Ark. Code Ann. § 23-13-709 — AR Code / Title 23 / Chapter 13 / Subchapter 7 / Section 23-13-709
Insurance requirements
Status: in_force

(a) (1) On and after July 22, 2015, a transportation network company driver or a transportation network company on the driver's behalf shall maintain primary automobile insurance that: (A) Recognizes that the driver is a transportation network company driver and covers the driver while the driver is logged on to the transportation network company's digital network while the driver is engaged in a prearranged ride or while the driver otherwise uses a vehicle to provide transportation network services; (B) (i) Provides primary automobile liability insurance in the amount of at least fifty thousand dollars ($50,000) for death and bodily injury per person, one hundred thousand dollars ($100,000) for death and bodily injury per incident, and twenty-five thousand dollars ($25,000) for property damage while a participating transportation network company driver is logged on to the transportation network company's digital network and is available to receive transportation requests but is not engaged in a prearranged ride. (ii) The coverage requirements described in subdivision (a)(1)(B)(i) of this section may be satisfied by any combination of: (a) Automobile insurance maintained by the transportation network company driver; or (b) Automobile insurance maintained by the transportation network company; (C) (i) Provides primary automobile liability insurance coverage of at least one million dollars ($1,000,000) for death, bodily injury, and property damage while a transportation network company driver is engaged in a prearranged ride. (ii) The coverage requirements described in subdivision (a)(1)(C)(i) of this section may be satisfied by any combination of: (a) Automobile insurance maintained by the transportation network company driver; or (b) Automobile insurance maintained by the transportation network company. (2) If insurance maintained by a driver under subdivision (a)(1)(B) or subdivision (a)(1)(C) of this section has lapsed or does not provide the required coverage, the insurance maintained by a transportation network company shall provide the coverage required under this subsection beginning with the first dollar of a claim, and the insurer has the duty to defend the claim. (3) Coverage under an automobile insurance policy maintained by the transportation network company shall not be dependent on a personal automobile insurer's first denial of a claim, nor shall a personal automobile insurance policy be required to first deny a claim. (4) Insurance required under this subsection may be placed with an insurer authorized to do business in this state or with a surplus-lines insurer eligible under § 23-65-305 . (5) Insurance that satisfies the requirements of this subsection shall be deemed to satisfy the financial responsibility requirement for a motor vehicle under § 27-22-101 et seq. and the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq. (6) (A) A transportation network company driver shall carry proof of coverage satisfying subdivision (a)(1)(B) or subdivision (a)(1)(C) of this section with him or her during his or her use of a motor vehicle in connection with a transportation network company's digital network. (B) In the event of an accident, a transportation network company driver shall provide insurance coverage information required under subdivision (a)(6)(A) of this section to the directly interested parties, automobile insurers, and investigating police officers upon request under the Arkansas Voluntary Enhanced Security Driver's License and Identification Card Act, § 27-16-1201 et seq. (C) Upon a request under subdivision (a)(6)(B) of this section, a transportation network company driver shall also disclose to directly interested parties, automobile insurers, and investigating police officers whether he or she was logged on to the transportation network company's digital network or was on a prearranged ride at the time of the accident. (b) A transportation network company shall disclose in writing to transportation network company drivers the following before they are allowed to accept a request for a prearranged ride on the transportation network company's digital network: (1) The insurance coverage, including the types of coverage and the limits for each coverage, that the transportation network company provides while the transportation network company driver uses a personal vehicle in connection with a transportation network company's digital network; and (2) That the transportation network company driver's own automobile insurance policy might not provide any coverage while the transportation network company driver is logged on to the transportation network company's digital network and is available to receive prearranged ride requests or is engaged in a prearranged ride, depending on the terms of the insurance policy. (c) (1) Insurers that write automobile insurance in this state may exclude any and all coverage afforded under the owner's insurance policy for any loss or injury that occurs while a transportation network company driver is logged on to a transportation network company's digital network or while a transportation network company driver provides a prearranged ride. (2) The right to exclude all coverage under subdivision (c)(1) of this section may apply to any coverage included in an automobile insurance policy, including without limitation: (A) Liability coverage for bodily injury and property damage; (B) Personal injury protection coverage as described in § 23-89-202 ; (C) Uninsured and underinsured motorist coverage; (D) Medical payments coverage; (E) Comprehensive physical damage coverage; and (F) Collision physical damage coverage. (3) An exclusion permitted under subdivision (c)(2) of this section shall apply notwithstanding any requirement under § 27-22-101 et seq. and the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq. (4) An automobile insurer that excludes the coverage described in subsection (a) of this section shall have no duty to defend or indemnify any claim expressly excluded thereunder. (5) Nothing in this subchapter shall be deemed to invalidate or limit an exclusion contained in a policy, including any policy in use or approved for use in Arkansas prior to the enactment of this subchapter, that excludes coverage for vehicles used to carry persons or property for a charge or available for hire by the public. (6) This section does not imply or require that a personal automobile insurance policy provide coverage while a transportation network company driver is logged on to the transportation network company's digital network, while the transportation network company driver is engaged in a prearranged ride, or while the transportation network company driver otherwise uses a motor vehicle to provide transportation network services. (7) This section does not preclude an insurer from providing coverage for the transportation network company driver's motor vehicle, if it so chose to do so by contract or endorsement. (8) (A) An automobile insurer that excludes the coverage described in subdivision (c)(2) of this section shall have no duty to defend or indemnify any claim expressly excluded thereunder. (B) This section does not invalidate or limit an exclusion contained in an insurance policy, including any policy in use or approved for use in this state before July 22, 2015, that excludes coverage for a vehicle used to carry a person or property for a charge or available for hire by the public. (9) An automobile insurer that defends or indemnifies a claim against a transportation network company driver that is excluded under the terms of its policy shall have a right of contribution against other insurers that provide automobile insurance to the same transportation network company driver in satisfaction of the coverage requirements of subsection (a) of this section at the time of loss. (d) In a claims coverage investigation, a transportation network company and any insurer potentially providing coverage under subsection (a) of this section shall cooperate to facilitate the exchange of relevant information with directly involved parties and any insurer of the transportation network company driver, if applicable, including the precise times that a transportation network company driver logged on and off of the transportation network company's digital network in the twelve-hour period immediately preceding and in the twelve-hour period immediately following the accident and disclose to each other a clear description of the coverage, exclusions, and limits provided under any automobile insurance policy maintained under subsection (a) of this section. Amended by Act 2015, No. 1267,§ 2, eff. 7/22/2015. Added by Act 2015, No. 1050,§ 1, eff. 7/22/2015.

