Ark. Code Ann. § 23-18-307 — AR Code / Title 23 / Chapter 18 / Subchapter 3 / Section 23-18-307
Powers of corporation
Status: in_force

Each corporation shall have power: (1) To sue and be sued, complain, and defend in its corporate name; (2) To have perpetual succession unless a limited period of duration is stated in its articles of incorporation; (3) To adopt a corporate seal which may be altered at pleasure and to use it or a facsimile thereof, as required by law; (4) To generate, manufacture, purchase, acquire, accumulate, transmit, distribute, sell, furnish, and dispose of electric power and energy; (5) To construct, erect, purchase, lease as lessee, and in any manner acquire, own, hold, maintain, operate, sell, dispose of, lease as lessor, exchange, and mortgage plants, buildings, works, machinery, supplies, equipment, apparatus, and generation, transmission, and distribution facilities or systems as it deems necessary, convenient, or useful; (6) To enter into sale or interchange agreements for surplus power and energy with any and all other persons, business entities, or public bodies or agencies. The electric power and energy may be resold at wholesale or retail and may be sold or disposed of by the other party to the agreement as provided in the contract or agreement; (7) To assist its members only to wire their premises and install therein electrical and plumbing fixtures, machinery, supplies, apparatus, and equipment of any and all kinds and character. In connection therewith and for such purposes, each such corporation may purchase, acquire, lease, sell, distribute, install, and repair electrical and plumbing fixtures, machinery, supplies, apparatus, and equipment of any and all kinds and character and receive, acquire, endorse, pledge, hypothecate, and dispose of notes, bonds, and other evidences of indebtedness; (8) To furnish to other corporations organized under this subchapter, or to the members thereof, electric energy, wiring facilities, and electrical and plumbing equipment and services convenient or useful; (9) To acquire, own, hold, use, exercise, and, to the extent permitted by law, to sell, mortgage, pledge, hypothecate, and in any manner dispose of franchises, rights, privileges, licenses, rights-of-way, and easements necessary, useful, or appropriate; (10) To purchase, receive, lease as lessee, or in any other manner acquire, own, hold, maintain, sell, exchange, and use any and all real and personal property or any interest therein; (11) To borrow money and otherwise contract indebtedness, to issue its obligations therefor, and to secure the payment thereof by mortgage, pledge, or deed of trust of all or any of its property, assets, franchises, revenues, or income; (12) To sell and convey, mortgage, pledge, lease as lessor, and otherwise dispose of all or any part of its property and assets; (13) In connection with the acquisition, construction, improvement, operation, or maintenance of its lines, to use any highway or any right-of-way, easement, or other similar property right, or any tax-forfeited land owned or held by the state or any political subdivison thereof; (14) To have and exercise the right of eminent domain for the purpose of acquiring rights-of-way and other properties necessary or useful in the construction or operation of its properties and in the manner now provided by the condemnation laws of this state for acquiring private property for public use; (15) To accept gifts or grants of money, services, or property, real or personal; (16) To make any and all contracts necessary or convenient for the exercise of the powers granted in this subchapter; (17) To fix, regulate, and collect rates, fees, rents, or other charges for electric energy and any other facilities, supplies, equipment, or services furnished by the corporation; (18) To conduct its business and have offices within or without this state; (19) To elect or appoint officers, agents, and employees of the corporation and to define their duties and fix their compensation; (20) To make and alter bylaws, not inconsistent with the articles of incorporation or with the laws of this state, for the administration and regulation of the affairs of the corporation; (21) To do and perform, either for itself or its members, or for any other corporation organized under this subchapter, or for the members thereof, any and all acts and things, and to have and exercise any and all powers as may be necessary, convenient, or appropriate to effectuate the purpose for which the corporation is organized; (22) (A) (i) To indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, other than an action by or in the right of the corporation, by reason of the fact that he or she is or was a director, officer, employee, or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against judgments, fines, expenses, including attorney's fees, and amounts paid in settlement actually and reasonably incurred by him or her in connection with such action, suit, or proceeding, if he or she acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. (ii) The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interest of the corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful; and (B) A corporation shall have power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he or she is or was a director, officer, employee, or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise against expenses, including attorney's fees, actually and reasonably incurred by him or her in connection with the defense or settlement of the action or suit if he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the corporation, except that no indemnification shall be made in respect of any claim, issue, or matter as to which the person shall have been adjudged to be liable to the corporation unless and only to the extent that the circuit court or the court in which the action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the circuit court or such other court shall deem proper. (C) To the extent that a director, officer, employee, or agent of a corporation has been successful on the merits or otherwise in defense of any action, suit, or proceeding referred to in subdivisions (22)(A) and (B) of this section, or in defense of any claim, issue, or matter therein, he or she shall be indemnified against expenses, including attorney's fees, actually and reasonably incurred by him or her in connection therewith. (D) Any indemnification under subdivisions (22)(A) and (B) of this section, unless ordered by a court, shall be made by the corporation only as authorized in the specific case upon a determination that indemnification of the director, officer, employee, or agent is proper in the circumstances because he or she has met the applicable standard of conduct set forth in subdivisions (22)(A) and (B) of this section. Such a determination shall be made: (i) By the board of directors by a majority vote of a quorum consisting of directors who were not parties to the action, suit, or proceeding; (ii) If such a quorum is not obtainable, or, even if obtainable, a quorum of disinterested directors so directs, by independent legal counsel in a written opinion; or (iii) By the members. (E) Expenses incurred by an officer or director in defending a civil or criminal action, suit, or proceeding may be paid by the corporation in advance of final disposition of such an action, suit, or proceeding upon receipt of an undertaking by or on behalf of the director or officer to repay the amount if it shall ultimately be determined that he or she is not entitled to be indemnified by the corporation as authorized in this section. Such expenses incurred by other employees and agents may be so paid upon such terms and conditions, if any, as the board of directors deems appropriate. (F) The indemnification and advancement of expenses provided by or granted pursuant to the other subsections of this section shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement, vote of members or disinterested directors, or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding such an office. (G) A corporation shall have power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise against any liability asserted against him or her and incurred by him or her in any such capacity, or arising out of his or her status as such, whether or not the corporation would have the power to indemnify him or her against such liability under the provisions of this section. (H) Unless otherwise provided when authorized or ratified, the indemnification and advancement of expenses provided by, or granted pursuant to, this section shall continue as to a person who has ceased to be a director, officer, employee, or agent and shall inure to the benefit of the heirs, executors, and administrators of the person. (I) (i) For purposes of this section, references to: (a) "The corporation" shall include, in addition to the resulting corporation and constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, and employees or agents so that any person who is or was a director, officer, employee, or agent of the constituent corporation or is or was serving at the request of the constituent corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, shall stand in the same position under the provisions of this section with respect to the resulting or surviving corporation as he or she would have with respect to the constituent corporation if its separate existence had continued; (b) "Other enterprises" shall include employee benefit plans; (c) "Fines" shall include any excise taxes assessed on a person with respect to an employee benefit plan; and (d) "Serving at the request of the corporation" shall include any service as a director, officer, employee, or agent of the corporation which imposes duties on, or involves services by, the director, officer, employee, or agent with respect to an employee benefit plan, its participants, or beneficiaries. (ii) A person who acted in good faith and in a manner he or she reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "not opposed to the best interests of the corporation" as referred to in this section; and (23) To engage in any lawful business activity. Acts 1937, No. 342, § 4; Pope's Dig., § 2318; Acts 1955, No. 32, § 1; A.S.A. 1947, § 77-1104; Acts 1989, No. 288, § 1; 1999, No. 1556, §§ 13-15.

Each corporation shall have power:

(1) To sue and be sued, complain, and defend in its corporate name;

(2) To have perpetual succession unless a limited period of duration is stated in its articles of incorporation;

(3) To adopt a corporate seal which may be altered at pleasure and to use it or a facsimile thereof, as required by law;

(4) To generate, manufacture, purchase, acquire, accumulate, transmit, distribute, sell, furnish, and dispose of electric power and energy;

(5) To construct, erect, purchase, lease as lessee, and in any manner acquire, own, hold, maintain, operate, sell, dispose of, lease as lessor, exchange, and mortgage plants, buildings, works, machinery, supplies, equipment, apparatus, and generation, transmission, and distribution facilities or systems as it deems necessary, convenient, or useful;

(6) To enter into sale or interchange agreements for surplus power and energy with any and all other persons, business entities, or public bodies or agencies. The electric power and energy may be resold at wholesale or retail and may be sold or disposed of by the other party to the agreement as provided in the contract or agreement;

(7) To assist its members only to wire their premises and install therein electrical and plumbing fixtures, machinery, supplies, apparatus, and equipment of any and all kinds and character. In connection therewith and for such purposes, each such corporation may purchase, acquire, lease, sell, distribute, install, and repair electrical and plumbing fixtures, machinery, supplies, apparatus, and equipment of any and all kinds and character and receive, acquire, endorse, pledge, hypothecate, and dispose of notes, bonds, and other evidences of indebtedness;

(8) To furnish to other corporations organized under this subchapter, or to the members thereof, electric energy, wiring facilities, and electrical and plumbing equipment and services convenient or useful;

(9) To acquire, own, hold, use, exercise, and, to the extent permitted by law, to sell, mortgage, pledge, hypothecate, and in any manner dispose of franchises, rights, privileges, licenses, rights-of-way, and easements necessary, useful, or appropriate;

(10) To purchase, receive, lease as lessee, or in any other manner acquire, own, hold, maintain, sell, exchange, and use any and all real and personal property or any interest therein;

(11) To borrow money and otherwise contract indebtedness, to issue its obligations therefor, and to secure the payment thereof by mortgage, pledge, or deed of trust of all or any of its property, assets, franchises, revenues, or income;

(12) To sell and convey, mortgage, pledge, lease as lessor, and otherwise dispose of all or any part of its property and assets;

(13) In connection with the acquisition, construction, improvement, operation, or maintenance of its lines, to use any highway or any right-of-way, easement, or other similar property right, or any tax-forfeited land owned or held by the state or any political subdivison thereof;

(14) To have and exercise the right of eminent domain for the purpose of acquiring rights-of-way and other properties necessary or useful in the construction or operation of its properties and in the manner now provided by the condemnation laws of this state for acquiring private property for public use;

(15) To accept gifts or grants of money, services, or property, real or personal;

(16) To make any and all contracts necessary or convenient for the exercise of the powers granted in this subchapter;

(17) To fix, regulate, and collect rates, fees, rents, or other charges for electric energy and any other facilities, supplies, equipment, or services furnished by the corporation;

(18) To conduct its business and have offices within or without this state;

(19) To elect or appoint officers, agents, and employees of the corporation and to define their duties and fix their compensation;

(20) To make and alter bylaws, not inconsistent with the articles of incorporation or with the laws of this state, for the administration and regulation of the affairs of the corporation;

(21) To do and perform, either for itself or its members, or for any other corporation organized under this subchapter, or for the members thereof, any and all acts and things, and to have and exercise any and all powers as may be necessary, convenient, or appropriate to effectuate the purpose for which the corporation is organized;

(22) (A) (i) To indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, other than an action by or in the right of the corporation, by reason of the fact that he or she is or was a director, officer, employee, or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against judgments, fines, expenses, including attorney's fees, and amounts paid in settlement actually and reasonably incurred by him or her in connection with such action, suit, or proceeding, if he or she acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. (ii) The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interest of the corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful; and (B) A corporation shall have power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he or she is or was a director, officer, employee, or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise against expenses, including attorney's fees, actually and reasonably incurred by him or her in connection with the defense or settlement of the action or suit if he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the corporation, except that no indemnification shall be made in respect of any claim, issue, or matter as to which the person shall have been adjudged to be liable to the corporation unless and only to the extent that the circuit court or the court in which the action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the circuit court or such other court shall deem proper. (C) To the extent that a director, officer, employee, or agent of a corporation has been successful on the merits or otherwise in defense of any action, suit, or proceeding referred to in subdivisions (22)(A) and (B) of this section, or in defense of any claim, issue, or matter therein, he or she shall be indemnified against expenses, including attorney's fees, actually and reasonably incurred by him or her in connection therewith. (D) Any indemnification under subdivisions (22)(A) and (B) of this section, unless ordered by a court, shall be made by the corporation only as authorized in the specific case upon a determination that indemnification of the director, officer, employee, or agent is proper in the circumstances because he or she has met the applicable standard of conduct set forth in subdivisions (22)(A) and (B) of this section. Such a determination shall be made: (i) By the board of directors by a majority vote of a quorum consisting of directors who were not parties to the action, suit, or proceeding; (ii) If such a quorum is not obtainable, or, even if obtainable, a quorum of disinterested directors so directs, by independent legal counsel in a written opinion; or (iii) By the members. (E) Expenses incurred by an officer or director in defending a civil or criminal action, suit, or proceeding may be paid by the corporation in advance of final disposition of such an action, suit, or proceeding upon receipt of an undertaking by or on behalf of the director or officer to repay the amount if it shall ultimately be determined that he or she is not entitled to be indemnified by the corporation as authorized in this section. Such expenses incurred by other employees and agents may be so paid upon such terms and conditions, if any, as the board of directors deems appropriate. (F) The indemnification and advancement of expenses provided by or granted pursuant to the other subsections of this section shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement, vote of members or disinterested directors, or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding such an office. (G) A corporation shall have power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise against any liability asserted against him or her and incurred by him or her in any such capacity, or arising out of his or her status as such, whether or not the corporation would have the power to indemnify him or her against such liability under the provisions of this section. (H) Unless otherwise provided when authorized or ratified, the indemnification and advancement of expenses provided by, or granted pursuant to, this section shall continue as to a person who has ceased to be a director, officer, employee, or agent and shall inure to the benefit of the heirs, executors, and administrators of the person. (I) (i) For purposes of this section, references to: (a) "The corporation" shall include, in addition to the resulting corporation and constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, and employees or agents so that any person who is or was a director, officer, employee, or agent of the constituent corporation or is or was serving at the request of the constituent corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, shall stand in the same position under the provisions of this section with respect to the resulting or surviving corporation as he or she would have with respect to the constituent corporation if its separate existence had continued; (b) "Other enterprises" shall include employee benefit plans; (c) "Fines" shall include any excise taxes assessed on a person with respect to an employee benefit plan; and (d) "Serving at the request of the corporation" shall include any service as a director, officer, employee, or agent of the corporation which imposes duties on, or involves services by, the director, officer, employee, or agent with respect to an employee benefit plan, its participants, or beneficiaries. (ii) A person who acted in good faith and in a manner he or she reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "not opposed to the best interests of the corporation" as referred to in this section; and

(A) (i) To indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, other than an action by or in the right of the corporation, by reason of the fact that he or she is or was a director, officer, employee, or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against judgments, fines, expenses, including attorney's fees, and amounts paid in settlement actually and reasonably incurred by him or her in connection with such action, suit, or proceeding, if he or she acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. (ii) The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interest of the corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful; and

(i) To indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, other than an action by or in the right of the corporation, by reason of the fact that he or she is or was a director, officer, employee, or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against judgments, fines, expenses, including attorney's fees, and amounts paid in settlement actually and reasonably incurred by him or her in connection with such action, suit, or proceeding, if he or she acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful.

(ii) The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interest of the corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful; and

(B) A corporation shall have power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he or she is or was a director, officer, employee, or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise against expenses, including attorney's fees, actually and reasonably incurred by him or her in connection with the defense or settlement of the action or suit if he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the corporation, except that no indemnification shall be made in respect of any claim, issue, or matter as to which the person shall have been adjudged to be liable to the corporation unless and only to the extent that the circuit court or the court in which the action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the circuit court or such other court shall deem proper.

(C) To the extent that a director, officer, employee, or agent of a corporation has been successful on the merits or otherwise in defense of any action, suit, or proceeding referred to in subdivisions (22)(A) and (B) of this section, or in defense of any claim, issue, or matter therein, he or she shall be indemnified against expenses, including attorney's fees, actually and reasonably incurred by him or her in connection therewith.

(D) Any indemnification under subdivisions (22)(A) and (B) of this section, unless ordered by a court, shall be made by the corporation only as authorized in the specific case upon a determination that indemnification of the director, officer, employee, or agent is proper in the circumstances because he or she has met the applicable standard of conduct set forth in subdivisions (22)(A) and (B) of this section. Such a determination shall be made: (i) By the board of directors by a majority vote of a quorum consisting of directors who were not parties to the action, suit, or proceeding; (ii) If such a quorum is not obtainable, or, even if obtainable, a quorum of disinterested directors so directs, by independent legal counsel in a written opinion; or (iii) By the members.

(i) By the board of directors by a majority vote of a quorum consisting of directors who were not parties to the action, suit, or proceeding;

(ii) If such a quorum is not obtainable, or, even if obtainable, a quorum of disinterested directors so directs, by independent legal counsel in a written opinion; or

(iii) By the members.

(E) Expenses incurred by an officer or director in defending a civil or criminal action, suit, or proceeding may be paid by the corporation in advance of final disposition of such an action, suit, or proceeding upon receipt of an undertaking by or on behalf of the director or officer to repay the amount if it shall ultimately be determined that he or she is not entitled to be indemnified by the corporation as authorized in this section. Such expenses incurred by other employees and agents may be so paid upon such terms and conditions, if any, as the board of directors deems appropriate.

(F) The indemnification and advancement of expenses provided by or granted pursuant to the other subsections of this section shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement, vote of members or disinterested directors, or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding such an office.

(G) A corporation shall have power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise against any liability asserted against him or her and incurred by him or her in any such capacity, or arising out of his or her status as such, whether or not the corporation would have the power to indemnify him or her against such liability under the provisions of this section.

(H) Unless otherwise provided when authorized or ratified, the indemnification and advancement of expenses provided by, or granted pursuant to, this section shall continue as to a person who has ceased to be a director, officer, employee, or agent and shall inure to the benefit of the heirs, executors, and administrators of the person.

