, minimum nonforfeiture amounts shall be calculated on the assumption that considerations are paid annually in advance and shall be defined as for contracts with flexible considerations that are paid annually, with two (2) exceptions: (A) The portion of the net consideration for the first contract year to be accumulated shall be the sum of sixty-five percent (65%) of the net consideration for the first contract year plus twenty-two and one-half percent (22.5%) of the excess of the net considerations for the first contract year over the lesser of the net considerations for the second and third contract years; and (B) The annual contract charge shall be the lesser of thirty dollars ($30.00) or ten percent (10%) of the gross annual consideration. (3) With respect to contracts providing for a single consideration, minimum nonforfeiture amounts shall be defined as for contracts with flexible considerations, except that the percentage of net consideration used to determine the minimum nonforfeiture amount shall be equal to ninety percent (90%) and the net consideration shall be the gross consideration less a contract charge of seventy-five dollars ($75.00). (d) On and after July 15, 2006, the minimum values as specified in §§ 23-81-305 - 23-81-308 and 23-81-310 of any paid-up annuity, cash surrender, or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in subsections (e) and (f) of this section. (e) (1) (A) The minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section of the net considerations paid prior to the time, decreased by the sum of: (i) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section; (ii) An annual contract charge of fifty dollars ($50.00) accumulated at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section; (iii) Any premium tax paid by the company for the contract accumulated at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section; and (iv) The amount of an indebtedness to the insurer on the contract, including interest due and accrued. (B) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount equal to eighty-seven and one-half percent (87.5%) of gross considerations credited to the contract during that contract year. (2) The interest rate used in determining minimum nonforfeiture amounts shall be an annual rate of interest equal to the lesser of: (A) Three percent (3%) per annum; or (B) The following rate, which shall be specified in the contract if the interest rate is reset: (i) The five-year Constant Maturity Treasury Rate reported by the Federal Reserve System as of a date or average over a period rounded to the nearest one-twentieth of one percent (.05%) that is specified in the contract no longer than fifteen (15) months before the contract issue date or redetermination date under subdivision (e)(3) of this section, reduced by one hundred twenty-five (125) basis points; and (ii) The resulting interest rate shall not be less than fifteen-hundredths of one percent (0.15%). (3) (A) The interest rate under subdivision (e)(2) of this section shall apply for an initial period and may be redetermined for additional periods. (B) (i) The redetermination date, basis, and period, if any, shall be stated in the contract. (ii) The basis is the date or average over a specified period that produces the value of the five-year Constant Maturity Treasury Rate to be used at each redetermination date. (f) (1) During the period or term that a contract provides substantive participation in an equity indexed benefit, it may increase the reduction described in subdivisions (e)(2) and (3) of this section by up to an additional one hundred (100) basis points to reflect the value of the equity index benefit. (2) The present value of the additional reduction at the contract issue date and at each redetermination date shall not exceed the market value of the benefit. (3) (A) The Insurance Commissioner may require a demonstration that the present value of the additional reduction does not exceed the market value of the benefit. (B) If no demonstration is acceptable to the commissioner, the commissioner may disallow or limit the additional reduction. (g) The commissioner may adopt rules to implement the provisions of subsection (d) of this section and to provide for further adjustments to the calculation of minimum nonforfeiture amounts for contracts that provide substantive participation in an equity index benefit and for other contracts for which the commissioner determines adjustments are justified. Amended by Act 2021, No. 590,§ 1, eff. 7/28/2021. Acts 1981, No. 492, § 1; A.S.A. 1947, § 66-3327.1; Acts 2003, No. 669, § 1; 2005, No. 506, § 42; 2005, No. 1962, § 122.

(a) (1) Prior to July 15, 2006, a company may elect to comply with the provisions of: (A) Subsections (b) and (c) of this section; or (B) Subsections (d)-(f) of this section. (2) On and after July 15, 2006, all companies shall comply with the provisions of subsections (d)-(f) of this section.