(a) (1) On and after July 22, 2015, a transportation network company driver or a transportation network company on the driver's behalf shall maintain primary automobile insurance that: (A) Recognizes that the driver is a transportation network company driver and covers the driver while the driver is logged on to the transportation network company's digital network while the driver is engaged in a prearranged ride or while the driver otherwise uses a vehicle to provide transportation network services; (B) (i) Provides primary automobile liability insurance in the amount of at least fifty thousand dollars ($50,000) for death and bodily injury per person, one hundred thousand dollars ($100,000) for death and bodily injury per incident, and twenty-five thousand dollars ($25,000) for property damage while a participating transportation network company driver is logged on to the transportation network company's digital network and is available to receive transportation requests but is not engaged in a prearranged ride. (ii) The coverage requirements described in subdivision (a)(1)(B)(i) of this section may be satisfied by any combination of: (a) Automobile insurance maintained by the transportation network company driver; or (b) Automobile insurance maintained by the transportation network company; (C) (i) Provides primary automobile liability insurance coverage of at least one million dollars ($1,000,000) for death, bodily injury, and property damage while a transportation network company driver is engaged in a prearranged ride. (ii) The coverage requirements described in subdivision (a)(1)(C)(i) of this section may be satisfied by any combination of: (a) Automobile insurance maintained by the transportation network company driver; or (b) Automobile insurance maintained by the transportation network company. (2) If insurance maintained by a driver under subdivision (a)(1)(B) or subdivision (a)(1)(C) of this section has lapsed or does not provide the required coverage, the insurance maintained by a transportation network company shall provide the coverage required under this subsection beginning with the first dollar of a claim, and the insurer has the duty to defend the claim. (3) Coverage under an automobile insurance policy maintained by the transportation network company shall not be dependent on a personal automobile insurer's first denial of a claim, nor shall a personal automobile insurance policy be required to first deny a claim. (4) Insurance required under this subsection may be placed with an insurer authorized to do business in this state or with a surplus-lines insurer eligible under § 23-65-305 . (5) Insurance that satisfies the requirements of this subsection shall be deemed to satisfy the financial responsibility requirement for a motor vehicle under § 27-22-101 et seq. and the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq. (6) (A) A transportation network company driver shall carry proof of coverage satisfying subdivision (a)(1)(B) or subdivision (a)(1)(C) of this section with him or her during his or her use of a motor vehicle in connection with a transportation network company's digital network. (B) In the event of an accident, a transportation network company driver shall provide insurance coverage information required under subdivision (a)(6)(A) of this section to the directly interested parties, automobile insurers, and investigating police officers upon request under the Arkansas Voluntary Enhanced Security Driver's License and Identification Card Act, § 27-16-1201 et seq. (C) Upon a request under subdivision (a)(6)(B) of this section, a transportation network company driver shall also disclose to directly interested parties, automobile insurers, and investigating police officers whether he or she was logged on to the transportation network company's digital network or was on a prearranged ride at the time of the accident.

(1) On and after July 22, 2015, a transportation network company driver or a transportation network company on the driver's behalf shall maintain primary automobile insurance that: (A) Recognizes that the driver is a transportation network company driver and covers the driver while the driver is logged on to the transportation network company's digital network while the driver is engaged in a prearranged ride or while the driver otherwise uses a vehicle to provide transportation network services; (B) (i) Provides primary automobile liability insurance in the amount of at least fifty thousand dollars ($50,000) for death and bodily injury per person, one hundred thousand dollars ($100,000) for death and bodily injury per incident, and twenty-five thousand dollars ($25,000) for property damage while a participating transportation network company driver is logged on to the transportation network company's digital network and is available to receive transportation requests but is not engaged in a prearranged ride. (ii) The coverage requirements described in subdivision (a)(1)(B)(i) of this section may be satisfied by any combination of: (a) Automobile insurance maintained by the transportation network company driver; or (b) Automobile insurance maintained by the transportation network company; (C) (i) Provides primary automobile liability insurance coverage of at least one million dollars ($1,000,000) for death, bodily injury, and property damage while a transportation network company driver is engaged in a prearranged ride. (ii) The coverage requirements described in subdivision (a)(1)(C)(i) of this section may be satisfied by any combination of: (a) Automobile insurance maintained by the transportation network company driver; or (b) Automobile insurance maintained by the transportation network company.

(A) Recognizes that the driver is a transportation network company driver and covers the driver while the driver is logged on to the transportation network company's digital network while the driver is engaged in a prearranged ride or while the driver otherwise uses a vehicle to provide transportation network services;

(B) (i) Provides primary automobile liability insurance in the amount of at least fifty thousand dollars ($50,000) for death and bodily injury per person, one hundred thousand dollars ($100,000) for death and bodily injury per incident, and twenty-five thousand dollars ($25,000) for property damage while a participating transportation network company driver is logged on to the transportation network company's digital network and is available to receive transportation requests but is not engaged in a prearranged ride. (ii) The coverage requirements described in subdivision (a)(1)(B)(i) of this section may be satisfied by any combination of: (a) Automobile insurance maintained by the transportation network company driver; or (b) Automobile insurance maintained by the transportation network company;

(i) Provides primary automobile liability insurance in the amount of at least fifty thousand dollars ($50,000) for death and bodily injury per person, one hundred thousand dollars ($100,000) for death and bodily injury per incident, and twenty-five thousand dollars ($25,000) for property damage while a participating transportation network company driver is logged on to the transportation network company's digital network and is available to receive transportation requests but is not engaged in a prearranged ride.