(I) (i) For purposes of this section, references to: (a) "The corporation" shall include, in addition to the resulting corporation and constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, and employees or agents so that any person who is or was a director, officer, employee, or agent of the constituent corporation or is or was serving at the request of the constituent corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, shall stand in the same position under the provisions of this section with respect to the resulting or surviving corporation as he or she would have with respect to the constituent corporation if its separate existence had continued; (b) "Other enterprises" shall include employee benefit plans; (c) "Fines" shall include any excise taxes assessed on a person with respect to an employee benefit plan; and (d) "Serving at the request of the corporation" shall include any service as a director, officer, employee, or agent of the corporation which imposes duties on, or involves services by, the director, officer, employee, or agent with respect to an employee benefit plan, its participants, or beneficiaries. (ii) A person who acted in good faith and in a manner he or she reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "not opposed to the best interests of the corporation" as referred to in this section; and

(i) For purposes of this section, references to: (a) "The corporation" shall include, in addition to the resulting corporation and constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, and employees or agents so that any person who is or was a director, officer, employee, or agent of the constituent corporation or is or was serving at the request of the constituent corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, shall stand in the same position under the provisions of this section with respect to the resulting or surviving corporation as he or she would have with respect to the constituent corporation if its separate existence had continued; (b) "Other enterprises" shall include employee benefit plans; (c) "Fines" shall include any excise taxes assessed on a person with respect to an employee benefit plan; and (d) "Serving at the request of the corporation" shall include any service as a director, officer, employee, or agent of the corporation which imposes duties on, or involves services by, the director, officer, employee, or agent with respect to an employee benefit plan, its participants, or beneficiaries.

(a) "The corporation" shall include, in addition to the resulting corporation and constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, and employees or agents so that any person who is or was a director, officer, employee, or agent of the constituent corporation or is or was serving at the request of the constituent corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, shall stand in the same position under the provisions of this section with respect to the resulting or surviving corporation as he or she would have with respect to the constituent corporation if its separate existence had continued;

(b) "Other enterprises" shall include employee benefit plans;

(c) "Fines" shall include any excise taxes assessed on a person with respect to an employee benefit plan; and

(d) "Serving at the request of the corporation" shall include any service as a director, officer, employee, or agent of the corporation which imposes duties on, or involves services by, the director, officer, employee, or agent with respect to an employee benefit plan, its participants, or beneficiaries.

(ii) A person who acted in good faith and in a manner he or she reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "not opposed to the best interests of the corporation" as referred to in this section; and

(23) To engage in any lawful business activity.

Acts 1937, No. 342, § 4; Pope's Dig., § 2318; Acts 1955, No. 32, § 1; A.S.A. 1947, § 77-1104; Acts 1989, No. 288, § 1; 1999, No. 1556, §§ 13-15.
Ark. Code Ann. § 23-64-607 — AR Code / Title 23 / Chapter 64 / Subchapter 6 / Section 23-64-607
Qualifications for licensure or certification - Issuance
Status: in_force

(a) To qualify for a license or certification under this subchapter, a person shall: (1) Be at least eighteen (18) years of age; (2) Have received a high school diploma or a high school equivalency diploma approved by the Adult Education Section; (3) Be competent, trustworthy, financially responsible, and of good personal and business reputation; (4) Continue the qualifications under subdivision (a)(3) of this section while licensed or certified; (5) (A) Pass an examination and satisfy the educational requirements the Insurance Commissioner may impose by rule or order. (B) The examination required by this section shall be developed and conducted under rules prescribed by the commissioner; (6) (A) Have received instruction in health insurance, the provisions of the federal act for a health insurance marketplace in this state, and the medical assistance programs of this state. (B) The instruction required by this section shall be developed and conducted under rules prescribed by the commissioner; and (7) For a certified licensed producer, be a licensee in good standing under the Producer Licensing Model Act, § 23-64-501 et seq. (b) In addition to the other information required under this subchapter or rules adopted by the commissioner, an application for a license or certification under this subchapter shall include: (1) The applicant's business name, address, and Social Security number or taxpayer identification number; (2) A criminal and regulatory background check of the applicant; and (3) A description of the applicant's current business operations and its activities, duties, and responsibilities, including without limitation: (A) The place of organization and a certified copy of the applicant's organizational and governance documents; (B) If a foreign business, a copy of the certificate of authority from the Secretary of State; (C) The proposed method of business operation and, if applicable, other locations for doing business; and (D) (i) The qualifications, business experience and history, and financial condition of the applicant, its affiliates, and its employees. (ii) Information required under subdivision (b)(3)(D)(i) of this section shall include: (a) A description of any injunction or administrative order, including a denial to engage in a regulated activity by a state or federal authority that had jurisdiction over the applicant, its affiliates, and its employees; (b) A conviction of a misdemeanor involving fraudulent dealings or moral turpitude or relating to any aspect of the insurance industry, the mortgage industry, the securities industry, or any other activity pertaining to financial services; (c) Any felony conviction; and (d) A beneficial interest in an affiliated industry business. (c) Each applicant shall pay a reasonable annual licensure or certification fee as established by rule of the commissioner. (d) Each license or certification issued by the commissioner under this subchapter expires two (2) years after the date the license or certification is issued unless otherwise renewed, surrendered, or revoked. (e) A license or certification issued under this subchapter is not transferable. (f) To assist in the performance of the commissioner's duties, the commissioner may contract with nongovernmental entities, including the National Association of Insurance Commissioners or any affiliates or subsidiaries that the National Association of Insurance Commissioners oversees, to perform any ministerial functions that the commissioner and the nongovernmental business may consider appropriate, including the collection of the annual fee for licensure or certification of a navigator, guide, certified application counselor, or certified licensed producer. Amended by Act 2019, No. 910,§ 2349, eff. 7/1/2019. Amended by Act 2017, No. 283,§ 11, eff. 8/1/2017. Amended by Act 2015, No. 1115,§ 30, eff. 7/22/2015. Added by Act 2013, No. 1439,§ 1, eff. when (1) The United States Department of Health and Human Services or other responsible federal agency or federal official notifies the Governor, the Insurance Commissioner, or other responsible state agency or state official pursuant to the federal healthcare laws established by Pub. L. No. 111-148, as amended by Pub. L. No. 111-152, and any amendments thereto, or regulations or guidance issued under those federal statutes; or (2) A health insurance marketplace is initiated and is operable in this state..

(a) To qualify for a license or certification under this subchapter, a person shall: (1) Be at least eighteen (18) years of age; (2) Have received a high school diploma or a high school equivalency diploma approved by the Adult Education Section; (3) Be competent, trustworthy, financially responsible, and of good personal and business reputation; (4) Continue the qualifications under subdivision (a)(3) of this section while licensed or certified; (5) (A) Pass an examination and satisfy the educational requirements the Insurance Commissioner may impose by rule or order. (B) The examination required by this section shall be developed and conducted under rules prescribed by the commissioner; (6) (A) Have received instruction in health insurance, the provisions of the federal act for a health insurance marketplace in this state, and the medical assistance programs of this state. (B) The instruction required by this section shall be developed and conducted under rules prescribed by the commissioner; and (7) For a certified licensed producer, be a licensee in good standing under the Producer Licensing Model Act, § 23-64-501 et seq.

(1) Be at least eighteen (18) years of age;

(2) Have received a high school diploma or a high school equivalency diploma approved by the Adult Education Section;

(3) Be competent, trustworthy, financially responsible, and of good personal and business reputation;

(4) Continue the qualifications under subdivision (a)(3) of this section while licensed or certified;

(5) (A) Pass an examination and satisfy the educational requirements the Insurance Commissioner may impose by rule or order. (B) The examination required by this section shall be developed and conducted under rules prescribed by the commissioner;

(A) Pass an examination and satisfy the educational requirements the Insurance Commissioner may impose by rule or order.

(B) The examination required by this section shall be developed and conducted under rules prescribed by the commissioner;

(6) (A) Have received instruction in health insurance, the provisions of the federal act for a health insurance marketplace in this state, and the medical assistance programs of this state. (B) The instruction required by this section shall be developed and conducted under rules prescribed by the commissioner; and

(A) Have received instruction in health insurance, the provisions of the federal act for a health insurance marketplace in this state, and the medical assistance programs of this state.

(B) The instruction required by this section shall be developed and conducted under rules prescribed by the commissioner; and

(7) For a certified licensed producer, be a licensee in good standing under the Producer Licensing Model Act, § 23-64-501 et seq.

(b) In addition to the other information required under this subchapter or rules adopted by the commissioner, an application for a license or certification under this subchapter shall include: (1) The applicant's business name, address, and Social Security number or taxpayer identification number; (2) A criminal and regulatory background check of the applicant; and (3) A description of the applicant's current business operations and its activities, duties, and responsibilities, including without limitation: (A) The place of organization and a certified copy of the applicant's organizational and governance documents; (B) If a foreign business, a copy of the certificate of authority from the Secretary of State; (C) The proposed method of business operation and, if applicable, other locations for doing business; and (D) (i) The qualifications, business experience and history, and financial condition of the applicant, its affiliates, and its employees. (ii) Information required under subdivision (b)(3)(D)(i) of this section shall include: (a) A description of any injunction or administrative order, including a denial to engage in a regulated activity by a state or federal authority that had jurisdiction over the applicant, its affiliates, and its employees; (b) A conviction of a misdemeanor involving fraudulent dealings or moral turpitude or relating to any aspect of the insurance industry, the mortgage industry, the securities industry, or any other activity pertaining to financial services; (c) Any felony conviction; and (d) A beneficial interest in an affiliated industry business.

(1) The applicant's business name, address, and Social Security number or taxpayer identification number;

(2) A criminal and regulatory background check of the applicant; and

(3) A description of the applicant's current business operations and its activities, duties, and responsibilities, including without limitation: (A) The place of organization and a certified copy of the applicant's organizational and governance documents; (B) If a foreign business, a copy of the certificate of authority from the Secretary of State; (C) The proposed method of business operation and, if applicable, other locations for doing business; and (D) (i) The qualifications, business experience and history, and financial condition of the applicant, its affiliates, and its employees. (ii) Information required under subdivision (b)(3)(D)(i) of this section shall include: (a) A description of any injunction or administrative order, including a denial to engage in a regulated activity by a state or federal authority that had jurisdiction over the applicant, its affiliates, and its employees; (b) A conviction of a misdemeanor involving fraudulent dealings or moral turpitude or relating to any aspect of the insurance industry, the mortgage industry, the securities industry, or any other activity pertaining to financial services; (c) Any felony conviction; and (d) A beneficial interest in an affiliated industry business.

(A) The place of organization and a certified copy of the applicant's organizational and governance documents;

(B) If a foreign business, a copy of the certificate of authority from the Secretary of State;

(C) The proposed method of business operation and, if applicable, other locations for doing business; and

(D) (i) The qualifications, business experience and history, and financial condition of the applicant, its affiliates, and its employees. (ii) Information required under subdivision (b)(3)(D)(i) of this section shall include: (a) A description of any injunction or administrative order, including a denial to engage in a regulated activity by a state or federal authority that had jurisdiction over the applicant, its affiliates, and its employees; (b) A conviction of a misdemeanor involving fraudulent dealings or moral turpitude or relating to any aspect of the insurance industry, the mortgage industry, the securities industry, or any other activity pertaining to financial services; (c) Any felony conviction; and (d) A beneficial interest in an affiliated industry business.

(i) The qualifications, business experience and history, and financial condition of the applicant, its affiliates, and its employees.

(ii) Information required under subdivision (b)(3)(D)(i) of this section shall include: (a) A description of any injunction or administrative order, including a denial to engage in a regulated activity by a state or federal authority that had jurisdiction over the applicant, its affiliates, and its employees; (b) A conviction of a misdemeanor involving fraudulent dealings or moral turpitude or relating to any aspect of the insurance industry, the mortgage industry, the securities industry, or any other activity pertaining to financial services; (c) Any felony conviction; and (d) A beneficial interest in an affiliated industry business.

(a) A description of any injunction or administrative order, including a denial to engage in a regulated activity by a state or federal authority that had jurisdiction over the applicant, its affiliates, and its employees;

(b) A conviction of a misdemeanor involving fraudulent dealings or moral turpitude or relating to any aspect of the insurance industry, the mortgage industry, the securities industry, or any other activity pertaining to financial services;

(c) Any felony conviction; and

(d) A beneficial interest in an affiliated industry business.

(c) Each applicant shall pay a reasonable annual licensure or certification fee as established by rule of the commissioner.

(d) Each license or certification issued by the commissioner under this subchapter expires two (2) years after the date the license or certification is issued unless otherwise renewed, surrendered, or revoked.

(e) A license or certification issued under this subchapter is not transferable.

(f) To assist in the performance of the commissioner's duties, the commissioner may contract with nongovernmental entities, including the National Association of Insurance Commissioners or any affiliates or subsidiaries that the National Association of Insurance Commissioners oversees, to perform any ministerial functions that the commissioner and the nongovernmental business may consider appropriate, including the collection of the annual fee for licensure or certification of a navigator, guide, certified application counselor, or certified licensed producer.

Amended by Act 2019, No. 910,§ 2349, eff. 7/1/2019.

Amended by Act 2017, No. 283,§ 11, eff. 8/1/2017.

Amended by Act 2015, No. 1115,§ 30, eff. 7/22/2015.

Added by Act 2013, No. 1439,§ 1, eff. when (1) The United States Department of Health and Human Services or other responsible federal agency or federal official notifies the Governor, the Insurance Commissioner, or other responsible state agency or state official pursuant to the federal healthcare laws established by Pub. L. No. 111-148, as amended by Pub. L. No. 111-152, and any amendments thereto, or regulations or guidance issued under those federal statutes; or (2) A health insurance marketplace is initiated and is operable in this state..
Ark. Code Ann. § 23-92-101 — AR Code / Title 23 / Chapter 92 / Subchapter 1 / Section 23-92-101
Registration or licensure required
Status: in_force

(a) "Multiple employer welfare arrangement" has the same meaning as under 29 U.S.C. § 1002(40) , as it existed on January 1, 2019. (b) (1) A fully insured multiple employer trust and fully insured multiple employer welfare arrangement that intends to provide benefits to citizens of this state shall register with the Insurance Commissioner before soliciting or enrolling members or before conducting any other business activity in Arkansas. (2) (A) Each fully insured multiple employer trust and fully insured multiple employer welfare arrangement under this section that is conducting any business activity in Arkansas shall register with the commissioner. (B) After the initial registration, a fully insured multiple employer trust and fully insured multiple employer welfare arrangement under this section that conducts business in Arkansas shall register with the commissioner no later than January 1 of each year for as long as it continues to do business in Arkansas. (c) (1) A multiple employer trust or multiple employer welfare arrangement that is not fully insured shall obtain a certificate of authority under rules promulgated by the commissioner before doing business in Arkansas. (2) In order to remain licensed, a multiple employer trust or multiple employer welfare arrangement that is not fully insured shall comply with applicable terms of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq., as it existed on January 1, 2019. (3) (A) The commissioner shall adopt rules regulating multiple employer trusts and multiple employer welfare arrangements that are not fully insured. (B) The rules shall include information and procedures concerning: (i) The criteria and application for obtaining a certificate of authority from the State Insurance Department to conduct business in Arkansas that are not inconsistent with 29 C.F.R. § 2510.3-1 et seq., as it existed on January 1, 2019; (ii) The benefits to be offered that are not inconsistent with similarly situated single employer plans; (iii) Financial requirements consistent with sound actuarial principles; (iv) Fees; (v) Insolvency procedures; (vi) Examinations; (vii) Filing of forms and rates; (viii) Written disclosures and other consumer protections; (ix) Reporting requirements; (x) Excess or stop loss insurance; and (xi) Other factors the commissioner deems necessary for the effective regulation of multiple employer welfare trusts and multiple employer welfare arrangements that are not fully insured, if the requirements are not inconsistent with 29 C.F.R. § 2510.3-1 et seq., as it existed on January 1, 2019. (C) The rules described in subdivision (c)(3)(B) of this section shall allow that reserves of an association that sponsors a multiple employer welfare arrangement may be established by either a cash deposit or a line of credit that is used as a source of a cash reserve. (D) The rules described in subdivision (c)(3)(B) of this section shall not require an association that sponsors a multiple employer welfare arrangement: (i) To disclose to the public the address of a trustee for a trust agreement of a multiple employer welfare arrangement if that trustee is not the designated administrator of the summary plan of the association; or (ii) To be organized and in active existence for more than one (1) year if the association has at least one (1) substantial business purpose other than obtaining insurance or insuring an association's members or employees or the employees of members of the association for the benefit of a person other than the association or the association's officers or trustees. (d) (1) To the extent permitted by federal law, a fully insured or self-insured multiple employer welfare arrangement may include employers in a common trade or industry, employers representing two (2) or more trades or industries, sole proprietors, or working owners as defined in 29 C.F.R. § 2510.3-5(e) , as it existed on January 1, 2019. (2) The rules by which the multiple employer welfare arrangement shall abide are determined at the aggregate level so that in an arrangement in which the total number of employers in the multiple employer welfare arrangement, including working owners, exceeds fifty (50), the multiple employer welfare arrangement is subject to the requirements of the large group market. (3) The commissioner may by rule allow any type of business organization, whether for-profit or nonprofit, to form an association or group of employers in the multiple employer trust or multiple employer welfare arrangement. Amended by Act 2021, No. 979,§ 1, eff. 7/28/2021. Amended by Act 2021, No. 367,§ 24, eff. 7/28/2021. Amended by Act 2019, No. 919,§ 1, eff. 7/24/2019. Acts 1985, No. 795, §§ 1, 2; A.S.A. 1947, §§ 66-6001, 66-6002; Acts 2001, No. 1603, § 44; 2003, No. 516, § 6; 2005, No. 1697, § 22.

(a) "Multiple employer welfare arrangement" has the same meaning as under 29 U.S.C. § 1002(40) , as it existed on January 1, 2019.