(1) Prior to July 15, 2006, a company may elect to comply with the provisions of: (A) Subsections (b) and (c) of this section; or (B) Subsections (d)-(f) of this section.

(A) Subsections (b) and (c) of this section; or

(B) Subsections (d)-(f) of this section.

(2) On and after July 15, 2006, all companies shall comply with the provisions of subsections (d)-(f) of this section.

(b) The minimum values as specified in §§ 23-81-305 - 23-81-308 and 23-81-310 of any paid-up annuity, cash surrender, or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in this subchapter.

(c) (1) (A) With respect to contracts providing for flexible considerations, the minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at a rate of interest of one and one-half percent (1.5%) per annum of percentages of the net considerations paid prior to the time, decreased by the sum of: (i) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of one and one-half percent (1.5%) per annum; and (ii) The amount of any indebtedness to the insurer on the contract, including interest due and accrued and increased by any existing additional amounts credited by the insurer to the contract. (B) (i) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount not less than zero (0) and shall be equal to the corresponding gross considerations credited to the contract during that contract year less an annual contract charge of thirty dollars ($30.00) and less a collection charge of one dollar and twenty-five cents ($1.25) per consideration credited to the contract during that contract year. (ii) The percentages of net considerations shall be sixty-five percent (65%) of the net consideration for the first contract year and eighty-seven and one-half percent (87.5%) of the net considerations for the second and later contract years. (iii) Notwithstanding the provisions of subdivision (c)(1)(B)(ii) of this section, the percentage shall be sixty-five percent (65%) of the portion of the total net consideration for any renewal contract year that exceeds by not more than two (2) multiplied by the sum of those portions of the net considerations in all prior contract years for which the percentage was sixty-five percent (65%). (2) With respect to contracts providing for fixed scheduled considerations, minimum nonforfeiture amounts shall be calculated on the assumption that considerations are paid annually in advance and shall be defined as for contracts with flexible considerations that are paid annually, with two (2) exceptions: (A) The portion of the net consideration for the first contract year to be accumulated shall be the sum of sixty-five percent (65%) of the net consideration for the first contract year plus twenty-two and one-half percent (22.5%) of the excess of the net considerations for the first contract year over the lesser of the net considerations for the second and third contract years; and (B) The annual contract charge shall be the lesser of thirty dollars ($30.00) or ten percent (10%) of the gross annual consideration. (3) With respect to contracts providing for a single consideration, minimum nonforfeiture amounts shall be defined as for contracts with flexible considerations, except that the percentage of net consideration used to determine the minimum nonforfeiture amount shall be equal to ninety percent (90%) and the net consideration shall be the gross consideration less a contract charge of seventy-five dollars ($75.00).

(1) (A) With respect to contracts providing for flexible considerations, the minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at a rate of interest of one and one-half percent (1.5%) per annum of percentages of the net considerations paid prior to the time, decreased by the sum of: (i) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of one and one-half percent (1.5%) per annum; and (ii) The amount of any indebtedness to the insurer on the contract, including interest due and accrued and increased by any existing additional amounts credited by the insurer to the contract. (B) (i) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount not less than zero (0) and shall be equal to the corresponding gross considerations credited to the contract during that contract year less an annual contract charge of thirty dollars ($30.00) and less a collection charge of one dollar and twenty-five cents ($1.25) per consideration credited to the contract during that contract year. (ii) The percentages of net considerations shall be sixty-five percent (65%) of the net consideration for the first contract year and eighty-seven and one-half percent (87.5%) of the net considerations for the second and later contract years. (iii) Notwithstanding the provisions of subdivision (c)(1)(B)(ii) of this section, the percentage shall be sixty-five percent (65%) of the portion of the total net consideration for any renewal contract year that exceeds by not more than two (2) multiplied by the sum of those portions of the net considerations in all prior contract years for which the percentage was sixty-five percent (65%).