(ii) The coverage requirements described in subdivision (a)(1)(B)(i) of this section may be satisfied by any combination of: (a) Automobile insurance maintained by the transportation network company driver; or (b) Automobile insurance maintained by the transportation network company;

(a) Automobile insurance maintained by the transportation network company driver; or

(b) Automobile insurance maintained by the transportation network company;

(C) (i) Provides primary automobile liability insurance coverage of at least one million dollars ($1,000,000) for death, bodily injury, and property damage while a transportation network company driver is engaged in a prearranged ride. (ii) The coverage requirements described in subdivision (a)(1)(C)(i) of this section may be satisfied by any combination of: (a) Automobile insurance maintained by the transportation network company driver; or (b) Automobile insurance maintained by the transportation network company.

(i) Provides primary automobile liability insurance coverage of at least one million dollars ($1,000,000) for death, bodily injury, and property damage while a transportation network company driver is engaged in a prearranged ride.

(ii) The coverage requirements described in subdivision (a)(1)(C)(i) of this section may be satisfied by any combination of: (a) Automobile insurance maintained by the transportation network company driver; or (b) Automobile insurance maintained by the transportation network company.

(a) Automobile insurance maintained by the transportation network company driver; or

(b) Automobile insurance maintained by the transportation network company.

(2) If insurance maintained by a driver under subdivision (a)(1)(B) or subdivision (a)(1)(C) of this section has lapsed or does not provide the required coverage, the insurance maintained by a transportation network company shall provide the coverage required under this subsection beginning with the first dollar of a claim, and the insurer has the duty to defend the claim.

(3) Coverage under an automobile insurance policy maintained by the transportation network company shall not be dependent on a personal automobile insurer's first denial of a claim, nor shall a personal automobile insurance policy be required to first deny a claim.

(4) Insurance required under this subsection may be placed with an insurer authorized to do business in this state or with a surplus-lines insurer eligible under § 23-65-305 .

(5) Insurance that satisfies the requirements of this subsection shall be deemed to satisfy the financial responsibility requirement for a motor vehicle under § 27-22-101 et seq. and the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq.

(6) (A) A transportation network company driver shall carry proof of coverage satisfying subdivision (a)(1)(B) or subdivision (a)(1)(C) of this section with him or her during his or her use of a motor vehicle in connection with a transportation network company's digital network. (B) In the event of an accident, a transportation network company driver shall provide insurance coverage information required under subdivision (a)(6)(A) of this section to the directly interested parties, automobile insurers, and investigating police officers upon request under the Arkansas Voluntary Enhanced Security Driver's License and Identification Card Act, § 27-16-1201 et seq. (C) Upon a request under subdivision (a)(6)(B) of this section, a transportation network company driver shall also disclose to directly interested parties, automobile insurers, and investigating police officers whether he or she was logged on to the transportation network company's digital network or was on a prearranged ride at the time of the accident.

(A) A transportation network company driver shall carry proof of coverage satisfying subdivision (a)(1)(B) or subdivision (a)(1)(C) of this section with him or her during his or her use of a motor vehicle in connection with a transportation network company's digital network.

(B) In the event of an accident, a transportation network company driver shall provide insurance coverage information required under subdivision (a)(6)(A) of this section to the directly interested parties, automobile insurers, and investigating police officers upon request under the Arkansas Voluntary Enhanced Security Driver's License and Identification Card Act, § 27-16-1201 et seq.

(C) Upon a request under subdivision (a)(6)(B) of this section, a transportation network company driver shall also disclose to directly interested parties, automobile insurers, and investigating police officers whether he or she was logged on to the transportation network company's digital network or was on a prearranged ride at the time of the accident.

(b) A transportation network company shall disclose in writing to transportation network company drivers the following before they are allowed to accept a request for a prearranged ride on the transportation network company's digital network: (1) The insurance coverage, including the types of coverage and the limits for each coverage, that the transportation network company provides while the transportation network company driver uses a personal vehicle in connection with a transportation network company's digital network; and (2) That the transportation network company driver's own automobile insurance policy might not provide any coverage while the transportation network company driver is logged on to the transportation network company's digital network and is available to receive prearranged ride requests or is engaged in a prearranged ride, depending on the terms of the insurance policy.

(1) The insurance coverage, including the types of coverage and the limits for each coverage, that the transportation network company provides while the transportation network company driver uses a personal vehicle in connection with a transportation network company's digital network; and

(2) That the transportation network company driver's own automobile insurance policy might not provide any coverage while the transportation network company driver is logged on to the transportation network company's digital network and is available to receive prearranged ride requests or is engaged in a prearranged ride, depending on the terms of the insurance policy.