(b) (1) A fully insured multiple employer trust and fully insured multiple employer welfare arrangement that intends to provide benefits to citizens of this state shall register with the Insurance Commissioner before soliciting or enrolling members or before conducting any other business activity in Arkansas. (2) (A) Each fully insured multiple employer trust and fully insured multiple employer welfare arrangement under this section that is conducting any business activity in Arkansas shall register with the commissioner. (B) After the initial registration, a fully insured multiple employer trust and fully insured multiple employer welfare arrangement under this section that conducts business in Arkansas shall register with the commissioner no later than January 1 of each year for as long as it continues to do business in Arkansas.

(1) A fully insured multiple employer trust and fully insured multiple employer welfare arrangement that intends to provide benefits to citizens of this state shall register with the Insurance Commissioner before soliciting or enrolling members or before conducting any other business activity in Arkansas.

(2) (A) Each fully insured multiple employer trust and fully insured multiple employer welfare arrangement under this section that is conducting any business activity in Arkansas shall register with the commissioner. (B) After the initial registration, a fully insured multiple employer trust and fully insured multiple employer welfare arrangement under this section that conducts business in Arkansas shall register with the commissioner no later than January 1 of each year for as long as it continues to do business in Arkansas.

(A) Each fully insured multiple employer trust and fully insured multiple employer welfare arrangement under this section that is conducting any business activity in Arkansas shall register with the commissioner.

(B) After the initial registration, a fully insured multiple employer trust and fully insured multiple employer welfare arrangement under this section that conducts business in Arkansas shall register with the commissioner no later than January 1 of each year for as long as it continues to do business in Arkansas.

(c) (1) A multiple employer trust or multiple employer welfare arrangement that is not fully insured shall obtain a certificate of authority under rules promulgated by the commissioner before doing business in Arkansas. (2) In order to remain licensed, a multiple employer trust or multiple employer welfare arrangement that is not fully insured shall comply with applicable terms of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq., as it existed on January 1, 2019. (3) (A) The commissioner shall adopt rules regulating multiple employer trusts and multiple employer welfare arrangements that are not fully insured. (B) The rules shall include information and procedures concerning: (i) The criteria and application for obtaining a certificate of authority from the State Insurance Department to conduct business in Arkansas that are not inconsistent with 29 C.F.R. § 2510.3-1 et seq., as it existed on January 1, 2019; (ii) The benefits to be offered that are not inconsistent with similarly situated single employer plans; (iii) Financial requirements consistent with sound actuarial principles; (iv) Fees; (v) Insolvency procedures; (vi) Examinations; (vii) Filing of forms and rates; (viii) Written disclosures and other consumer protections; (ix) Reporting requirements; (x) Excess or stop loss insurance; and (xi) Other factors the commissioner deems necessary for the effective regulation of multiple employer welfare trusts and multiple employer welfare arrangements that are not fully insured, if the requirements are not inconsistent with 29 C.F.R. § 2510.3-1 et seq., as it existed on January 1, 2019. (C) The rules described in subdivision (c)(3)(B) of this section shall allow that reserves of an association that sponsors a multiple employer welfare arrangement may be established by either a cash deposit or a line of credit that is used as a source of a cash reserve. (D) The rules described in subdivision (c)(3)(B) of this section shall not require an association that sponsors a multiple employer welfare arrangement: (i) To disclose to the public the address of a trustee for a trust agreement of a multiple employer welfare arrangement if that trustee is not the designated administrator of the summary plan of the association; or (ii) To be organized and in active existence for more than one (1) year if the association has at least one (1) substantial business purpose other than obtaining insurance or insuring an association's members or employees or the employees of members of the association for the benefit of a person other than the association or the association's officers or trustees.

(1) A multiple employer trust or multiple employer welfare arrangement that is not fully insured shall obtain a certificate of authority under rules promulgated by the commissioner before doing business in Arkansas.

(2) In order to remain licensed, a multiple employer trust or multiple employer welfare arrangement that is not fully insured shall comply with applicable terms of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq., as it existed on January 1, 2019.

(3) (A) The commissioner shall adopt rules regulating multiple employer trusts and multiple employer welfare arrangements that are not fully insured. (B) The rules shall include information and procedures concerning: (i) The criteria and application for obtaining a certificate of authority from the State Insurance Department to conduct business in Arkansas that are not inconsistent with 29 C.F.R. § 2510.3-1 et seq., as it existed on January 1, 2019; (ii) The benefits to be offered that are not inconsistent with similarly situated single employer plans; (iii) Financial requirements consistent with sound actuarial principles; (iv) Fees; (v) Insolvency procedures; (vi) Examinations; (vii) Filing of forms and rates; (viii) Written disclosures and other consumer protections; (ix) Reporting requirements; (x) Excess or stop loss insurance; and (xi) Other factors the commissioner deems necessary for the effective regulation of multiple employer welfare trusts and multiple employer welfare arrangements that are not fully insured, if the requirements are not inconsistent with 29 C.F.R. § 2510.3-1 et seq., as it existed on January 1, 2019. (C) The rules described in subdivision (c)(3)(B) of this section shall allow that reserves of an association that sponsors a multiple employer welfare arrangement may be established by either a cash deposit or a line of credit that is used as a source of a cash reserve. (D) The rules described in subdivision (c)(3)(B) of this section shall not require an association that sponsors a multiple employer welfare arrangement: (i) To disclose to the public the address of a trustee for a trust agreement of a multiple employer welfare arrangement if that trustee is not the designated administrator of the summary plan of the association; or (ii) To be organized and in active existence for more than one (1) year if the association has at least one (1) substantial business purpose other than obtaining insurance or insuring an association's members or employees or the employees of members of the association for the benefit of a person other than the association or the association's officers or trustees.

(A) The commissioner shall adopt rules regulating multiple employer trusts and multiple employer welfare arrangements that are not fully insured.

(B) The rules shall include information and procedures concerning: (i) The criteria and application for obtaining a certificate of authority from the State Insurance Department to conduct business in Arkansas that are not inconsistent with 29 C.F.R. § 2510.3-1 et seq., as it existed on January 1, 2019; (ii) The benefits to be offered that are not inconsistent with similarly situated single employer plans; (iii) Financial requirements consistent with sound actuarial principles; (iv) Fees; (v) Insolvency procedures; (vi) Examinations; (vii) Filing of forms and rates; (viii) Written disclosures and other consumer protections; (ix) Reporting requirements; (x) Excess or stop loss insurance; and (xi) Other factors the commissioner deems necessary for the effective regulation of multiple employer welfare trusts and multiple employer welfare arrangements that are not fully insured, if the requirements are not inconsistent with 29 C.F.R. § 2510.3-1 et seq., as it existed on January 1, 2019.

(i) The criteria and application for obtaining a certificate of authority from the State Insurance Department to conduct business in Arkansas that are not inconsistent with 29 C.F.R. § 2510.3-1 et seq., as it existed on January 1, 2019;

(ii) The benefits to be offered that are not inconsistent with similarly situated single employer plans;

(iii) Financial requirements consistent with sound actuarial principles;

(iv) Fees;

(v) Insolvency procedures;

(vi) Examinations;

(vii) Filing of forms and rates;

(viii) Written disclosures and other consumer protections;

(ix) Reporting requirements;

(x) Excess or stop loss insurance; and

(xi) Other factors the commissioner deems necessary for the effective regulation of multiple employer welfare trusts and multiple employer welfare arrangements that are not fully insured, if the requirements are not inconsistent with 29 C.F.R. § 2510.3-1 et seq., as it existed on January 1, 2019.

(C) The rules described in subdivision (c)(3)(B) of this section shall allow that reserves of an association that sponsors a multiple employer welfare arrangement may be established by either a cash deposit or a line of credit that is used as a source of a cash reserve.

(D) The rules described in subdivision (c)(3)(B) of this section shall not require an association that sponsors a multiple employer welfare arrangement: (i) To disclose to the public the address of a trustee for a trust agreement of a multiple employer welfare arrangement if that trustee is not the designated administrator of the summary plan of the association; or (ii) To be organized and in active existence for more than one (1) year if the association has at least one (1) substantial business purpose other than obtaining insurance or insuring an association's members or employees or the employees of members of the association for the benefit of a person other than the association or the association's officers or trustees.

(i) To disclose to the public the address of a trustee for a trust agreement of a multiple employer welfare arrangement if that trustee is not the designated administrator of the summary plan of the association; or

(ii) To be organized and in active existence for more than one (1) year if the association has at least one (1) substantial business purpose other than obtaining insurance or insuring an association's members or employees or the employees of members of the association for the benefit of a person other than the association or the association's officers or trustees.

(d) (1) To the extent permitted by federal law, a fully insured or self-insured multiple employer welfare arrangement may include employers in a common trade or industry, employers representing two (2) or more trades or industries, sole proprietors, or working owners as defined in 29 C.F.R. § 2510.3-5(e) , as it existed on January 1, 2019. (2) The rules by which the multiple employer welfare arrangement shall abide are determined at the aggregate level so that in an arrangement in which the total number of employers in the multiple employer welfare arrangement, including working owners, exceeds fifty (50), the multiple employer welfare arrangement is subject to the requirements of the large group market. (3) The commissioner may by rule allow any type of business organization, whether for-profit or nonprofit, to form an association or group of employers in the multiple employer trust or multiple employer welfare arrangement.

(1) To the extent permitted by federal law, a fully insured or self-insured multiple employer welfare arrangement may include employers in a common trade or industry, employers representing two (2) or more trades or industries, sole proprietors, or working owners as defined in 29 C.F.R. § 2510.3-5(e) , as it existed on January 1, 2019.

(2) The rules by which the multiple employer welfare arrangement shall abide are determined at the aggregate level so that in an arrangement in which the total number of employers in the multiple employer welfare arrangement, including working owners, exceeds fifty (50), the multiple employer welfare arrangement is subject to the requirements of the large group market.

(3) The commissioner may by rule allow any type of business organization, whether for-profit or nonprofit, to form an association or group of employers in the multiple employer trust or multiple employer welfare arrangement.

Amended by Act 2021, No. 979,§ 1, eff. 7/28/2021.

Amended by Act 2021, No. 367,§ 24, eff. 7/28/2021.

Amended by Act 2019, No. 919,§ 1, eff. 7/24/2019.

Acts 1985, No. 795, §§ 1, 2; A.S.A. 1947, §§ 66-6001, 66-6002; Acts 2001, No. 1603, § 44; 2003, No. 516, § 6; 2005, No. 1697, § 22.
Ark. Code Ann. § 23-37-505 — AR Code / Title 23 / Chapter 37 / Subchapter 5 / Section 23-37-505
Withdrawals generally
Status: in_force

(a) Any savings account holder may, at any time, present a written application for withdrawal of all or any part of his or her savings account except to the extent the account may be pledged to the association or to another person on the books of the association. (b) (1) An association may pay, in full, each and every withdrawal request as presented, without requiring that written application therefor be made. (2) At any time the board of directors of an association finds it to be in the best interest of the association, the board may, by proper resolution, require a written notice of not exceeding sixty (60) days before paying withdrawals, in which event no withdrawal request shall be paid until the expiration of the time for giving notice fixed by the board of directors. (3) Upon the same day the resolution to require notice is made effective, the association shall notify the Supervisor of Savings and Loan Associations by telephone or telegraph that the resolution is in effect. (c) (1) In the event the Savings and Loan Association Board [abolished] makes an affirmative finding that a period of great financial stress or other emergency exists, either generally or in a specific locality in this state, or for a specific association, it may, with the approval of the Governor, restrict the right of an association to pay withdrawals, to the extent and in the manner which the board finds necessary or desirable for the protection of savings account holders and other creditors of the association. (2) Any restriction on the withdrawals from an association may, with like approval, be at any time and from time to time extended, renewed, or modified. (3) Any restriction shall be binding upon any association from the time the order of the board imposing the restriction is served on the affected association. (4) The action of the board shall be a complete defense to any action or suit brought against any association on account or by reason of the observance or compliance with the restriction on withdrawals. (5) The board may make and promulgate any rules which shall be required for the conduct of the business of an association for which withdrawals have been restricted pursuant to this subsection, with a view to the protection of the rights of the savings account holders, creditors, and members of the association, both with respect to savings account holders, creditors, and members who were such at the date of the restriction on withdrawals and those becoming savings account holders, creditors, or members after the restrictions have been imposed. (d) While an application for withdrawals remains in effect and unpaid, no loan shall be made by an association secured by the pledge of a savings account. (e) An application for withdrawal may be cancelled, in whole or in part, at any time by the holder of a savings account. Amended by Act 2019, No. 315,§ 2497, eff. 7/24/2019. Acts 1963, No. 227, § 35; A.S.A. 1947, § 67-1835.

(a) Any savings account holder may, at any time, present a written application for withdrawal of all or any part of his or her savings account except to the extent the account may be pledged to the association or to another person on the books of the association.

(b) (1) An association may pay, in full, each and every withdrawal request as presented, without requiring that written application therefor be made. (2) At any time the board of directors of an association finds it to be in the best interest of the association, the board may, by proper resolution, require a written notice of not exceeding sixty (60) days before paying withdrawals, in which event no withdrawal request shall be paid until the expiration of the time for giving notice fixed by the board of directors. (3) Upon the same day the resolution to require notice is made effective, the association shall notify the Supervisor of Savings and Loan Associations by telephone or telegraph that the resolution is in effect.

(1) An association may pay, in full, each and every withdrawal request as presented, without requiring that written application therefor be made.

(2) At any time the board of directors of an association finds it to be in the best interest of the association, the board may, by proper resolution, require a written notice of not exceeding sixty (60) days before paying withdrawals, in which event no withdrawal request shall be paid until the expiration of the time for giving notice fixed by the board of directors.

(3) Upon the same day the resolution to require notice is made effective, the association shall notify the Supervisor of Savings and Loan Associations by telephone or telegraph that the resolution is in effect.

(c) (1) In the event the Savings and Loan Association Board [abolished] makes an affirmative finding that a period of great financial stress or other emergency exists, either generally or in a specific locality in this state, or for a specific association, it may, with the approval of the Governor, restrict the right of an association to pay withdrawals, to the extent and in the manner which the board finds necessary or desirable for the protection of savings account holders and other creditors of the association. (2) Any restriction on the withdrawals from an association may, with like approval, be at any time and from time to time extended, renewed, or modified. (3) Any restriction shall be binding upon any association from the time the order of the board imposing the restriction is served on the affected association. (4) The action of the board shall be a complete defense to any action or suit brought against any association on account or by reason of the observance or compliance with the restriction on withdrawals. (5) The board may make and promulgate any rules which shall be required for the conduct of the business of an association for which withdrawals have been restricted pursuant to this subsection, with a view to the protection of the rights of the savings account holders, creditors, and members of the association, both with respect to savings account holders, creditors, and members who were such at the date of the restriction on withdrawals and those becoming savings account holders, creditors, or members after the restrictions have been imposed.

(1) In the event the Savings and Loan Association Board [abolished] makes an affirmative finding that a period of great financial stress or other emergency exists, either generally or in a specific locality in this state, or for a specific association, it may, with the approval of the Governor, restrict the right of an association to pay withdrawals, to the extent and in the manner which the board finds necessary or desirable for the protection of savings account holders and other creditors of the association.

(2) Any restriction on the withdrawals from an association may, with like approval, be at any time and from time to time extended, renewed, or modified.

(3) Any restriction shall be binding upon any association from the time the order of the board imposing the restriction is served on the affected association.

(4) The action of the board shall be a complete defense to any action or suit brought against any association on account or by reason of the observance or compliance with the restriction on withdrawals.

(5) The board may make and promulgate any rules which shall be required for the conduct of the business of an association for which withdrawals have been restricted pursuant to this subsection, with a view to the protection of the rights of the savings account holders, creditors, and members of the association, both with respect to savings account holders, creditors, and members who were such at the date of the restriction on withdrawals and those becoming savings account holders, creditors, or members after the restrictions have been imposed.

(d) While an application for withdrawals remains in effect and unpaid, no loan shall be made by an association secured by the pledge of a savings account.

(e) An application for withdrawal may be cancelled, in whole or in part, at any time by the holder of a savings account.

Amended by Act 2019, No. 315,§ 2497, eff. 7/24/2019.

Acts 1963, No. 227, § 35; A.S.A. 1947, § 67-1835.
Ark. Code Ann. § 23-17-112 — AR Code / Title 23 / Chapter 17 / Subchapter 1 / Section 23-17-112
Damages for mental anguish
Status: in_force

(a) All telegraph companies doing business in this state shall be liable in damages for mental anguish or suffering even in the absence of bodily injury or pecuniary loss for negligence in receiving, transmitting, or delivering messages. (b) In all actions under this section, the jury may award such damages as it concludes resulted from the negligence of the telegraph company. (c) Nothing contained in this section shall abridge the rights and remedies now provided by law against telegraph companies, and the rights and remedies provided for by this section shall be in addition to those now existing. Acts 1903, No. 68, §§ 1-3, p. 123; C. & M. Dig., § 10249; Pope's Dig., § 14258; A.S.A. 1947, §§ 73-1813 -- 73-1815.

(a) All telegraph companies doing business in this state shall be liable in damages for mental anguish or suffering even in the absence of bodily injury or pecuniary loss for negligence in receiving, transmitting, or delivering messages.

(b) In all actions under this section, the jury may award such damages as it concludes resulted from the negligence of the telegraph company.

(c) Nothing contained in this section shall abridge the rights and remedies now provided by law against telegraph companies, and the rights and remedies provided for by this section shall be in addition to those now existing.

Acts 1903, No. 68, §§ 1-3, p. 123; C. & M. Dig., § 10249; Pope's Dig., § 14258; A.S.A. 1947, §§ 73-1813 -- 73-1815.
Ark. Code Ann. § 23-46-507 — AR Code / Title 23 / Chapter 46 / Subchapter 5 / Section 23-46-507
Information furnished state or federal agencies
Status: in_force

(a) The Bank Commissioner may share with or furnish to any state or federal examiner or regulatory agency with jurisdiction over any financial institution or other entity conducting financial activities, including, but not limited to, insurance or securities brokerage or underwriting, copies of any or all examinations or any information with reference to the condition of the affairs of any state bank, subsidiary trust company, or other institution which the State Bank Department regulates. (b) The commissioner is authorized to enter into cooperative arrangements with state and federal regulatory agencies to achieve the purposes of the Arkansas Banking Code of 1997. Acts 1997, No. 89, § 1; 2001, No. 1056, § 2.

