Ark. Code Ann. § 23-64-507 — AR Code / Title 23 / Chapter 64 / Subchapter 5 / Section 23-64-507
License
Status: in_force

(a) Unless denied licensure pursuant to § 23-64-512 , persons who have met the requirements of §§ 23-64-505 and 23-64-506 shall be issued an insurance producer license. An insurance producer may receive qualification for a license in one (1) or more of the following lines of authority: (1) Life insurance coverage on human lives including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income; (2) Accident and health or sickness insurance coverage for sickness, bodily injury, or accidental death and may include benefits for disability income; (3) Property insurance coverage for the direct or consequential loss or damage to property of every kind; (4) Casualty insurance coverage against legal liability, including that for death, injury, or disability or damage to real or personal property; (5) Variable life and variable annuity products insurance coverage provided under variable life insurance contracts and variable annuities; (6) Personal lines property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes; (7) Credit limited line credit insurance; or (8) Any other line of insurance permitted under state laws or regulations. (b) An insurance producer license shall remain in effect unless revoked or suspended: (1) As long as the fee set forth in § 23-61-401 and any existing or future rule is paid and education requirements for resident individual producers are met by the due date; or (2) (A) During any period of state active duty in the Arkansas National Guard or active duty in any branch of the United States Armed Forces or as a member of the Arkansas National Guard on active duty, including without limitation the: (i) United States Coast Guard; or (ii) Reserve components of the United States Armed Forces. (B) The requirements of subdivision (b)(1) of this section are waived during the period of active duty. (c) An individual insurance producer who allows his or her license to lapse may reinstate the same license within twelve (12) months after the due date of the renewal fee without the necessity of passing a written examination. However, a penalty in the amount of double the unpaid renewal fee shall be required for any renewal fee received after the due date. (d) A licensed insurance producer who is unable to comply with license renewal procedures due to military service or some other extenuating circumstance, for example, a long-term medical disability, may request a waiver of those procedures. The producer may also request a waiver of any examination requirement or any other fine or sanction imposed for failure to comply with renewal procedures. (e) The license shall contain the licensee's name, address, personal identification number, and the date of issuance, the lines of authority, the expiration date, and any other information the Insurance Commissioner deems necessary. (f) Licensees shall inform the commissioner by any means acceptable to the commissioner of a change of address within thirty (30) days of the change. Failure to timely inform the commissioner of a change in legal name or address shall result in a penalty pursuant to § 23-64-216 . (g) In order 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, including the collection of fees, related to producer licensing that the commissioner and the nongovernmental entity may deem appropriate. Amended by Act 2019, No. 315,§ 2656, eff. 7/24/2019. Amended by Act 2019, No. 462,§ 19, eff. 7/24/2019. Acts 2001, No. 580, § 1; 2005, No. 1697, § 7.

(a) Unless denied licensure pursuant to § 23-64-512 , persons who have met the requirements of §§ 23-64-505 and 23-64-506 shall be issued an insurance producer license. An insurance producer may receive qualification for a license in one (1) or more of the following lines of authority: (1) Life insurance coverage on human lives including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income; (2) Accident and health or sickness insurance coverage for sickness, bodily injury, or accidental death and may include benefits for disability income; (3) Property insurance coverage for the direct or consequential loss or damage to property of every kind; (4) Casualty insurance coverage against legal liability, including that for death, injury, or disability or damage to real or personal property; (5) Variable life and variable annuity products insurance coverage provided under variable life insurance contracts and variable annuities; (6) Personal lines property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes; (7) Credit limited line credit insurance; or (8) Any other line of insurance permitted under state laws or regulations.

(1) Life insurance coverage on human lives including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income;

(2) Accident and health or sickness insurance coverage for sickness, bodily injury, or accidental death and may include benefits for disability income;

(3) Property insurance coverage for the direct or consequential loss or damage to property of every kind;

(4) Casualty insurance coverage against legal liability, including that for death, injury, or disability or damage to real or personal property;

(5) Variable life and variable annuity products insurance coverage provided under variable life insurance contracts and variable annuities;

(6) Personal lines property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes;

(7) Credit limited line credit insurance; or

(8) Any other line of insurance permitted under state laws or regulations.

(b) An insurance producer license shall remain in effect unless revoked or suspended: (1) As long as the fee set forth in § 23-61-401 and any existing or future rule is paid and education requirements for resident individual producers are met by the due date; or (2) (A) During any period of state active duty in the Arkansas National Guard or active duty in any branch of the United States Armed Forces or as a member of the Arkansas National Guard on active duty, including without limitation the: (i) United States Coast Guard; or (ii) Reserve components of the United States Armed Forces. (B) The requirements of subdivision (b)(1) of this section are waived during the period of active duty.

(1) As long as the fee set forth in § 23-61-401 and any existing or future rule is paid and education requirements for resident individual producers are met by the due date; or

(2) (A) During any period of state active duty in the Arkansas National Guard or active duty in any branch of the United States Armed Forces or as a member of the Arkansas National Guard on active duty, including without limitation the: (i) United States Coast Guard; or (ii) Reserve components of the United States Armed Forces. (B) The requirements of subdivision (b)(1) of this section are waived during the period of active duty.

(A) During any period of state active duty in the Arkansas National Guard or active duty in any branch of the United States Armed Forces or as a member of the Arkansas National Guard on active duty, including without limitation the: (i) United States Coast Guard; or (ii) Reserve components of the United States Armed Forces.

(i) United States Coast Guard; or

(ii) Reserve components of the United States Armed Forces.

(B) The requirements of subdivision (b)(1) of this section are waived during the period of active duty.

(c) An individual insurance producer who allows his or her license to lapse may reinstate the same license within twelve (12) months after the due date of the renewal fee without the necessity of passing a written examination. However, a penalty in the amount of double the unpaid renewal fee shall be required for any renewal fee received after the due date.

(d) A licensed insurance producer who is unable to comply with license renewal procedures due to military service or some other extenuating circumstance, for example, a long-term medical disability, may request a waiver of those procedures. The producer may also request a waiver of any examination requirement or any other fine or sanction imposed for failure to comply with renewal procedures.

(e) The license shall contain the licensee's name, address, personal identification number, and the date of issuance, the lines of authority, the expiration date, and any other information the Insurance Commissioner deems necessary.

(f) Licensees shall inform the commissioner by any means acceptable to the commissioner of a change of address within thirty (30) days of the change. Failure to timely inform the commissioner of a change in legal name or address shall result in a penalty pursuant to § 23-64-216 .

(g) In order 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, including the collection of fees, related to producer licensing that the commissioner and the nongovernmental entity may deem appropriate.

Amended by Act 2019, No. 315,§ 2656, eff. 7/24/2019.

Amended by Act 2019, No. 462,§ 19, eff. 7/24/2019.

Acts 2001, No. 580, § 1; 2005, No. 1697, § 7.
Ark. Code Ann. § 23-39-504 — AR Code / Title 23 / Chapter 39 / Subchapter 5 / Section 23-39-504
Rulemaking authority
Status: in_force

The Securities Commissioner may adopt any rules that he or she deems necessary to: (1) Carry out the provisions of this subchapter; (2) Provide for the protection of the borrowing public; and (3) Provide any requirements necessary for the State of Arkansas to participate in a multistate automated licensing system; and (4) Instruct mortgage brokers, mortgage bankers, mortgage servicers, loan officers, and transitional loan officers in interpreting this subchapter. Amended by Act 2019, No. 200,§ 10, eff. 7/24/2019. Acts 2003, No. 554, § 1; 2005, No. 1679, § 1; 2007, No. 748, § 3.

The Securities Commissioner may adopt any rules that he or she deems necessary to:

(1) Carry out the provisions of this subchapter;

(2) Provide for the protection of the borrowing public; and

(3) Provide any requirements necessary for the State of Arkansas to participate in a multistate automated licensing system; and

(4) Instruct mortgage brokers, mortgage bankers, mortgage servicers, loan officers, and transitional loan officers in interpreting this subchapter.

Amended by Act 2019, No. 200,§ 10, eff. 7/24/2019.

Acts 2003, No. 554, § 1; 2005, No. 1679, § 1; 2007, No. 748, § 3.
Ark. Code Ann. § 23-111-401 — AR Code / Title 23 / Chapter 111 / Subchapter 4 / Section 23-111-401
Purpose
Status: in_force

(a) It is determined by the General Assembly that the business of conducting dog racing and pari-mutuel wagering thereon is so clothed with the public interest that the operation should be closely regulated and controlled to the end that the operation will not be conducted in a manner detrimental to the public interest of this state and its citizens and that the policy and manner of operation of the business is largely determined by those who have substantial financial interests in the corporate franchise holder. (b) Therefore, it is the purpose and intent of §§ 23-111-402 - 23-111-405 and 23-111-407 - 23-111-409 to broaden, clarify, and strengthen the authority of the Arkansas Racing Commission to investigate the personal background of officers, directors, and principal stockholders of applicants for, and holders of, franchises to conduct dog racing in this state and to deny application for, suspend, or revoke a dog racing franchise upon the basis of the personal background of an officer, director, or principal stockholder of an applicant for, or holder of, a franchise, in order that the commission can better perform its duty to regulate and control dog racing in this state in the public interest. Acts 1968 (2nd Ex. Sess.), No. 8, § 9; A.S.A. 1947, § 84-2823.9.

(a) It is determined by the General Assembly that the business of conducting dog racing and pari-mutuel wagering thereon is so clothed with the public interest that the operation should be closely regulated and controlled to the end that the operation will not be conducted in a manner detrimental to the public interest of this state and its citizens and that the policy and manner of operation of the business is largely determined by those who have substantial financial interests in the corporate franchise holder.

(b) Therefore, it is the purpose and intent of §§ 23-111-402 - 23-111-405 and 23-111-407 - 23-111-409 to broaden, clarify, and strengthen the authority of the Arkansas Racing Commission to investigate the personal background of officers, directors, and principal stockholders of applicants for, and holders of, franchises to conduct dog racing in this state and to deny application for, suspend, or revoke a dog racing franchise upon the basis of the personal background of an officer, director, or principal stockholder of an applicant for, or holder of, a franchise, in order that the commission can better perform its duty to regulate and control dog racing in this state in the public interest.

Acts 1968 (2nd Ex. Sess.), No. 8, § 9; A.S.A. 1947, § 84-2823.9.
Ark. Code Ann. § 23-18-329 — AR Code / Title 23 / Chapter 18 / Subchapter 3 / Section 23-18-329
Annual license fee
Status: in_force

Corporations formed pursuant to this subchapter shall pay annually, on or before July 1, to the Secretary of State a fee of ten dollars ($10.00) for each one hundred (100) members or fraction thereof. Acts 1937, No. 342, § 30; Pope's Dig., § 2344; Acts 1941, No. 414, § 1; 1969, No. 119, § 1; A.S.A. 1947, § 77-1130.

Corporations formed pursuant to this subchapter shall pay annually, on or before July 1, to the Secretary of State a fee of ten dollars ($10.00) for each one hundred (100) members or fraction thereof.

Acts 1937, No. 342, § 30; Pope's Dig., § 2344; Acts 1941, No. 414, § 1; 1969, No. 119, § 1; A.S.A. 1947, § 77-1130.
Ark. Code Ann. § 23-67-405 — AR Code / Title 23 / Chapter 67 / Subchapter 4 / Section 23-67-405
Use of credit information
Status: in_force

An insurer authorized to do business in Arkansas that uses credit information to underwrite or rate risks shall not: (1) Use a credit score that is calculated using income, gender, address, zip code, ethnic group, religion, marital status, or nationality of the consumer as a factor; (2) Deny, cancel, or nonrenew a policy of personal insurance solely on the basis of credit information without consideration of any other applicable underwriting factor independent of credit information and not expressly prohibited by subdivision (1) of this section; (3) Base an insured's renewal rates for personal insurance solely upon credit information without consideration of any other applicable factor independent of credit information; (4) Take an adverse action against a consumer solely because he or she does not have a credit card account without consideration of any other applicable factor independent of credit information; (5) Consider an absence of credit information or an inability to calculate a credit score in underwriting or rating personal insurance unless the insurer does one (1) of the following: (A) Treats the consumer as otherwise approved by the Insurance Commissioner if the insurer presents information that such an absence or inability relates to the risk for the insurer; (B) Treats the consumer as if the applicant or insured had neutral credit information as defined by the insurer; or (C) Excludes the use of credit information as a factor and uses only other underwriting criteria; (6) Take an adverse action against a consumer based on credit information unless an insurer obtains and uses a credit report issued or a credit score calculated within ninety (90) days prior to the date the policy is first written or renewal is issued; (7) Use credit information unless not later than thirty-six (36) months following the last time that the insurer obtained current credit information for the insured the insurer recalculates the credit score or obtains an updated credit report. Regardless of the requirements of this subdivision (7): (A) (i) Upon the written request of a consumer, the insurer shall reunderwrite and rerate the policy based upon a current credit report or credit score. (ii) An insurer need not recalculate the credit score or obtain the updated credit report of a consumer or reunderwrite or rerate a policy more frequently than one (1) time in a twelve-month period; (B) The insurer shall have the discretion to obtain current credit information prior to any renewal before the end of the thirty-six (36) months; (C) No insurer need obtain current credit information for an insured despite the requirements of subdivision (7)(A) of this section if one (1) of the following applies: (i) The insurer is treating the consumer as otherwise approved by the commissioner; (ii) (a) The insured is in the most favorably priced rating tier of the insurer within a group of affiliated insurers. (b) However, the insurer shall have the discretion to order an updated credit report; (iii) (a) Credit was not used for underwriting or rating the insured when the policy was initially written. (b) However, the insurer shall have the discretion to use credit information for underwriting or rating the insured upon renewal; (iv) The insurer reevaluates the insured beginning no later than thirty-six (36) months after inception and thereafter based upon other underwriting or rating factors excluding credit information; or (v) If credit scoring is not used at renewal; or (8) Use the following as a negative factor in any credit-scoring methodology for the purpose of underwriting or rating a policy of personal insurance: (A) Credit inquiries not initiated by the consumer or inquiries requested by the consumer for his or her own credit information; (B) Inquiries relating to insurance coverage if so identified on a consumer's credit report; (C) Medical collection accounts; (D) Multiple-lender inquiries if coded by the consumer reporting agency on the consumer's credit report as being from the home mortgage industry and made within thirty (30) days of one another unless only one (1) inquiry is considered; or (E) Multiple-lender inquiries if coded by the consumer reporting agency on the consumer's credit report as being from the automobile lending industry and made within thirty (30) days of one another unless only one (1) inquiry is considered. Acts 2003, No. 1452, § 2.

An insurer authorized to do business in Arkansas that uses credit information to underwrite or rate risks shall not:

(1) Use a credit score that is calculated using income, gender, address, zip code, ethnic group, religion, marital status, or nationality of the consumer as a factor;

(2) Deny, cancel, or nonrenew a policy of personal insurance solely on the basis of credit information without consideration of any other applicable underwriting factor independent of credit information and not expressly prohibited by subdivision (1) of this section;

(3) Base an insured's renewal rates for personal insurance solely upon credit information without consideration of any other applicable factor independent of credit information;

(4) Take an adverse action against a consumer solely because he or she does not have a credit card account without consideration of any other applicable factor independent of credit information;

(5) Consider an absence of credit information or an inability to calculate a credit score in underwriting or rating personal insurance unless the insurer does one (1) of the following: (A) Treats the consumer as otherwise approved by the Insurance Commissioner if the insurer presents information that such an absence or inability relates to the risk for the insurer; (B) Treats the consumer as if the applicant or insured had neutral credit information as defined by the insurer; or (C) Excludes the use of credit information as a factor and uses only other underwriting criteria;

(A) Treats the consumer as otherwise approved by the Insurance Commissioner if the insurer presents information that such an absence or inability relates to the risk for the insurer;

(B) Treats the consumer as if the applicant or insured had neutral credit information as defined by the insurer; or

(C) Excludes the use of credit information as a factor and uses only other underwriting criteria;

(6) Take an adverse action against a consumer based on credit information unless an insurer obtains and uses a credit report issued or a credit score calculated within ninety (90) days prior to the date the policy is first written or renewal is issued;

(7) Use credit information unless not later than thirty-six (36) months following the last time that the insurer obtained current credit information for the insured the insurer recalculates the credit score or obtains an updated credit report. Regardless of the requirements of this subdivision (7): (A) (i) Upon the written request of a consumer, the insurer shall reunderwrite and rerate the policy based upon a current credit report or credit score. (ii) An insurer need not recalculate the credit score or obtain the updated credit report of a consumer or reunderwrite or rerate a policy more frequently than one (1) time in a twelve-month period; (B) The insurer shall have the discretion to obtain current credit information prior to any renewal before the end of the thirty-six (36) months; (C) No insurer need obtain current credit information for an insured despite the requirements of subdivision (7)(A) of this section if one (1) of the following applies: (i) The insurer is treating the consumer as otherwise approved by the commissioner; (ii) (a) The insured is in the most favorably priced rating tier of the insurer within a group of affiliated insurers. (b) However, the insurer shall have the discretion to order an updated credit report; (iii) (a) Credit was not used for underwriting or rating the insured when the policy was initially written. (b) However, the insurer shall have the discretion to use credit information for underwriting or rating the insured upon renewal; (iv) The insurer reevaluates the insured beginning no later than thirty-six (36) months after inception and thereafter based upon other underwriting or rating factors excluding credit information; or (v) If credit scoring is not used at renewal; or

(A) (i) Upon the written request of a consumer, the insurer shall reunderwrite and rerate the policy based upon a current credit report or credit score. (ii) An insurer need not recalculate the credit score or obtain the updated credit report of a consumer or reunderwrite or rerate a policy more frequently than one (1) time in a twelve-month period;

(i) Upon the written request of a consumer, the insurer shall reunderwrite and rerate the policy based upon a current credit report or credit score.