(A) With respect to contracts providing for flexible considerations, the minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at a rate of interest of one and one-half percent (1.5%) per annum of percentages of the net considerations paid prior to the time, decreased by the sum of: (i) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of one and one-half percent (1.5%) per annum; and (ii) The amount of any indebtedness to the insurer on the contract, including interest due and accrued and increased by any existing additional amounts credited by the insurer to the contract.

(i) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest of one and one-half percent (1.5%) per annum; and

(ii) The amount of any indebtedness to the insurer on the contract, including interest due and accrued and increased by any existing additional amounts credited by the insurer to the contract.

(B) (i) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount not less than zero (0) and shall be equal to the corresponding gross considerations credited to the contract during that contract year less an annual contract charge of thirty dollars ($30.00) and less a collection charge of one dollar and twenty-five cents ($1.25) per consideration credited to the contract during that contract year. (ii) The percentages of net considerations shall be sixty-five percent (65%) of the net consideration for the first contract year and eighty-seven and one-half percent (87.5%) of the net considerations for the second and later contract years. (iii) Notwithstanding the provisions of subdivision (c)(1)(B)(ii) of this section, the percentage shall be sixty-five percent (65%) of the portion of the total net consideration for any renewal contract year that exceeds by not more than two (2) multiplied by the sum of those portions of the net considerations in all prior contract years for which the percentage was sixty-five percent (65%).

(i) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount not less than zero (0) and shall be equal to the corresponding gross considerations credited to the contract during that contract year less an annual contract charge of thirty dollars ($30.00) and less a collection charge of one dollar and twenty-five cents ($1.25) per consideration credited to the contract during that contract year.

(ii) The percentages of net considerations shall be sixty-five percent (65%) of the net consideration for the first contract year and eighty-seven and one-half percent (87.5%) of the net considerations for the second and later contract years.

(iii) Notwithstanding the provisions of subdivision (c)(1)(B)(ii) of this section, the percentage shall be sixty-five percent (65%) of the portion of the total net consideration for any renewal contract year that exceeds by not more than two (2) multiplied by the sum of those portions of the net considerations in all prior contract years for which the percentage was sixty-five percent (65%).

(2) With respect to contracts providing for fixed scheduled considerations, minimum nonforfeiture amounts shall be calculated on the assumption that considerations are paid annually in advance and shall be defined as for contracts with flexible considerations that are paid annually, with two (2) exceptions: (A) The portion of the net consideration for the first contract year to be accumulated shall be the sum of sixty-five percent (65%) of the net consideration for the first contract year plus twenty-two and one-half percent (22.5%) of the excess of the net considerations for the first contract year over the lesser of the net considerations for the second and third contract years; and (B) The annual contract charge shall be the lesser of thirty dollars ($30.00) or ten percent (10%) of the gross annual consideration.

(A) The portion of the net consideration for the first contract year to be accumulated shall be the sum of sixty-five percent (65%) of the net consideration for the first contract year plus twenty-two and one-half percent (22.5%) of the excess of the net considerations for the first contract year over the lesser of the net considerations for the second and third contract years; and

(B) The annual contract charge shall be the lesser of thirty dollars ($30.00) or ten percent (10%) of the gross annual consideration.

(3) With respect to contracts providing for a single consideration, minimum nonforfeiture amounts shall be defined as for contracts with flexible considerations, except that the percentage of net consideration used to determine the minimum nonforfeiture amount shall be equal to ninety percent (90%) and the net consideration shall be the gross consideration less a contract charge of seventy-five dollars ($75.00).

(d) On and after July 15, 2006, the minimum values as specified in §§ 23-81-305 - 23-81-308 and 23-81-310 of any paid-up annuity, cash surrender, or death benefits available under an annuity contract shall be based upon minimum nonforfeiture amounts as defined in subsections (e) and (f) of this section.