(a) The Bank Commissioner may share with or furnish to any state or federal examiner or regulatory agency with jurisdiction over any financial institution or other entity conducting financial activities, including, but not limited to, insurance or securities brokerage or underwriting, copies of any or all examinations or any information with reference to the condition of the affairs of any state bank, subsidiary trust company, or other institution which the State Bank Department regulates.

(b) The commissioner is authorized to enter into cooperative arrangements with state and federal regulatory agencies to achieve the purposes of the Arkansas Banking Code of 1997.

Acts 1997, No. 89, § 1; 2001, No. 1056, § 2.
Ark. Code Ann. § 23-88-503 — AR Code / Title 23 / Chapter 88 / Subchapter 5 / Section 23-88-503
Requirements for sale of portable electronics insurance
Status: in_force

(a) At a location where portable electronics insurance coverage is offered to customers, a prospective customer shall receive written disclosure that states: (1) Portable electronics insurance may provide duplication of coverage provided by a customer's homeowner's insurance policy, renter's insurance policy, or other source of coverage; (2) The enrollment by the customer for portable electronics insurance coverage is not required in order to purchase or lease portable electronics devices or services; (3) The material terms of the insurance coverage, to include: (A) The identity of the insurer; (B) The identity of the supervising entity; (C) The amount of an applicable deductible; (D) An explanation of the individual that is responsible for the applicable deductible; (E) Benefits of the coverage; and (F) Key terms and conditions of coverage, including without limitation whether or not portable electronics may be repaired or replaced with similar make and model reconditioned or nonoriginal manufacturer parts or equipment; (4) The process for filing a claim, including: (A) A description of how to return portable electronics; and (B) The maximum fee if the customer fails to comply with requirements for returning the portable electronics; and (5) (A) An enrolled customer may cancel a portable electronics insurance policy at any time. (B) The person paying the premium shall receive a refund of the unearned premium. (b) A vendor that has been issued a group or master commercial inland marine policy may offer portable electronics insurance on a month-to-month basis or other periodic basis for its enrolled customers. (c) Eligibility and underwriting standards for customers to enroll in coverage are to be established by the supervising entity for a portable electronics insurance policy before offering the portable electronics insurance to a customer. Acts 2011, No. 1018, § 1.

(a) At a location where portable electronics insurance coverage is offered to customers, a prospective customer shall receive written disclosure that states: (1) Portable electronics insurance may provide duplication of coverage provided by a customer's homeowner's insurance policy, renter's insurance policy, or other source of coverage; (2) The enrollment by the customer for portable electronics insurance coverage is not required in order to purchase or lease portable electronics devices or services; (3) The material terms of the insurance coverage, to include: (A) The identity of the insurer; (B) The identity of the supervising entity; (C) The amount of an applicable deductible; (D) An explanation of the individual that is responsible for the applicable deductible; (E) Benefits of the coverage; and (F) Key terms and conditions of coverage, including without limitation whether or not portable electronics may be repaired or replaced with similar make and model reconditioned or nonoriginal manufacturer parts or equipment; (4) The process for filing a claim, including: (A) A description of how to return portable electronics; and (B) The maximum fee if the customer fails to comply with requirements for returning the portable electronics; and (5) (A) An enrolled customer may cancel a portable electronics insurance policy at any time. (B) The person paying the premium shall receive a refund of the unearned premium.

(1) Portable electronics insurance may provide duplication of coverage provided by a customer's homeowner's insurance policy, renter's insurance policy, or other source of coverage;

(2) The enrollment by the customer for portable electronics insurance coverage is not required in order to purchase or lease portable electronics devices or services;

(3) The material terms of the insurance coverage, to include: (A) The identity of the insurer; (B) The identity of the supervising entity; (C) The amount of an applicable deductible; (D) An explanation of the individual that is responsible for the applicable deductible; (E) Benefits of the coverage; and (F) Key terms and conditions of coverage, including without limitation whether or not portable electronics may be repaired or replaced with similar make and model reconditioned or nonoriginal manufacturer parts or equipment;

(A) The identity of the insurer;

(B) The identity of the supervising entity;

(C) The amount of an applicable deductible;

(D) An explanation of the individual that is responsible for the applicable deductible;

(E) Benefits of the coverage; and

(F) Key terms and conditions of coverage, including without limitation whether or not portable electronics may be repaired or replaced with similar make and model reconditioned or nonoriginal manufacturer parts or equipment;

(4) The process for filing a claim, including: (A) A description of how to return portable electronics; and (B) The maximum fee if the customer fails to comply with requirements for returning the portable electronics; and

(A) A description of how to return portable electronics; and

(B) The maximum fee if the customer fails to comply with requirements for returning the portable electronics; and

(5) (A) An enrolled customer may cancel a portable electronics insurance policy at any time. (B) The person paying the premium shall receive a refund of the unearned premium.

(A) An enrolled customer may cancel a portable electronics insurance policy at any time.

(B) The person paying the premium shall receive a refund of the unearned premium.

(b) A vendor that has been issued a group or master commercial inland marine policy may offer portable electronics insurance on a month-to-month basis or other periodic basis for its enrolled customers.

(c) Eligibility and underwriting standards for customers to enroll in coverage are to be established by the supervising entity for a portable electronics insurance policy before offering the portable electronics insurance to a customer.

Acts 2011, No. 1018, § 1.
Ark. Code Ann. § 23-76-104 — AR Code / Title 23 / Chapter 76 / Section 23-76-104
Arkansas Insurance Code sections applicable to health maintenance organizations
Status: in_force

(a) Except to the extent that the Insurance Commissioner determines that the nature of health maintenance organizations, healthcare plans, and evidences of coverage render such sections clearly inappropriate, the following sections are applicable to health maintenance organizations: (1) Sections 23-60-101 - 23-60-108 and 23-60-110 , referring to scope of the Arkansas Insurance Code; (2) Section 23-61-101 et seq., § 23-61-201 et seq., and § 23-61-301 et seq., referring to the Insurance Commissioner; (3) Sections 23-63-102 - 23-63-104 , § 23-63-201 et seq., general provisions, and § 23-63-301 et seq., referring to service of process, a registered agent as process agent, serving legal process, and time to plead; (4) Section 23-63-601 et seq., referring to assets and liabilities, and § 23-63-901 et seq., referring to administration of deposits; (5) Section 23-63-1501 et seq., referring to risk-based capital requirements; (6) Section 23-64-101 et seq., § 23-64-201 et seq., and § 23-64-501 et seq., referring to agents, brokers, solicitors, and adjusters; (7) The Trade Practices Act, § 23-66-201 et seq.; §§ 23-66-301 - 23-66-306 and 23-66-308 - 23-66-314 ; and § 23-66-501 et seq., referring to trade practices and frauds; (8) Section 23-68-101 et seq., referring to rehabilitation and liquidation; (9) Section 23-69-134 , referring to home office and records and the penalty for unlawful removal of records; (10) Section 23-69-156 , referring to extinguishing unused corporate charters; (11) Sections 23-75-104 , 23-75-105 , and 23-75-116 , referring to hospital and medical service corporations; (12) Sections 23-79-101 - 23-79-107 , 23-79-109 - 23-79-128 , 23-79-131 - 23-79-134 , and 23-79-202 - 23-79-210 , referring to insurance contracts; (13) Sections 23-85-101 - 23-85-132 , 23-85-134 , and 23-85-136 , referring to individual accident and health insurance; (14) Sections 23-86-101 - 23-86-104 , 23-86-106 , 23-86-108 - 23-86-111 , 23-86-113 - 23-86-117 , 23-86-119 , 23-86-120 , § 23-86-201 et seq., § 23-86-301 et seq., and § 23-86-401 et seq., referring to blanket and group accident and health insurance; (15) Section 23-99-201 et seq., § 23-99-301 et seq., § 23-99-401 et seq., § 23-99-501 et seq., § 23-99-601 et seq., and § 23-99-701 et seq., referring to healthcare providers; (16) Section 23-64-515 , referring to notice of termination of appointment; and (17) The Arkansas Life and Health Insurance Guaranty Association Act, § 23-96-101 et seq., referring to the Arkansas Life and Health Insurance Guaranty Association. (b) (1) A health maintenance organization domiciled or applying to be domiciled in this state may elect to be subject to the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., by: (A) Written notice in its application at the time the health maintenance organization applies to be domiciled in Arkansas; or (B) Providing thirty (30) days' prior written notice to the commissioner if the health maintenance organization was domiciled in Arkansas on March 22, 2007. (2) An election under this subsection: (A) Shall not be revoked; (B) Requires that if a modification is required to be reported or filed under the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., the health maintenance organization shall comply with the provisions concerning notice of major modifications to the operation of the health maintenance organization under the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., instead of the provisions concerning notice of major modifications to the operation of the health maintenance organization under § 23-76-107(d) ; and (C) Does not affect the duty of a health maintenance organization to make any other filing required under § 23-76-107(d) that is not required by the Insurance Holding Company Regulatory Act, § 23-63-501 et seq. (c) If a health maintenance organization does not elect to be subject to the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., it shall be subject to § 23-69-142 regarding mergers, consolidations, and acquisitions. Amended by Act 2019, No. 520,§ 1, eff. 7/24/2019. Amended by Act 2017, No. 283,§ 17, eff. 8/1/2017. Amended by Act 2013, No. 355,§ 11, eff. 8/16/2013. Acts 1975, No. 454, § 25; 1983, No. 624, § 2; A.S.A. 1947, § 66-5225; Acts 1999, No. 624, § 3; 2001, No. 1605, § 2; 2007, No. 429, § 2; 2011, No. 760, § 13.

(a) Except to the extent that the Insurance Commissioner determines that the nature of health maintenance organizations, healthcare plans, and evidences of coverage render such sections clearly inappropriate, the following sections are applicable to health maintenance organizations: (1) Sections 23-60-101 - 23-60-108 and 23-60-110 , referring to scope of the Arkansas Insurance Code; (2) Section 23-61-101 et seq., § 23-61-201 et seq., and § 23-61-301 et seq., referring to the Insurance Commissioner; (3) Sections 23-63-102 - 23-63-104 , § 23-63-201 et seq., general provisions, and § 23-63-301 et seq., referring to service of process, a registered agent as process agent, serving legal process, and time to plead; (4) Section 23-63-601 et seq., referring to assets and liabilities, and § 23-63-901 et seq., referring to administration of deposits; (5) Section 23-63-1501 et seq., referring to risk-based capital requirements; (6) Section 23-64-101 et seq., § 23-64-201 et seq., and § 23-64-501 et seq., referring to agents, brokers, solicitors, and adjusters; (7) The Trade Practices Act, § 23-66-201 et seq.; §§ 23-66-301 - 23-66-306 and 23-66-308 - 23-66-314 ; and § 23-66-501 et seq., referring to trade practices and frauds; (8) Section 23-68-101 et seq., referring to rehabilitation and liquidation; (9) Section 23-69-134 , referring to home office and records and the penalty for unlawful removal of records; (10) Section 23-69-156 , referring to extinguishing unused corporate charters; (11) Sections 23-75-104 , 23-75-105 , and 23-75-116 , referring to hospital and medical service corporations; (12) Sections 23-79-101 - 23-79-107 , 23-79-109 - 23-79-128 , 23-79-131 - 23-79-134 , and 23-79-202 - 23-79-210 , referring to insurance contracts; (13) Sections 23-85-101 - 23-85-132 , 23-85-134 , and 23-85-136 , referring to individual accident and health insurance; (14) Sections 23-86-101 - 23-86-104 , 23-86-106 , 23-86-108 - 23-86-111 , 23-86-113 - 23-86-117 , 23-86-119 , 23-86-120 , § 23-86-201 et seq., § 23-86-301 et seq., and § 23-86-401 et seq., referring to blanket and group accident and health insurance; (15) Section 23-99-201 et seq., § 23-99-301 et seq., § 23-99-401 et seq., § 23-99-501 et seq., § 23-99-601 et seq., and § 23-99-701 et seq., referring to healthcare providers; (16) Section 23-64-515 , referring to notice of termination of appointment; and (17) The Arkansas Life and Health Insurance Guaranty Association Act, § 23-96-101 et seq., referring to the Arkansas Life and Health Insurance Guaranty Association.

(1) Sections 23-60-101 - 23-60-108 and 23-60-110 , referring to scope of the Arkansas Insurance Code;

(2) Section 23-61-101 et seq., § 23-61-201 et seq., and § 23-61-301 et seq., referring to the Insurance Commissioner;

(3) Sections 23-63-102 - 23-63-104 , § 23-63-201 et seq., general provisions, and § 23-63-301 et seq., referring to service of process, a registered agent as process agent, serving legal process, and time to plead;

(4) Section 23-63-601 et seq., referring to assets and liabilities, and § 23-63-901 et seq., referring to administration of deposits;

(5) Section 23-63-1501 et seq., referring to risk-based capital requirements;

(6) Section 23-64-101 et seq., § 23-64-201 et seq., and § 23-64-501 et seq., referring to agents, brokers, solicitors, and adjusters;

(7) The Trade Practices Act, § 23-66-201 et seq.; §§ 23-66-301 - 23-66-306 and 23-66-308 - 23-66-314 ; and § 23-66-501 et seq., referring to trade practices and frauds;

(8) Section 23-68-101 et seq., referring to rehabilitation and liquidation;

(9) Section 23-69-134 , referring to home office and records and the penalty for unlawful removal of records;

(10) Section 23-69-156 , referring to extinguishing unused corporate charters;

(11) Sections 23-75-104 , 23-75-105 , and 23-75-116 , referring to hospital and medical service corporations;

(12) Sections 23-79-101 - 23-79-107 , 23-79-109 - 23-79-128 , 23-79-131 - 23-79-134 , and 23-79-202 - 23-79-210 , referring to insurance contracts;

(13) Sections 23-85-101 - 23-85-132 , 23-85-134 , and 23-85-136 , referring to individual accident and health insurance;

(14) Sections 23-86-101 - 23-86-104 , 23-86-106 , 23-86-108 - 23-86-111 , 23-86-113 - 23-86-117 , 23-86-119 , 23-86-120 , § 23-86-201 et seq., § 23-86-301 et seq., and § 23-86-401 et seq., referring to blanket and group accident and health insurance;

(15) Section 23-99-201 et seq., § 23-99-301 et seq., § 23-99-401 et seq., § 23-99-501 et seq., § 23-99-601 et seq., and § 23-99-701 et seq., referring to healthcare providers;

(16) Section 23-64-515 , referring to notice of termination of appointment; and

(17) The Arkansas Life and Health Insurance Guaranty Association Act, § 23-96-101 et seq., referring to the Arkansas Life and Health Insurance Guaranty Association.

(b) (1) A health maintenance organization domiciled or applying to be domiciled in this state may elect to be subject to the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., by: (A) Written notice in its application at the time the health maintenance organization applies to be domiciled in Arkansas; or (B) Providing thirty (30) days' prior written notice to the commissioner if the health maintenance organization was domiciled in Arkansas on March 22, 2007. (2) An election under this subsection: (A) Shall not be revoked; (B) Requires that if a modification is required to be reported or filed under the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., the health maintenance organization shall comply with the provisions concerning notice of major modifications to the operation of the health maintenance organization under the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., instead of the provisions concerning notice of major modifications to the operation of the health maintenance organization under § 23-76-107(d) ; and (C) Does not affect the duty of a health maintenance organization to make any other filing required under § 23-76-107(d) that is not required by the Insurance Holding Company Regulatory Act, § 23-63-501 et seq.

(1) A health maintenance organization domiciled or applying to be domiciled in this state may elect to be subject to the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., by: (A) Written notice in its application at the time the health maintenance organization applies to be domiciled in Arkansas; or (B) Providing thirty (30) days' prior written notice to the commissioner if the health maintenance organization was domiciled in Arkansas on March 22, 2007.

(A) Written notice in its application at the time the health maintenance organization applies to be domiciled in Arkansas; or

(B) Providing thirty (30) days' prior written notice to the commissioner if the health maintenance organization was domiciled in Arkansas on March 22, 2007.

(2) An election under this subsection: (A) Shall not be revoked; (B) Requires that if a modification is required to be reported or filed under the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., the health maintenance organization shall comply with the provisions concerning notice of major modifications to the operation of the health maintenance organization under the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., instead of the provisions concerning notice of major modifications to the operation of the health maintenance organization under § 23-76-107(d) ; and (C) Does not affect the duty of a health maintenance organization to make any other filing required under § 23-76-107(d) that is not required by the Insurance Holding Company Regulatory Act, § 23-63-501 et seq.

(A) Shall not be revoked;

(B) Requires that if a modification is required to be reported or filed under the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., the health maintenance organization shall comply with the provisions concerning notice of major modifications to the operation of the health maintenance organization under the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., instead of the provisions concerning notice of major modifications to the operation of the health maintenance organization under § 23-76-107(d) ; and

(C) Does not affect the duty of a health maintenance organization to make any other filing required under § 23-76-107(d) that is not required by the Insurance Holding Company Regulatory Act, § 23-63-501 et seq.

(c) If a health maintenance organization does not elect to be subject to the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., it shall be subject to § 23-69-142 regarding mergers, consolidations, and acquisitions.

Amended by Act 2019, No. 520,§ 1, eff. 7/24/2019.

Amended by Act 2017, No. 283,§ 17, eff. 8/1/2017.

Amended by Act 2013, No. 355,§ 11, eff. 8/16/2013.