(ii) An insurer need not recalculate the credit score or obtain the updated credit report of a consumer or reunderwrite or rerate a policy more frequently than one (1) time in a twelve-month period;

(B) The insurer shall have the discretion to obtain current credit information prior to any renewal before the end of the thirty-six (36) months;

(C) No insurer need obtain current credit information for an insured despite the requirements of subdivision (7)(A) of this section if one (1) of the following applies: (i) The insurer is treating the consumer as otherwise approved by the commissioner; (ii) (a) The insured is in the most favorably priced rating tier of the insurer within a group of affiliated insurers. (b) However, the insurer shall have the discretion to order an updated credit report; (iii) (a) Credit was not used for underwriting or rating the insured when the policy was initially written. (b) However, the insurer shall have the discretion to use credit information for underwriting or rating the insured upon renewal; (iv) The insurer reevaluates the insured beginning no later than thirty-six (36) months after inception and thereafter based upon other underwriting or rating factors excluding credit information; or (v) If credit scoring is not used at renewal; or

(i) The insurer is treating the consumer as otherwise approved by the commissioner;

(ii) (a) The insured is in the most favorably priced rating tier of the insurer within a group of affiliated insurers. (b) However, the insurer shall have the discretion to order an updated credit report;

(a) The insured is in the most favorably priced rating tier of the insurer within a group of affiliated insurers.

(b) However, the insurer shall have the discretion to order an updated credit report;

(iii) (a) Credit was not used for underwriting or rating the insured when the policy was initially written. (b) However, the insurer shall have the discretion to use credit information for underwriting or rating the insured upon renewal;

(a) Credit was not used for underwriting or rating the insured when the policy was initially written.

(b) However, the insurer shall have the discretion to use credit information for underwriting or rating the insured upon renewal;

(iv) The insurer reevaluates the insured beginning no later than thirty-six (36) months after inception and thereafter based upon other underwriting or rating factors excluding credit information; or

(v) If credit scoring is not used at renewal; or

(8) Use the following as a negative factor in any credit-scoring methodology for the purpose of underwriting or rating a policy of personal insurance: (A) Credit inquiries not initiated by the consumer or inquiries requested by the consumer for his or her own credit information; (B) Inquiries relating to insurance coverage if so identified on a consumer's credit report; (C) Medical collection accounts; (D) Multiple-lender inquiries if coded by the consumer reporting agency on the consumer's credit report as being from the home mortgage industry and made within thirty (30) days of one another unless only one (1) inquiry is considered; or (E) Multiple-lender inquiries if coded by the consumer reporting agency on the consumer's credit report as being from the automobile lending industry and made within thirty (30) days of one another unless only one (1) inquiry is considered.

(A) Credit inquiries not initiated by the consumer or inquiries requested by the consumer for his or her own credit information;

(B) Inquiries relating to insurance coverage if so identified on a consumer's credit report;

(C) Medical collection accounts;

(D) Multiple-lender inquiries if coded by the consumer reporting agency on the consumer's credit report as being from the home mortgage industry and made within thirty (30) days of one another unless only one (1) inquiry is considered; or

(E) Multiple-lender inquiries if coded by the consumer reporting agency on the consumer's credit report as being from the automobile lending industry and made within thirty (30) days of one another unless only one (1) inquiry is considered.

Acts 2003, No. 1452, § 2.
Ark. Code Ann. § 23-48-317 — AR Code / Title 23 / Chapter 48 / Subchapter 3 / Section 23-48-317
Change in control
Status: in_force

(a) As used in this section, unless the context otherwise requires, "control" has the meaning set forth in 12 U.S.C. § 1841(a)(2) . (b) (1) Prior approval by the Bank Commissioner of any transfer of ownership shall not be required unless and until: (A) A transfer reported to the commissioner would result in the control by the transferee and any nominee of the transferee and any person holding in trust for the transferee of twenty-five percent (25%) or more of the capital stock of the state bank or Arkansas bank holding company; or (B) A transfer reported to the commissioner would increase a then-existing ownership of the capital stock of a state bank or Arkansas bank holding company already controlled by the transferee to twenty-five percent (25%) or more of the capital stock of the state bank or Arkansas bank holding company. (2) (A) In either of the situations set out in subdivisions (b)(1)(A) and (B) of this section, no shares held in such ownership may be voted unless the ownership, and the transfers mentioned in subdivisions (b)(1)(A) and (B) of this section, shall be approved by the commissioner and his or her approval given to the transferee in writing. (B) The commissioner in his or her discretion may at any time require any transferee to certify in writing as to the extent of the legal or beneficial ownership by the transferee of the stock of the state bank or Arkansas bank holding company. (c) (1) Any transferee seeking to acquire twenty-five percent (25%) or more of the capital stock of a state bank or Arkansas bank holding company shall file with the commissioner an application for approval submitted to the commissioner in the form that the commissioner may prescribe, the application to be accompanied by a filing fee of not less than five hundred dollars ($500) nor more than five thousand dollars ($5,000) as set by State Bank Department rule. (2) The application shall include the information set forth in subsection (d) of this section and contain such additional information as the commissioner may require. (d) An application for approval to acquire control of a state bank or an Arkansas bank holding company shall contain evidence that: (1) The proposed transaction will promote the safety and soundness of the institution to be controlled; (2) If the applicant is a bank holding company, the transaction will not result in a violation of the provisions of § 23-48-405 ; (3) The applicant bank or the bank subsidiaries of an applicant bank holding company adequately serve the convenience and needs of the communities served by them in accordance with the Community Reinvestment Act of 1977; and (4) (A) The applicant intends to adequately serve the convenience and needs of the communities served by the state bank or state bank subsidiaries proposed to be controlled in accordance with the Community Reinvestment Act of 1977. (B) The application shall specifically address the proposed initial capital investments, proposed loan policies, proposed investment policies, proposed dividend policies, and general plan of proposed business of the institution proposed to be controlled, including the full range of consumer and business services which are proposed to be offered. (e) The commissioner shall approve an application to acquire control of a state bank or an Arkansas bank holding company if he or she is satisfied that: (1) The evidence and information contained in the application would result in the likelihood that the public interest would be served; (2) The safety and soundness of the institution to be controlled is adequately addressed; and (3) Approval of the application, if the applicant is a bank holding company, will not result in a violation of the provisions of § 23-48-405 . (f) The commissioner may by rule or order waive the requirements required under this section if: (1) A change in control will simultaneously occur with a proposed merger transaction under § 23-48-503(a) ; and (2) A transferee submits a merger application to: (A) The commissioner and the federal bank supervisory agency, in the case of a state bank; (B) The home-state regulator and the federal bank supervisory agency, in the case of an out-of-state bank; or (C) The United States Office of the Comptroller of the Currency, in the case of a national bank. (g) A plan of exchange approved by the commissioner under § 23-48-601 does not satisfy the requirements for a change in control under subsection (b) of this section unless: (1) The plan of exchange is executed by a bank holding company as defined in § 23-45-102 ; and (2) The bank holding company executing the plan of exchange under § 23-48-601 is the existing bank holding company of the subject state bank. Amended by Act 2019, No. 315,§ 2546, eff. 7/24/2019. Amended by Act 2017, No. 195,§ 1, eff. 8/1/2017. Acts 1997, No. 89, § 1.

(a) As used in this section, unless the context otherwise requires, "control" has the meaning set forth in 12 U.S.C. § 1841(a)(2) .

(b) (1) Prior approval by the Bank Commissioner of any transfer of ownership shall not be required unless and until: (A) A transfer reported to the commissioner would result in the control by the transferee and any nominee of the transferee and any person holding in trust for the transferee of twenty-five percent (25%) or more of the capital stock of the state bank or Arkansas bank holding company; or (B) A transfer reported to the commissioner would increase a then-existing ownership of the capital stock of a state bank or Arkansas bank holding company already controlled by the transferee to twenty-five percent (25%) or more of the capital stock of the state bank or Arkansas bank holding company. (2) (A) In either of the situations set out in subdivisions (b)(1)(A) and (B) of this section, no shares held in such ownership may be voted unless the ownership, and the transfers mentioned in subdivisions (b)(1)(A) and (B) of this section, shall be approved by the commissioner and his or her approval given to the transferee in writing. (B) The commissioner in his or her discretion may at any time require any transferee to certify in writing as to the extent of the legal or beneficial ownership by the transferee of the stock of the state bank or Arkansas bank holding company.

(1) Prior approval by the Bank Commissioner of any transfer of ownership shall not be required unless and until: (A) A transfer reported to the commissioner would result in the control by the transferee and any nominee of the transferee and any person holding in trust for the transferee of twenty-five percent (25%) or more of the capital stock of the state bank or Arkansas bank holding company; or (B) A transfer reported to the commissioner would increase a then-existing ownership of the capital stock of a state bank or Arkansas bank holding company already controlled by the transferee to twenty-five percent (25%) or more of the capital stock of the state bank or Arkansas bank holding company.

(A) A transfer reported to the commissioner would result in the control by the transferee and any nominee of the transferee and any person holding in trust for the transferee of twenty-five percent (25%) or more of the capital stock of the state bank or Arkansas bank holding company; or

(B) A transfer reported to the commissioner would increase a then-existing ownership of the capital stock of a state bank or Arkansas bank holding company already controlled by the transferee to twenty-five percent (25%) or more of the capital stock of the state bank or Arkansas bank holding company.

(2) (A) In either of the situations set out in subdivisions (b)(1)(A) and (B) of this section, no shares held in such ownership may be voted unless the ownership, and the transfers mentioned in subdivisions (b)(1)(A) and (B) of this section, shall be approved by the commissioner and his or her approval given to the transferee in writing. (B) The commissioner in his or her discretion may at any time require any transferee to certify in writing as to the extent of the legal or beneficial ownership by the transferee of the stock of the state bank or Arkansas bank holding company.

(A) In either of the situations set out in subdivisions (b)(1)(A) and (B) of this section, no shares held in such ownership may be voted unless the ownership, and the transfers mentioned in subdivisions (b)(1)(A) and (B) of this section, shall be approved by the commissioner and his or her approval given to the transferee in writing.

(B) The commissioner in his or her discretion may at any time require any transferee to certify in writing as to the extent of the legal or beneficial ownership by the transferee of the stock of the state bank or Arkansas bank holding company.

(c) (1) Any transferee seeking to acquire twenty-five percent (25%) or more of the capital stock of a state bank or Arkansas bank holding company shall file with the commissioner an application for approval submitted to the commissioner in the form that the commissioner may prescribe, the application to be accompanied by a filing fee of not less than five hundred dollars ($500) nor more than five thousand dollars ($5,000) as set by State Bank Department rule. (2) The application shall include the information set forth in subsection (d) of this section and contain such additional information as the commissioner may require.

(1) Any transferee seeking to acquire twenty-five percent (25%) or more of the capital stock of a state bank or Arkansas bank holding company shall file with the commissioner an application for approval submitted to the commissioner in the form that the commissioner may prescribe, the application to be accompanied by a filing fee of not less than five hundred dollars ($500) nor more than five thousand dollars ($5,000) as set by State Bank Department rule.

(2) The application shall include the information set forth in subsection (d) of this section and contain such additional information as the commissioner may require.

(d) An application for approval to acquire control of a state bank or an Arkansas bank holding company shall contain evidence that: (1) The proposed transaction will promote the safety and soundness of the institution to be controlled; (2) If the applicant is a bank holding company, the transaction will not result in a violation of the provisions of § 23-48-405 ; (3) The applicant bank or the bank subsidiaries of an applicant bank holding company adequately serve the convenience and needs of the communities served by them in accordance with the Community Reinvestment Act of 1977; and (4) (A) The applicant intends to adequately serve the convenience and needs of the communities served by the state bank or state bank subsidiaries proposed to be controlled in accordance with the Community Reinvestment Act of 1977. (B) The application shall specifically address the proposed initial capital investments, proposed loan policies, proposed investment policies, proposed dividend policies, and general plan of proposed business of the institution proposed to be controlled, including the full range of consumer and business services which are proposed to be offered.

(1) The proposed transaction will promote the safety and soundness of the institution to be controlled;

(2) If the applicant is a bank holding company, the transaction will not result in a violation of the provisions of § 23-48-405 ;

(3) The applicant bank or the bank subsidiaries of an applicant bank holding company adequately serve the convenience and needs of the communities served by them in accordance with the Community Reinvestment Act of 1977; and

(4) (A) The applicant intends to adequately serve the convenience and needs of the communities served by the state bank or state bank subsidiaries proposed to be controlled in accordance with the Community Reinvestment Act of 1977. (B) The application shall specifically address the proposed initial capital investments, proposed loan policies, proposed investment policies, proposed dividend policies, and general plan of proposed business of the institution proposed to be controlled, including the full range of consumer and business services which are proposed to be offered.

(A) The applicant intends to adequately serve the convenience and needs of the communities served by the state bank or state bank subsidiaries proposed to be controlled in accordance with the Community Reinvestment Act of 1977.

(B) The application shall specifically address the proposed initial capital investments, proposed loan policies, proposed investment policies, proposed dividend policies, and general plan of proposed business of the institution proposed to be controlled, including the full range of consumer and business services which are proposed to be offered.

(e) The commissioner shall approve an application to acquire control of a state bank or an Arkansas bank holding company if he or she is satisfied that: (1) The evidence and information contained in the application would result in the likelihood that the public interest would be served; (2) The safety and soundness of the institution to be controlled is adequately addressed; and (3) Approval of the application, if the applicant is a bank holding company, will not result in a violation of the provisions of § 23-48-405 .

(1) The evidence and information contained in the application would result in the likelihood that the public interest would be served;

(2) The safety and soundness of the institution to be controlled is adequately addressed; and

(3) Approval of the application, if the applicant is a bank holding company, will not result in a violation of the provisions of § 23-48-405 .

(f) The commissioner may by rule or order waive the requirements required under this section if: (1) A change in control will simultaneously occur with a proposed merger transaction under § 23-48-503(a) ; and (2) A transferee submits a merger application to: (A) The commissioner and the federal bank supervisory agency, in the case of a state bank; (B) The home-state regulator and the federal bank supervisory agency, in the case of an out-of-state bank; or (C) The United States Office of the Comptroller of the Currency, in the case of a national bank.

(1) A change in control will simultaneously occur with a proposed merger transaction under § 23-48-503(a) ; and

(2) A transferee submits a merger application to: (A) The commissioner and the federal bank supervisory agency, in the case of a state bank; (B) The home-state regulator and the federal bank supervisory agency, in the case of an out-of-state bank; or (C) The United States Office of the Comptroller of the Currency, in the case of a national bank.

(A) The commissioner and the federal bank supervisory agency, in the case of a state bank;

(B) The home-state regulator and the federal bank supervisory agency, in the case of an out-of-state bank; or

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

(g) A plan of exchange approved by the commissioner under § 23-48-601 does not satisfy the requirements for a change in control under subsection (b) of this section unless: (1) The plan of exchange is executed by a bank holding company as defined in § 23-45-102 ; and (2) The bank holding company executing the plan of exchange under § 23-48-601 is the existing bank holding company of the subject state bank.

(1) The plan of exchange is executed by a bank holding company as defined in § 23-45-102 ; and

(2) The bank holding company executing the plan of exchange under § 23-48-601 is the existing bank holding company of the subject state bank.

Amended by Act 2019, No. 315,§ 2546, eff. 7/24/2019.

Amended by Act 2017, No. 195,§ 1, eff. 8/1/2017.