(e) (1) (A) The minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section of the net considerations paid prior to the time, decreased by the sum of: (i) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section; (ii) An annual contract charge of fifty dollars ($50.00) accumulated at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section; (iii) Any premium tax paid by the company for the contract accumulated at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section; and (iv) The amount of an indebtedness to the insurer on the contract, including interest due and accrued. (B) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount equal to eighty-seven and one-half percent (87.5%) of gross considerations credited to the contract during that contract year. (2) The interest rate used in determining minimum nonforfeiture amounts shall be an annual rate of interest equal to the lesser of: (A) Three percent (3%) per annum; or (B) The following rate, which shall be specified in the contract if the interest rate is reset: (i) The five-year Constant Maturity Treasury Rate reported by the Federal Reserve System as of a date or average over a period rounded to the nearest one-twentieth of one percent (.05%) that is specified in the contract no longer than fifteen (15) months before the contract issue date or redetermination date under subdivision (e)(3) of this section, reduced by one hundred twenty-five (125) basis points; and (ii) The resulting interest rate shall not be less than fifteen-hundredths of one percent (0.15%). (3) (A) The interest rate under subdivision (e)(2) of this section shall apply for an initial period and may be redetermined for additional periods. (B) (i) The redetermination date, basis, and period, if any, shall be stated in the contract. (ii) The basis is the date or average over a specified period that produces the value of the five-year Constant Maturity Treasury Rate to be used at each redetermination date.

(1) (A) The minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section of the net considerations paid prior to the time, decreased by the sum of: (i) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section; (ii) An annual contract charge of fifty dollars ($50.00) accumulated at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section; (iii) Any premium tax paid by the company for the contract accumulated at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section; and (iv) The amount of an indebtedness to the insurer on the contract, including interest due and accrued. (B) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount equal to eighty-seven and one-half percent (87.5%) of gross considerations credited to the contract during that contract year.

(A) The minimum nonforfeiture amount at any time at or prior to the commencement of any annuity payments shall be equal to an accumulation up to such time at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section of the net considerations paid prior to the time, decreased by the sum of: (i) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section; (ii) An annual contract charge of fifty dollars ($50.00) accumulated at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section; (iii) Any premium tax paid by the company for the contract accumulated at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section; and (iv) The amount of an indebtedness to the insurer on the contract, including interest due and accrued.

(i) Any prior withdrawals from or partial surrenders of the contract accumulated at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section;

(ii) An annual contract charge of fifty dollars ($50.00) accumulated at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section;

(iii) Any premium tax paid by the company for the contract accumulated at a rate of interest as indicated in subdivisions (e)(2) and (3) of this section; and

(iv) The amount of an indebtedness to the insurer on the contract, including interest due and accrued.

(B) The net considerations for a given contract year used to define the minimum nonforfeiture amount shall be an amount equal to eighty-seven and one-half percent (87.5%) of gross considerations credited to the contract during that contract year.

(2) The interest rate used in determining minimum nonforfeiture amounts shall be an annual rate of interest equal to the lesser of: (A) Three percent (3%) per annum; or (B) The following rate, which shall be specified in the contract if the interest rate is reset: (i) The five-year Constant Maturity Treasury Rate reported by the Federal Reserve System as of a date or average over a period rounded to the nearest one-twentieth of one percent (.05%) that is specified in the contract no longer than fifteen (15) months before the contract issue date or redetermination date under subdivision (e)(3) of this section, reduced by one hundred twenty-five (125) basis points; and (ii) The resulting interest rate shall not be less than fifteen-hundredths of one percent (0.15%).

(A) Three percent (3%) per annum; or

(B) The following rate, which shall be specified in the contract if the interest rate is reset: (i) The five-year Constant Maturity Treasury Rate reported by the Federal Reserve System as of a date or average over a period rounded to the nearest one-twentieth of one percent (.05%) that is specified in the contract no longer than fifteen (15) months before the contract issue date or redetermination date under subdivision (e)(3) of this section, reduced by one hundred twenty-five (125) basis points; and (ii) The resulting interest rate shall not be less than fifteen-hundredths of one percent (0.15%).