Acts 1975, No. 454, § 25; 1983, No. 624, § 2; A.S.A. 1947, § 66-5225; Acts 1999, No. 624, § 3; 2001, No. 1605, § 2; 2007, No. 429, § 2; 2011, No. 760, § 13.
Ark. Code Ann. § 23-61-1102 — AR Code / Title 23 / Chapter 61 / Subchapter 11 / Section 23-61-1102
Creation of board - Members
Status: in_force

(a) There is created within the State Insurance Department the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services. (b) The members of the board shall be: (1) Residents of this state; (2) At least twenty-one (21) years of age; and (3) Of good moral character. (c) The board shall be composed of nine (9) members as follows: (1) (A) The Insurance Commissioner or his or her designated deputy. (B) The commissioner or his or her designated deputy shall be a voting member of the board; and (2) (A) Eight (8) members appointed by the Governor and subject to confirmation by the Senate who shall serve terms of five (5) years. (B) Six (6) of the board members under subdivision (c)(2)(A) of this section shall include: (i) (a) Two (2) licensed embalmers or funeral directors, each of whom has had at least five (5) consecutive years of experience as an embalmer or funeral director in this state immediately preceding his or her appointment to the board. (b) The Governor shall consult licensed embalmers and funeral directors before making an appointment under subdivision (c)(2)(B)(i) (a) of this section. (c) The Arkansas Funeral Directors Association, Incorporated, or its successor shall submit to the Governor a list containing the names of at least four (4) professionals under subdivision (c)(2)(B)(i) (a) of this section; (ii) Two (2) owners or operators of a licensed perpetual care cemetery in this state; and (iii) Two (2) professionals engaged in the operation of a burial association for at least five (5) consecutive years preceding his or her appointment to the board. (C) (i) The remaining two (2) members of the board shall be: (a) One (1) person from this state, appointed at large, to represent the consumer community; and (b) One (1) person from this state who is at least sixty (60) years of age, appointed at large, to represent the elderly community. (ii) The members of the board under subdivision (c)(2)(C)(i) of this section shall not be actively engaged in or retired from the profession of embalming or funeral directing, the business of operating a burial association, or any other profession or occupation that is regulated by the board. (iii) The members of the board under subdivision (c)(2)(C)(i) of this section shall be full voting members of the board. (d) The members of the board shall hold the first meeting within five (5) days after membership appointment and select one (1) member under subdivision (c)(2)(B) of this section as Chair of the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services who shall serve a one-year term or until his or her successor is selected and qualified. (e) Each congressional district shall be represented by membership on the board. (f) (1) The length of the term for an initial member of the board under this section shall be staggered and set by the Governor. (2) After the completion of the terms of the initial members of the board under subdivision (f)(1) of this section, a member of the board shall serve for a term of five (5) years, and shall serve on the board until a successor is appointed and qualified. (3) A member of the board shall not be appointed to more than two (2) consecutive full terms. (g) A vacancy on the board due to the death, resignation, or other cause of an appointed member of the board shall be filled by appointment by the Governor for the unexpired portion of the term in the same manner as required for an initial appointment. (h) The presence of five (5) or more members of the board shall constitute a quorum. (i) A member of the board who has a financial interest in a matter before the board shall be disqualified from: (1) Participating in discussion pertaining to the matter; and (2) Voting on the matter. (j) A board member is eligible to receive expense reimbursement and stipends under § 25-16-901 . (k) The Governor may remove any member of the board for incompetence, improper conduct, gross neglect, or malfeasance. (l) (1) Before entering upon duties of the board, members of the board shall take and subscribe to the oath prescribed by the Arkansas Constitution for state officers and shall file the subscribed oath in the office of the Secretary of State. (2) The Secretary of State shall issue a certificate of appointment for the new member of the board. (m) The board may make reimbursement of the necessary and reasonable travel, board, and lodging expenses of the board's employees, Executive Secretary of the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services, and auditors incurred in the performance of their official duties. Amended by Act 2019, No. 391,§ 7, eff. 7/24/2019. Added by Act 2017, No. 788,§ 3, eff. 7/1/2018.

(a) There is created within the State Insurance Department the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services.

(b) The members of the board shall be: (1) Residents of this state; (2) At least twenty-one (21) years of age; and (3) Of good moral character.

(1) Residents of this state;

(2) At least twenty-one (21) years of age; and

(3) Of good moral character.

(c) The board shall be composed of nine (9) members as follows: (1) (A) The Insurance Commissioner or his or her designated deputy. (B) The commissioner or his or her designated deputy shall be a voting member of the board; and (2) (A) Eight (8) members appointed by the Governor and subject to confirmation by the Senate who shall serve terms of five (5) years. (B) Six (6) of the board members under subdivision (c)(2)(A) of this section shall include: (i) (a) Two (2) licensed embalmers or funeral directors, each of whom has had at least five (5) consecutive years of experience as an embalmer or funeral director in this state immediately preceding his or her appointment to the board. (b) The Governor shall consult licensed embalmers and funeral directors before making an appointment under subdivision (c)(2)(B)(i) (a) of this section. (c) The Arkansas Funeral Directors Association, Incorporated, or its successor shall submit to the Governor a list containing the names of at least four (4) professionals under subdivision (c)(2)(B)(i) (a) of this section; (ii) Two (2) owners or operators of a licensed perpetual care cemetery in this state; and (iii) Two (2) professionals engaged in the operation of a burial association for at least five (5) consecutive years preceding his or her appointment to the board. (C) (i) The remaining two (2) members of the board shall be: (a) One (1) person from this state, appointed at large, to represent the consumer community; and (b) One (1) person from this state who is at least sixty (60) years of age, appointed at large, to represent the elderly community. (ii) The members of the board under subdivision (c)(2)(C)(i) of this section shall not be actively engaged in or retired from the profession of embalming or funeral directing, the business of operating a burial association, or any other profession or occupation that is regulated by the board. (iii) The members of the board under subdivision (c)(2)(C)(i) of this section shall be full voting members of the board.

(1) (A) The Insurance Commissioner or his or her designated deputy. (B) The commissioner or his or her designated deputy shall be a voting member of the board; and

(A) The Insurance Commissioner or his or her designated deputy.

(B) The commissioner or his or her designated deputy shall be a voting member of the board; and

(2) (A) Eight (8) members appointed by the Governor and subject to confirmation by the Senate who shall serve terms of five (5) years. (B) Six (6) of the board members under subdivision (c)(2)(A) of this section shall include: (i) (a) Two (2) licensed embalmers or funeral directors, each of whom has had at least five (5) consecutive years of experience as an embalmer or funeral director in this state immediately preceding his or her appointment to the board. (b) The Governor shall consult licensed embalmers and funeral directors before making an appointment under subdivision (c)(2)(B)(i) (a) of this section. (c) The Arkansas Funeral Directors Association, Incorporated, or its successor shall submit to the Governor a list containing the names of at least four (4) professionals under subdivision (c)(2)(B)(i) (a) of this section; (ii) Two (2) owners or operators of a licensed perpetual care cemetery in this state; and (iii) Two (2) professionals engaged in the operation of a burial association for at least five (5) consecutive years preceding his or her appointment to the board. (C) (i) The remaining two (2) members of the board shall be: (a) One (1) person from this state, appointed at large, to represent the consumer community; and (b) One (1) person from this state who is at least sixty (60) years of age, appointed at large, to represent the elderly community. (ii) The members of the board under subdivision (c)(2)(C)(i) of this section shall not be actively engaged in or retired from the profession of embalming or funeral directing, the business of operating a burial association, or any other profession or occupation that is regulated by the board. (iii) The members of the board under subdivision (c)(2)(C)(i) of this section shall be full voting members of the board.

(A) Eight (8) members appointed by the Governor and subject to confirmation by the Senate who shall serve terms of five (5) years.

(B) Six (6) of the board members under subdivision (c)(2)(A) of this section shall include: (i) (a) Two (2) licensed embalmers or funeral directors, each of whom has had at least five (5) consecutive years of experience as an embalmer or funeral director in this state immediately preceding his or her appointment to the board. (b) The Governor shall consult licensed embalmers and funeral directors before making an appointment under subdivision (c)(2)(B)(i) (a) of this section. (c) The Arkansas Funeral Directors Association, Incorporated, or its successor shall submit to the Governor a list containing the names of at least four (4) professionals under subdivision (c)(2)(B)(i) (a) of this section; (ii) Two (2) owners or operators of a licensed perpetual care cemetery in this state; and (iii) Two (2) professionals engaged in the operation of a burial association for at least five (5) consecutive years preceding his or her appointment to the board.

(i) (a) Two (2) licensed embalmers or funeral directors, each of whom has had at least five (5) consecutive years of experience as an embalmer or funeral director in this state immediately preceding his or her appointment to the board. (b) The Governor shall consult licensed embalmers and funeral directors before making an appointment under subdivision (c)(2)(B)(i) (a) of this section. (c) The Arkansas Funeral Directors Association, Incorporated, or its successor shall submit to the Governor a list containing the names of at least four (4) professionals under subdivision (c)(2)(B)(i) (a) of this section;

(a) Two (2) licensed embalmers or funeral directors, each of whom has had at least five (5) consecutive years of experience as an embalmer or funeral director in this state immediately preceding his or her appointment to the board.

(b) The Governor shall consult licensed embalmers and funeral directors before making an appointment under subdivision (c)(2)(B)(i) (a) of this section.

(c) The Arkansas Funeral Directors Association, Incorporated, or its successor shall submit to the Governor a list containing the names of at least four (4) professionals under subdivision (c)(2)(B)(i) (a) of this section;

(ii) Two (2) owners or operators of a licensed perpetual care cemetery in this state; and

(iii) Two (2) professionals engaged in the operation of a burial association for at least five (5) consecutive years preceding his or her appointment to the board.

(C) (i) The remaining two (2) members of the board shall be: (a) One (1) person from this state, appointed at large, to represent the consumer community; and (b) One (1) person from this state who is at least sixty (60) years of age, appointed at large, to represent the elderly community. (ii) The members of the board under subdivision (c)(2)(C)(i) of this section shall not be actively engaged in or retired from the profession of embalming or funeral directing, the business of operating a burial association, or any other profession or occupation that is regulated by the board. (iii) The members of the board under subdivision (c)(2)(C)(i) of this section shall be full voting members of the board.

(i) The remaining two (2) members of the board shall be: (a) One (1) person from this state, appointed at large, to represent the consumer community; and (b) One (1) person from this state who is at least sixty (60) years of age, appointed at large, to represent the elderly community.

(a) One (1) person from this state, appointed at large, to represent the consumer community; and

(b) One (1) person from this state who is at least sixty (60) years of age, appointed at large, to represent the elderly community.

(ii) The members of the board under subdivision (c)(2)(C)(i) of this section shall not be actively engaged in or retired from the profession of embalming or funeral directing, the business of operating a burial association, or any other profession or occupation that is regulated by the board.

(iii) The members of the board under subdivision (c)(2)(C)(i) of this section shall be full voting members of the board.

(d) The members of the board shall hold the first meeting within five (5) days after membership appointment and select one (1) member under subdivision (c)(2)(B) of this section as Chair of the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services who shall serve a one-year term or until his or her successor is selected and qualified.

(e) Each congressional district shall be represented by membership on the board.

(f) (1) The length of the term for an initial member of the board under this section shall be staggered and set by the Governor. (2) After the completion of the terms of the initial members of the board under subdivision (f)(1) of this section, a member of the board shall serve for a term of five (5) years, and shall serve on the board until a successor is appointed and qualified. (3) A member of the board shall not be appointed to more than two (2) consecutive full terms.

(1) The length of the term for an initial member of the board under this section shall be staggered and set by the Governor.

(2) After the completion of the terms of the initial members of the board under subdivision (f)(1) of this section, a member of the board shall serve for a term of five (5) years, and shall serve on the board until a successor is appointed and qualified.

(3) A member of the board shall not be appointed to more than two (2) consecutive full terms.

(g) A vacancy on the board due to the death, resignation, or other cause of an appointed member of the board shall be filled by appointment by the Governor for the unexpired portion of the term in the same manner as required for an initial appointment.

(h) The presence of five (5) or more members of the board shall constitute a quorum.

(i) A member of the board who has a financial interest in a matter before the board shall be disqualified from: (1) Participating in discussion pertaining to the matter; and (2) Voting on the matter.

(1) Participating in discussion pertaining to the matter; and

(2) Voting on the matter.

(j) A board member is eligible to receive expense reimbursement and stipends under § 25-16-901 .

(k) The Governor may remove any member of the board for incompetence, improper conduct, gross neglect, or malfeasance.

(l) (1) Before entering upon duties of the board, members of the board shall take and subscribe to the oath prescribed by the Arkansas Constitution for state officers and shall file the subscribed oath in the office of the Secretary of State. (2) The Secretary of State shall issue a certificate of appointment for the new member of the board.

(1) Before entering upon duties of the board, members of the board shall take and subscribe to the oath prescribed by the Arkansas Constitution for state officers and shall file the subscribed oath in the office of the Secretary of State.

(2) The Secretary of State shall issue a certificate of appointment for the new member of the board.

(m) The board may make reimbursement of the necessary and reasonable travel, board, and lodging expenses of the board's employees, Executive Secretary of the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services, and auditors incurred in the performance of their official duties.

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

Added by Act 2017, No. 788,§ 3, eff. 7/1/2018.
Ark. Code Ann. § 23-86-304 — AR Code / Title 23 / Chapter 86 / Subchapter 3 / Section 23-86-304
Increased portability through limitation on preexisting conditions exclusions
Status: in_force