(c) (1) Insurers that write automobile insurance in this state may exclude any and all coverage afforded under the owner's insurance policy for any loss or injury that occurs while a transportation network company driver is logged on to a transportation network company's digital network or while a transportation network company driver provides a prearranged ride. (2) The right to exclude all coverage under subdivision (c)(1) of this section may apply to any coverage included in an automobile insurance policy, including without limitation: (A) Liability coverage for bodily injury and property damage; (B) Personal injury protection coverage as described in § 23-89-202 ; (C) Uninsured and underinsured motorist coverage; (D) Medical payments coverage; (E) Comprehensive physical damage coverage; and (F) Collision physical damage coverage. (3) An exclusion permitted under subdivision (c)(2) of this section shall apply notwithstanding any requirement under § 27-22-101 et seq. and the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq. (4) An automobile insurer that excludes the coverage described in subsection (a) of this section shall have no duty to defend or indemnify any claim expressly excluded thereunder. (5) Nothing in this subchapter shall be deemed to invalidate or limit an exclusion contained in a policy, including any policy in use or approved for use in Arkansas prior to the enactment of this subchapter, that excludes coverage for vehicles used to carry persons or property for a charge or available for hire by the public. (6) This section does not imply or require that a personal automobile insurance policy provide coverage while a transportation network company driver is logged on to the transportation network company's digital network, while the transportation network company driver is engaged in a prearranged ride, or while the transportation network company driver otherwise uses a motor vehicle to provide transportation network services. (7) This section does not preclude an insurer from providing coverage for the transportation network company driver's motor vehicle, if it so chose to do so by contract or endorsement. (8) (A) An automobile insurer that excludes the coverage described in subdivision (c)(2) of this section shall have no duty to defend or indemnify any claim expressly excluded thereunder. (B) This section does not invalidate or limit an exclusion contained in an insurance policy, including any policy in use or approved for use in this state before July 22, 2015, that excludes coverage for a vehicle used to carry a person or property for a charge or available for hire by the public. (9) An automobile insurer that defends or indemnifies a claim against a transportation network company driver that is excluded under the terms of its policy shall have a right of contribution against other insurers that provide automobile insurance to the same transportation network company driver in satisfaction of the coverage requirements of subsection (a) of this section at the time of loss.

(1) Insurers that write automobile insurance in this state may exclude any and all coverage afforded under the owner's insurance policy for any loss or injury that occurs while a transportation network company driver is logged on to a transportation network company's digital network or while a transportation network company driver provides a prearranged ride.

(2) The right to exclude all coverage under subdivision (c)(1) of this section may apply to any coverage included in an automobile insurance policy, including without limitation: (A) Liability coverage for bodily injury and property damage; (B) Personal injury protection coverage as described in § 23-89-202 ; (C) Uninsured and underinsured motorist coverage; (D) Medical payments coverage; (E) Comprehensive physical damage coverage; and (F) Collision physical damage coverage.

(A) Liability coverage for bodily injury and property damage;

(B) Personal injury protection coverage as described in § 23-89-202 ;

(C) Uninsured and underinsured motorist coverage;

(D) Medical payments coverage;

(E) Comprehensive physical damage coverage; and

(F) Collision physical damage coverage.

(3) An exclusion permitted under subdivision (c)(2) of this section shall apply notwithstanding any requirement under § 27-22-101 et seq. and the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq.

(4) An automobile insurer that excludes the coverage described in subsection (a) of this section shall have no duty to defend or indemnify any claim expressly excluded thereunder.

(5) Nothing in this subchapter shall be deemed to invalidate or limit an exclusion contained in a policy, including any policy in use or approved for use in Arkansas prior to the enactment of this subchapter, that excludes coverage for vehicles used to carry persons or property for a charge or available for hire by the public.

(6) This section does not imply or require that a personal automobile insurance policy provide coverage while a transportation network company driver is logged on to the transportation network company's digital network, while the transportation network company driver is engaged in a prearranged ride, or while the transportation network company driver otherwise uses a motor vehicle to provide transportation network services.

(7) This section does not preclude an insurer from providing coverage for the transportation network company driver's motor vehicle, if it so chose to do so by contract or endorsement.

(8) (A) An automobile insurer that excludes the coverage described in subdivision (c)(2) of this section shall have no duty to defend or indemnify any claim expressly excluded thereunder. (B) This section does not invalidate or limit an exclusion contained in an insurance policy, including any policy in use or approved for use in this state before July 22, 2015, that excludes coverage for a vehicle used to carry a person or property for a charge or available for hire by the public.

(A) An automobile insurer that excludes the coverage described in subdivision (c)(2) of this section shall have no duty to defend or indemnify any claim expressly excluded thereunder.

(B) This section does not invalidate or limit an exclusion contained in an insurance policy, including any policy in use or approved for use in this state before July 22, 2015, that excludes coverage for a vehicle used to carry a person or property for a charge or available for hire by the public.

(9) An automobile insurer that defends or indemnifies a claim against a transportation network company driver that is excluded under the terms of its policy shall have a right of contribution against other insurers that provide automobile insurance to the same transportation network company driver in satisfaction of the coverage requirements of subsection (a) of this section at the time of loss.

(d) In a claims coverage investigation, a transportation network company and any insurer potentially providing coverage under subsection (a) of this section shall cooperate to facilitate the exchange of relevant information with directly involved parties and any insurer of the transportation network company driver, if applicable, including the precise times that a transportation network company driver logged on and off of the transportation network company's digital network in the twelve-hour period immediately preceding and in the twelve-hour period immediately following the accident and disclose to each other a clear description of the coverage, exclusions, and limits provided under any automobile insurance policy maintained under subsection (a) of this section.

Amended by Act 2015, No. 1267,§ 2, eff. 7/22/2015.