Acts 1997, No. 89, § 1.
Ark. Code Ann. § 23-96-107 — AR Code / Title 23 / Chapter 96 / Section 23-96-107
Coverage
Status: in_force

(a) This chapter shall provide coverage for the policies and contracts specified in subsection (b) of this section to: (1) Persons who, regardless of where they reside, except for nonresident certificate holders under group policies or contracts, are the beneficiaries, assignees, or payees, including healthcare providers rendering services covered under health insurance policies or certificates of the persons covered under subdivision (a)(2) of this section; (2) Persons who are owners of or certificate holders or enrollees under such policies or contracts, other than unallocated annuity contracts and structured settlement annuities, and in each case who: (A) Are residents; or (B) Are not residents, but only under all of the following conditions: (i) The member insurer that issued the policies or contracts is domiciled in this state; (ii) The states in which the persons reside have associations similar to the Arkansas Life and Health Insurance Guaranty Association created by this chapter; and (iii) The persons are not eligible for coverage by an association in any other state because the insurer or the health maintenance organization was not licensed in the state at the time specified in the state's guaranty association law; (3) For unallocated annuity contracts specified in subsection (b) of this section, subdivisions (a)(1) and (2) of this section shall not apply, and except as provided in subdivisions (a)(5) and (6) of this section, this chapter shall provide coverage to: (A) Persons who are the owners of the unallocated annuity contracts if the unallocated annuity contracts are issued to or in connection with a specific benefit plan whose plan sponsor has its principal place of business in this state; and (B) Persons who are owners of unallocated annuity contracts issued to or in connection with government lotteries if the owners are residents; (4) For structured settlement annuities specified in subsection (b) of this section, subdivisions (a)(1) and (2) of this section shall not apply, and except as provided in subdivisions (a)(5) and (6) of this section, this chapter shall provide coverage to a person who is a payee under a structured settlement annuity, or beneficiary of a payee if the payee is deceased, if the payee: (A) Is a resident, regardless of where the contract owner resides; or (B) Is not a resident, but only under the following conditions: (i) The contract owner of the structured settlement annuity: (a) Is a resident; or (b) Is not a resident, but the insurer that issued the structured settlement annuity is domiciled in this state; (ii) The state in which the contract owner resides has an association similar to the Arkansas Life and Health Insurance Guaranty Association created by this chapter; and (iii) Neither the payee, or beneficiary, nor the contract owner is eligible for coverage by the association of the state in which the payee or contract owner resides; (5) This chapter shall not provide coverage for: (A) A person who is a payee, or beneficiary, of a contract owner resident of this state, if the payee, or beneficiary, is afforded any coverage by the association of another state; (B) A person covered in subdivision (a)(3) of this section if any coverage is provided by the association of another state to the person; or (C) A person who acquires rights to receive payments through a structured settlement factoring transaction as defined in 26 U.S.C. § 5891(c)(3)(A) , regardless of whether or not the structured settlement factoring transaction occurred before or after the section became effective; (6) (A) This chapter is intended to provide coverage to a person who is a resident of this state and, in special circumstances, to a nonresident. (B) In order to avoid duplicate coverage, if a person who would otherwise receive coverage under this chapter is provided coverage under the laws of any other state, the person shall not be provided coverage under this chapter. (C) In determining the application of the provision of this subdivision (a)(6) in situations in which a person could be covered by the association of more than one (1) state, whether as an owner, payee, enrollee, beneficiary, or assignee, this chapter shall be construed in conjunction with other state laws to result in coverage by only one (1) association. (b) (1) This chapter shall provide coverage to the persons specified in subsection (a) of this section for policies or contracts of direct, nongroup life insurance, health insurance that, for the purposes of this chapter, includes health maintenance organization subscriber contracts and certificates, or annuities for certificates under direct group policies and contracts, and for supplemental contracts to any of these, and for unallocated annuity contracts, in each case issued by member insurers, except as limited by this chapter. (2) Annuity contracts and certificates under group annuity contracts include without limitation: (A) Guaranteed investment contracts; (B) Deposit administration contracts; (C) Unallocated funding agreements; (D) Allocated funding agreements; (E) Structured settlement annuities; (F) Annuities issued to or in connection with government lotteries; and (G) Any immediate or deferred annuity contracts. (c) (1) A member insurer or agent shall not deliver a policy or contract described in subsection (b) of this section and excluded under § 23-96-106(a)(1) from coverage under this chapter unless the member insurer or agent, before or at the time of delivery, gives the policy holder or contract holder a separate written notice which clearly and conspicuously discloses that the policy or contract is not covered by the Arkansas Life and Health Insurance Guaranty Association. (2) The Insurance Commissioner shall by rule specify the form and content of the notice. Amended by Act 2019, No. 520,§ 2, eff. 7/24/2019. Amended by Act 2013, No. 456,§ 3, eff. 8/16/2013. Acts 1989, No. 444, §§ 3, 19; 1997, No. 950, § 1; 2001, No. 1603, §§ 53, 54.

(a) This chapter shall provide coverage for the policies and contracts specified in subsection (b) of this section to: (1) Persons who, regardless of where they reside, except for nonresident certificate holders under group policies or contracts, are the beneficiaries, assignees, or payees, including healthcare providers rendering services covered under health insurance policies or certificates of the persons covered under subdivision (a)(2) of this section; (2) Persons who are owners of or certificate holders or enrollees under such policies or contracts, other than unallocated annuity contracts and structured settlement annuities, and in each case who: (A) Are residents; or (B) Are not residents, but only under all of the following conditions: (i) The member insurer that issued the policies or contracts is domiciled in this state; (ii) The states in which the persons reside have associations similar to the Arkansas Life and Health Insurance Guaranty Association created by this chapter; and (iii) The persons are not eligible for coverage by an association in any other state because the insurer or the health maintenance organization was not licensed in the state at the time specified in the state's guaranty association law; (3) For unallocated annuity contracts specified in subsection (b) of this section, subdivisions (a)(1) and (2) of this section shall not apply, and except as provided in subdivisions (a)(5) and (6) of this section, this chapter shall provide coverage to: (A) Persons who are the owners of the unallocated annuity contracts if the unallocated annuity contracts are issued to or in connection with a specific benefit plan whose plan sponsor has its principal place of business in this state; and (B) Persons who are owners of unallocated annuity contracts issued to or in connection with government lotteries if the owners are residents; (4) For structured settlement annuities specified in subsection (b) of this section, subdivisions (a)(1) and (2) of this section shall not apply, and except as provided in subdivisions (a)(5) and (6) of this section, this chapter shall provide coverage to a person who is a payee under a structured settlement annuity, or beneficiary of a payee if the payee is deceased, if the payee: (A) Is a resident, regardless of where the contract owner resides; or (B) Is not a resident, but only under the following conditions: (i) The contract owner of the structured settlement annuity: (a) Is a resident; or (b) Is not a resident, but the insurer that issued the structured settlement annuity is domiciled in this state; (ii) The state in which the contract owner resides has an association similar to the Arkansas Life and Health Insurance Guaranty Association created by this chapter; and (iii) Neither the payee, or beneficiary, nor the contract owner is eligible for coverage by the association of the state in which the payee or contract owner resides; (5) This chapter shall not provide coverage for: (A) A person who is a payee, or beneficiary, of a contract owner resident of this state, if the payee, or beneficiary, is afforded any coverage by the association of another state; (B) A person covered in subdivision (a)(3) of this section if any coverage is provided by the association of another state to the person; or (C) A person who acquires rights to receive payments through a structured settlement factoring transaction as defined in 26 U.S.C. § 5891(c)(3)(A) , regardless of whether or not the structured settlement factoring transaction occurred before or after the section became effective; (6) (A) This chapter is intended to provide coverage to a person who is a resident of this state and, in special circumstances, to a nonresident. (B) In order to avoid duplicate coverage, if a person who would otherwise receive coverage under this chapter is provided coverage under the laws of any other state, the person shall not be provided coverage under this chapter. (C) In determining the application of the provision of this subdivision (a)(6) in situations in which a person could be covered by the association of more than one (1) state, whether as an owner, payee, enrollee, beneficiary, or assignee, this chapter shall be construed in conjunction with other state laws to result in coverage by only one (1) association.

(1) Persons who, regardless of where they reside, except for nonresident certificate holders under group policies or contracts, are the beneficiaries, assignees, or payees, including healthcare providers rendering services covered under health insurance policies or certificates of the persons covered under subdivision (a)(2) of this section;

(2) Persons who are owners of or certificate holders or enrollees under such policies or contracts, other than unallocated annuity contracts and structured settlement annuities, and in each case who: (A) Are residents; or (B) Are not residents, but only under all of the following conditions: (i) The member insurer that issued the policies or contracts is domiciled in this state; (ii) The states in which the persons reside have associations similar to the Arkansas Life and Health Insurance Guaranty Association created by this chapter; and (iii) The persons are not eligible for coverage by an association in any other state because the insurer or the health maintenance organization was not licensed in the state at the time specified in the state's guaranty association law;

(A) Are residents; or

(B) Are not residents, but only under all of the following conditions: (i) The member insurer that issued the policies or contracts is domiciled in this state; (ii) The states in which the persons reside have associations similar to the Arkansas Life and Health Insurance Guaranty Association created by this chapter; and (iii) The persons are not eligible for coverage by an association in any other state because the insurer or the health maintenance organization was not licensed in the state at the time specified in the state's guaranty association law;

(i) The member insurer that issued the policies or contracts is domiciled in this state;

(ii) The states in which the persons reside have associations similar to the Arkansas Life and Health Insurance Guaranty Association created by this chapter; and

(iii) The persons are not eligible for coverage by an association in any other state because the insurer or the health maintenance organization was not licensed in the state at the time specified in the state's guaranty association law;

(3) For unallocated annuity contracts specified in subsection (b) of this section, subdivisions (a)(1) and (2) of this section shall not apply, and except as provided in subdivisions (a)(5) and (6) of this section, this chapter shall provide coverage to: (A) Persons who are the owners of the unallocated annuity contracts if the unallocated annuity contracts are issued to or in connection with a specific benefit plan whose plan sponsor has its principal place of business in this state; and (B) Persons who are owners of unallocated annuity contracts issued to or in connection with government lotteries if the owners are residents;

(A) Persons who are the owners of the unallocated annuity contracts if the unallocated annuity contracts are issued to or in connection with a specific benefit plan whose plan sponsor has its principal place of business in this state; and

(B) Persons who are owners of unallocated annuity contracts issued to or in connection with government lotteries if the owners are residents;

(4) For structured settlement annuities specified in subsection (b) of this section, subdivisions (a)(1) and (2) of this section shall not apply, and except as provided in subdivisions (a)(5) and (6) of this section, this chapter shall provide coverage to a person who is a payee under a structured settlement annuity, or beneficiary of a payee if the payee is deceased, if the payee: (A) Is a resident, regardless of where the contract owner resides; or (B) Is not a resident, but only under the following conditions: (i) The contract owner of the structured settlement annuity: (a) Is a resident; or (b) Is not a resident, but the insurer that issued the structured settlement annuity is domiciled in this state; (ii) The state in which the contract owner resides has an association similar to the Arkansas Life and Health Insurance Guaranty Association created by this chapter; and (iii) Neither the payee, or beneficiary, nor the contract owner is eligible for coverage by the association of the state in which the payee or contract owner resides;

(A) Is a resident, regardless of where the contract owner resides; or

(B) Is not a resident, but only under the following conditions: (i) The contract owner of the structured settlement annuity: (a) Is a resident; or (b) Is not a resident, but the insurer that issued the structured settlement annuity is domiciled in this state; (ii) The state in which the contract owner resides has an association similar to the Arkansas Life and Health Insurance Guaranty Association created by this chapter; and (iii) Neither the payee, or beneficiary, nor the contract owner is eligible for coverage by the association of the state in which the payee or contract owner resides;

(i) The contract owner of the structured settlement annuity: (a) Is a resident; or (b) Is not a resident, but the insurer that issued the structured settlement annuity is domiciled in this state;

(a) Is a resident; or

(b) Is not a resident, but the insurer that issued the structured settlement annuity is domiciled in this state;

(ii) The state in which the contract owner resides has an association similar to the Arkansas Life and Health Insurance Guaranty Association created by this chapter; and

(iii) Neither the payee, or beneficiary, nor the contract owner is eligible for coverage by the association of the state in which the payee or contract owner resides;

(5) This chapter shall not provide coverage for: (A) A person who is a payee, or beneficiary, of a contract owner resident of this state, if the payee, or beneficiary, is afforded any coverage by the association of another state; (B) A person covered in subdivision (a)(3) of this section if any coverage is provided by the association of another state to the person; or (C) A person who acquires rights to receive payments through a structured settlement factoring transaction as defined in 26 U.S.C. § 5891(c)(3)(A) , regardless of whether or not the structured settlement factoring transaction occurred before or after the section became effective;

(A) A person who is a payee, or beneficiary, of a contract owner resident of this state, if the payee, or beneficiary, is afforded any coverage by the association of another state;

(B) A person covered in subdivision (a)(3) of this section if any coverage is provided by the association of another state to the person; or

(C) A person who acquires rights to receive payments through a structured settlement factoring transaction as defined in 26 U.S.C. § 5891(c)(3)(A) , regardless of whether or not the structured settlement factoring transaction occurred before or after the section became effective;

(6) (A) This chapter is intended to provide coverage to a person who is a resident of this state and, in special circumstances, to a nonresident. (B) In order to avoid duplicate coverage, if a person who would otherwise receive coverage under this chapter is provided coverage under the laws of any other state, the person shall not be provided coverage under this chapter. (C) In determining the application of the provision of this subdivision (a)(6) in situations in which a person could be covered by the association of more than one (1) state, whether as an owner, payee, enrollee, beneficiary, or assignee, this chapter shall be construed in conjunction with other state laws to result in coverage by only one (1) association.

(A) This chapter is intended to provide coverage to a person who is a resident of this state and, in special circumstances, to a nonresident.

(B) In order to avoid duplicate coverage, if a person who would otherwise receive coverage under this chapter is provided coverage under the laws of any other state, the person shall not be provided coverage under this chapter.

(C) In determining the application of the provision of this subdivision (a)(6) in situations in which a person could be covered by the association of more than one (1) state, whether as an owner, payee, enrollee, beneficiary, or assignee, this chapter shall be construed in conjunction with other state laws to result in coverage by only one (1) association.

(b) (1) This chapter shall provide coverage to the persons specified in subsection (a) of this section for policies or contracts of direct, nongroup life insurance, health insurance that, for the purposes of this chapter, includes health maintenance organization subscriber contracts and certificates, or annuities for certificates under direct group policies and contracts, and for supplemental contracts to any of these, and for unallocated annuity contracts, in each case issued by member insurers, except as limited by this chapter. (2) Annuity contracts and certificates under group annuity contracts include without limitation: (A) Guaranteed investment contracts; (B) Deposit administration contracts; (C) Unallocated funding agreements; (D) Allocated funding agreements; (E) Structured settlement annuities; (F) Annuities issued to or in connection with government lotteries; and (G) Any immediate or deferred annuity contracts.

(1) This chapter shall provide coverage to the persons specified in subsection (a) of this section for policies or contracts of direct, nongroup life insurance, health insurance that, for the purposes of this chapter, includes health maintenance organization subscriber contracts and certificates, or annuities for certificates under direct group policies and contracts, and for supplemental contracts to any of these, and for unallocated annuity contracts, in each case issued by member insurers, except as limited by this chapter.

(2) Annuity contracts and certificates under group annuity contracts include without limitation: (A) Guaranteed investment contracts; (B) Deposit administration contracts; (C) Unallocated funding agreements; (D) Allocated funding agreements; (E) Structured settlement annuities; (F) Annuities issued to or in connection with government lotteries; and (G) Any immediate or deferred annuity contracts.

(A) Guaranteed investment contracts;

(B) Deposit administration contracts;

(C) Unallocated funding agreements;

(D) Allocated funding agreements;

(E) Structured settlement annuities;

(F) Annuities issued to or in connection with government lotteries; and

(G) Any immediate or deferred annuity contracts.

(c) (1) A member insurer or agent shall not deliver a policy or contract described in subsection (b) of this section and excluded under § 23-96-106(a)(1) from coverage under this chapter unless the member insurer or agent, before or at the time of delivery, gives the policy holder or contract holder a separate written notice which clearly and conspicuously discloses that the policy or contract is not covered by the Arkansas Life and Health Insurance Guaranty Association. (2) The Insurance Commissioner shall by rule specify the form and content of the notice.

(1) A member insurer or agent shall not deliver a policy or contract described in subsection (b) of this section and excluded under § 23-96-106(a)(1) from coverage under this chapter unless the member insurer or agent, before or at the time of delivery, gives the policy holder or contract holder a separate written notice which clearly and conspicuously discloses that the policy or contract is not covered by the Arkansas Life and Health Insurance Guaranty Association.

(2) The Insurance Commissioner shall by rule specify the form and content of the notice.

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

Amended by Act 2013, No. 456,§ 3, eff. 8/16/2013.

Acts 1989, No. 444, §§ 3, 19; 1997, No. 950, § 1; 2001, No. 1603, §§ 53, 54.
Ark. Code Ann. § 23-17-402 — AR Code / Title 23 / Chapter 17 / Subchapter 4 / Section 23-17-402
Legislative findings
Status: in_force

It is the intent of the General Assembly in enacting this subchapter to: (1) Provide for a system of regulation of telecommunications services, consistent with the federal act, that assists in implementing the national policy of opening the telecommunications market to competition on fair and equal terms, modifies outdated regulation, eliminates unnecessary regulation, and preserves and advances universal service; (2) Recognize that a telecommunications provider that serves high-cost rural areas or exchanges faces unique circumstances that require special consideration and funding to assist in preserving and promoting universal service; (3) Recognize that the: (A) Widespread and timely deployment of broadband infrastructure is vital to the economic, educational, health, and social interests of Arkansas and its citizens; and (B) Arkansas High Cost Fund has enabled eligible telecommunications carriers to accelerate and promote the incremental extension and expansion of broadband services and other advanced services in rural or high-cost areas of the state beyond what would normally occur, and broadband services are now available in dozens of new communities to thousands of Arkansans who otherwise would not have access to broadband services and its benefits; (4) (A) Recognize differences between the small and large incumbent local exchange carriers, that there are customer-owned telephone cooperatives and small locally owned investor companies, and that it is appropriate to provide incentives and regulatory flexibility to allow incumbent local exchange carriers that serve the rural areas to provide existing services and to introduce new technology and new services in a prompt, efficient, and economical manner. (B) The General Assembly finds that the Arkansas Public Service Commission, when promulgating rules and regulations, should take into consideration the differences in operating conditions in the large and small incumbent local exchange carriers and the burdens placed on small carriers because of regulation; and (5) (A) Recognize that in areas of the state served by electing companies, telecommunications connections utilizing unregulated technologies such as wireless and Voice over Internet Protocol greatly outnumber traditional wireline connections that remain regulated by the commission. (B) The General Assembly finds that the removal of quality-of-service regulation of wireline services provided in the competitive exchanges of electing companies will serve to encourage private-sector investment in the telecommunications marketplace. Acts 1997, No. 77, § 2; 2011, No. 290, § 1; 2011, No. 594, § 1.