(a) Limitation on Preexisting Condition Exclusion Period - Crediting for Periods of Previous Coverage. Subject to subsection (d) of this section, a group health plan and a health insurance issuer offering group health insurance coverage may, with respect to a participant or beneficiary, impose a preexisting condition exclusion only if: (1) The preexisting condition exclusion relates to a condition, whether physical or mental, regardless of the cause of the condition, for which medical advice, diagnosis, care, or treatment was recommended or received within the six-month period ending on the enrollment date; (2) The preexisting condition exclusion extends for a period of not more than twelve (12) months, or eighteen (18) months in the case of a late enrollee, after the enrollment date; and (3) The period of any such preexisting condition exclusion is reduced by the aggregate of the periods of creditable coverage, if any, as defined in subdivision (c)(1) of this section, applicable to the participant or beneficiary as of the enrollment date. (b) Treatment of Genetic Information. Genetic information shall not be treated as a condition described in subdivision (a)(1) of this section in the absence of a diagnosis of the condition related to that information. (c) Creditable Coverage - Rules Relating to Crediting Previous Coverage. (1) Not Counting Periods Before Significant Breaks in Coverage. (A) In General. A period of creditable coverage shall not be counted, with respect to enrollment of an individual under a group health plan, if, after such a period and before the enrollment date, there was a sixty-three-day period during all of which the individual was not covered under any creditable coverage. (B) Waiting Period Not Treated as a Break in Coverage. For purposes of subdivisions (c)(1)(A) and (d)(4) of this section, any period that an individual is in a waiting period for any coverage under a group health plan or for group health insurance coverage or is in an affiliation period as defined in § 23-86-303(1) shall not be taken into account in determining the continuous period under subdivision (c)(1)(A) of this section. (2) Method of Crediting Coverage. (A) Standard Method. Except as otherwise provided under subdivision (c)(2)(B) of this section, for purposes of applying subdivision (a)(3) of this section, a group health plan and a health insurance issuer offering group health insurance coverage shall count a period of creditable coverage without regard to the specific benefits covered during the period. (B) Election of Alternative Method. (i) A group health plan or a health insurance issuer offering group health insurance coverage may elect to apply subdivision (a)(3) of this section based on coverage of benefits within each of several classes or categories of benefits specified in rules rather than as provided under subdivision (c)(2)(A) of this section. (ii) The election shall be made on a uniform basis for all participants and beneficiaries. (iii) Under the election, a group health plan or health insurance issuer shall count a period of creditable coverage with respect to any class or category of benefits if any level of benefits is covered within the class or category. (C) Group Health Plan Notice. In the case of an election with respect to a group health plan under subdivision (c)(2)(B) of this section, whether or not health insurance coverage is provided in connection with such a group health plan, the group health plan shall: (i) Prominently state in any disclosure statements concerning the group health plan, and state to each enrollee at the time of enrollment under the group health plan, that the group health plan has made such an election; and (ii) Include in such statements a description of the effect of this election. (D) Health Insurance Issuer Notice. In the case of an election under subdivision (c)(2)(B) of this section with respect to health insurance coverage offered by a health insurance issuer in the small or large group market, the health insurance issuer: (i) Shall prominently state in any disclosure statements concerning the coverage, and to each employer at the time of the offer or sale of the coverage, that the health insurance issuer has made such an election; and (ii) Shall include in such statements a description of the effect of such an election. (3) Establishment of Period. Periods of creditable coverage with respect to an individual shall be established through presentation of certifications described in subsection (e) of this section or in such other manner as may be specified in regulations. (d) Exceptions. (1) Preexisting Condition Exclusion Not Applicable to Certain Newborns. Subject to subdivision (d)(4) of this section, a group health plan and a health insurance issuer offering group health insurance coverage may not impose any preexisting condition exclusion in the case of an individual who, as of the last day of the thirty-day period beginning with the date of birth, is covered under creditable coverage. (2) Preexisting Condition Exclusion Not Applicable to Certain Adopted Children. (A) Subject to subdivision (d)(4) of this section, a group health plan and a health insurance issuer offering group health insurance coverage may not impose any preexisting condition exclusion in the case of a child who is adopted or placed for adoption before attaining eighteen (18) years of age and who, as of the last day of the thirty-day period beginning on the date of the adoption or placement for adoption, is covered under creditable coverage. (B) Subdivision (d)(2)(A) of this section shall not apply to coverage before the date of the adoption or placement for adoption. (3) Preexisting Condition Exclusion Not Applicable to Pregnancy. A group health plan and a health insurance issuer offering group health insurance coverage may not impose any preexisting condition exclusion relating to pregnancy as a preexisting condition. (4) Loss if Break in Coverage. Subdivisions (d)(1) and (2) of this section shall no longer apply to an individual after the end of the first sixty-three-day period during all of which the individual was not covered under any creditable coverage. (e) Certifications and Disclosure of Coverage. (1) Requirement for Certification of Period of Creditable Coverage. (A) In General. A group health plan, and a health insurance issuer offering group health insurance coverage, shall provide the certification described in subdivision (e)(1)(B) of this section: (i) At the time an individual ceases to be covered under the group health plan or otherwise becomes covered under a COBRA continuation provision; (ii) In the case of an individual becoming covered under such a provision, at the time the individual ceases to be covered under such a provision; and (iii) (a) At the request on behalf of an individual made not later than twenty-four (24) months after the date of cessation of the coverage described in subdivision (e)(1)(A)(i) or subdivision (e)(1)(A)(ii) of this section, whichever is later. (b) The certification under subdivision (e)(1)(A)(i) of this section may be provided, to the extent practicable, at a time consistent with notices required under any applicable COBRA continuation provision. (B) Certification. The certification described in subdivision (e)(1)(A) of this section is a written certification of: (i) The period of creditable coverage of the individual under such a group health plan and the coverage, if any, under the COBRA continuation provision; and (ii) The waiting period, if any, and affiliation period, if applicable, imposed with respect to the individual for any coverage under such a group health plan. (C) Issuer Compliance. To the extent that medical care under a group health plan consists of group health insurance coverage, the group health plan is deemed to have satisfied the certification requirement under this section if the health insurance issuer offering the coverage provides for such certification in accordance with this section. (2) Disclosure of Information on Previous Benefits. In the case of an election described in subdivision (c)(2)(B) of this section by a group health plan or health insurance issuer, if the group health plan or health insurance issuer enrolls an individual for coverage under the group health plan and the individual provides a certification of coverage of the individual under subdivision (e)(1) of this section: (A) Upon request of the group health plan or health insurance issuer, the entity which issued the certification provided by the individual shall promptly disclose to the requesting group health plan or issuer information on coverage of classes and categories of health benefits available under the entity's plan or coverage; and (B) The entity may charge the requesting group health plan or health insurance issuer for the reasonable cost of disclosing the information. (f) Special Enrollment Periods. (1) Individuals Losing Other Coverage. A group health plan and a health insurance issuer offering group health insurance coverage in connection with a group health plan shall permit an employee who is eligible, but not enrolled, for coverage under the terms of the group health plan or a dependent of such an employee if the dependent is eligible, but not enrolled, for coverage under such terms to enroll for coverage under the terms of the group health plan if each of the following conditions is met: (A) The employee or dependent was covered under a group health plan or had health insurance coverage at the time coverage was previously offered to the employee or dependent; (B) The employee stated in writing at such time that coverage under a group health plan or health insurance coverage was the reason for declining enrollment, but only if the plan sponsor or health insurance issuer if applicable required such a statement at that time and provided the employee with notice of the requirement and the consequences of such a requirement at that time; (C) The employee's or dependent's coverage described in subdivision (f)(1)(A) of this section: (i) Was under a COBRA continuation provision and the coverage under such a provision was exhausted; or (ii) Was not under such a provision and either the coverage was terminated as a result of loss of eligibility for the coverage including loss as a result of legal separation, divorce, death, termination of employment, or reduction in the number of hours of employment or employer contributions toward the coverage were terminated; and (D) Under the terms of the group health plan, the employee requests the enrollment not later than thirty (30) days after the date of exhaustion of coverage described in subdivision (f)(1)(C)(i) of this section or termination of coverage or employer contribution described in subdivision (f)(1)(C)(ii) of this section. (2) For Dependent Beneficiaries. (A) In General. If: (i) A group health plan makes coverage available with respect to a dependent of an individual; (ii) The individual is a participant under the group health plan or has met any waiting period applicable to becoming a participant under the group health plan and is eligible to be enrolled under the group health plan but for that individual's failure to enroll during a previous enrollment period; and (iii) A person becomes such a dependent of the individual through marriage, birth, or adoption or placement for adoption, then the enrollment period described in subdivision (f)(2)(B) of this section shall be provided, during which the person, or, if not otherwise enrolled, the individual, may be enrolled under the group health plan as a dependent of the individual and, in the case of the birth or adoption of a child, the spouse of the individual may be enrolled as a dependent of the individual if the spouse is otherwise eligible for coverage. (B) Dependent Special Enrollment Period. A dependent special enrollment period under subdivision (f)(2)(A) of this section shall be a period of not less than thirty (30) days and shall begin on the later of: (i) The date dependent coverage is made available; or (ii) The date of the marriage, birth, or adoption or placement for adoption, as the case may be, described in subdivision (f)(2)(A)(iii) of this section. (C) No Waiting Period. If an individual seeks to enroll a dependent during the first thirty (30) days of such a dependent special enrollment period, the coverage of the dependent shall become effective: (i) In the case of marriage, not later than the first day of the first month beginning after the date the completed request for enrollment is received; (ii) In the case of a dependent's birth, as of the date of the birth; or (iii) In the case of a dependent's adoption or placement for adoption, the date of the adoption or placement for adoption. (g) Use of Affiliation Period by Health Maintenance Organizations as Alternative to Preexisting Condition Exclusion. (1) In General. In the case of a group health plan that offers medical care through coverage offered by a health maintenance organization, the group health plan may provide for an affiliation period with respect to coverage through the health maintenance organization only if: (A) No preexisting condition exclusion is imposed with respect to coverage through the health maintenance organization; (B) The affiliation period is applied uniformly without regard to any health status-related factors; and (C) The affiliation period does not exceed two (2) months or three (3) months in the case of a late enrollee. (2) Affiliation Period. (A) Affiliation Period. The health maintenance organization is not required to provide healthcare services or benefits during the affiliation period, and no premium shall be charged to the participant or beneficiary for any coverage during the affiliation period. (B) Beginning. The affiliation period shall begin on the enrollment date. (C) Runs Concurrently with Waiting Periods. An affiliation period under a group health plan shall run concurrently with any waiting period under the group health plan. (3) Alternative Methods. A health maintenance organization described in subdivision (g)(1) of this section may use alternative methods from those described in subdivision (g)(1) of this section to address adverse selection as approved by the Insurance Commissioner. Amended by Act 2019, No. 315,§ 2747, eff. 7/24/2019. Acts 1997, No. 997, § 1.

(a) Limitation on Preexisting Condition Exclusion Period - Crediting for Periods of Previous Coverage. Subject to subsection (d) of this section, a group health plan and a health insurance issuer offering group health insurance coverage may, with respect to a participant or beneficiary, impose a preexisting condition exclusion only if: (1) The preexisting condition exclusion relates to a condition, whether physical or mental, regardless of the cause of the condition, for which medical advice, diagnosis, care, or treatment was recommended or received within the six-month period ending on the enrollment date; (2) The preexisting condition exclusion extends for a period of not more than twelve (12) months, or eighteen (18) months in the case of a late enrollee, after the enrollment date; and (3) The period of any such preexisting condition exclusion is reduced by the aggregate of the periods of creditable coverage, if any, as defined in subdivision (c)(1) of this section, applicable to the participant or beneficiary as of the enrollment date.

(1) The preexisting condition exclusion relates to a condition, whether physical or mental, regardless of the cause of the condition, for which medical advice, diagnosis, care, or treatment was recommended or received within the six-month period ending on the enrollment date;

(2) The preexisting condition exclusion extends for a period of not more than twelve (12) months, or eighteen (18) months in the case of a late enrollee, after the enrollment date; and

(3) The period of any such preexisting condition exclusion is reduced by the aggregate of the periods of creditable coverage, if any, as defined in subdivision (c)(1) of this section, applicable to the participant or beneficiary as of the enrollment date.

(b) Treatment of Genetic Information. Genetic information shall not be treated as a condition described in subdivision (a)(1) of this section in the absence of a diagnosis of the condition related to that information.

(c) Creditable Coverage - Rules Relating to Crediting Previous Coverage. (1) Not Counting Periods Before Significant Breaks in Coverage. (A) In General. A period of creditable coverage shall not be counted, with respect to enrollment of an individual under a group health plan, if, after such a period and before the enrollment date, there was a sixty-three-day period during all of which the individual was not covered under any creditable coverage. (B) Waiting Period Not Treated as a Break in Coverage. For purposes of subdivisions (c)(1)(A) and (d)(4) of this section, any period that an individual is in a waiting period for any coverage under a group health plan or for group health insurance coverage or is in an affiliation period as defined in § 23-86-303(1) shall not be taken into account in determining the continuous period under subdivision (c)(1)(A) of this section. (2) Method of Crediting Coverage. (A) Standard Method. Except as otherwise provided under subdivision (c)(2)(B) of this section, for purposes of applying subdivision (a)(3) of this section, a group health plan and a health insurance issuer offering group health insurance coverage shall count a period of creditable coverage without regard to the specific benefits covered during the period. (B) Election of Alternative Method. (i) A group health plan or a health insurance issuer offering group health insurance coverage may elect to apply subdivision (a)(3) of this section based on coverage of benefits within each of several classes or categories of benefits specified in rules rather than as provided under subdivision (c)(2)(A) of this section. (ii) The election shall be made on a uniform basis for all participants and beneficiaries. (iii) Under the election, a group health plan or health insurance issuer shall count a period of creditable coverage with respect to any class or category of benefits if any level of benefits is covered within the class or category. (C) Group Health Plan Notice. In the case of an election with respect to a group health plan under subdivision (c)(2)(B) of this section, whether or not health insurance coverage is provided in connection with such a group health plan, the group health plan shall: (i) Prominently state in any disclosure statements concerning the group health plan, and state to each enrollee at the time of enrollment under the group health plan, that the group health plan has made such an election; and (ii) Include in such statements a description of the effect of this election. (D) Health Insurance Issuer Notice. In the case of an election under subdivision (c)(2)(B) of this section with respect to health insurance coverage offered by a health insurance issuer in the small or large group market, the health insurance issuer: (i) Shall prominently state in any disclosure statements concerning the coverage, and to each employer at the time of the offer or sale of the coverage, that the health insurance issuer has made such an election; and (ii) Shall include in such statements a description of the effect of such an election. (3) Establishment of Period. Periods of creditable coverage with respect to an individual shall be established through presentation of certifications described in subsection (e) of this section or in such other manner as may be specified in regulations.

(1) Not Counting Periods Before Significant Breaks in Coverage. (A) In General. A period of creditable coverage shall not be counted, with respect to enrollment of an individual under a group health plan, if, after such a period and before the enrollment date, there was a sixty-three-day period during all of which the individual was not covered under any creditable coverage. (B) Waiting Period Not Treated as a Break in Coverage. For purposes of subdivisions (c)(1)(A) and (d)(4) of this section, any period that an individual is in a waiting period for any coverage under a group health plan or for group health insurance coverage or is in an affiliation period as defined in § 23-86-303(1) shall not be taken into account in determining the continuous period under subdivision (c)(1)(A) of this section.

(A) In General. A period of creditable coverage shall not be counted, with respect to enrollment of an individual under a group health plan, if, after such a period and before the enrollment date, there was a sixty-three-day period during all of which the individual was not covered under any creditable coverage.

(B) Waiting Period Not Treated as a Break in Coverage. For purposes of subdivisions (c)(1)(A) and (d)(4) of this section, any period that an individual is in a waiting period for any coverage under a group health plan or for group health insurance coverage or is in an affiliation period as defined in § 23-86-303(1) shall not be taken into account in determining the continuous period under subdivision (c)(1)(A) of this section.

(2) Method of Crediting Coverage. (A) Standard Method. Except as otherwise provided under subdivision (c)(2)(B) of this section, for purposes of applying subdivision (a)(3) of this section, a group health plan and a health insurance issuer offering group health insurance coverage shall count a period of creditable coverage without regard to the specific benefits covered during the period. (B) Election of Alternative Method. (i) A group health plan or a health insurance issuer offering group health insurance coverage may elect to apply subdivision (a)(3) of this section based on coverage of benefits within each of several classes or categories of benefits specified in rules rather than as provided under subdivision (c)(2)(A) of this section. (ii) The election shall be made on a uniform basis for all participants and beneficiaries. (iii) Under the election, a group health plan or health insurance issuer shall count a period of creditable coverage with respect to any class or category of benefits if any level of benefits is covered within the class or category. (C) Group Health Plan Notice. In the case of an election with respect to a group health plan under subdivision (c)(2)(B) of this section, whether or not health insurance coverage is provided in connection with such a group health plan, the group health plan shall: (i) Prominently state in any disclosure statements concerning the group health plan, and state to each enrollee at the time of enrollment under the group health plan, that the group health plan has made such an election; and (ii) Include in such statements a description of the effect of this election. (D) Health Insurance Issuer Notice. In the case of an election under subdivision (c)(2)(B) of this section with respect to health insurance coverage offered by a health insurance issuer in the small or large group market, the health insurance issuer: (i) Shall prominently state in any disclosure statements concerning the coverage, and to each employer at the time of the offer or sale of the coverage, that the health insurance issuer has made such an election; and (ii) Shall include in such statements a description of the effect of such an election.

(A) Standard Method. Except as otherwise provided under subdivision (c)(2)(B) of this section, for purposes of applying subdivision (a)(3) of this section, a group health plan and a health insurance issuer offering group health insurance coverage shall count a period of creditable coverage without regard to the specific benefits covered during the period.

(B) Election of Alternative Method. (i) A group health plan or a health insurance issuer offering group health insurance coverage may elect to apply subdivision (a)(3) of this section based on coverage of benefits within each of several classes or categories of benefits specified in rules rather than as provided under subdivision (c)(2)(A) of this section. (ii) The election shall be made on a uniform basis for all participants and beneficiaries. (iii) Under the election, a group health plan or health insurance issuer shall count a period of creditable coverage with respect to any class or category of benefits if any level of benefits is covered within the class or category.

(i) A group health plan or a health insurance issuer offering group health insurance coverage may elect to apply subdivision (a)(3) of this section based on coverage of benefits within each of several classes or categories of benefits specified in rules rather than as provided under subdivision (c)(2)(A) of this section.

(ii) The election shall be made on a uniform basis for all participants and beneficiaries.

(iii) Under the election, a group health plan or health insurance issuer shall count a period of creditable coverage with respect to any class or category of benefits if any level of benefits is covered within the class or category.

(C) Group Health Plan Notice. In the case of an election with respect to a group health plan under subdivision (c)(2)(B) of this section, whether or not health insurance coverage is provided in connection with such a group health plan, the group health plan shall: (i) Prominently state in any disclosure statements concerning the group health plan, and state to each enrollee at the time of enrollment under the group health plan, that the group health plan has made such an election; and (ii) Include in such statements a description of the effect of this election.

(i) Prominently state in any disclosure statements concerning the group health plan, and state to each enrollee at the time of enrollment under the group health plan, that the group health plan has made such an election; and

(ii) Include in such statements a description of the effect of this election.

(D) Health Insurance Issuer Notice. In the case of an election under subdivision (c)(2)(B) of this section with respect to health insurance coverage offered by a health insurance issuer in the small or large group market, the health insurance issuer: (i) Shall prominently state in any disclosure statements concerning the coverage, and to each employer at the time of the offer or sale of the coverage, that the health insurance issuer has made such an election; and (ii) Shall include in such statements a description of the effect of such an election.

(i) Shall prominently state in any disclosure statements concerning the coverage, and to each employer at the time of the offer or sale of the coverage, that the health insurance issuer has made such an election; and

(ii) Shall include in such statements a description of the effect of such an election.

(3) Establishment of Period. Periods of creditable coverage with respect to an individual shall be established through presentation of certifications described in subsection (e) of this section or in such other manner as may be specified in regulations.

(d) Exceptions. (1) Preexisting Condition Exclusion Not Applicable to Certain Newborns. Subject to subdivision (d)(4) of this section, a group health plan and a health insurance issuer offering group health insurance coverage may not impose any preexisting condition exclusion in the case of an individual who, as of the last day of the thirty-day period beginning with the date of birth, is covered under creditable coverage. (2) Preexisting Condition Exclusion Not Applicable to Certain Adopted Children. (A) Subject to subdivision (d)(4) of this section, a group health plan and a health insurance issuer offering group health insurance coverage may not impose any preexisting condition exclusion in the case of a child who is adopted or placed for adoption before attaining eighteen (18) years of age and who, as of the last day of the thirty-day period beginning on the date of the adoption or placement for adoption, is covered under creditable coverage. (B) Subdivision (d)(2)(A) of this section shall not apply to coverage before the date of the adoption or placement for adoption. (3) Preexisting Condition Exclusion Not Applicable to Pregnancy. A group health plan and a health insurance issuer offering group health insurance coverage may not impose any preexisting condition exclusion relating to pregnancy as a preexisting condition. (4) Loss if Break in Coverage. Subdivisions (d)(1) and (2) of this section shall no longer apply to an individual after the end of the first sixty-three-day period during all of which the individual was not covered under any creditable coverage.

(1) Preexisting Condition Exclusion Not Applicable to Certain Newborns. Subject to subdivision (d)(4) of this section, a group health plan and a health insurance issuer offering group health insurance coverage may not impose any preexisting condition exclusion in the case of an individual who, as of the last day of the thirty-day period beginning with the date of birth, is covered under creditable coverage.

(2) Preexisting Condition Exclusion Not Applicable to Certain Adopted Children. (A) Subject to subdivision (d)(4) of this section, a group health plan and a health insurance issuer offering group health insurance coverage may not impose any preexisting condition exclusion in the case of a child who is adopted or placed for adoption before attaining eighteen (18) years of age and who, as of the last day of the thirty-day period beginning on the date of the adoption or placement for adoption, is covered under creditable coverage. (B) Subdivision (d)(2)(A) of this section shall not apply to coverage before the date of the adoption or placement for adoption.

(A) Subject to subdivision (d)(4) of this section, a group health plan and a health insurance issuer offering group health insurance coverage may not impose any preexisting condition exclusion in the case of a child who is adopted or placed for adoption before attaining eighteen (18) years of age and who, as of the last day of the thirty-day period beginning on the date of the adoption or placement for adoption, is covered under creditable coverage.

(B) Subdivision (d)(2)(A) of this section shall not apply to coverage before the date of the adoption or placement for adoption.

(3) Preexisting Condition Exclusion Not Applicable to Pregnancy. A group health plan and a health insurance issuer offering group health insurance coverage may not impose any preexisting condition exclusion relating to pregnancy as a preexisting condition.

(4) Loss if Break in Coverage. Subdivisions (d)(1) and (2) of this section shall no longer apply to an individual after the end of the first sixty-three-day period during all of which the individual was not covered under any creditable coverage.