Added by Act 2015, No. 1050,§ 1, eff. 7/22/2015.
Ark. Code Ann. § 23-65-305 — AR Code / Title 23 / Chapter 65 / Subchapter 3 / Section 23-65-305
Conditions of procurement
Status: in_force

(a) If certain insurance coverages cannot be procured from authorized insurers, coverage designated "surplus lines" may be procured from unauthorized insurers subject to the following conditions: (1) The insurance shall be procured through a licensed surplus lines broker; (2) If this state is the home state of the insured: (A) The full amount of insurance required shall not be procurable, after diligent effort has been made, from among authorized insurers who are actually marketing that kind or class of insurance in this state; and (B) The amount of insurance placed in an unauthorized insurer is only the balance over the amount procurable from authorized insurers; and (3) The soliciting agent or broker shall maintain written documentation of compliance with the requirements of this section. (b) Surplus lines insurance may be placed by a surplus lines broker if the nonadmitted insurer: (1) Is authorized to write the type of insurance in its domiciliary jurisdiction; and (2) Meets the following criteria: (A) The nonadmitted insurer has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction that equals the greater of: (i) The minimum capital and surplus requirements under the laws of this state; or (ii) Fifteen million dollars ($15,000,000); and (B) The nonadmitted insurer is a nonadmitted insurer domiciled outside the United States that is listed on the Quarterly Listing of Alien Insurers as maintained by the International Insurers Department of the National Association of Insurance Commissioners. (c) (1) The requirements of subsection (b) of this section may be satisfied by a nonadmitted insurer possessing less than the minimum capital and surplus if the Insurance Commissioner makes an affirmative finding of acceptability. (2) The commissioner shall consider the following factors to determine a finding of acceptability for the requirements of subsection (b) of this section: (A) Quality of management; (B) Capital and surplus of a parent company; (C) Company underwriting profit and investment income trends; (D) Market availability; and (E) Company record and reputation within the industry. (3) The commissioner shall not make a finding of acceptability if the nonadmitted insurer's capital and surplus is less than four million five hundred thousand dollars ($4,500,000). (d) Subdivision (a)(2) of this section does not apply to a surplus lines broker seeking to procure or place nonadmitted insurance in this state for an exempt commercial purchaser if: (1) The surplus lines broker procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that the insurance may or may not be available from the admitted market that would provide greater protection with more regulatory oversight; and (2) The exempt commercial purchaser has subsequently requested in writing the surplus lines broker to procure or place the insurance from a nonadmitted insurer. Acts 1959, No. 148, § 190; 1979, No. 731, § 1; A.S.A. 1947, § 66-2910; Acts 2001, No. 1555, § 3; 2011, No. 1055, § 2.

(a) If certain insurance coverages cannot be procured from authorized insurers, coverage designated "surplus lines" may be procured from unauthorized insurers subject to the following conditions: (1) The insurance shall be procured through a licensed surplus lines broker; (2) If this state is the home state of the insured: (A) The full amount of insurance required shall not be procurable, after diligent effort has been made, from among authorized insurers who are actually marketing that kind or class of insurance in this state; and (B) The amount of insurance placed in an unauthorized insurer is only the balance over the amount procurable from authorized insurers; and (3) The soliciting agent or broker shall maintain written documentation of compliance with the requirements of this section.

(1) The insurance shall be procured through a licensed surplus lines broker;

(2) If this state is the home state of the insured: (A) The full amount of insurance required shall not be procurable, after diligent effort has been made, from among authorized insurers who are actually marketing that kind or class of insurance in this state; and (B) The amount of insurance placed in an unauthorized insurer is only the balance over the amount procurable from authorized insurers; and

(A) The full amount of insurance required shall not be procurable, after diligent effort has been made, from among authorized insurers who are actually marketing that kind or class of insurance in this state; and

(B) The amount of insurance placed in an unauthorized insurer is only the balance over the amount procurable from authorized insurers; and

(3) The soliciting agent or broker shall maintain written documentation of compliance with the requirements of this section.

(b) Surplus lines insurance may be placed by a surplus lines broker if the nonadmitted insurer: (1) Is authorized to write the type of insurance in its domiciliary jurisdiction; and (2) Meets the following criteria: (A) The nonadmitted insurer has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction that equals the greater of: (i) The minimum capital and surplus requirements under the laws of this state; or (ii) Fifteen million dollars ($15,000,000); and (B) The nonadmitted insurer is a nonadmitted insurer domiciled outside the United States that is listed on the Quarterly Listing of Alien Insurers as maintained by the International Insurers Department of the National Association of Insurance Commissioners.

(1) Is authorized to write the type of insurance in its domiciliary jurisdiction; and

(2) Meets the following criteria: (A) The nonadmitted insurer has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction that equals the greater of: (i) The minimum capital and surplus requirements under the laws of this state; or (ii) Fifteen million dollars ($15,000,000); and (B) The nonadmitted insurer is a nonadmitted insurer domiciled outside the United States that is listed on the Quarterly Listing of Alien Insurers as maintained by the International Insurers Department of the National Association of Insurance Commissioners.

(A) The nonadmitted insurer has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction that equals the greater of: (i) The minimum capital and surplus requirements under the laws of this state; or (ii) Fifteen million dollars ($15,000,000); and

(i) The minimum capital and surplus requirements under the laws of this state; or

(ii) Fifteen million dollars ($15,000,000); and

(B) The nonadmitted insurer is a nonadmitted insurer domiciled outside the United States that is listed on the Quarterly Listing of Alien Insurers as maintained by the International Insurers Department of the National Association of Insurance Commissioners.

(c) (1) The requirements of subsection (b) of this section may be satisfied by a nonadmitted insurer possessing less than the minimum capital and surplus if the Insurance Commissioner makes an affirmative finding of acceptability. (2) The commissioner shall consider the following factors to determine a finding of acceptability for the requirements of subsection (b) of this section: (A) Quality of management; (B) Capital and surplus of a parent company; (C) Company underwriting profit and investment income trends; (D) Market availability; and (E) Company record and reputation within the industry. (3) The commissioner shall not make a finding of acceptability if the nonadmitted insurer's capital and surplus is less than four million five hundred thousand dollars ($4,500,000).

(1) The requirements of subsection (b) of this section may be satisfied by a nonadmitted insurer possessing less than the minimum capital and surplus if the Insurance Commissioner makes an affirmative finding of acceptability.

(2) The commissioner shall consider the following factors to determine a finding of acceptability for the requirements of subsection (b) of this section: (A) Quality of management; (B) Capital and surplus of a parent company; (C) Company underwriting profit and investment income trends; (D) Market availability; and (E) Company record and reputation within the industry.