It is the intent of the General Assembly in enacting this subchapter to:

(1) Provide for a system of regulation of telecommunications services, consistent with the federal act, that assists in implementing the national policy of opening the telecommunications market to competition on fair and equal terms, modifies outdated regulation, eliminates unnecessary regulation, and preserves and advances universal service;

(2) Recognize that a telecommunications provider that serves high-cost rural areas or exchanges faces unique circumstances that require special consideration and funding to assist in preserving and promoting universal service;

(3) Recognize that the: (A) Widespread and timely deployment of broadband infrastructure is vital to the economic, educational, health, and social interests of Arkansas and its citizens; and (B) Arkansas High Cost Fund has enabled eligible telecommunications carriers to accelerate and promote the incremental extension and expansion of broadband services and other advanced services in rural or high-cost areas of the state beyond what would normally occur, and broadband services are now available in dozens of new communities to thousands of Arkansans who otherwise would not have access to broadband services and its benefits;

(A) Widespread and timely deployment of broadband infrastructure is vital to the economic, educational, health, and social interests of Arkansas and its citizens; and

(B) Arkansas High Cost Fund has enabled eligible telecommunications carriers to accelerate and promote the incremental extension and expansion of broadband services and other advanced services in rural or high-cost areas of the state beyond what would normally occur, and broadband services are now available in dozens of new communities to thousands of Arkansans who otherwise would not have access to broadband services and its benefits;

(4) (A) Recognize differences between the small and large incumbent local exchange carriers, that there are customer-owned telephone cooperatives and small locally owned investor companies, and that it is appropriate to provide incentives and regulatory flexibility to allow incumbent local exchange carriers that serve the rural areas to provide existing services and to introduce new technology and new services in a prompt, efficient, and economical manner. (B) The General Assembly finds that the Arkansas Public Service Commission, when promulgating rules and regulations, should take into consideration the differences in operating conditions in the large and small incumbent local exchange carriers and the burdens placed on small carriers because of regulation; and

(A) Recognize differences between the small and large incumbent local exchange carriers, that there are customer-owned telephone cooperatives and small locally owned investor companies, and that it is appropriate to provide incentives and regulatory flexibility to allow incumbent local exchange carriers that serve the rural areas to provide existing services and to introduce new technology and new services in a prompt, efficient, and economical manner.

(B) The General Assembly finds that the Arkansas Public Service Commission, when promulgating rules and regulations, should take into consideration the differences in operating conditions in the large and small incumbent local exchange carriers and the burdens placed on small carriers because of regulation; and

(5) (A) Recognize that in areas of the state served by electing companies, telecommunications connections utilizing unregulated technologies such as wireless and Voice over Internet Protocol greatly outnumber traditional wireline connections that remain regulated by the commission. (B) The General Assembly finds that the removal of quality-of-service regulation of wireline services provided in the competitive exchanges of electing companies will serve to encourage private-sector investment in the telecommunications marketplace.

(A) Recognize that in areas of the state served by electing companies, telecommunications connections utilizing unregulated technologies such as wireless and Voice over Internet Protocol greatly outnumber traditional wireline connections that remain regulated by the commission.

(B) The General Assembly finds that the removal of quality-of-service regulation of wireline services provided in the competitive exchanges of electing companies will serve to encourage private-sector investment in the telecommunications marketplace.

Acts 1997, No. 77, § 2; 2011, No. 290, § 1; 2011, No. 594, § 1.
Ark. Code Ann. § 23-66-212 — AR Code / Title 23 / Chapter 66 / Subchapter 2 / Section 23-66-212
Judicial review of cease and desist orders
Status: in_force

(a) (1) Any person subject to an order of the Insurance Commissioner under § 23-66-210 or § 23-66-211 may obtain a review of the order by filing in the Pulaski County Circuit Court, within thirty (30) days from the date of the service of the order, a written petition praying that the order of the commissioner be set aside. (2) A copy of the petition shall be immediately served upon the commissioner, and thereupon the commissioner immediately shall certify and file in the court a transcript of the entire record in the proceeding, including all the evidence taken and the report and order of the commissioner. (3) Upon the filing of the petition and transcript, the court shall have jurisdiction of the proceeding and of the question determined therein, shall determine whether the filing of the petition shall operate as a stay of the order of the commissioner, and shall have the power to make and enter upon the pleadings, evidence, and proceedings set forth in the transcript a decree modifying, affirming, or reversing the order of the commissioner in whole or in part. (4) The findings of the commissioner as to the facts, if supported by substantial evidence, shall be conclusive. (b) (1) To the extent that the order of the commissioner is affirmed, the court shall thereupon issue its own order commanding obedience to the terms of the order of the commissioner. (2) If either party shall apply to the court for leave to adduce additional evidence and shall show to the satisfaction of the court that the additional evidence is material and that there was reasonable grounds for the failure to adduce the evidence in the proceeding before the commissioner, then the court may order the additional evidence to be taken before the commissioner and to be adduced upon the hearing in such manner and upon such terms and conditions as to the court may seem proper. (3) The commissioner may modify his or her findings of fact or make new findings by reason of the additional evidence so taken. The commissioner shall then file the modified or new findings which shall be conclusive if supported by substantial evidence, and file his or her recommendations, if any, for the modification or setting aside of his or her original order, with the return of the additional evidence. (c) An order issued by the commissioner under § 23-66-210 shall become final: (1) Upon the expiration of the time allowed for filing a petition for review if no petition has been filed within the time. However, the commissioner may thereafter modify or set aside his or her order to the extent provided in § 23-66-210 ; or (2) Upon the final decision of the court if the court directs that the order of the commissioner be affirmed or the petition for review dismissed. (d) No order of the commissioner under this subchapter, or order of a court to enforce the order, shall in any way relieve or absolve any person affected by the order from any liability under any other laws of this state. Acts 1959, No. 148, § 216; 1973, No. 41, § 5; 1985, No. 804, § 5; A.S.A. 1947, § 66-3009.

(a) (1) Any person subject to an order of the Insurance Commissioner under § 23-66-210 or § 23-66-211 may obtain a review of the order by filing in the Pulaski County Circuit Court, within thirty (30) days from the date of the service of the order, a written petition praying that the order of the commissioner be set aside. (2) A copy of the petition shall be immediately served upon the commissioner, and thereupon the commissioner immediately shall certify and file in the court a transcript of the entire record in the proceeding, including all the evidence taken and the report and order of the commissioner. (3) Upon the filing of the petition and transcript, the court shall have jurisdiction of the proceeding and of the question determined therein, shall determine whether the filing of the petition shall operate as a stay of the order of the commissioner, and shall have the power to make and enter upon the pleadings, evidence, and proceedings set forth in the transcript a decree modifying, affirming, or reversing the order of the commissioner in whole or in part. (4) The findings of the commissioner as to the facts, if supported by substantial evidence, shall be conclusive.

(1) Any person subject to an order of the Insurance Commissioner under § 23-66-210 or § 23-66-211 may obtain a review of the order by filing in the Pulaski County Circuit Court, within thirty (30) days from the date of the service of the order, a written petition praying that the order of the commissioner be set aside.

(2) A copy of the petition shall be immediately served upon the commissioner, and thereupon the commissioner immediately shall certify and file in the court a transcript of the entire record in the proceeding, including all the evidence taken and the report and order of the commissioner.

(3) Upon the filing of the petition and transcript, the court shall have jurisdiction of the proceeding and of the question determined therein, shall determine whether the filing of the petition shall operate as a stay of the order of the commissioner, and shall have the power to make and enter upon the pleadings, evidence, and proceedings set forth in the transcript a decree modifying, affirming, or reversing the order of the commissioner in whole or in part.

(4) The findings of the commissioner as to the facts, if supported by substantial evidence, shall be conclusive.

(b) (1) To the extent that the order of the commissioner is affirmed, the court shall thereupon issue its own order commanding obedience to the terms of the order of the commissioner. (2) If either party shall apply to the court for leave to adduce additional evidence and shall show to the satisfaction of the court that the additional evidence is material and that there was reasonable grounds for the failure to adduce the evidence in the proceeding before the commissioner, then the court may order the additional evidence to be taken before the commissioner and to be adduced upon the hearing in such manner and upon such terms and conditions as to the court may seem proper. (3) The commissioner may modify his or her findings of fact or make new findings by reason of the additional evidence so taken. The commissioner shall then file the modified or new findings which shall be conclusive if supported by substantial evidence, and file his or her recommendations, if any, for the modification or setting aside of his or her original order, with the return of the additional evidence.

(1) To the extent that the order of the commissioner is affirmed, the court shall thereupon issue its own order commanding obedience to the terms of the order of the commissioner.

(2) If either party shall apply to the court for leave to adduce additional evidence and shall show to the satisfaction of the court that the additional evidence is material and that there was reasonable grounds for the failure to adduce the evidence in the proceeding before the commissioner, then the court may order the additional evidence to be taken before the commissioner and to be adduced upon the hearing in such manner and upon such terms and conditions as to the court may seem proper.

(3) The commissioner may modify his or her findings of fact or make new findings by reason of the additional evidence so taken. The commissioner shall then file the modified or new findings which shall be conclusive if supported by substantial evidence, and file his or her recommendations, if any, for the modification or setting aside of his or her original order, with the return of the additional evidence.

(c) An order issued by the commissioner under § 23-66-210 shall become final: (1) Upon the expiration of the time allowed for filing a petition for review if no petition has been filed within the time. However, the commissioner may thereafter modify or set aside his or her order to the extent provided in § 23-66-210 ; or (2) Upon the final decision of the court if the court directs that the order of the commissioner be affirmed or the petition for review dismissed.

(1) Upon the expiration of the time allowed for filing a petition for review if no petition has been filed within the time. However, the commissioner may thereafter modify or set aside his or her order to the extent provided in § 23-66-210 ; or

(2) Upon the final decision of the court if the court directs that the order of the commissioner be affirmed or the petition for review dismissed.

(d) No order of the commissioner under this subchapter, or order of a court to enforce the order, shall in any way relieve or absolve any person affected by the order from any liability under any other laws of this state.

Acts 1959, No. 148, § 216; 1973, No. 41, § 5; 1985, No. 804, § 5; A.S.A. 1947, § 66-3009.
Ark. Code Ann. § 23-93-204 — AR Code / Title 23 / Chapter 93 / Subchapter 2 / Section 23-93-204
Issuance of license
Status: in_force

The State Insurance Department shall issue a license upon its affirmative determination that all of the following requirements have been met: (1) The provider can fulfill its obligation under the life care contract if the resident complies with the terms of the offer; (2) There is reasonable assurance that all proposed improvements can be completed as represented; (3) The provider, its officers, and principals have not been convicted of a crime in this state, the United States, or any other state or foreign country within the past ten (10) years, the seriousness of which in the opinion of the department warrants the denial of a permit; (4) The provider, its officers, and principals have not been subject to any permanent injunction or final administrative order restraining a false or misleading plan involving a facility disposition, the seriousness of which in the opinion of the department warrants the denial of a permit; and (5) The disclosure statement requirements of the Continuing Care Provider Regulation Act, § 23-93-101 et seq., have been satisfied. Acts 1993, No. 787, § 7.

The State Insurance Department shall issue a license upon its affirmative determination that all of the following requirements have been met:

(1) The provider can fulfill its obligation under the life care contract if the resident complies with the terms of the offer;

(2) There is reasonable assurance that all proposed improvements can be completed as represented;

(3) The provider, its officers, and principals have not been convicted of a crime in this state, the United States, or any other state or foreign country within the past ten (10) years, the seriousness of which in the opinion of the department warrants the denial of a permit;

(4) The provider, its officers, and principals have not been subject to any permanent injunction or final administrative order restraining a false or misleading plan involving a facility disposition, the seriousness of which in the opinion of the department warrants the denial of a permit; and

(5) The disclosure statement requirements of the Continuing Care Provider Regulation Act, § 23-93-101 et seq., have been satisfied.

Acts 1993, No. 787, § 7.
Ark. Code Ann. § 23-112-319 — AR Code / Title 23 / Chapter 112 / Subchapter 3 / Section 23-112-319
Reimbursement claim by motor vehicle dealer
Status: in_force

(a) (1) A manufacturer shall compensate its new motor vehicle dealers for all labor and parts required by the manufacturer to perform recall repairs. (2) The compensation for recall repairs required under subdivision (a)(1) of this section shall be reasonable. (3) If recall parts or a remedy is not reasonably available to perform a recall service or repair on a used motor vehicle held for sale by a dealer authorized to sell and service new motor vehicles of the same line make of a motor vehicle within thirty (30) days of the manufacturer's issuing the initial notice of recall, and the manufacturer has issued a stop-sale order or do-not-drive order on the used motor vehicle, the manufacturer shall compensate the dealer at a prorated rate of at least one and twenty-five-hundredths percent (1.25%) of the value of the used motor vehicle per month beginning thirty (30) days from the date on which the stop-sale order or do-not-drive order was provided to the dealer until the earlier of: (A) The date the recall parts or a remedy is made available; or (B) The date the dealer sells, trades, or disposes of the affected used motor vehicle. (b) This section applies only to a: (1) Used motor vehicle subject to a safety or emissions recall in accordance with federal law and regulations and a stop-sale order or do-not-drive order has been issued and repair parts or a remedy remains unavailable for thirty (30) days or longer; and (2) New motor vehicle dealer having an affected used motor vehicle: (A) In inventory for sale at the time the stop-sale order or do-not-drive order was issued; (B) For sale as a used motor vehicle as a consumer trade-in, incident to the purchase of a new motor vehicle from the dealer after the stop-sale order or do-not-drive order was issued; or (C) For sale that is a line make of a used motor vehicle the dealer is franchised to sell or on which the dealer is authorized to perform recall repairs. (c) (1) It is a violation of this section for a manufacturer to reduce the amount of compensation otherwise owed to a new motor vehicle dealer because the new motor vehicle dealer has submitted a claim for reimbursement under this section, including without limitation compensation owed through: (A) A chargeback; (B) Removal of the dealer from an incentive program; or (C) A reduction in the amount owed under an incentive program. (2) However, subdivision (c)(1) of this section does not apply to a reduction in the amount of compensation owed to a new motor vehicle dealer by a manufacturer if the reduction is applied uniformly to all new motor vehicle dealers of the same line make in the state. (d) A reimbursement claim made by a new motor vehicle dealer for a recall remedy or repair or for compensation when no part or repair is reasonably available and the motor vehicle is subject to a stop-sale order or do-not-drive order: (1) Is subject to the same limitations and requirements as a warranty reimbursement claim made under § 23-112-313 ; or (2) May be compensated to a franchised dealer by a manufacturer under a national recall compensation program if the compensation under the program is equal to or greater than the compensation under subsection (a) of this section or the manufacturer and dealer otherwise agree to the amount of compensation. (e) A manufacturer may direct the manner and method in which a dealer demonstrates the inventory status of an affected used motor vehicle to determine eligibility for compensation under this section if the manner and method are not unduly burdensome and do not require that the dealer provide information that may be unduly burdensome to obtain. (f) This section does not require that a manufacturer provide total compensation to a dealer that exceeds the total average trade-in value of the used motor vehicle. (g) If a recall remedy for a used motor vehicle is available under federal law or federal regulation, a dealer may choose to be compensated under the federal statute or under this section but may not combine the recall remedies. (h) The value of a used motor vehicle shall be the average trade-in value for used motor vehicles as indicated in an independent third-party guide for the year, make, and model of the affected used motor vehicle. Added by Act 2019, No. 924,§ 4, eff. 7/24/2019.

(a) (1) A manufacturer shall compensate its new motor vehicle dealers for all labor and parts required by the manufacturer to perform recall repairs. (2) The compensation for recall repairs required under subdivision (a)(1) of this section shall be reasonable. (3) If recall parts or a remedy is not reasonably available to perform a recall service or repair on a used motor vehicle held for sale by a dealer authorized to sell and service new motor vehicles of the same line make of a motor vehicle within thirty (30) days of the manufacturer's issuing the initial notice of recall, and the manufacturer has issued a stop-sale order or do-not-drive order on the used motor vehicle, the manufacturer shall compensate the dealer at a prorated rate of at least one and twenty-five-hundredths percent (1.25%) of the value of the used motor vehicle per month beginning thirty (30) days from the date on which the stop-sale order or do-not-drive order was provided to the dealer until the earlier of: (A) The date the recall parts or a remedy is made available; or (B) The date the dealer sells, trades, or disposes of the affected used motor vehicle.

(1) A manufacturer shall compensate its new motor vehicle dealers for all labor and parts required by the manufacturer to perform recall repairs.

(2) The compensation for recall repairs required under subdivision (a)(1) of this section shall be reasonable.

(3) If recall parts or a remedy is not reasonably available to perform a recall service or repair on a used motor vehicle held for sale by a dealer authorized to sell and service new motor vehicles of the same line make of a motor vehicle within thirty (30) days of the manufacturer's issuing the initial notice of recall, and the manufacturer has issued a stop-sale order or do-not-drive order on the used motor vehicle, the manufacturer shall compensate the dealer at a prorated rate of at least one and twenty-five-hundredths percent (1.25%) of the value of the used motor vehicle per month beginning thirty (30) days from the date on which the stop-sale order or do-not-drive order was provided to the dealer until the earlier of: (A) The date the recall parts or a remedy is made available; or (B) The date the dealer sells, trades, or disposes of the affected used motor vehicle.

(A) The date the recall parts or a remedy is made available; or

(B) The date the dealer sells, trades, or disposes of the affected used motor vehicle.

(b) This section applies only to a: (1) Used motor vehicle subject to a safety or emissions recall in accordance with federal law and regulations and a stop-sale order or do-not-drive order has been issued and repair parts or a remedy remains unavailable for thirty (30) days or longer; and (2) New motor vehicle dealer having an affected used motor vehicle: (A) In inventory for sale at the time the stop-sale order or do-not-drive order was issued; (B) For sale as a used motor vehicle as a consumer trade-in, incident to the purchase of a new motor vehicle from the dealer after the stop-sale order or do-not-drive order was issued; or (C) For sale that is a line make of a used motor vehicle the dealer is franchised to sell or on which the dealer is authorized to perform recall repairs.

(1) Used motor vehicle subject to a safety or emissions recall in accordance with federal law and regulations and a stop-sale order or do-not-drive order has been issued and repair parts or a remedy remains unavailable for thirty (30) days or longer; and

(2) New motor vehicle dealer having an affected used motor vehicle: (A) In inventory for sale at the time the stop-sale order or do-not-drive order was issued; (B) For sale as a used motor vehicle as a consumer trade-in, incident to the purchase of a new motor vehicle from the dealer after the stop-sale order or do-not-drive order was issued; or (C) For sale that is a line make of a used motor vehicle the dealer is franchised to sell or on which the dealer is authorized to perform recall repairs.