(e) Certifications and Disclosure of Coverage. (1) Requirement for Certification of Period of Creditable Coverage. (A) In General. A group health plan, and a health insurance issuer offering group health insurance coverage, shall provide the certification described in subdivision (e)(1)(B) of this section: (i) At the time an individual ceases to be covered under the group health plan or otherwise becomes covered under a COBRA continuation provision; (ii) In the case of an individual becoming covered under such a provision, at the time the individual ceases to be covered under such a provision; and (iii) (a) At the request on behalf of an individual made not later than twenty-four (24) months after the date of cessation of the coverage described in subdivision (e)(1)(A)(i) or subdivision (e)(1)(A)(ii) of this section, whichever is later. (b) The certification under subdivision (e)(1)(A)(i) of this section may be provided, to the extent practicable, at a time consistent with notices required under any applicable COBRA continuation provision. (B) Certification. The certification described in subdivision (e)(1)(A) of this section is a written certification of: (i) The period of creditable coverage of the individual under such a group health plan and the coverage, if any, under the COBRA continuation provision; and (ii) The waiting period, if any, and affiliation period, if applicable, imposed with respect to the individual for any coverage under such a group health plan. (C) Issuer Compliance. To the extent that medical care under a group health plan consists of group health insurance coverage, the group health plan is deemed to have satisfied the certification requirement under this section if the health insurance issuer offering the coverage provides for such certification in accordance with this section. (2) Disclosure of Information on Previous Benefits. In the case of an election described in subdivision (c)(2)(B) of this section by a group health plan or health insurance issuer, if the group health plan or health insurance issuer enrolls an individual for coverage under the group health plan and the individual provides a certification of coverage of the individual under subdivision (e)(1) of this section: (A) Upon request of the group health plan or health insurance issuer, the entity which issued the certification provided by the individual shall promptly disclose to the requesting group health plan or issuer information on coverage of classes and categories of health benefits available under the entity's plan or coverage; and (B) The entity may charge the requesting group health plan or health insurance issuer for the reasonable cost of disclosing the information.

(1) Requirement for Certification of Period of Creditable Coverage. (A) In General. A group health plan, and a health insurance issuer offering group health insurance coverage, shall provide the certification described in subdivision (e)(1)(B) of this section: (i) At the time an individual ceases to be covered under the group health plan or otherwise becomes covered under a COBRA continuation provision; (ii) In the case of an individual becoming covered under such a provision, at the time the individual ceases to be covered under such a provision; and (iii) (a) At the request on behalf of an individual made not later than twenty-four (24) months after the date of cessation of the coverage described in subdivision (e)(1)(A)(i) or subdivision (e)(1)(A)(ii) of this section, whichever is later. (b) The certification under subdivision (e)(1)(A)(i) of this section may be provided, to the extent practicable, at a time consistent with notices required under any applicable COBRA continuation provision. (B) Certification. The certification described in subdivision (e)(1)(A) of this section is a written certification of: (i) The period of creditable coverage of the individual under such a group health plan and the coverage, if any, under the COBRA continuation provision; and (ii) The waiting period, if any, and affiliation period, if applicable, imposed with respect to the individual for any coverage under such a group health plan. (C) Issuer Compliance. To the extent that medical care under a group health plan consists of group health insurance coverage, the group health plan is deemed to have satisfied the certification requirement under this section if the health insurance issuer offering the coverage provides for such certification in accordance with this section.

(A) In General. A group health plan, and a health insurance issuer offering group health insurance coverage, shall provide the certification described in subdivision (e)(1)(B) of this section: (i) At the time an individual ceases to be covered under the group health plan or otherwise becomes covered under a COBRA continuation provision; (ii) In the case of an individual becoming covered under such a provision, at the time the individual ceases to be covered under such a provision; and (iii) (a) At the request on behalf of an individual made not later than twenty-four (24) months after the date of cessation of the coverage described in subdivision (e)(1)(A)(i) or subdivision (e)(1)(A)(ii) of this section, whichever is later. (b) The certification under subdivision (e)(1)(A)(i) of this section may be provided, to the extent practicable, at a time consistent with notices required under any applicable COBRA continuation provision.

(i) At the time an individual ceases to be covered under the group health plan or otherwise becomes covered under a COBRA continuation provision;

(ii) In the case of an individual becoming covered under such a provision, at the time the individual ceases to be covered under such a provision; and

(iii) (a) At the request on behalf of an individual made not later than twenty-four (24) months after the date of cessation of the coverage described in subdivision (e)(1)(A)(i) or subdivision (e)(1)(A)(ii) of this section, whichever is later. (b) The certification under subdivision (e)(1)(A)(i) of this section may be provided, to the extent practicable, at a time consistent with notices required under any applicable COBRA continuation provision.

(a) At the request on behalf of an individual made not later than twenty-four (24) months after the date of cessation of the coverage described in subdivision (e)(1)(A)(i) or subdivision (e)(1)(A)(ii) of this section, whichever is later.

(b) The certification under subdivision (e)(1)(A)(i) of this section may be provided, to the extent practicable, at a time consistent with notices required under any applicable COBRA continuation provision.

(B) Certification. The certification described in subdivision (e)(1)(A) of this section is a written certification of: (i) The period of creditable coverage of the individual under such a group health plan and the coverage, if any, under the COBRA continuation provision; and (ii) The waiting period, if any, and affiliation period, if applicable, imposed with respect to the individual for any coverage under such a group health plan.

(i) The period of creditable coverage of the individual under such a group health plan and the coverage, if any, under the COBRA continuation provision; and

(ii) The waiting period, if any, and affiliation period, if applicable, imposed with respect to the individual for any coverage under such a group health plan.

(C) Issuer Compliance. To the extent that medical care under a group health plan consists of group health insurance coverage, the group health plan is deemed to have satisfied the certification requirement under this section if the health insurance issuer offering the coverage provides for such certification in accordance with this section.

(2) Disclosure of Information on Previous Benefits. In the case of an election described in subdivision (c)(2)(B) of this section by a group health plan or health insurance issuer, if the group health plan or health insurance issuer enrolls an individual for coverage under the group health plan and the individual provides a certification of coverage of the individual under subdivision (e)(1) of this section: (A) Upon request of the group health plan or health insurance issuer, the entity which issued the certification provided by the individual shall promptly disclose to the requesting group health plan or issuer information on coverage of classes and categories of health benefits available under the entity's plan or coverage; and (B) The entity may charge the requesting group health plan or health insurance issuer for the reasonable cost of disclosing the information.

(A) Upon request of the group health plan or health insurance issuer, the entity which issued the certification provided by the individual shall promptly disclose to the requesting group health plan or issuer information on coverage of classes and categories of health benefits available under the entity's plan or coverage; and

(B) The entity may charge the requesting group health plan or health insurance issuer for the reasonable cost of disclosing the information.

(f) Special Enrollment Periods. (1) Individuals Losing Other Coverage. A group health plan and a health insurance issuer offering group health insurance coverage in connection with a group health plan shall permit an employee who is eligible, but not enrolled, for coverage under the terms of the group health plan or a dependent of such an employee if the dependent is eligible, but not enrolled, for coverage under such terms to enroll for coverage under the terms of the group health plan if each of the following conditions is met: (A) The employee or dependent was covered under a group health plan or had health insurance coverage at the time coverage was previously offered to the employee or dependent; (B) The employee stated in writing at such time that coverage under a group health plan or health insurance coverage was the reason for declining enrollment, but only if the plan sponsor or health insurance issuer if applicable required such a statement at that time and provided the employee with notice of the requirement and the consequences of such a requirement at that time; (C) The employee's or dependent's coverage described in subdivision (f)(1)(A) of this section: (i) Was under a COBRA continuation provision and the coverage under such a provision was exhausted; or (ii) Was not under such a provision and either the coverage was terminated as a result of loss of eligibility for the coverage including loss as a result of legal separation, divorce, death, termination of employment, or reduction in the number of hours of employment or employer contributions toward the coverage were terminated; and (D) Under the terms of the group health plan, the employee requests the enrollment not later than thirty (30) days after the date of exhaustion of coverage described in subdivision (f)(1)(C)(i) of this section or termination of coverage or employer contribution described in subdivision (f)(1)(C)(ii) of this section. (2) For Dependent Beneficiaries. (A) In General. If: (i) A group health plan makes coverage available with respect to a dependent of an individual; (ii) The individual is a participant under the group health plan or has met any waiting period applicable to becoming a participant under the group health plan and is eligible to be enrolled under the group health plan but for that individual's failure to enroll during a previous enrollment period; and (iii) A person becomes such a dependent of the individual through marriage, birth, or adoption or placement for adoption, then the enrollment period described in subdivision (f)(2)(B) of this section shall be provided, during which the person, or, if not otherwise enrolled, the individual, may be enrolled under the group health plan as a dependent of the individual and, in the case of the birth or adoption of a child, the spouse of the individual may be enrolled as a dependent of the individual if the spouse is otherwise eligible for coverage. (B) Dependent Special Enrollment Period. A dependent special enrollment period under subdivision (f)(2)(A) of this section shall be a period of not less than thirty (30) days and shall begin on the later of: (i) The date dependent coverage is made available; or (ii) The date of the marriage, birth, or adoption or placement for adoption, as the case may be, described in subdivision (f)(2)(A)(iii) of this section. (C) No Waiting Period. If an individual seeks to enroll a dependent during the first thirty (30) days of such a dependent special enrollment period, the coverage of the dependent shall become effective: (i) In the case of marriage, not later than the first day of the first month beginning after the date the completed request for enrollment is received; (ii) In the case of a dependent's birth, as of the date of the birth; or (iii) In the case of a dependent's adoption or placement for adoption, the date of the adoption or placement for adoption.

(1) Individuals Losing Other Coverage. A group health plan and a health insurance issuer offering group health insurance coverage in connection with a group health plan shall permit an employee who is eligible, but not enrolled, for coverage under the terms of the group health plan or a dependent of such an employee if the dependent is eligible, but not enrolled, for coverage under such terms to enroll for coverage under the terms of the group health plan if each of the following conditions is met: (A) The employee or dependent was covered under a group health plan or had health insurance coverage at the time coverage was previously offered to the employee or dependent; (B) The employee stated in writing at such time that coverage under a group health plan or health insurance coverage was the reason for declining enrollment, but only if the plan sponsor or health insurance issuer if applicable required such a statement at that time and provided the employee with notice of the requirement and the consequences of such a requirement at that time; (C) The employee's or dependent's coverage described in subdivision (f)(1)(A) of this section: (i) Was under a COBRA continuation provision and the coverage under such a provision was exhausted; or (ii) Was not under such a provision and either the coverage was terminated as a result of loss of eligibility for the coverage including loss as a result of legal separation, divorce, death, termination of employment, or reduction in the number of hours of employment or employer contributions toward the coverage were terminated; and (D) Under the terms of the group health plan, the employee requests the enrollment not later than thirty (30) days after the date of exhaustion of coverage described in subdivision (f)(1)(C)(i) of this section or termination of coverage or employer contribution described in subdivision (f)(1)(C)(ii) of this section.

(A) The employee or dependent was covered under a group health plan or had health insurance coverage at the time coverage was previously offered to the employee or dependent;

(B) The employee stated in writing at such time that coverage under a group health plan or health insurance coverage was the reason for declining enrollment, but only if the plan sponsor or health insurance issuer if applicable required such a statement at that time and provided the employee with notice of the requirement and the consequences of such a requirement at that time;

(C) The employee's or dependent's coverage described in subdivision (f)(1)(A) of this section: (i) Was under a COBRA continuation provision and the coverage under such a provision was exhausted; or (ii) Was not under such a provision and either the coverage was terminated as a result of loss of eligibility for the coverage including loss as a result of legal separation, divorce, death, termination of employment, or reduction in the number of hours of employment or employer contributions toward the coverage were terminated; and

(i) Was under a COBRA continuation provision and the coverage under such a provision was exhausted; or

(ii) Was not under such a provision and either the coverage was terminated as a result of loss of eligibility for the coverage including loss as a result of legal separation, divorce, death, termination of employment, or reduction in the number of hours of employment or employer contributions toward the coverage were terminated; and

(D) Under the terms of the group health plan, the employee requests the enrollment not later than thirty (30) days after the date of exhaustion of coverage described in subdivision (f)(1)(C)(i) of this section or termination of coverage or employer contribution described in subdivision (f)(1)(C)(ii) of this section.

(2) For Dependent Beneficiaries. (A) In General. If: (i) A group health plan makes coverage available with respect to a dependent of an individual; (ii) The individual is a participant under the group health plan or has met any waiting period applicable to becoming a participant under the group health plan and is eligible to be enrolled under the group health plan but for that individual's failure to enroll during a previous enrollment period; and (iii) A person becomes such a dependent of the individual through marriage, birth, or adoption or placement for adoption, then the enrollment period described in subdivision (f)(2)(B) of this section shall be provided, during which the person, or, if not otherwise enrolled, the individual, may be enrolled under the group health plan as a dependent of the individual and, in the case of the birth or adoption of a child, the spouse of the individual may be enrolled as a dependent of the individual if the spouse is otherwise eligible for coverage. (B) Dependent Special Enrollment Period. A dependent special enrollment period under subdivision (f)(2)(A) of this section shall be a period of not less than thirty (30) days and shall begin on the later of: (i) The date dependent coverage is made available; or (ii) The date of the marriage, birth, or adoption or placement for adoption, as the case may be, described in subdivision (f)(2)(A)(iii) of this section. (C) No Waiting Period. If an individual seeks to enroll a dependent during the first thirty (30) days of such a dependent special enrollment period, the coverage of the dependent shall become effective: (i) In the case of marriage, not later than the first day of the first month beginning after the date the completed request for enrollment is received; (ii) In the case of a dependent's birth, as of the date of the birth; or (iii) In the case of a dependent's adoption or placement for adoption, the date of the adoption or placement for adoption.

(A) In General. If: (i) A group health plan makes coverage available with respect to a dependent of an individual; (ii) The individual is a participant under the group health plan or has met any waiting period applicable to becoming a participant under the group health plan and is eligible to be enrolled under the group health plan but for that individual's failure to enroll during a previous enrollment period; and (iii) A person becomes such a dependent of the individual through marriage, birth, or adoption or placement for adoption, then the enrollment period described in subdivision (f)(2)(B) of this section shall be provided, during which the person, or, if not otherwise enrolled, the individual, may be enrolled under the group health plan as a dependent of the individual and, in the case of the birth or adoption of a child, the spouse of the individual may be enrolled as a dependent of the individual if the spouse is otherwise eligible for coverage.

(i) A group health plan makes coverage available with respect to a dependent of an individual;

(ii) The individual is a participant under the group health plan or has met any waiting period applicable to becoming a participant under the group health plan and is eligible to be enrolled under the group health plan but for that individual's failure to enroll during a previous enrollment period; and

(iii) A person becomes such a dependent of the individual through marriage, birth, or adoption or placement for adoption, then the enrollment period described in subdivision (f)(2)(B) of this section shall be provided, during which the person, or, if not otherwise enrolled, the individual, may be enrolled under the group health plan as a dependent of the individual and, in the case of the birth or adoption of a child, the spouse of the individual may be enrolled as a dependent of the individual if the spouse is otherwise eligible for coverage.

(B) Dependent Special Enrollment Period. A dependent special enrollment period under subdivision (f)(2)(A) of this section shall be a period of not less than thirty (30) days and shall begin on the later of: (i) The date dependent coverage is made available; or (ii) The date of the marriage, birth, or adoption or placement for adoption, as the case may be, described in subdivision (f)(2)(A)(iii) of this section.

(i) The date dependent coverage is made available; or

(ii) The date of the marriage, birth, or adoption or placement for adoption, as the case may be, described in subdivision (f)(2)(A)(iii) of this section.

(C) No Waiting Period. If an individual seeks to enroll a dependent during the first thirty (30) days of such a dependent special enrollment period, the coverage of the dependent shall become effective: (i) In the case of marriage, not later than the first day of the first month beginning after the date the completed request for enrollment is received; (ii) In the case of a dependent's birth, as of the date of the birth; or (iii) In the case of a dependent's adoption or placement for adoption, the date of the adoption or placement for adoption.

(i) In the case of marriage, not later than the first day of the first month beginning after the date the completed request for enrollment is received;

(ii) In the case of a dependent's birth, as of the date of the birth; or

(iii) In the case of a dependent's adoption or placement for adoption, the date of the adoption or placement for adoption.

(g) Use of Affiliation Period by Health Maintenance Organizations as Alternative to Preexisting Condition Exclusion. (1) In General. In the case of a group health plan that offers medical care through coverage offered by a health maintenance organization, the group health plan may provide for an affiliation period with respect to coverage through the health maintenance organization only if: (A) No preexisting condition exclusion is imposed with respect to coverage through the health maintenance organization; (B) The affiliation period is applied uniformly without regard to any health status-related factors; and (C) The affiliation period does not exceed two (2) months or three (3) months in the case of a late enrollee. (2) Affiliation Period. (A) Affiliation Period. The health maintenance organization is not required to provide healthcare services or benefits during the affiliation period, and no premium shall be charged to the participant or beneficiary for any coverage during the affiliation period. (B) Beginning. The affiliation period shall begin on the enrollment date. (C) Runs Concurrently with Waiting Periods. An affiliation period under a group health plan shall run concurrently with any waiting period under the group health plan. (3) Alternative Methods. A health maintenance organization described in subdivision (g)(1) of this section may use alternative methods from those described in subdivision (g)(1) of this section to address adverse selection as approved by the Insurance Commissioner.

(1) In General. In the case of a group health plan that offers medical care through coverage offered by a health maintenance organization, the group health plan may provide for an affiliation period with respect to coverage through the health maintenance organization only if: (A) No preexisting condition exclusion is imposed with respect to coverage through the health maintenance organization; (B) The affiliation period is applied uniformly without regard to any health status-related factors; and (C) The affiliation period does not exceed two (2) months or three (3) months in the case of a late enrollee.