(A) Quality of management;

(B) Capital and surplus of a parent company;

(C) Company underwriting profit and investment income trends;

(D) Market availability; and

(E) Company record and reputation within the industry.

(3) The commissioner shall not make a finding of acceptability if the nonadmitted insurer's capital and surplus is less than four million five hundred thousand dollars ($4,500,000).

(d) Subdivision (a)(2) of this section does not apply to a surplus lines broker seeking to procure or place nonadmitted insurance in this state for an exempt commercial purchaser if: (1) The surplus lines broker procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that the insurance may or may not be available from the admitted market that would provide greater protection with more regulatory oversight; and (2) The exempt commercial purchaser has subsequently requested in writing the surplus lines broker to procure or place the insurance from a nonadmitted insurer.

(1) The surplus lines broker procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that the insurance may or may not be available from the admitted market that would provide greater protection with more regulatory oversight; and

(2) The exempt commercial purchaser has subsequently requested in writing the surplus lines broker to procure or place the insurance from a nonadmitted insurer.

Acts 1959, No. 148, § 190; 1979, No. 731, § 1; A.S.A. 1947, § 66-2910; Acts 2001, No. 1555, § 3; 2011, No. 1055, § 2.
Ark. Code Ann. § 23-64-210 — AR Code / Title 23 / Chapter 64 / Subchapter 2 / Section 23-64-210
Licensing of adjuster and insurance consulting partnerships, limited partnerships, joint ventures, limited liability companies, and corporations
Status: in_force

(a) (1) (A) An adjusting or insurance consulting partnership, limited partnership, joint venture, limited liability company, or corporation may be licensed only as a licensee. (B) If a partnership, limited partnership, or joint venture, each general partner and each other individual to act for it under the license, and if a limited liability company or a corporation, each individual to act for it under the license, shall be named in the license and shall qualify for the license as though an individual licensee. (2) The Insurance Commissioner shall charge, and the licensee shall pay, a full additional license fee as to each respective individual so named in the license in excess of one (1) licensee. (b) (1) The commissioner in his or her discretion may issue a license to a partnership, limited partnership, joint venture, limited liability company, or corporation organized under the laws of another state if the partnership, limited partnership, joint venture, limited liability company, or corporation is licensed as a resident licensee under the laws of its state of domicile. (2) (A) Each individual authorized to act on behalf of a partnership, limited partnership, joint venture, limited liability company, or corporation under the license shall be named in the license and shall qualify therefor as though an individual licensee under the provisions of the Arkansas Insurance Code. (B) The commissioner shall charge, and the licensee shall pay, a full additional license fee as to each respective individual licensee in the license in excess of one (1), in the amounts stated in § 23-61-401 and any existing or future rule. (3) The nonresident licensee shall promptly notify the commissioner of all changes among its members, partners, directors, managers, and officers, and all other individuals designated in the license. (c) Within ten (10) days, each licensee shall notify the commissioner of all changes among its members, directors, officers, and all other individuals designated in the license. (d) (1) Every firm, limited liability company, or corporation licensed and every applicant for a license shall file with the commissioner the true name of the firm, limited liability company, or corporation and also all fictitious names under which it conducts or intends to conduct its business and, after licensing, shall file with the commissioner any change in or discontinuance of those names. (2) The commissioner may disapprove in writing the use of any name on any of the following grounds: (A) The name is identical to or is similar to that of another licensee so as to confuse or otherwise mislead the public; (B) The name includes words or phrases that may mislead the public as to activities not authorized under the license or which are in violation of any insurance law or insurance regulation; (C) The name states, infers, or implies that the firm, limited liability company, or corporation is an insurer, motor club, or hospital service plan or entitled to engage in insurance activities not permitted under the license applied for or held; or (D) Other reasonable grounds as the commissioner may determine. (3) The grounds specified in subdivisions (d)(2)(B) and (d)(2)(D) of this section shall not be applicable to the true name of any firm or corporation which on March 21, 1985, held a license issued under this subchapter. (e) In the event an insurer does not wish to provide for the authority of all such agents authorized under the license of a partnership, limited partnership, joint venture, limited liability company, or corporation to act on their behalf, that insurer may appoint specific agents individually within it, and they may act on the behalf of the insurer, but only: (1) While acting on the behalf of the partnership, limited partnership, joint venture, limited liability company, or corporation; and (2) If among those specific agents individually appointed, there is one (1) general partner, one (1) officer of the corporation, or one (1) manager of the limited liability company or joint venture. (f) Every partnership, limited partnership, joint venture, limited liability company, or corporation receiving a license pursuant to this section, shall designate and continuously maintain in the state: (1) A registered office that may be the same as any of its places of business; and (2) A registered agent, who may be: (A) An individual who resides in this state and whose business office is identical with the registered office; (B) A state bank, domestic corporation, or not-for-profit corporation whose business office is identical with the registered office; or (C) A foreign corporation or foreign not-for-profit corporation authorized to transact business in this state whose business office is identical with the registered office. (g) (1) The partnership, limited partnership, joint venture, limited liability company, or corporation may change its registered office or registered agent by delivering to the commissioner for filing a statement of change that sets forth: (A) Its name; (B) The street address of its current registered office; (C) If the current registered office is to be changed, the street address of its new registered office; (D) The name of its current registered agent; (E) If the current registered agent is to be changed, the name of its new registered agent with the new agent's written consent to the appointment, either on the statement or attached to it; and (F) That after the change or changes are made, the street addresses of its registered office and the business office of its reciprocal agent will be identical. (2) If a registered agent changes the street address of the registered agent's business office, he or she may change the street address of the registered office of any foreign insurer holding a certificate of authority to transact business in Arkansas or any domestic reciprocal insurer for which he or she is the registered agent by: (A) Notifying the insurer in writing of the change; and (B) Signing, either manually or in facsimile, and delivering to the commissioner for filing a statement of change that: (i) Complies with the requirements of subsection (a) of this section; and (ii) Recites that the insurer has been notified of the change. (h) (1) The registered agent of a partnership, limited partnership, joint venture, limited liability company, or corporation, holding a license under this section, may resign his or her agency appointment by signing and delivering to the commissioner for filing the original and two (2) exact or conformed copies of a statement of resignation. The statement of resignation may include a statement that the registered office is also discontinued. (2) After filing the statement, the commissioner shall attach the filing receipt to one (1) copy and mail the copy and receipt to the registered office if not discontinued. The commissioner shall mail the other copy to the partnership, limited partnership, joint venture, limited liability company, or corporation at its principal office address shown in its most recent annual report. (3) The agency appointment is terminated, and the registered office discontinued if so provided, on the thirty-first day after the date on which the statement was filed. (i) (1) The registered agent of a partnership, limited partnership, joint venture, limited liability company, or corporation holding a license issued pursuant to this section in Arkansas is the insurer's agent for service of process, notice, or demand required or permitted by law to be served on it. (2) A partnership, limited partnership, joint venture, limited liability company, or corporation may be served by registered or certified mail, return receipt requested, addressed to its managing partner, manager, president, or secretary at its principal office shown in its application for a license if it: (A) Has no registered agent or its registered agent cannot with reasonable diligence be served; (B) Has withdrawn from transacting business in this state; or (C) Has had its license revoked under this subchapter. (3) Service is perfected at the earliest of: (A) The date the insurer receives the mail; (B) The date shown on the return receipt, if signed on behalf of the insurer; or (C) Five (5) days after its deposit in the United States mail, as evidenced by the postmark, if mailed postpaid and correctly addressed. (4) This section does not prescribe the only means or necessarily the required means of serving a partnership, limited partnership, joint venture, limited liability company, or corporation holding a license under this section. Amended by Act 2019, No. 315,§ 2649, eff. 7/24/2019. Acts 1959, No. 148, § 155; 1983, No. 522, §§ 13, 14; 1985, No. 484, §§ 1, 2; A.S.A. 1947, §§ 66-2812, 66-2812.1, 66-2812.2; Acts 1987, No. 456, § 11; 1987, No. 622, § 3; 1991, No. 1143, § 1; 1997, No. 1004, § 1; 2001, No. 580, § 13.