(A) In inventory for sale at the time the stop-sale order or do-not-drive order was issued;

(B) For sale as a used motor vehicle as a consumer trade-in, incident to the purchase of a new motor vehicle from the dealer after the stop-sale order or do-not-drive order was issued; or

(C) For sale that is a line make of a used motor vehicle the dealer is franchised to sell or on which the dealer is authorized to perform recall repairs.

(c) (1) It is a violation of this section for a manufacturer to reduce the amount of compensation otherwise owed to a new motor vehicle dealer because the new motor vehicle dealer has submitted a claim for reimbursement under this section, including without limitation compensation owed through: (A) A chargeback; (B) Removal of the dealer from an incentive program; or (C) A reduction in the amount owed under an incentive program. (2) However, subdivision (c)(1) of this section does not apply to a reduction in the amount of compensation owed to a new motor vehicle dealer by a manufacturer if the reduction is applied uniformly to all new motor vehicle dealers of the same line make in the state.

(1) It is a violation of this section for a manufacturer to reduce the amount of compensation otherwise owed to a new motor vehicle dealer because the new motor vehicle dealer has submitted a claim for reimbursement under this section, including without limitation compensation owed through: (A) A chargeback; (B) Removal of the dealer from an incentive program; or (C) A reduction in the amount owed under an incentive program.

(A) A chargeback;

(B) Removal of the dealer from an incentive program; or

(C) A reduction in the amount owed under an incentive program.

(2) However, subdivision (c)(1) of this section does not apply to a reduction in the amount of compensation owed to a new motor vehicle dealer by a manufacturer if the reduction is applied uniformly to all new motor vehicle dealers of the same line make in the state.

(d) A reimbursement claim made by a new motor vehicle dealer for a recall remedy or repair or for compensation when no part or repair is reasonably available and the motor vehicle is subject to a stop-sale order or do-not-drive order: (1) Is subject to the same limitations and requirements as a warranty reimbursement claim made under § 23-112-313 ; or (2) May be compensated to a franchised dealer by a manufacturer under a national recall compensation program if the compensation under the program is equal to or greater than the compensation under subsection (a) of this section or the manufacturer and dealer otherwise agree to the amount of compensation.

(1) Is subject to the same limitations and requirements as a warranty reimbursement claim made under § 23-112-313 ; or

(2) May be compensated to a franchised dealer by a manufacturer under a national recall compensation program if the compensation under the program is equal to or greater than the compensation under subsection (a) of this section or the manufacturer and dealer otherwise agree to the amount of compensation.

(e) A manufacturer may direct the manner and method in which a dealer demonstrates the inventory status of an affected used motor vehicle to determine eligibility for compensation under this section if the manner and method are not unduly burdensome and do not require that the dealer provide information that may be unduly burdensome to obtain.

(f) This section does not require that a manufacturer provide total compensation to a dealer that exceeds the total average trade-in value of the used motor vehicle.

(g) If a recall remedy for a used motor vehicle is available under federal law or federal regulation, a dealer may choose to be compensated under the federal statute or under this section but may not combine the recall remedies.

(h) The value of a used motor vehicle shall be the average trade-in value for used motor vehicles as indicated in an independent third-party guide for the year, make, and model of the affected used motor vehicle.

Added by Act 2019, No. 924,§ 4, eff. 7/24/2019.
Ark. Code Ann. § 23-92-408 — AR Code / Title 23 / Chapter 92 / Subchapter 4 / Section 23-92-408
Financial assurance required
Status: in_force

(a) Each professional employer organization shall maintain: (1) An audited minimum net worth of at least one hundred thousand dollars ($100,000), as reflected in the financial statements submitted to the Insurance Commissioner with the initial licensing, and annually thereafter; or (2) (A) A bond in the amount of at least one hundred thousand dollars ($100,000). (B) The terms and conditions of the bond shall be approved by the commissioner. (C) The bond shall be conditioned so that the licensee and each member, employee, shareholder, or officer of a person, firm, partnership, corporation, or association operating as an agent of the licensee shall not: (i) Violate the provisions of this subchapter or violate rules or orders lawfully promulgated by the commissioner under this subchapter; or (ii) Fail to pay any wages due under any contract made by the licensee in the conduct of its business subject to this subchapter. (D) The bond required by this section shall be a surety bond issued by a corporate surety or insurer authorized to do business in Arkansas. (E) In lieu of a bond, the professional employer organization may deposit either: (i) Securities with a minimum market value of at least one hundred thousand dollars ($100,000) with an approved depository under an approved depository agreement under § 23-69-134(b)(4) ; or (ii) An irrevocable letter of credit in a face amount of not less than one hundred thousand dollars ($100,000) in a form that is acceptable to the commissioner. (F) The bond, deposited securities, or letter of credit shall secure payment by the professional employer organization of all taxes, wages, benefits, or other entitlement due to or with respect to a covered employee if the professional employer organization does not make the payments when due. (G) Any securities deposited under this subsection may be included for the purpose of calculation of the minimum net worth required by this subsection. (b) (1) Within forty-five (45) days after the end of each calendar quarter, a professional employer organization shall submit to the commissioner a statement by an independent certified public accountant that all applicable state payroll taxes for covered employees located in this state have been paid on a timely basis for that quarter. (2) The statement shall be either in the form of an examination level attestation or shall be based upon agreed-upon procedures acceptable to the commissioner. (3) The commissioner shall issue by rule requirements for procedures referred to in subdivision (b)(2) of this section. (c) (1) If any person is aggrieved by the misconduct of any licensee, that person may maintain an action in his or her own name upon the bond or assets of the professional employer organization in any court of competent jurisdiction in this state. (2) All claims shall be assignable, and the assignee shall be entitled to the same remedies upon the bond of the licensee as the aggrieved person would have been entitled if the claim had not been assigned. (3) Any assignable claim under subdivision (c)(2) of this section may be enforced in the name of the assignee. (4) Any remedy provided by this section is in addition to any other remedy which otherwise exists. (d) An action on the bond or other security required by this section may be maintained by the commissioner in the name of the State of Arkansas in any court of competent jurisdiction in this state for the benefit of any person or persons aggrieved by the misconduct of the licensee. (e) (1) If any licensee fails to file a new bond with the commissioner within thirty (30) days after notice of cancellation by the surety of the bond required by this section, the license issued to the licensee or the principal under the bond shall be deemed suspended until a new surety bond is filed with and approved by the commissioner. (2) A person whose license is suspended under this section shall not carry on the business of a professional employer organization during the period of the suspension. Amended by Act 2019, No. 315,§ 2775, eff. 7/24/2019. Acts 2003, No. 1750, § 1.

(a) Each professional employer organization shall maintain: (1) An audited minimum net worth of at least one hundred thousand dollars ($100,000), as reflected in the financial statements submitted to the Insurance Commissioner with the initial licensing, and annually thereafter; or (2) (A) A bond in the amount of at least one hundred thousand dollars ($100,000). (B) The terms and conditions of the bond shall be approved by the commissioner. (C) The bond shall be conditioned so that the licensee and each member, employee, shareholder, or officer of a person, firm, partnership, corporation, or association operating as an agent of the licensee shall not: (i) Violate the provisions of this subchapter or violate rules or orders lawfully promulgated by the commissioner under this subchapter; or (ii) Fail to pay any wages due under any contract made by the licensee in the conduct of its business subject to this subchapter. (D) The bond required by this section shall be a surety bond issued by a corporate surety or insurer authorized to do business in Arkansas. (E) In lieu of a bond, the professional employer organization may deposit either: (i) Securities with a minimum market value of at least one hundred thousand dollars ($100,000) with an approved depository under an approved depository agreement under § 23-69-134(b)(4) ; or (ii) An irrevocable letter of credit in a face amount of not less than one hundred thousand dollars ($100,000) in a form that is acceptable to the commissioner. (F) The bond, deposited securities, or letter of credit shall secure payment by the professional employer organization of all taxes, wages, benefits, or other entitlement due to or with respect to a covered employee if the professional employer organization does not make the payments when due. (G) Any securities deposited under this subsection may be included for the purpose of calculation of the minimum net worth required by this subsection.

(1) An audited minimum net worth of at least one hundred thousand dollars ($100,000), as reflected in the financial statements submitted to the Insurance Commissioner with the initial licensing, and annually thereafter; or

(2) (A) A bond in the amount of at least one hundred thousand dollars ($100,000). (B) The terms and conditions of the bond shall be approved by the commissioner. (C) The bond shall be conditioned so that the licensee and each member, employee, shareholder, or officer of a person, firm, partnership, corporation, or association operating as an agent of the licensee shall not: (i) Violate the provisions of this subchapter or violate rules or orders lawfully promulgated by the commissioner under this subchapter; or (ii) Fail to pay any wages due under any contract made by the licensee in the conduct of its business subject to this subchapter. (D) The bond required by this section shall be a surety bond issued by a corporate surety or insurer authorized to do business in Arkansas. (E) In lieu of a bond, the professional employer organization may deposit either: (i) Securities with a minimum market value of at least one hundred thousand dollars ($100,000) with an approved depository under an approved depository agreement under § 23-69-134(b)(4) ; or (ii) An irrevocable letter of credit in a face amount of not less than one hundred thousand dollars ($100,000) in a form that is acceptable to the commissioner. (F) The bond, deposited securities, or letter of credit shall secure payment by the professional employer organization of all taxes, wages, benefits, or other entitlement due to or with respect to a covered employee if the professional employer organization does not make the payments when due. (G) Any securities deposited under this subsection may be included for the purpose of calculation of the minimum net worth required by this subsection.

(A) A bond in the amount of at least one hundred thousand dollars ($100,000).

(B) The terms and conditions of the bond shall be approved by the commissioner.

(C) The bond shall be conditioned so that the licensee and each member, employee, shareholder, or officer of a person, firm, partnership, corporation, or association operating as an agent of the licensee shall not: (i) Violate the provisions of this subchapter or violate rules or orders lawfully promulgated by the commissioner under this subchapter; or (ii) Fail to pay any wages due under any contract made by the licensee in the conduct of its business subject to this subchapter.

(i) Violate the provisions of this subchapter or violate rules or orders lawfully promulgated by the commissioner under this subchapter; or

(ii) Fail to pay any wages due under any contract made by the licensee in the conduct of its business subject to this subchapter.

(D) The bond required by this section shall be a surety bond issued by a corporate surety or insurer authorized to do business in Arkansas.

(E) In lieu of a bond, the professional employer organization may deposit either: (i) Securities with a minimum market value of at least one hundred thousand dollars ($100,000) with an approved depository under an approved depository agreement under § 23-69-134(b)(4) ; or (ii) An irrevocable letter of credit in a face amount of not less than one hundred thousand dollars ($100,000) in a form that is acceptable to the commissioner.

(i) Securities with a minimum market value of at least one hundred thousand dollars ($100,000) with an approved depository under an approved depository agreement under § 23-69-134(b)(4) ; or

(ii) An irrevocable letter of credit in a face amount of not less than one hundred thousand dollars ($100,000) in a form that is acceptable to the commissioner.

(F) The bond, deposited securities, or letter of credit shall secure payment by the professional employer organization of all taxes, wages, benefits, or other entitlement due to or with respect to a covered employee if the professional employer organization does not make the payments when due.

(G) Any securities deposited under this subsection may be included for the purpose of calculation of the minimum net worth required by this subsection.

(b) (1) Within forty-five (45) days after the end of each calendar quarter, a professional employer organization shall submit to the commissioner a statement by an independent certified public accountant that all applicable state payroll taxes for covered employees located in this state have been paid on a timely basis for that quarter. (2) The statement shall be either in the form of an examination level attestation or shall be based upon agreed-upon procedures acceptable to the commissioner. (3) The commissioner shall issue by rule requirements for procedures referred to in subdivision (b)(2) of this section.

(1) Within forty-five (45) days after the end of each calendar quarter, a professional employer organization shall submit to the commissioner a statement by an independent certified public accountant that all applicable state payroll taxes for covered employees located in this state have been paid on a timely basis for that quarter.

(2) The statement shall be either in the form of an examination level attestation or shall be based upon agreed-upon procedures acceptable to the commissioner.

(3) The commissioner shall issue by rule requirements for procedures referred to in subdivision (b)(2) of this section.

(c) (1) If any person is aggrieved by the misconduct of any licensee, that person may maintain an action in his or her own name upon the bond or assets of the professional employer organization in any court of competent jurisdiction in this state. (2) All claims shall be assignable, and the assignee shall be entitled to the same remedies upon the bond of the licensee as the aggrieved person would have been entitled if the claim had not been assigned. (3) Any assignable claim under subdivision (c)(2) of this section may be enforced in the name of the assignee. (4) Any remedy provided by this section is in addition to any other remedy which otherwise exists.

(1) If any person is aggrieved by the misconduct of any licensee, that person may maintain an action in his or her own name upon the bond or assets of the professional employer organization in any court of competent jurisdiction in this state.

(2) All claims shall be assignable, and the assignee shall be entitled to the same remedies upon the bond of the licensee as the aggrieved person would have been entitled if the claim had not been assigned.

(3) Any assignable claim under subdivision (c)(2) of this section may be enforced in the name of the assignee.

(4) Any remedy provided by this section is in addition to any other remedy which otherwise exists.

(d) An action on the bond or other security required by this section may be maintained by the commissioner in the name of the State of Arkansas in any court of competent jurisdiction in this state for the benefit of any person or persons aggrieved by the misconduct of the licensee.

(e) (1) If any licensee fails to file a new bond with the commissioner within thirty (30) days after notice of cancellation by the surety of the bond required by this section, the license issued to the licensee or the principal under the bond shall be deemed suspended until a new surety bond is filed with and approved by the commissioner. (2) A person whose license is suspended under this section shall not carry on the business of a professional employer organization during the period of the suspension.

(1) If any licensee fails to file a new bond with the commissioner within thirty (30) days after notice of cancellation by the surety of the bond required by this section, the license issued to the licensee or the principal under the bond shall be deemed suspended until a new surety bond is filed with and approved by the commissioner.

(2) A person whose license is suspended under this section shall not carry on the business of a professional employer organization during the period of the suspension.

Amended by Act 2019, No. 315,§ 2775, eff. 7/24/2019.

Acts 2003, No. 1750, § 1.
Ark. Code Ann. § 23-39-518 — AR Code / Title 23 / Chapter 39 / Subchapter 5 / Section 23-39-518
Cooperation with other regulatory agencies
Status: in_force

(a) The Securities Commissioner may: (1) Enter into an arrangement, agreement, or other working relationship with federal, state, or self-regulatory authorities, the Conference of State Bank Supervisors, or a subsidiary of the Conference of State Bank Supervisors to file and maintain documents in a multistate automated licensing system or other central depository system; (2) Waive or modify in whole or in part by rule or by order any requirement of this subchapter if necessary to implement this section; and (3) Establish new requirements under this subchapter to carry out the purpose of this section. (b) It is the intent of this section that the commissioner be provided the authority to reduce duplication of filings, reduce administrative costs, and establish uniform procedures, forms, and administration with other states and federal authorities. (c) (1) The commissioner may permit or require initial and renewal registration filings required under this subchapter to be filed with the Conference of State Bank Supervisors, a subsidiary entity owned by the Conference of State Bank Supervisors, the Financial Industry Regulatory Authority, or another entity maintaining or operating a multistate automated licensing system. (2) The applicant or the licensee shall pay any fee charged for the applicant or the licensee to participate in the automated licensing system. (d) The commissioner may accept uniform procedures and forms designed to: (1) Implement a multistate automated licensing system; (2) Implement a uniform national mortgage lending regulatory system; or (3) Facilitate common practices and procedures among the states. (e) (1) If the State of Arkansas joins a multistate automated licensing system for mortgage industry participants pursuant to this section, the commissioner may require a criminal background investigation of each applicant seeking to become licensed under this subchapter as a mortgage broker, mortgage banker, mortgage servicer, loan officer, or transitional loan officer. (2) The criminal background investigation may include a fingerprint examination and may be conducted by the Federal Bureau of Investigation, the Division of Arkansas State Police, or an equivalent state or federal law enforcement department or agency. (3) The information obtained by the background investigation may be used by the commissioner to determine the applicant's eligibility for licensing under this subchapter. (4) The fee required to perform the criminal background investigation shall be borne by the license applicant. (5) Notwithstanding any other law to the contrary, information obtained or held by the commissioner under this subsection: (A) May be disclosed when necessary in any proceeding under this subchapter; (B) May be provided to other state agencies participating in the multistate automatic licensing system; (C) Shall be considered privileged and confidential; and (D) Shall not be available for examination except by the affected applicant for licensure or his or her authorized representative, or by the person whose license is subject to sanctions or his or her authorized representative. (6) No record, file, or document shall be removed from the custody of the Identification Bureau of the Division of Arkansas State Police. (7) Any information made available to the affected applicant for licensure or to the person whose license is subject to sanctions shall be information pertaining to that person only. (8) Rights of privilege and confidentiality established in this section shall not extend to any document created for purposes other than the background check. (9) The commissioner may adopt rules to fully implement the provisions of this section. Amended by Act 2019, No. 315,§ 2502, eff. 7/24/2019. Amended by Act 2019, No. 200,§ 28, eff. 7/24/2019. Acts 2007, No. 748, § 11; 2009, No. 731, § 28.

(a) The Securities Commissioner may: (1) Enter into an arrangement, agreement, or other working relationship with federal, state, or self-regulatory authorities, the Conference of State Bank Supervisors, or a subsidiary of the Conference of State Bank Supervisors to file and maintain documents in a multistate automated licensing system or other central depository system; (2) Waive or modify in whole or in part by rule or by order any requirement of this subchapter if necessary to implement this section; and (3) Establish new requirements under this subchapter to carry out the purpose of this section.