(A) No preexisting condition exclusion is imposed with respect to coverage through the health maintenance organization;

(B) The affiliation period is applied uniformly without regard to any health status-related factors; and

(C) The affiliation period does not exceed two (2) months or three (3) months in the case of a late enrollee.

(2) Affiliation Period. (A) Affiliation Period. The health maintenance organization is not required to provide healthcare services or benefits during the affiliation period, and no premium shall be charged to the participant or beneficiary for any coverage during the affiliation period. (B) Beginning. The affiliation period shall begin on the enrollment date. (C) Runs Concurrently with Waiting Periods. An affiliation period under a group health plan shall run concurrently with any waiting period under the group health plan.

(A) Affiliation Period. The health maintenance organization is not required to provide healthcare services or benefits during the affiliation period, and no premium shall be charged to the participant or beneficiary for any coverage during the affiliation period.

(B) Beginning. The affiliation period shall begin on the enrollment date.

(C) Runs Concurrently with Waiting Periods. An affiliation period under a group health plan shall run concurrently with any waiting period under the group health plan.

(3) Alternative Methods. A health maintenance organization described in subdivision (g)(1) of this section may use alternative methods from those described in subdivision (g)(1) of this section to address adverse selection as approved by the Insurance Commissioner.

Amended by Act 2019, No. 315,§ 2747, eff. 7/24/2019.

Acts 1997, No. 997, § 1.
Ark. Code Ann. § 23-35-605 — AR Code / Title 23 / Chapter 35 / Subchapter 6 / Section 23-35-605
Reserves
Status: in_force

(a) At the end of each accounting period, the gross income shall be determined. From this amount, there shall be set aside, as a regular reserve against losses on loans and against such other losses as may be specified in rules prescribed under this chapter, sums in accordance with the following schedule: (1) A credit union in operation for more than four (4) years and having assets of five hundred thousand dollars ($500,000) or more shall set aside: (A) Ten percent (10%) of gross income until the regular reserve shall equal four percent (4%) of the total of outstanding loans and risk assets; then (B) Five percent (5%) of gross income until the regular reserve shall equal six percent (6%) of the total of outstanding loans and risk assets; (2) A credit union in operation less than four (4) years or having assets of less than five hundred thousand dollars ($500,000) shall set aside ten percent (10%) of gross income until the regular reserve shall equal seven and one-half percent (71/2%) of the total of outstanding loans and risk assets; and (3) Whenever the regular reserve falls below the stated percent of the total of outstanding loans and risk assets, it shall be replenished by regular contributions in such amounts as may be needed to maintain the stated reserve goals. (b) The State Credit Union Supervisor may decrease the reserve requirement set forth in subsection (a) of this section when, in his or her opinion, a decrease is necessary or desirable. The supervisor may also require special reserves to protect the interests of members either by rule or for an individual credit union in any special case. (c) The reserve fund shall belong to the credit union and shall be used to meet all losses from uncollectable loans and shall not be distributed except on liquidation of the credit union or in accordance with a plan approved or ordered by the supervisor. Amended by Act 2019, No. 315,§ 2489, eff. 7/24/2019. Acts 1971, No. 132, § 26; 1979, No. 206, § 7; 1985, No. 936, § 15; A.S.A. 1947, § 67-926.

(a) At the end of each accounting period, the gross income shall be determined. From this amount, there shall be set aside, as a regular reserve against losses on loans and against such other losses as may be specified in rules prescribed under this chapter, sums in accordance with the following schedule: (1) A credit union in operation for more than four (4) years and having assets of five hundred thousand dollars ($500,000) or more shall set aside: (A) Ten percent (10%) of gross income until the regular reserve shall equal four percent (4%) of the total of outstanding loans and risk assets; then (B) Five percent (5%) of gross income until the regular reserve shall equal six percent (6%) of the total of outstanding loans and risk assets; (2) A credit union in operation less than four (4) years or having assets of less than five hundred thousand dollars ($500,000) shall set aside ten percent (10%) of gross income until the regular reserve shall equal seven and one-half percent (71/2%) of the total of outstanding loans and risk assets; and (3) Whenever the regular reserve falls below the stated percent of the total of outstanding loans and risk assets, it shall be replenished by regular contributions in such amounts as may be needed to maintain the stated reserve goals.

(1) A credit union in operation for more than four (4) years and having assets of five hundred thousand dollars ($500,000) or more shall set aside: (A) Ten percent (10%) of gross income until the regular reserve shall equal four percent (4%) of the total of outstanding loans and risk assets; then (B) Five percent (5%) of gross income until the regular reserve shall equal six percent (6%) of the total of outstanding loans and risk assets;

(A) Ten percent (10%) of gross income until the regular reserve shall equal four percent (4%) of the total of outstanding loans and risk assets; then

(B) Five percent (5%) of gross income until the regular reserve shall equal six percent (6%) of the total of outstanding loans and risk assets;

(2) A credit union in operation less than four (4) years or having assets of less than five hundred thousand dollars ($500,000) shall set aside ten percent (10%) of gross income until the regular reserve shall equal seven and one-half percent (71/2%) of the total of outstanding loans and risk assets; and

(3) Whenever the regular reserve falls below the stated percent of the total of outstanding loans and risk assets, it shall be replenished by regular contributions in such amounts as may be needed to maintain the stated reserve goals.

(b) The State Credit Union Supervisor may decrease the reserve requirement set forth in subsection (a) of this section when, in his or her opinion, a decrease is necessary or desirable. The supervisor may also require special reserves to protect the interests of members either by rule or for an individual credit union in any special case.

(c) The reserve fund shall belong to the credit union and shall be used to meet all losses from uncollectable loans and shall not be distributed except on liquidation of the credit union or in accordance with a plan approved or ordered by the supervisor.

Amended by Act 2019, No. 315,§ 2489, eff. 7/24/2019.

Acts 1971, No. 132, § 26; 1979, No. 206, § 7; 1985, No. 936, § 15; A.S.A. 1947, § 67-926.
Ark. Code Ann. § 23-48-503 — AR Code / Title 23 / Chapter 48 / Subchapter 5 / Section 23-48-503
Merger of bank, bank holding company, or savings and loan association into state bank
Status: in_force

(a) (1) (A) With the approval of the Bank Commissioner and the State Banking Board and after a public hearing as prescribed by the applicable law of this state, any bank, bank holding company, or savings and loan association, including an out-of-state bank, bank holding company, or savings and loan association, may be merged with a state bank creating one (1) or more resulting banks. (B) However, if any national bank, out-of-state bank, bank holding company, or savings and loan association is involved in the merger under subdivision (a)(1)(A) of this section, there shall be compliance with the requirements of the state or federal laws applicable to the national bank, out-of-state bank, bank holding company, or savings and loan association. (2) (A) A plan of merger involving a state bank shall provide: (i) The name of each party to the merger; (ii) The name of each entity that will result from the merger; and (iii) The terms and conditions of the merger. (B) If more than one (1) bank, out-of-state bank, or savings and loan association will result or be created by the terms of the plan of merger, the terms and conditions of the merger shall include: (i) The manner and basis of allocating and vesting the assets from the merger among one (1) or more of the parties; (ii) The name of the party that will be obligated to pay the fair value of any shares of stock of a bank that is a party to the merger that are held by a shareholder that has complied with the requirements of § 23-48-506 for the recovery of the fair value of the shareholder's shares; and (iii) Either of the following: (a) The manner and basis of allocating the liabilities and obligations of each bank, out-of-state bank, bank holding company, or savings and loan association that is a party to the merger among one (1) or more of the parties; or (b) Adequate provision for the payment and discharge of the liabilities and obligations of each bank, out-of-state bank, bank holding company, or savings and loan association that is a party to the merger among one (1) or more of the parties. (3) A bank, including an out-of-state bank, a bank holding company, or a savings and loan association may merge into a state bank if none of the Arkansas banks that are parties to the merger have a de novo charter. (4) (A) The applicant shall file an application with the commissioner containing the information that the commissioner requires. (B) If an out-of-state bank is a party to the merger, all applicable provisions of § 23-48-902 et seq. and the applicable law of the home state of the merging bank shall be satisfied. (5) (A) Unless otherwise provided for by the charter or governing law of any out-of-state bank, bank holding company, or savings and loan association, the assenting vote of a simple majority of each class of voting stock of the merging banks, bank holding companies, or savings and loan associations and the resulting bank shall be required for the merger. (B) However, a vote of the shareholders of the resulting bank shall not be required if the number of shares to be issued in connection with the merger does not exceed twenty percent (20%) of the outstanding shares of the resulting bank before the merger. (b) The commissioner shall provide the board with the results of the investigation of the application. (c) The commissioner shall approve the application if at the hearing both the commissioner and the board find that: (1) The proposed merger provides adequate capital structure; (2) The terms of the merger agreement are fair; (3) The merger is not contrary to the public interest; (4) The proposed merger adequately provides for dissenters' rights; and (5) The requirements of all applicable state and federal laws have been complied with. Amended by Act 2017, No. 548,§ 10, eff. 3/21/2017. Acts 1997, No. 89, § 1; 1997, No. 408, § 14; 2007, No. 170, § 2; 2009, No. 164, § 12.

(a) (1) (A) With the approval of the Bank Commissioner and the State Banking Board and after a public hearing as prescribed by the applicable law of this state, any bank, bank holding company, or savings and loan association, including an out-of-state bank, bank holding company, or savings and loan association, may be merged with a state bank creating one (1) or more resulting banks. (B) However, if any national bank, out-of-state bank, bank holding company, or savings and loan association is involved in the merger under subdivision (a)(1)(A) of this section, there shall be compliance with the requirements of the state or federal laws applicable to the national bank, out-of-state bank, bank holding company, or savings and loan association. (2) (A) A plan of merger involving a state bank shall provide: (i) The name of each party to the merger; (ii) The name of each entity that will result from the merger; and (iii) The terms and conditions of the merger. (B) If more than one (1) bank, out-of-state bank, or savings and loan association will result or be created by the terms of the plan of merger, the terms and conditions of the merger shall include: (i) The manner and basis of allocating and vesting the assets from the merger among one (1) or more of the parties; (ii) The name of the party that will be obligated to pay the fair value of any shares of stock of a bank that is a party to the merger that are held by a shareholder that has complied with the requirements of § 23-48-506 for the recovery of the fair value of the shareholder's shares; and (iii) Either of the following: (a) The manner and basis of allocating the liabilities and obligations of each bank, out-of-state bank, bank holding company, or savings and loan association that is a party to the merger among one (1) or more of the parties; or (b) Adequate provision for the payment and discharge of the liabilities and obligations of each bank, out-of-state bank, bank holding company, or savings and loan association that is a party to the merger among one (1) or more of the parties. (3) A bank, including an out-of-state bank, a bank holding company, or a savings and loan association may merge into a state bank if none of the Arkansas banks that are parties to the merger have a de novo charter. (4) (A) The applicant shall file an application with the commissioner containing the information that the commissioner requires. (B) If an out-of-state bank is a party to the merger, all applicable provisions of § 23-48-902 et seq. and the applicable law of the home state of the merging bank shall be satisfied. (5) (A) Unless otherwise provided for by the charter or governing law of any out-of-state bank, bank holding company, or savings and loan association, the assenting vote of a simple majority of each class of voting stock of the merging banks, bank holding companies, or savings and loan associations and the resulting bank shall be required for the merger. (B) However, a vote of the shareholders of the resulting bank shall not be required if the number of shares to be issued in connection with the merger does not exceed twenty percent (20%) of the outstanding shares of the resulting bank before the merger.

(1) (A) With the approval of the Bank Commissioner and the State Banking Board and after a public hearing as prescribed by the applicable law of this state, any bank, bank holding company, or savings and loan association, including an out-of-state bank, bank holding company, or savings and loan association, may be merged with a state bank creating one (1) or more resulting banks. (B) However, if any national bank, out-of-state bank, bank holding company, or savings and loan association is involved in the merger under subdivision (a)(1)(A) of this section, there shall be compliance with the requirements of the state or federal laws applicable to the national bank, out-of-state bank, bank holding company, or savings and loan association.

(A) With the approval of the Bank Commissioner and the State Banking Board and after a public hearing as prescribed by the applicable law of this state, any bank, bank holding company, or savings and loan association, including an out-of-state bank, bank holding company, or savings and loan association, may be merged with a state bank creating one (1) or more resulting banks.

(B) However, if any national bank, out-of-state bank, bank holding company, or savings and loan association is involved in the merger under subdivision (a)(1)(A) of this section, there shall be compliance with the requirements of the state or federal laws applicable to the national bank, out-of-state bank, bank holding company, or savings and loan association.

(2) (A) A plan of merger involving a state bank shall provide: (i) The name of each party to the merger; (ii) The name of each entity that will result from the merger; and (iii) The terms and conditions of the merger. (B) If more than one (1) bank, out-of-state bank, or savings and loan association will result or be created by the terms of the plan of merger, the terms and conditions of the merger shall include: (i) The manner and basis of allocating and vesting the assets from the merger among one (1) or more of the parties; (ii) The name of the party that will be obligated to pay the fair value of any shares of stock of a bank that is a party to the merger that are held by a shareholder that has complied with the requirements of § 23-48-506 for the recovery of the fair value of the shareholder's shares; and (iii) Either of the following: (a) The manner and basis of allocating the liabilities and obligations of each bank, out-of-state bank, bank holding company, or savings and loan association that is a party to the merger among one (1) or more of the parties; or (b) Adequate provision for the payment and discharge of the liabilities and obligations of each bank, out-of-state bank, bank holding company, or savings and loan association that is a party to the merger among one (1) or more of the parties.

(A) A plan of merger involving a state bank shall provide: (i) The name of each party to the merger; (ii) The name of each entity that will result from the merger; and (iii) The terms and conditions of the merger.

(i) The name of each party to the merger;

(ii) The name of each entity that will result from the merger; and

(iii) The terms and conditions of the merger.

(B) If more than one (1) bank, out-of-state bank, or savings and loan association will result or be created by the terms of the plan of merger, the terms and conditions of the merger shall include: (i) The manner and basis of allocating and vesting the assets from the merger among one (1) or more of the parties; (ii) The name of the party that will be obligated to pay the fair value of any shares of stock of a bank that is a party to the merger that are held by a shareholder that has complied with the requirements of § 23-48-506 for the recovery of the fair value of the shareholder's shares; and (iii) Either of the following: (a) The manner and basis of allocating the liabilities and obligations of each bank, out-of-state bank, bank holding company, or savings and loan association that is a party to the merger among one (1) or more of the parties; or (b) Adequate provision for the payment and discharge of the liabilities and obligations of each bank, out-of-state bank, bank holding company, or savings and loan association that is a party to the merger among one (1) or more of the parties.

(i) The manner and basis of allocating and vesting the assets from the merger among one (1) or more of the parties;

(ii) The name of the party that will be obligated to pay the fair value of any shares of stock of a bank that is a party to the merger that are held by a shareholder that has complied with the requirements of § 23-48-506 for the recovery of the fair value of the shareholder's shares; and

(iii) Either of the following: (a) The manner and basis of allocating the liabilities and obligations of each bank, out-of-state bank, bank holding company, or savings and loan association that is a party to the merger among one (1) or more of the parties; or (b) Adequate provision for the payment and discharge of the liabilities and obligations of each bank, out-of-state bank, bank holding company, or savings and loan association that is a party to the merger among one (1) or more of the parties.

(a) The manner and basis of allocating the liabilities and obligations of each bank, out-of-state bank, bank holding company, or savings and loan association that is a party to the merger among one (1) or more of the parties; or

(b) Adequate provision for the payment and discharge of the liabilities and obligations of each bank, out-of-state bank, bank holding company, or savings and loan association that is a party to the merger among one (1) or more of the parties.

(3) A bank, including an out-of-state bank, a bank holding company, or a savings and loan association may merge into a state bank if none of the Arkansas banks that are parties to the merger have a de novo charter.

(4) (A) The applicant shall file an application with the commissioner containing the information that the commissioner requires. (B) If an out-of-state bank is a party to the merger, all applicable provisions of § 23-48-902 et seq. and the applicable law of the home state of the merging bank shall be satisfied.

(A) The applicant shall file an application with the commissioner containing the information that the commissioner requires.

(B) If an out-of-state bank is a party to the merger, all applicable provisions of § 23-48-902 et seq. and the applicable law of the home state of the merging bank shall be satisfied.

(5) (A) Unless otherwise provided for by the charter or governing law of any out-of-state bank, bank holding company, or savings and loan association, the assenting vote of a simple majority of each class of voting stock of the merging banks, bank holding companies, or savings and loan associations and the resulting bank shall be required for the merger. (B) However, a vote of the shareholders of the resulting bank shall not be required if the number of shares to be issued in connection with the merger does not exceed twenty percent (20%) of the outstanding shares of the resulting bank before the merger.

(A) Unless otherwise provided for by the charter or governing law of any out-of-state bank, bank holding company, or savings and loan association, the assenting vote of a simple majority of each class of voting stock of the merging banks, bank holding companies, or savings and loan associations and the resulting bank shall be required for the merger.

(B) However, a vote of the shareholders of the resulting bank shall not be required if the number of shares to be issued in connection with the merger does not exceed twenty percent (20%) of the outstanding shares of the resulting bank before the merger.

(b) The commissioner shall provide the board with the results of the investigation of the application.

(c) The commissioner shall approve the application if at the hearing both the commissioner and the board find that: (1) The proposed merger provides adequate capital structure; (2) The terms of the merger agreement are fair; (3) The merger is not contrary to the public interest; (4) The proposed merger adequately provides for dissenters' rights; and (5) The requirements of all applicable state and federal laws have been complied with.

(1) The proposed merger provides adequate capital structure;

(2) The terms of the merger agreement are fair;

(3) The merger is not contrary to the public interest;

(4) The proposed merger adequately provides for dissenters' rights; and

(5) The requirements of all applicable state and federal laws have been complied with.

Amended by Act 2017, No. 548,§ 10, eff. 3/21/2017.

Acts 1997, No. 89, § 1; 1997, No. 408, § 14; 2007, No. 170, § 2; 2009, No. 164, § 12.