(i) The five-year Constant Maturity Treasury Rate reported by the Federal Reserve System as of a date or average over a period rounded to the nearest one-twentieth of one percent (.05%) that is specified in the contract no longer than fifteen (15) months before the contract issue date or redetermination date under subdivision (e)(3) of this section, reduced by one hundred twenty-five (125) basis points; and

(ii) The resulting interest rate shall not be less than fifteen-hundredths of one percent (0.15%).

(3) (A) The interest rate under subdivision (e)(2) of this section shall apply for an initial period and may be redetermined for additional periods. (B) (i) The redetermination date, basis, and period, if any, shall be stated in the contract. (ii) The basis is the date or average over a specified period that produces the value of the five-year Constant Maturity Treasury Rate to be used at each redetermination date.

(A) The interest rate under subdivision (e)(2) of this section shall apply for an initial period and may be redetermined for additional periods.

(B) (i) The redetermination date, basis, and period, if any, shall be stated in the contract. (ii) The basis is the date or average over a specified period that produces the value of the five-year Constant Maturity Treasury Rate to be used at each redetermination date.

(i) The redetermination date, basis, and period, if any, shall be stated in the contract.

(ii) The basis is the date or average over a specified period that produces the value of the five-year Constant Maturity Treasury Rate to be used at each redetermination date.

(f) (1) During the period or term that a contract provides substantive participation in an equity indexed benefit, it may increase the reduction described in subdivisions (e)(2) and (3) of this section by up to an additional one hundred (100) basis points to reflect the value of the equity index benefit. (2) The present value of the additional reduction at the contract issue date and at each redetermination date shall not exceed the market value of the benefit. (3) (A) The Insurance Commissioner may require a demonstration that the present value of the additional reduction does not exceed the market value of the benefit. (B) If no demonstration is acceptable to the commissioner, the commissioner may disallow or limit the additional reduction.

(1) During the period or term that a contract provides substantive participation in an equity indexed benefit, it may increase the reduction described in subdivisions (e)(2) and (3) of this section by up to an additional one hundred (100) basis points to reflect the value of the equity index benefit.

(2) The present value of the additional reduction at the contract issue date and at each redetermination date shall not exceed the market value of the benefit.

(3) (A) The Insurance Commissioner may require a demonstration that the present value of the additional reduction does not exceed the market value of the benefit. (B) If no demonstration is acceptable to the commissioner, the commissioner may disallow or limit the additional reduction.

(A) The Insurance Commissioner may require a demonstration that the present value of the additional reduction does not exceed the market value of the benefit.

(B) If no demonstration is acceptable to the commissioner, the commissioner may disallow or limit the additional reduction.

(g) The commissioner may adopt rules to implement the provisions of subsection (d) of this section and to provide for further adjustments to the calculation of minimum nonforfeiture amounts for contracts that provide substantive participation in an equity index benefit and for other contracts for which the commissioner determines adjustments are justified.

Amended by Act 2021, No. 590,§ 1, eff. 7/28/2021.

Acts 1981, No. 492, § 1; A.S.A. 1947, § 66-3327.1; Acts 2003, No. 669, § 1; 2005, No. 506, § 42; 2005, No. 1962, § 122.
Ark. Code Ann. § 23-71-108 — AR Code / Title 23 / Chapter 71 / Section 23-71-108
New insurers
Status: in_force

No insurer shall transact insurance on the stipulated premium plan in this state unless it lawfully had authority to transact the insurance on January 1, 1960. Acts 1959, No. 148, § 544; A.S.A. 1947, § 66-4405.

No insurer shall transact insurance on the stipulated premium plan in this state unless it lawfully had authority to transact the insurance on January 1, 1960.

Acts 1959, No. 148, § 544; A.S.A. 1947, § 66-4405.