(1) Enter into an arrangement, agreement, or other working relationship with federal, state, or self-regulatory authorities, the Conference of State Bank Supervisors, or a subsidiary of the Conference of State Bank Supervisors to file and maintain documents in a multistate automated licensing system or other central depository system;

(2) Waive or modify in whole or in part by rule or by order any requirement of this subchapter if necessary to implement this section; and

(3) Establish new requirements under this subchapter to carry out the purpose of this section.

(b) It is the intent of this section that the commissioner be provided the authority to reduce duplication of filings, reduce administrative costs, and establish uniform procedures, forms, and administration with other states and federal authorities.

(c) (1) The commissioner may permit or require initial and renewal registration filings required under this subchapter to be filed with the Conference of State Bank Supervisors, a subsidiary entity owned by the Conference of State Bank Supervisors, the Financial Industry Regulatory Authority, or another entity maintaining or operating a multistate automated licensing system. (2) The applicant or the licensee shall pay any fee charged for the applicant or the licensee to participate in the automated licensing system.

(1) The commissioner may permit or require initial and renewal registration filings required under this subchapter to be filed with the Conference of State Bank Supervisors, a subsidiary entity owned by the Conference of State Bank Supervisors, the Financial Industry Regulatory Authority, or another entity maintaining or operating a multistate automated licensing system.

(2) The applicant or the licensee shall pay any fee charged for the applicant or the licensee to participate in the automated licensing system.

(d) The commissioner may accept uniform procedures and forms designed to: (1) Implement a multistate automated licensing system; (2) Implement a uniform national mortgage lending regulatory system; or (3) Facilitate common practices and procedures among the states.

(1) Implement a multistate automated licensing system;

(2) Implement a uniform national mortgage lending regulatory system; or

(3) Facilitate common practices and procedures among the states.

(e) (1) If the State of Arkansas joins a multistate automated licensing system for mortgage industry participants pursuant to this section, the commissioner may require a criminal background investigation of each applicant seeking to become licensed under this subchapter as a mortgage broker, mortgage banker, mortgage servicer, loan officer, or transitional loan officer. (2) The criminal background investigation may include a fingerprint examination and may be conducted by the Federal Bureau of Investigation, the Division of Arkansas State Police, or an equivalent state or federal law enforcement department or agency. (3) The information obtained by the background investigation may be used by the commissioner to determine the applicant's eligibility for licensing under this subchapter. (4) The fee required to perform the criminal background investigation shall be borne by the license applicant. (5) Notwithstanding any other law to the contrary, information obtained or held by the commissioner under this subsection: (A) May be disclosed when necessary in any proceeding under this subchapter; (B) May be provided to other state agencies participating in the multistate automatic licensing system; (C) Shall be considered privileged and confidential; and (D) Shall not be available for examination except by the affected applicant for licensure or his or her authorized representative, or by the person whose license is subject to sanctions or his or her authorized representative. (6) No record, file, or document shall be removed from the custody of the Identification Bureau of the Division of Arkansas State Police. (7) Any information made available to the affected applicant for licensure or to the person whose license is subject to sanctions shall be information pertaining to that person only. (8) Rights of privilege and confidentiality established in this section shall not extend to any document created for purposes other than the background check. (9) The commissioner may adopt rules to fully implement the provisions of this section.

(1) If the State of Arkansas joins a multistate automated licensing system for mortgage industry participants pursuant to this section, the commissioner may require a criminal background investigation of each applicant seeking to become licensed under this subchapter as a mortgage broker, mortgage banker, mortgage servicer, loan officer, or transitional loan officer.

(2) The criminal background investigation may include a fingerprint examination and may be conducted by the Federal Bureau of Investigation, the Division of Arkansas State Police, or an equivalent state or federal law enforcement department or agency.

(3) The information obtained by the background investigation may be used by the commissioner to determine the applicant's eligibility for licensing under this subchapter.

(4) The fee required to perform the criminal background investigation shall be borne by the license applicant.

(5) Notwithstanding any other law to the contrary, information obtained or held by the commissioner under this subsection: (A) May be disclosed when necessary in any proceeding under this subchapter; (B) May be provided to other state agencies participating in the multistate automatic licensing system; (C) Shall be considered privileged and confidential; and (D) Shall not be available for examination except by the affected applicant for licensure or his or her authorized representative, or by the person whose license is subject to sanctions or his or her authorized representative.

(A) May be disclosed when necessary in any proceeding under this subchapter;

(B) May be provided to other state agencies participating in the multistate automatic licensing system;

(C) Shall be considered privileged and confidential; and

(D) Shall not be available for examination except by the affected applicant for licensure or his or her authorized representative, or by the person whose license is subject to sanctions or his or her authorized representative.

(6) No record, file, or document shall be removed from the custody of the Identification Bureau of the Division of Arkansas State Police.

(7) Any information made available to the affected applicant for licensure or to the person whose license is subject to sanctions shall be information pertaining to that person only.

(8) Rights of privilege and confidentiality established in this section shall not extend to any document created for purposes other than the background check.

(9) The commissioner may adopt rules to fully implement the provisions of this section.

Amended by Act 2019, No. 315,§ 2502, eff. 7/24/2019.

Amended by Act 2019, No. 200,§ 28, eff. 7/24/2019.

Acts 2007, No. 748, § 11; 2009, No. 731, § 28.
Ark. Code Ann. § 23-74-103 — AR Code / Title 23 / Chapter 74 / Subchapter 1 / Section 23-74-103
Representative form of government
Status: in_force

A society has a representative form of government when: (1) It has a supreme governing body constituted in one (1) of the following ways: (A) Assembly. (i) (a) The supreme governing body is an assembly composed of delegates elected directly by the members or at intermediate assemblies or conventions of members or their representatives, together with other delegates as may be prescribed in the society's laws. (b) A society may provide for election of delegates by mail. (c) The elected delegates shall constitute a majority in number and shall not have fewer than two-thirds (2/3) of the votes and not fewer than the number of votes required to amend the society's laws. (ii) (a) The assembly shall be elected and shall meet at least one (1) time every four (4) years and shall elect a board of directors to conduct the business of the society between meetings of the assembly. (b) Vacancies on the board of directors between elections may be filled in the manner prescribed by the society's laws; or (B) Direct Election. (i) The supreme governing body is a board composed of persons elected by the members, either directly or by their representatives in intermediate assemblies, and any other persons prescribed in the society's laws. (ii) A society may provide for election of the board by mail. (iii) Each term of a board member may not exceed four (4) years. (iv) Vacancies on the board between elections may be filled in the manner prescribed by the society's laws. (v) A person filling the unexpired term of an elected board member shall be considered to be an elected member. (vi) The board shall meet at least quarterly to conduct the business of the society; (2) The officers of the society are elected either by the supreme governing body or by the board of directors; (3) Only benefit members are eligible for election to the supreme governing body, the board of directors, or any intermediate assembly; and (4) Each voting member shall have one (1) vote. No vote may be cast by proxy. Acts 1989, No. 881, § 1.

A society has a representative form of government when:

(1) It has a supreme governing body constituted in one (1) of the following ways: (A) Assembly. (i) (a) The supreme governing body is an assembly composed of delegates elected directly by the members or at intermediate assemblies or conventions of members or their representatives, together with other delegates as may be prescribed in the society's laws. (b) A society may provide for election of delegates by mail. (c) The elected delegates shall constitute a majority in number and shall not have fewer than two-thirds (2/3) of the votes and not fewer than the number of votes required to amend the society's laws. (ii) (a) The assembly shall be elected and shall meet at least one (1) time every four (4) years and shall elect a board of directors to conduct the business of the society between meetings of the assembly. (b) Vacancies on the board of directors between elections may be filled in the manner prescribed by the society's laws; or (B) Direct Election. (i) The supreme governing body is a board composed of persons elected by the members, either directly or by their representatives in intermediate assemblies, and any other persons prescribed in the society's laws. (ii) A society may provide for election of the board by mail. (iii) Each term of a board member may not exceed four (4) years. (iv) Vacancies on the board between elections may be filled in the manner prescribed by the society's laws. (v) A person filling the unexpired term of an elected board member shall be considered to be an elected member. (vi) The board shall meet at least quarterly to conduct the business of the society;

(A) Assembly. (i) (a) The supreme governing body is an assembly composed of delegates elected directly by the members or at intermediate assemblies or conventions of members or their representatives, together with other delegates as may be prescribed in the society's laws. (b) A society may provide for election of delegates by mail. (c) The elected delegates shall constitute a majority in number and shall not have fewer than two-thirds (2/3) of the votes and not fewer than the number of votes required to amend the society's laws. (ii) (a) The assembly shall be elected and shall meet at least one (1) time every four (4) years and shall elect a board of directors to conduct the business of the society between meetings of the assembly. (b) Vacancies on the board of directors between elections may be filled in the manner prescribed by the society's laws; or

(i) (a) The supreme governing body is an assembly composed of delegates elected directly by the members or at intermediate assemblies or conventions of members or their representatives, together with other delegates as may be prescribed in the society's laws. (b) A society may provide for election of delegates by mail. (c) The elected delegates shall constitute a majority in number and shall not have fewer than two-thirds (2/3) of the votes and not fewer than the number of votes required to amend the society's laws.

(a) The supreme governing body is an assembly composed of delegates elected directly by the members or at intermediate assemblies or conventions of members or their representatives, together with other delegates as may be prescribed in the society's laws.

(b) A society may provide for election of delegates by mail.

(c) The elected delegates shall constitute a majority in number and shall not have fewer than two-thirds (2/3) of the votes and not fewer than the number of votes required to amend the society's laws.

(ii) (a) The assembly shall be elected and shall meet at least one (1) time every four (4) years and shall elect a board of directors to conduct the business of the society between meetings of the assembly. (b) Vacancies on the board of directors between elections may be filled in the manner prescribed by the society's laws; or

(a) The assembly shall be elected and shall meet at least one (1) time every four (4) years and shall elect a board of directors to conduct the business of the society between meetings of the assembly.

(b) Vacancies on the board of directors between elections may be filled in the manner prescribed by the society's laws; or

(B) Direct Election. (i) The supreme governing body is a board composed of persons elected by the members, either directly or by their representatives in intermediate assemblies, and any other persons prescribed in the society's laws. (ii) A society may provide for election of the board by mail. (iii) Each term of a board member may not exceed four (4) years. (iv) Vacancies on the board between elections may be filled in the manner prescribed by the society's laws. (v) A person filling the unexpired term of an elected board member shall be considered to be an elected member. (vi) The board shall meet at least quarterly to conduct the business of the society;

(i) The supreme governing body is a board composed of persons elected by the members, either directly or by their representatives in intermediate assemblies, and any other persons prescribed in the society's laws.

(ii) A society may provide for election of the board by mail.

(iii) Each term of a board member may not exceed four (4) years.

(iv) Vacancies on the board between elections may be filled in the manner prescribed by the society's laws.

(v) A person filling the unexpired term of an elected board member shall be considered to be an elected member.

(vi) The board shall meet at least quarterly to conduct the business of the society;

(2) The officers of the society are elected either by the supreme governing body or by the board of directors;

(3) Only benefit members are eligible for election to the supreme governing body, the board of directors, or any intermediate assembly; and

(4) Each voting member shall have one (1) vote. No vote may be cast by proxy.

Acts 1989, No. 881, § 1.
Ark. Code Ann. § 23-79-118 — AR Code / Title 23 / Chapter 79 / Subchapter 1 / Section 23-79-118
Noncomplying forms
Status: in_force

An insurance policy, rider, or endorsement issued and otherwise valid that contains any condition or provision not in compliance with state law is not rendered invalid but shall be construed and applied according to the conditions and provisions that would have applied had the policy, rider, or endorsement been in full compliance with state law. Amended by Act 2015, No. 1210,§ 4, eff. 7/22/2015. Acts 1959, No. 148, § 284; A.S.A. 1947, § 66-3217.

An insurance policy, rider, or endorsement issued and otherwise valid that contains any condition or provision not in compliance with state law is not rendered invalid but shall be construed and applied according to the conditions and provisions that would have applied had the policy, rider, or endorsement been in full compliance with state law.

Amended by Act 2015, No. 1210,§ 4, eff. 7/22/2015.

Acts 1959, No. 148, § 284; A.S.A. 1947, § 66-3217.
Ark. Code Ann. § 23-99-507 — AR Code / Title 23 / Chapter 99 / Subchapter 5 / Section 23-99-507
Medical necessity
Status: in_force

(a) The criteria for medical necessity determinations for mental illness made under a health benefit plan shall be made available by the healthcare insurer in accordance with rules established by the Insurance Commissioner to any current or potential covered individual or contracting provider upon request. (b) On request, the reason for a denial of reimbursement or payment for services to diagnose or treat mental illness under a health benefit plan shall be made available by the healthcare insurer to a covered individual in accordance with the rules of the commissioner. Acts 1997, No. 1020, § 5; 2009, No. 1193, § 8.

(a) The criteria for medical necessity determinations for mental illness made under a health benefit plan shall be made available by the healthcare insurer in accordance with rules established by the Insurance Commissioner to any current or potential covered individual or contracting provider upon request.

(b) On request, the reason for a denial of reimbursement or payment for services to diagnose or treat mental illness under a health benefit plan shall be made available by the healthcare insurer to a covered individual in accordance with the rules of the commissioner.

Acts 1997, No. 1020, § 5; 2009, No. 1193, § 8.
Ark. Code Ann. § 23-16-413 — AR Code / Title 23 / Chapter 16 / Subchapter 4 / Section 23-16-413
[Repealed]
Status: repealed

Repealed by Act 2021, No. 805,§ 1, eff. 7/28/2021. Acts 2005, No. 2289, § 1.

Repealed by Act 2021, No. 805,§ 1, eff. 7/28/2021.

Acts 2005, No. 2289, § 1.
Ark. Code Ann. § 23-55-702 — AR Code / Title 23 / Chapter 55 / Section 23-55-702
Types of permissible investments
Status: in_force

(a) Except to the extent otherwise limited by the commissioner pursuant to § 23-55-701 , the following investments are permissible under § 23-55-701 : (1) cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers in a federally insured depository financial institution, and cash equivalents including Automated Clearing House network items in transit to the licensee and Automated Clearing House network items or international wires in transit to a payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned locations, debit card or credit card-funded transmission receivables owed by any bank, or money market mutual funds rated "AAA" by S & P Global Ratings, or the equivalent from any eligible rating service; (2) certificates of deposit or senior debt obligations of an insured depository institution, as defined in Section 3 of the Federal Deposit Insurance Act, 12 U.S.C. § 1813 , as it existed on January 1, 2023, or a federal credit union as defined under the Federal Credit Union Act, 12 U.S.C. § 1751 et seq., as it existed on January 1, 2023; (3) an obligation of the United States or a commission, agency, or instrumentality thereof; an obligation that is guaranteed fully as to principal and interest by the United States; or an obligation of a state or a governmental subdivision, agency, or instrumentality thereof; (4) an investment security that is an obligation of the United States or a department, agency, or instrumentality thereof; an investment in an obligation that is guaranteed fully as to principal and interest by the United States; or an investment in an obligation of a State or a governmental subdivision, agency, or instrumentality thereof; (5) the full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the commissioner that stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain funds up to the letter of credit amount within 7 days of presentation of the items required under subdivision (b)(3); and (6) 100 percent of the surety bond provided for under § 23-55-204 that exceeds the average daily money transmission liability in this state. (b) (1) The letter of credit shall: (A) be issued by a: (i) federally insured depository financial institution; (ii) foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or states; or (iii) foreign bank that is authorized under state law to maintain a branch in a state that: (a) bears an eligible rating or whose parent company bears an eligible rating; and (b) is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies; (B) be irrevocable, unconditional, and indicate that it is not subject to any condition or qualifications outside of the letter of credit; (C) not contain reference to any other agreements, documents, or entities, or otherwise provide for any security interest in the licensee; and (D) contain an issue date and expiration date, and expressly provide for automatic extension, without a written amendment, for an additional period of 1 year from the present or each future expiration date, unless the issuer of the letter of credit notifies the commissioner in writing by certified or registered mail or courier mail or other receipted means, at least 60 days before any expiration date, that the irrevocable letter of credit will not be extended. (2) (A) Upon any notice of expiration or nonextension of a letter of credit issued under subdivision (b)(1)(D), then the licensee shall be required to demonstrate to the satisfaction of the commissioner, 15 days before expiration, that the licensee maintains and will maintain permissible investments under § 23-55-701(a) upon the expiration of the letter of credit. (B) If the licensee is not able to do so, then the commissioner may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments under § 23-55-703(a) . (C) Any such draw shall be offset against the licensee's outstanding money transmission obligations. (D) The drawn funds shall be held in trust by the commissioner or the commissioner's designee, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations. (3) The letter of credit shall provide that the issuer of the letter of credit will honor, at sight, a presentation made by the beneficiary to the issuer of the following documents on or before the expiration date of the letter of credit: (A) the original letter of credit, including any amendments; and (B) a written statement from the beneficiary stating that any of the following events have occurred: (i) the filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. § 101 et seq., as it existed on January 1, 2023, for bankruptcy or reorganization; (ii) the filing of a petition by or against the licensee for receivership, or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization; (iii) the seizure of assets of a licensee by the commissioner under an emergency order issued according to applicable law on the basis of an action, violation, or condition that has caused or is likely to cause the insolvency of the licensee; or (iv) the beneficiary has received notice of expiration or nonextension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments under § 23-55-701(a) upon the expiration or nonextension of the letter of credit. (4) (A) The commissioner may designate an agent to serve on the commissioner's behalf as beneficiary to a letter of credit so long as the agent and letter of credit meet requirements established by the commissioner. (B) The commissioner's agent may serve as agent for multiple licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable amount for the purposes of this section are assigned to the commissioner. (5) The commissioner is authorized and encouraged to participate in multistate processes designed to facilitate the issuance and administration of letters of credit, including without limitation services provided by the Nationwide Multistate Licensing System and Registry. (c) Unless permitted by the commissioner by rule or by order to exceed the limit as stated, the following investments are permissible under § 23-55-701 to the extent specified: (1) receivables that are payable to a licensee from its authorized delegates in the ordinary course of business that are less than 7 days old, up to 50 percent of the aggregate value of the licensee's total permissible investments; (2) of the receivables permissible under subdivision (c)(1), receivables that are payable to a licensee from a single authorized delegate in the ordinary course of business may not exceed 10 percent of the aggregate value of the licensee's total permissible investments; (3) the following investments are permissible up to 20 percent per category and combined up to 50 percent of the aggregate value of the licensee's total permissible investments: (A) a short-term investment, up to 6 months, bearing an eligible rating; (B) commercial paper bearing an eligible rating; (C) a bill, note, bond, or debenture bearing an eligible rating; (D) United States tri-party repurchase agreements collateralized at 100 percent or more with United States Government or agency securities, municipal bonds, or other securities bearing an eligible rating; (E) money market mutual funds rated less than "AAA" and equal to or higher than "A-" by S & P Global Ratings, or the equivalent from any other eligible rating service; and (F) a mutual fund or other investment fund composed solely and exclusively of one or more permissible investments listed in subdivisions (a)(1)-(3); and (4) cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers, at foreign depository institutions are permissible up to 10 percent of the aggregate value of the licensee's total permissible investments if the licensee has received a satisfactory rating in its most recent examination and the foreign depository institution: (A) has an eligible rating; (B) is registered under the Foreign Account Tax Compliance Act, Pub. L. No. 111-147; (C) is not located in any country subject to sanctions from the Office of Foreign Assets Control; and (D) is not located in a high-risk or noncooperative jurisdiction as designated by the international Financial Action Task Force. (d) A savings deposit, a demand deposit, or a certificate of deposit at a foreign depository is permissible under § 23-55-701 if the investment does not exceed 10 percent. (e) Any other investment is permissible under § 23-55-701 if the commissioner designates, to the extent specified by the commissioner. (f) The aggregate of investments under subsections (b)-(e) may not exceed 50 percent of the total permissible investments of a licensee calculated in accordance with § 23-55-701 . Amended by Act 2023, No. 442,§ 11, eff. 8/1/2023. Amended by Act 2021, No. 532,§ 22, eff. 7/28/2021. Acts 2007, No. 1595, § 1.