(a) (1) (A) An adjusting or insurance consulting partnership, limited partnership, joint venture, limited liability company, or corporation may be licensed only as a licensee. (B) If a partnership, limited partnership, or joint venture, each general partner and each other individual to act for it under the license, and if a limited liability company or a corporation, each individual to act for it under the license, shall be named in the license and shall qualify for the license as though an individual licensee. (2) The Insurance Commissioner shall charge, and the licensee shall pay, a full additional license fee as to each respective individual so named in the license in excess of one (1) licensee.

(1) (A) An adjusting or insurance consulting partnership, limited partnership, joint venture, limited liability company, or corporation may be licensed only as a licensee. (B) If a partnership, limited partnership, or joint venture, each general partner and each other individual to act for it under the license, and if a limited liability company or a corporation, each individual to act for it under the license, shall be named in the license and shall qualify for the license as though an individual licensee.

(A) An adjusting or insurance consulting partnership, limited partnership, joint venture, limited liability company, or corporation may be licensed only as a licensee.

(B) If a partnership, limited partnership, or joint venture, each general partner and each other individual to act for it under the license, and if a limited liability company or a corporation, each individual to act for it under the license, shall be named in the license and shall qualify for the license as though an individual licensee.

(2) The Insurance Commissioner shall charge, and the licensee shall pay, a full additional license fee as to each respective individual so named in the license in excess of one (1) licensee.

(b) (1) The commissioner in his or her discretion may issue a license to a partnership, limited partnership, joint venture, limited liability company, or corporation organized under the laws of another state if the partnership, limited partnership, joint venture, limited liability company, or corporation is licensed as a resident licensee under the laws of its state of domicile. (2) (A) Each individual authorized to act on behalf of a partnership, limited partnership, joint venture, limited liability company, or corporation under the license shall be named in the license and shall qualify therefor as though an individual licensee under the provisions of the Arkansas Insurance Code. (B) The commissioner shall charge, and the licensee shall pay, a full additional license fee as to each respective individual licensee in the license in excess of one (1), in the amounts stated in § 23-61-401 and any existing or future rule. (3) The nonresident licensee shall promptly notify the commissioner of all changes among its members, partners, directors, managers, and officers, and all other individuals designated in the license.

(1) The commissioner in his or her discretion may issue a license to a partnership, limited partnership, joint venture, limited liability company, or corporation organized under the laws of another state if the partnership, limited partnership, joint venture, limited liability company, or corporation is licensed as a resident licensee under the laws of its state of domicile.

(2) (A) Each individual authorized to act on behalf of a partnership, limited partnership, joint venture, limited liability company, or corporation under the license shall be named in the license and shall qualify therefor as though an individual licensee under the provisions of the Arkansas Insurance Code. (B) The commissioner shall charge, and the licensee shall pay, a full additional license fee as to each respective individual licensee in the license in excess of one (1), in the amounts stated in § 23-61-401 and any existing or future rule.

(A) Each individual authorized to act on behalf of a partnership, limited partnership, joint venture, limited liability company, or corporation under the license shall be named in the license and shall qualify therefor as though an individual licensee under the provisions of the Arkansas Insurance Code.

(B) The commissioner shall charge, and the licensee shall pay, a full additional license fee as to each respective individual licensee in the license in excess of one (1), in the amounts stated in § 23-61-401 and any existing or future rule.

(3) The nonresident licensee shall promptly notify the commissioner of all changes among its members, partners, directors, managers, and officers, and all other individuals designated in the license.