(a) Except to the extent otherwise limited by the commissioner pursuant to § 23-55-701 , the following investments are permissible under § 23-55-701 : (1) cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers in a federally insured depository financial institution, and cash equivalents including Automated Clearing House network items in transit to the licensee and Automated Clearing House network items or international wires in transit to a payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned locations, debit card or credit card-funded transmission receivables owed by any bank, or money market mutual funds rated "AAA" by S & P Global Ratings, or the equivalent from any eligible rating service; (2) certificates of deposit or senior debt obligations of an insured depository institution, as defined in Section 3 of the Federal Deposit Insurance Act, 12 U.S.C. § 1813 , as it existed on January 1, 2023, or a federal credit union as defined under the Federal Credit Union Act, 12 U.S.C. § 1751 et seq., as it existed on January 1, 2023; (3) an obligation of the United States or a commission, agency, or instrumentality thereof; an obligation that is guaranteed fully as to principal and interest by the United States; or an obligation of a state or a governmental subdivision, agency, or instrumentality thereof; (4) an investment security that is an obligation of the United States or a department, agency, or instrumentality thereof; an investment in an obligation that is guaranteed fully as to principal and interest by the United States; or an investment in an obligation of a State or a governmental subdivision, agency, or instrumentality thereof; (5) the full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the commissioner that stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain funds up to the letter of credit amount within 7 days of presentation of the items required under subdivision (b)(3); and (6) 100 percent of the surety bond provided for under § 23-55-204 that exceeds the average daily money transmission liability in this state.

(1) cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers in a federally insured depository financial institution, and cash equivalents including Automated Clearing House network items in transit to the licensee and Automated Clearing House network items or international wires in transit to a payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned locations, debit card or credit card-funded transmission receivables owed by any bank, or money market mutual funds rated "AAA" by S & P Global Ratings, or the equivalent from any eligible rating service;

(2) certificates of deposit or senior debt obligations of an insured depository institution, as defined in Section 3 of the Federal Deposit Insurance Act, 12 U.S.C. § 1813 , as it existed on January 1, 2023, or a federal credit union as defined under the Federal Credit Union Act, 12 U.S.C. § 1751 et seq., as it existed on January 1, 2023;

(3) an obligation of the United States or a commission, agency, or instrumentality thereof; an obligation that is guaranteed fully as to principal and interest by the United States; or an obligation of a state or a governmental subdivision, agency, or instrumentality thereof;

(4) an investment security that is an obligation of the United States or a department, agency, or instrumentality thereof; an investment in an obligation that is guaranteed fully as to principal and interest by the United States; or an investment in an obligation of a State or a governmental subdivision, agency, or instrumentality thereof;

(5) the full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the commissioner that stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain funds up to the letter of credit amount within 7 days of presentation of the items required under subdivision (b)(3); and

(6) 100 percent of the surety bond provided for under § 23-55-204 that exceeds the average daily money transmission liability in this state.

(b) (1) The letter of credit shall: (A) be issued by a: (i) federally insured depository financial institution; (ii) foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or states; or (iii) foreign bank that is authorized under state law to maintain a branch in a state that: (a) bears an eligible rating or whose parent company bears an eligible rating; and (b) is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies; (B) be irrevocable, unconditional, and indicate that it is not subject to any condition or qualifications outside of the letter of credit; (C) not contain reference to any other agreements, documents, or entities, or otherwise provide for any security interest in the licensee; and (D) contain an issue date and expiration date, and expressly provide for automatic extension, without a written amendment, for an additional period of 1 year from the present or each future expiration date, unless the issuer of the letter of credit notifies the commissioner in writing by certified or registered mail or courier mail or other receipted means, at least 60 days before any expiration date, that the irrevocable letter of credit will not be extended. (2) (A) Upon any notice of expiration or nonextension of a letter of credit issued under subdivision (b)(1)(D), then the licensee shall be required to demonstrate to the satisfaction of the commissioner, 15 days before expiration, that the licensee maintains and will maintain permissible investments under § 23-55-701(a) upon the expiration of the letter of credit. (B) If the licensee is not able to do so, then the commissioner may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments under § 23-55-703(a) . (C) Any such draw shall be offset against the licensee's outstanding money transmission obligations. (D) The drawn funds shall be held in trust by the commissioner or the commissioner's designee, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations. (3) The letter of credit shall provide that the issuer of the letter of credit will honor, at sight, a presentation made by the beneficiary to the issuer of the following documents on or before the expiration date of the letter of credit: (A) the original letter of credit, including any amendments; and (B) a written statement from the beneficiary stating that any of the following events have occurred: (i) the filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. § 101 et seq., as it existed on January 1, 2023, for bankruptcy or reorganization; (ii) the filing of a petition by or against the licensee for receivership, or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization; (iii) the seizure of assets of a licensee by the commissioner under an emergency order issued according to applicable law on the basis of an action, violation, or condition that has caused or is likely to cause the insolvency of the licensee; or (iv) the beneficiary has received notice of expiration or nonextension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments under § 23-55-701(a) upon the expiration or nonextension of the letter of credit. (4) (A) The commissioner may designate an agent to serve on the commissioner's behalf as beneficiary to a letter of credit so long as the agent and letter of credit meet requirements established by the commissioner. (B) The commissioner's agent may serve as agent for multiple licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable amount for the purposes of this section are assigned to the commissioner. (5) The commissioner is authorized and encouraged to participate in multistate processes designed to facilitate the issuance and administration of letters of credit, including without limitation services provided by the Nationwide Multistate Licensing System and Registry.

(1) The letter of credit shall: (A) be issued by a: (i) federally insured depository financial institution; (ii) foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or states; or (iii) foreign bank that is authorized under state law to maintain a branch in a state that: (a) bears an eligible rating or whose parent company bears an eligible rating; and (b) is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies; (B) be irrevocable, unconditional, and indicate that it is not subject to any condition or qualifications outside of the letter of credit; (C) not contain reference to any other agreements, documents, or entities, or otherwise provide for any security interest in the licensee; and (D) contain an issue date and expiration date, and expressly provide for automatic extension, without a written amendment, for an additional period of 1 year from the present or each future expiration date, unless the issuer of the letter of credit notifies the commissioner in writing by certified or registered mail or courier mail or other receipted means, at least 60 days before any expiration date, that the irrevocable letter of credit will not be extended.

(A) be issued by a: (i) federally insured depository financial institution; (ii) foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or states; or (iii) foreign bank that is authorized under state law to maintain a branch in a state that: (a) bears an eligible rating or whose parent company bears an eligible rating; and (b) is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies;

(i) federally insured depository financial institution;

(ii) foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or states; or

(iii) foreign bank that is authorized under state law to maintain a branch in a state that: (a) bears an eligible rating or whose parent company bears an eligible rating; and (b) is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies;

(a) bears an eligible rating or whose parent company bears an eligible rating; and

(b) is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks, credit unions, and trust companies;

(B) be irrevocable, unconditional, and indicate that it is not subject to any condition or qualifications outside of the letter of credit;

(C) not contain reference to any other agreements, documents, or entities, or otherwise provide for any security interest in the licensee; and

(D) contain an issue date and expiration date, and expressly provide for automatic extension, without a written amendment, for an additional period of 1 year from the present or each future expiration date, unless the issuer of the letter of credit notifies the commissioner in writing by certified or registered mail or courier mail or other receipted means, at least 60 days before any expiration date, that the irrevocable letter of credit will not be extended.

(2) (A) Upon any notice of expiration or nonextension of a letter of credit issued under subdivision (b)(1)(D), then the licensee shall be required to demonstrate to the satisfaction of the commissioner, 15 days before expiration, that the licensee maintains and will maintain permissible investments under § 23-55-701(a) upon the expiration of the letter of credit. (B) If the licensee is not able to do so, then the commissioner may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments under § 23-55-703(a) . (C) Any such draw shall be offset against the licensee's outstanding money transmission obligations. (D) The drawn funds shall be held in trust by the commissioner or the commissioner's designee, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations.

(A) Upon any notice of expiration or nonextension of a letter of credit issued under subdivision (b)(1)(D), then the licensee shall be required to demonstrate to the satisfaction of the commissioner, 15 days before expiration, that the licensee maintains and will maintain permissible investments under § 23-55-701(a) upon the expiration of the letter of credit.

(B) If the licensee is not able to do so, then the commissioner may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments under § 23-55-703(a) .

(C) Any such draw shall be offset against the licensee's outstanding money transmission obligations.

(D) The drawn funds shall be held in trust by the commissioner or the commissioner's designee, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations.

(3) The letter of credit shall provide that the issuer of the letter of credit will honor, at sight, a presentation made by the beneficiary to the issuer of the following documents on or before the expiration date of the letter of credit: (A) the original letter of credit, including any amendments; and (B) a written statement from the beneficiary stating that any of the following events have occurred: (i) the filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. § 101 et seq., as it existed on January 1, 2023, for bankruptcy or reorganization; (ii) the filing of a petition by or against the licensee for receivership, or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization; (iii) the seizure of assets of a licensee by the commissioner under an emergency order issued according to applicable law on the basis of an action, violation, or condition that has caused or is likely to cause the insolvency of the licensee; or (iv) the beneficiary has received notice of expiration or nonextension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments under § 23-55-701(a) upon the expiration or nonextension of the letter of credit.

(A) the original letter of credit, including any amendments; and

(B) a written statement from the beneficiary stating that any of the following events have occurred: (i) the filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. § 101 et seq., as it existed on January 1, 2023, for bankruptcy or reorganization; (ii) the filing of a petition by or against the licensee for receivership, or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization; (iii) the seizure of assets of a licensee by the commissioner under an emergency order issued according to applicable law on the basis of an action, violation, or condition that has caused or is likely to cause the insolvency of the licensee; or (iv) the beneficiary has received notice of expiration or nonextension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments under § 23-55-701(a) upon the expiration or nonextension of the letter of credit.

(i) the filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. § 101 et seq., as it existed on January 1, 2023, for bankruptcy or reorganization;

(ii) the filing of a petition by or against the licensee for receivership, or the commencement of any other judicial or administrative proceeding for its dissolution or reorganization;

(iii) the seizure of assets of a licensee by the commissioner under an emergency order issued according to applicable law on the basis of an action, violation, or condition that has caused or is likely to cause the insolvency of the licensee; or

(iv) the beneficiary has received notice of expiration or nonextension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments under § 23-55-701(a) upon the expiration or nonextension of the letter of credit.

(4) (A) The commissioner may designate an agent to serve on the commissioner's behalf as beneficiary to a letter of credit so long as the agent and letter of credit meet requirements established by the commissioner. (B) The commissioner's agent may serve as agent for multiple licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable amount for the purposes of this section are assigned to the commissioner.

(A) The commissioner may designate an agent to serve on the commissioner's behalf as beneficiary to a letter of credit so long as the agent and letter of credit meet requirements established by the commissioner.

(B) The commissioner's agent may serve as agent for multiple licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable amount for the purposes of this section are assigned to the commissioner.

(5) The commissioner is authorized and encouraged to participate in multistate processes designed to facilitate the issuance and administration of letters of credit, including without limitation services provided by the Nationwide Multistate Licensing System and Registry.

(c) Unless permitted by the commissioner by rule or by order to exceed the limit as stated, the following investments are permissible under § 23-55-701 to the extent specified: (1) receivables that are payable to a licensee from its authorized delegates in the ordinary course of business that are less than 7 days old, up to 50 percent of the aggregate value of the licensee's total permissible investments; (2) of the receivables permissible under subdivision (c)(1), receivables that are payable to a licensee from a single authorized delegate in the ordinary course of business may not exceed 10 percent of the aggregate value of the licensee's total permissible investments; (3) the following investments are permissible up to 20 percent per category and combined up to 50 percent of the aggregate value of the licensee's total permissible investments: (A) a short-term investment, up to 6 months, bearing an eligible rating; (B) commercial paper bearing an eligible rating; (C) a bill, note, bond, or debenture bearing an eligible rating; (D) United States tri-party repurchase agreements collateralized at 100 percent or more with United States Government or agency securities, municipal bonds, or other securities bearing an eligible rating; (E) money market mutual funds rated less than "AAA" and equal to or higher than "A-" by S & P Global Ratings, or the equivalent from any other eligible rating service; and (F) a mutual fund or other investment fund composed solely and exclusively of one or more permissible investments listed in subdivisions (a)(1)-(3); and (4) cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers, at foreign depository institutions are permissible up to 10 percent of the aggregate value of the licensee's total permissible investments if the licensee has received a satisfactory rating in its most recent examination and the foreign depository institution: (A) has an eligible rating; (B) is registered under the Foreign Account Tax Compliance Act, Pub. L. No. 111-147; (C) is not located in any country subject to sanctions from the Office of Foreign Assets Control; and (D) is not located in a high-risk or noncooperative jurisdiction as designated by the international Financial Action Task Force.

(1) receivables that are payable to a licensee from its authorized delegates in the ordinary course of business that are less than 7 days old, up to 50 percent of the aggregate value of the licensee's total permissible investments;

(2) of the receivables permissible under subdivision (c)(1), receivables that are payable to a licensee from a single authorized delegate in the ordinary course of business may not exceed 10 percent of the aggregate value of the licensee's total permissible investments;

(3) the following investments are permissible up to 20 percent per category and combined up to 50 percent of the aggregate value of the licensee's total permissible investments: (A) a short-term investment, up to 6 months, bearing an eligible rating; (B) commercial paper bearing an eligible rating; (C) a bill, note, bond, or debenture bearing an eligible rating; (D) United States tri-party repurchase agreements collateralized at 100 percent or more with United States Government or agency securities, municipal bonds, or other securities bearing an eligible rating; (E) money market mutual funds rated less than "AAA" and equal to or higher than "A-" by S & P Global Ratings, or the equivalent from any other eligible rating service; and (F) a mutual fund or other investment fund composed solely and exclusively of one or more permissible investments listed in subdivisions (a)(1)-(3); and

(A) a short-term investment, up to 6 months, bearing an eligible rating;

(B) commercial paper bearing an eligible rating;

(C) a bill, note, bond, or debenture bearing an eligible rating;

(D) United States tri-party repurchase agreements collateralized at 100 percent or more with United States Government or agency securities, municipal bonds, or other securities bearing an eligible rating;

(E) money market mutual funds rated less than "AAA" and equal to or higher than "A-" by S & P Global Ratings, or the equivalent from any other eligible rating service; and

(F) a mutual fund or other investment fund composed solely and exclusively of one or more permissible investments listed in subdivisions (a)(1)-(3); and

(4) cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers, at foreign depository institutions are permissible up to 10 percent of the aggregate value of the licensee's total permissible investments if the licensee has received a satisfactory rating in its most recent examination and the foreign depository institution: (A) has an eligible rating; (B) is registered under the Foreign Account Tax Compliance Act, Pub. L. No. 111-147; (C) is not located in any country subject to sanctions from the Office of Foreign Assets Control; and (D) is not located in a high-risk or noncooperative jurisdiction as designated by the international Financial Action Task Force.

(A) has an eligible rating;

(B) is registered under the Foreign Account Tax Compliance Act, Pub. L. No. 111-147;

(C) is not located in any country subject to sanctions from the Office of Foreign Assets Control; and

(D) is not located in a high-risk or noncooperative jurisdiction as designated by the international Financial Action Task Force.

(d) A savings deposit, a demand deposit, or a certificate of deposit at a foreign depository is permissible under § 23-55-701 if the investment does not exceed 10 percent.

(e) Any other investment is permissible under § 23-55-701 if the commissioner designates, to the extent specified by the commissioner.

(f) The aggregate of investments under subsections (b)-(e) may not exceed 50 percent of the total permissible investments of a licensee calculated in accordance with § 23-55-701 .

Amended by Act 2023, No. 442,§ 11, eff. 8/1/2023.

Amended by Act 2021, No. 532,§ 22, eff. 7/28/2021.

Acts 2007, No. 1595, § 1.
Ark. Code Ann. § 23-51-173 — AR Code / Title 23 / Chapter 51 / Section 23-51-173
Trust office
Status: in_force

(a) A state trust institution may establish or acquire and maintain trust offices anywhere in this state. A state trust institution desiring to establish or acquire and maintain such an office shall file a written notice with the Bank Commissioner setting forth the name of the state trust institution, the location of the proposed additional trust office and a general description of the surrounding area, whether the location will be owned or leased, furnish a copy of the resolution adopted by the board authorizing the additional trust office, general description of the activities to be conducted, an estimate of the cost of the trust office and pay the filing fee, if any, prescribed by the commissioner. (b) The notificant may commence business at the additional trust office thirty (30) days after the date the commissioner receives the notice, unless the commissioner specifies another date. (c) The thirty-day period of review may be extended by the commissioner on a determination that the written notice raises issues that require additional information or additional time for analysis. If the period of review is extended, the state trust institution may establish the additional office only on prior written approval by the commissioner. (d) The commissioner may deny approval of the additional office if the commissioner finds that the notificant lacks sufficient financial resources to undertake the proposed expansion without adversely affecting its safety or soundness or that the proposed office would be contrary to the public interest. Acts 1997, No. 940, § 73.

(a) A state trust institution may establish or acquire and maintain trust offices anywhere in this state. A state trust institution desiring to establish or acquire and maintain such an office shall file a written notice with the Bank Commissioner setting forth the name of the state trust institution, the location of the proposed additional trust office and a general description of the surrounding area, whether the location will be owned or leased, furnish a copy of the resolution adopted by the board authorizing the additional trust office, general description of the activities to be conducted, an estimate of the cost of the trust office and pay the filing fee, if any, prescribed by the commissioner.

(b) The notificant may commence business at the additional trust office thirty (30) days after the date the commissioner receives the notice, unless the commissioner specifies another date.

(c) The thirty-day period of review may be extended by the commissioner on a determination that the written notice raises issues that require additional information or additional time for analysis. If the period of review is extended, the state trust institution may establish the additional office only on prior written approval by the commissioner.

(d) The commissioner may deny approval of the additional office if the commissioner finds that the notificant lacks sufficient financial resources to undertake the proposed expansion without adversely affecting its safety or soundness or that the proposed office would be contrary to the public interest.

Acts 1997, No. 940, § 73.
Ark. Code Ann. § 23-55-611 — AR Code / Title 23 / Chapter 55 / Section 23-55-611
Refunds
Status: in_force

(a) This section does not apply to: (1) money received for transmission subject to the federal remittance transfer definitions, 12 C.F.R. Part 1005.30, as it existed on January 1, 2023; or (2) money received for transmission under a written agreement between the licensee and payee to process payments for goods or services provided by the payee. (b) Every licensee shall refund all money received for transmission to the sender within 10 days of receipt of the sender's written request for a refund of all money received for transmission unless any of the following occurs: (1) the money has been forwarded within 10 days of the date that the money was received for transmission; (2) instructions have been given committing an equivalent amount of money to the person designated by the sender within 10 days of the date that the money was received for transmission; (3) (A) the agreement between the licensee and the sender instructs the licensee to forward the money at a time that is beyond 10 days of the date that the money was received for transmission. (B) If funds have not yet been forwarded according to the terms of the agreement between the licensee and the sender, then the licensee shall issue a refund under this section; (4) the refund is requested for a transaction that the licensee has not completed based on a reasonable belief or a reasonable basis to believe that a crime or violation of law, rule, or regulation has occurred, is occurring, or may occur; or (5) the refund request does not enable the licensee to: (A) identify the sender's name and address or telephone number; or (B) identify the particular transaction to be refunded in the event the sender has multiple transactions outstanding. Added by Act 2023, No. 442,§ 9, eff. 8/1/2023.

(a) This section does not apply to: (1) money received for transmission subject to the federal remittance transfer definitions, 12 C.F.R. Part 1005.30, as it existed on January 1, 2023; or (2) money received for transmission under a written agreement between the licensee and payee to process payments for goods or services provided by the payee.

(1) money received for transmission subject to the federal remittance transfer definitions, 12 C.F.R. Part 1005.30, as it existed on January 1, 2023; or

(2) money received for transmission under a written agreement between the licensee and payee to process payments for goods or services provided by the payee.

(b) Every licensee shall refund all money received for transmission to the sender within 10 days of receipt of the sender's written request for a refund of all money received for transmission unless any of the following occurs: (1) the money has been forwarded within 10 days of the date that the money was received for transmission; (2) instructions have been given committing an equivalent amount of money to the person designated by the sender within 10 days of the date that the money was received for transmission; (3) (A) the agreement between the licensee and the sender instructs the licensee to forward the money at a time that is beyond 10 days of the date that the money was received for transmission. (B) If funds have not yet been forwarded according to the terms of the agreement between the licensee and the sender, then the licensee shall issue a refund under this section; (4) the refund is requested for a transaction that the licensee has not completed based on a reasonable belief or a reasonable basis to believe that a crime or violation of law, rule, or regulation has occurred, is occurring, or may occur; or (5) the refund request does not enable the licensee to: (A) identify the sender's name and address or telephone number; or (B) identify the particular transaction to be refunded in the event the sender has multiple transactions outstanding.

(1) the money has been forwarded within 10 days of the date that the money was received for transmission;

(2) instructions have been given committing an equivalent amount of money to the person designated by the sender within 10 days of the date that the money was received for transmission;

(3) (A) the agreement between the licensee and the sender instructs the licensee to forward the money at a time that is beyond 10 days of the date that the money was received for transmission. (B) If funds have not yet been forwarded according to the terms of the agreement between the licensee and the sender, then the licensee shall issue a refund under this section;

(A) the agreement between the licensee and the sender instructs the licensee to forward the money at a time that is beyond 10 days of the date that the money was received for transmission.

(B) If funds have not yet been forwarded according to the terms of the agreement between the licensee and the sender, then the licensee shall issue a refund under this section;

(4) the refund is requested for a transaction that the licensee has not completed based on a reasonable belief or a reasonable basis to believe that a crime or violation of law, rule, or regulation has occurred, is occurring, or may occur; or

(5) the refund request does not enable the licensee to: (A) identify the sender's name and address or telephone number; or (B) identify the particular transaction to be refunded in the event the sender has multiple transactions outstanding.

(A) identify the sender's name and address or telephone number; or

(B) identify the particular transaction to be refunded in the event the sender has multiple transactions outstanding.

Added by Act 2023, No. 442,§ 9, eff. 8/1/2023.
Ark. Code Ann. § 23-74-203 — AR Code / Title 23 / Chapter 74 / Subchapter 2 / Section 23-74-203
No personal liability
Status: in_force

(a) The officers and members of the supreme governing body or any subordinate body of a society shall not be personally liable for any benefits provided by a society. (b) (1) Any person may be indemnified and reimbursed by any society for expenses reasonably incurred by, and liabilities imposed upon, the person in connection with or arising out of any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, or threat thereof, in which the person may be involved by reason of the fact that he or she is or was a director, officer, employee, or agent of the society or of any firm, corporation, or organization which he or she served in any capacity at the request of the society. (2) A person shall not be so indemnified or reimbursed: (A) In relation to any matter in such action, suit, or proceeding as to which he or she shall finally be adjudged to be or have been guilty of breach of a duty as a director, officer, employee, or agent of the society; or (B) In relation to any matter in such an action, suit, or proceeding, or threat thereof, which has been made the subject of a compromise settlement, unless in either such case the person acted in good faith for a purpose the person reasonably believed to be in or not opposed to the best interests of the society and, in a criminal action or proceeding, in addition, had no reasonable cause to believe that his or her conduct was unlawful. (3) (A) The determination whether the conduct of such a person met the standard required in order to justify indemnification and reimbursement in relation to any matter described in subdivision (b)(2) of this section may be made only by the supreme governing body or board of directors by a majority vote of a quorum consisting of persons who were not parties to the action, suit, or proceeding or by a court of competent jurisdiction. (B) The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of no contest, as to such a person shall not in itself create a conclusive presumption that the person did not meet the standard of conduct required in order to justify indemnification and reimbursement. (C) The right of indemnification and reimbursement provided in this subsection shall not be exclusive of other rights to which such a person may be entitled as a matter of law and shall inure to the benefit of his or her heirs, executors, and administrators. (c) A society 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 society, or who is or was serving at the request of the society as a director, officer, employee, or agent of any other firm, corporation, or organization against any liability asserted against such a person and incurred by him or her in any such capacity or arising out of his or her status as such, whether or not the society would have the power to indemnify the person against such liability under this section. Acts 1989, No. 881, § 1.

(a) The officers and members of the supreme governing body or any subordinate body of a society shall not be personally liable for any benefits provided by a society.

(b) (1) Any person may be indemnified and reimbursed by any society for expenses reasonably incurred by, and liabilities imposed upon, the person in connection with or arising out of any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, or threat thereof, in which the person may be involved by reason of the fact that he or she is or was a director, officer, employee, or agent of the society or of any firm, corporation, or organization which he or she served in any capacity at the request of the society. (2) A person shall not be so indemnified or reimbursed: (A) In relation to any matter in such action, suit, or proceeding as to which he or she shall finally be adjudged to be or have been guilty of breach of a duty as a director, officer, employee, or agent of the society; or (B) In relation to any matter in such an action, suit, or proceeding, or threat thereof, which has been made the subject of a compromise settlement, unless in either such case the person acted in good faith for a purpose the person reasonably believed to be in or not opposed to the best interests of the society and, in a criminal action or proceeding, in addition, had no reasonable cause to believe that his or her conduct was unlawful. (3) (A) The determination whether the conduct of such a person met the standard required in order to justify indemnification and reimbursement in relation to any matter described in subdivision (b)(2) of this section may be made only by the supreme governing body or board of directors by a majority vote of a quorum consisting of persons who were not parties to the action, suit, or proceeding or by a court of competent jurisdiction. (B) The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of no contest, as to such a person shall not in itself create a conclusive presumption that the person did not meet the standard of conduct required in order to justify indemnification and reimbursement. (C) The right of indemnification and reimbursement provided in this subsection shall not be exclusive of other rights to which such a person may be entitled as a matter of law and shall inure to the benefit of his or her heirs, executors, and administrators.

(1) Any person may be indemnified and reimbursed by any society for expenses reasonably incurred by, and liabilities imposed upon, the person in connection with or arising out of any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, or threat thereof, in which the person may be involved by reason of the fact that he or she is or was a director, officer, employee, or agent of the society or of any firm, corporation, or organization which he or she served in any capacity at the request of the society.

(2) A person shall not be so indemnified or reimbursed: (A) In relation to any matter in such action, suit, or proceeding as to which he or she shall finally be adjudged to be or have been guilty of breach of a duty as a director, officer, employee, or agent of the society; or (B) In relation to any matter in such an action, suit, or proceeding, or threat thereof, which has been made the subject of a compromise settlement, unless in either such case the person acted in good faith for a purpose the person reasonably believed to be in or not opposed to the best interests of the society and, in a criminal action or proceeding, in addition, had no reasonable cause to believe that his or her conduct was unlawful.

(A) In relation to any matter in such action, suit, or proceeding as to which he or she shall finally be adjudged to be or have been guilty of breach of a duty as a director, officer, employee, or agent of the society; or

(B) In relation to any matter in such an action, suit, or proceeding, or threat thereof, which has been made the subject of a compromise settlement, unless in either such case the person acted in good faith for a purpose the person reasonably believed to be in or not opposed to the best interests of the society and, in a criminal action or proceeding, in addition, had no reasonable cause to believe that his or her conduct was unlawful.

(3) (A) The determination whether the conduct of such a person met the standard required in order to justify indemnification and reimbursement in relation to any matter described in subdivision (b)(2) of this section may be made only by the supreme governing body or board of directors by a majority vote of a quorum consisting of persons who were not parties to the action, suit, or proceeding or by a court of competent jurisdiction. (B) The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of no contest, as to such a person shall not in itself create a conclusive presumption that the person did not meet the standard of conduct required in order to justify indemnification and reimbursement. (C) The right of indemnification and reimbursement provided in this subsection shall not be exclusive of other rights to which such a person may be entitled as a matter of law and shall inure to the benefit of his or her heirs, executors, and administrators.

(A) The determination whether the conduct of such a person met the standard required in order to justify indemnification and reimbursement in relation to any matter described in subdivision (b)(2) of this section may be made only by the supreme governing body or board of directors by a majority vote of a quorum consisting of persons who were not parties to the action, suit, or proceeding or by a court of competent jurisdiction.

(B) The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of no contest, as to such a person shall not in itself create a conclusive presumption that the person did not meet the standard of conduct required in order to justify indemnification and reimbursement.

(C) The right of indemnification and reimbursement provided in this subsection shall not be exclusive of other rights to which such a person may be entitled as a matter of law and shall inure to the benefit of his or her heirs, executors, and administrators.

(c) A society 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 society, or who is or was serving at the request of the society as a director, officer, employee, or agent of any other firm, corporation, or organization against any liability asserted against such a person and incurred by him or her in any such capacity or arising out of his or her status as such, whether or not the society would have the power to indemnify the person against such liability under this section.

Acts 1989, No. 881, § 1.
Ark. Code Ann. § 23-91-224 — AR Code / Title 23 / Chapter 91 / Subchapter 2 / Section 23-91-224
[Repealed]
Status: repealed

Repealed by Act 2023, No. 32,§ 1, eff. 8/1/2023. Amended by Act 2019, No. 315,§ 2771, eff. 7/24/2019. Acts 1977, No. 368, § 17; A.S.A. 1947, § 66-5417.

Repealed by Act 2023, No. 32,§ 1, eff. 8/1/2023.

Amended by Act 2019, No. 315,§ 2771, eff. 7/24/2019.

Acts 1977, No. 368, § 17; A.S.A. 1947, § 66-5417.
Ark. Code Ann. § 23-46-210 — AR Code / Title 23 / Chapter 46 / Subchapter 2 / Section 23-46-210
Annual and biennial reports of Bank Commissioner
Status: in_force

(a) The Bank Commissioner shall make an annual report to the Secretary of the Department of Commerce of the work and the business of the State Bank Department, which shall embrace a statement of all receipts and expenditures and the name, officers, directors, domicile, capital, surplus, net profits, and deposits of each state bank, in the state, and such other information as the commissioner deems advisable. (b) The commissioner shall also, biennially, make a detailed estimate of the expenses of the State Bank Department for the two (2) succeeding fiscal years. Amended by Act 2019, No. 910,§ 586, eff. 7/1/2019. Acts 1997, No. 89, § 1.

(a) The Bank Commissioner shall make an annual report to the Secretary of the Department of Commerce of the work and the business of the State Bank Department, which shall embrace a statement of all receipts and expenditures and the name, officers, directors, domicile, capital, surplus, net profits, and deposits of each state bank, in the state, and such other information as the commissioner deems advisable.

(b) The commissioner shall also, biennially, make a detailed estimate of the expenses of the State Bank Department for the two (2) succeeding fiscal years.

Amended by Act 2019, No. 910,§ 586, eff. 7/1/2019.

Acts 1997, No. 89, § 1.
Ark. Code Ann. § 23-35-611 — AR Code / Title 23 / Chapter 35 / Subchapter 6 / Section 23-35-611
Records
Status: in_force

(a) All credit union records shall be kept for a period of five (5) years from the date of making them or from the date of the last entry thereon. (b) No credit union shall be required to make receipt for payment except as may be provided in the bylaws, nor shall it be necessary to endorse a note showing date of payments or balance due. Acts 1971, No. 132, § 32; A.S.A. 1947, § 67-932.

(a) All credit union records shall be kept for a period of five (5) years from the date of making them or from the date of the last entry thereon.

(b) No credit union shall be required to make receipt for payment except as may be provided in the bylaws, nor shall it be necessary to endorse a note showing date of payments or balance due.

Acts 1971, No. 132, § 32; A.S.A. 1947, § 67-932.
Ark. Code Ann. § 23-69-312 — AR Code / Title 23 / Chapter 69 / Subchapter 3 / Section 23-69-312
Abandonment of reorganization plan
Status: in_force

By not less than a two-thirds (2/3) vote of the members of its board of directors and with the approval of the Insurance Commissioner, a mutual insurer may abandon a plan of reorganization at any time before the issuance of the certificate of authority by the commissioner. Upon such abandonment, all rights and obligations arising out of the plan of reorganization shall terminate, and the mutual insurer shall continue to conduct its business as a domestic mutual insurer as though no plan of reorganization had ever been adopted. Acts 2001, No. 1726, § 1.

By not less than a two-thirds (2/3) vote of the members of its board of directors and with the approval of the Insurance Commissioner, a mutual insurer may abandon a plan of reorganization at any time before the issuance of the certificate of authority by the commissioner. Upon such abandonment, all rights and obligations arising out of the plan of reorganization shall terminate, and the mutual insurer shall continue to conduct its business as a domestic mutual insurer as though no plan of reorganization had ever been adopted.

Acts 2001, No. 1726, § 1.