(c) Within ten (10) days, each licensee shall notify the commissioner of all changes among its members, directors, officers, and all other individuals designated in the license.

(d) (1) Every firm, limited liability company, or corporation licensed and every applicant for a license shall file with the commissioner the true name of the firm, limited liability company, or corporation and also all fictitious names under which it conducts or intends to conduct its business and, after licensing, shall file with the commissioner any change in or discontinuance of those names. (2) The commissioner may disapprove in writing the use of any name on any of the following grounds: (A) The name is identical to or is similar to that of another licensee so as to confuse or otherwise mislead the public; (B) The name includes words or phrases that may mislead the public as to activities not authorized under the license or which are in violation of any insurance law or insurance regulation; (C) The name states, infers, or implies that the firm, limited liability company, or corporation is an insurer, motor club, or hospital service plan or entitled to engage in insurance activities not permitted under the license applied for or held; or (D) Other reasonable grounds as the commissioner may determine. (3) The grounds specified in subdivisions (d)(2)(B) and (d)(2)(D) of this section shall not be applicable to the true name of any firm or corporation which on March 21, 1985, held a license issued under this subchapter.

(1) Every firm, limited liability company, or corporation licensed and every applicant for a license shall file with the commissioner the true name of the firm, limited liability company, or corporation and also all fictitious names under which it conducts or intends to conduct its business and, after licensing, shall file with the commissioner any change in or discontinuance of those names.

(2) The commissioner may disapprove in writing the use of any name on any of the following grounds: (A) The name is identical to or is similar to that of another licensee so as to confuse or otherwise mislead the public; (B) The name includes words or phrases that may mislead the public as to activities not authorized under the license or which are in violation of any insurance law or insurance regulation; (C) The name states, infers, or implies that the firm, limited liability company, or corporation is an insurer, motor club, or hospital service plan or entitled to engage in insurance activities not permitted under the license applied for or held; or (D) Other reasonable grounds as the commissioner may determine.

(A) The name is identical to or is similar to that of another licensee so as to confuse or otherwise mislead the public;

(B) The name includes words or phrases that may mislead the public as to activities not authorized under the license or which are in violation of any insurance law or insurance regulation;

(C) The name states, infers, or implies that the firm, limited liability company, or corporation is an insurer, motor club, or hospital service plan or entitled to engage in insurance activities not permitted under the license applied for or held; or

(D) Other reasonable grounds as the commissioner may determine.

(3) The grounds specified in subdivisions (d)(2)(B) and (d)(2)(D) of this section shall not be applicable to the true name of any firm or corporation which on March 21, 1985, held a license issued under this subchapter.

(e) In the event an insurer does not wish to provide for the authority of all such agents authorized under the license of a partnership, limited partnership, joint venture, limited liability company, or corporation to act on their behalf, that insurer may appoint specific agents individually within it, and they may act on the behalf of the insurer, but only: (1) While acting on the behalf of the partnership, limited partnership, joint venture, limited liability company, or corporation; and (2) If among those specific agents individually appointed, there is one (1) general partner, one (1) officer of the corporation, or one (1) manager of the limited liability company or joint venture.

(1) While acting on the behalf of the partnership, limited partnership, joint venture, limited liability company, or corporation; and

(2) If among those specific agents individually appointed, there is one (1) general partner, one (1) officer of the corporation, or one (1) manager of the limited liability company or joint venture.

(f) Every partnership, limited partnership, joint venture, limited liability company, or corporation receiving a license pursuant to this section, shall designate and continuously maintain in the state: (1) A registered office that may be the same as any of its places of business; and (2) A registered agent, who may be: (A) An individual who resides in this state and whose business office is identical with the registered office; (B) A state bank, domestic corporation, or not-for-profit corporation whose business office is identical with the registered office; or (C) A foreign corporation or foreign not-for-profit corporation authorized to transact business in this state whose business office is identical with the registered office.

(1) A registered office that may be the same as any of its places of business; and

(2) A registered agent, who may be: (A) An individual who resides in this state and whose business office is identical with the registered office; (B) A state bank, domestic corporation, or not-for-profit corporation whose business office is identical with the registered office; or (C) A foreign corporation or foreign not-for-profit corporation authorized to transact business in this state whose business office is identical with the registered office.

(A) An individual who resides in this state and whose business office is identical with the registered office;

(B) A state bank, domestic corporation, or not-for-profit corporation whose business office is identical with the registered office; or

(C) A foreign corporation or foreign not-for-profit corporation authorized to transact business in this state whose business office is identical with the registered office.

(g) (1) The partnership, limited partnership, joint venture, limited liability company, or corporation may change its registered office or registered agent by delivering to the commissioner for filing a statement of change that sets forth: (A) Its name; (B) The street address of its current registered office; (C) If the current registered office is to be changed, the street address of its new registered office; (D) The name of its current registered agent; (E) If the current registered agent is to be changed, the name of its new registered agent with the new agent's written consent to the appointment, either on the statement or attached to it; and (F) That after the change or changes are made, the street addresses of its registered office and the business office of its reciprocal agent will be identical. (2) If a registered agent changes the street address of the registered agent's business office, he or she may change the street address of the registered office of any foreign insurer holding a certificate of authority to transact business in Arkansas or any domestic reciprocal insurer for which he or she is the registered agent by: (A) Notifying the insurer in writing of the change; and (B) Signing, either manually or in facsimile, and delivering to the commissioner for filing a statement of change that: (i) Complies with the requirements of subsection (a) of this section; and (ii) Recites that the insurer has been notified of the change.

(1) The partnership, limited partnership, joint venture, limited liability company, or corporation may change its registered office or registered agent by delivering to the commissioner for filing a statement of change that sets forth: (A) Its name; (B) The street address of its current registered office; (C) If the current registered office is to be changed, the street address of its new registered office; (D) The name of its current registered agent; (E) If the current registered agent is to be changed, the name of its new registered agent with the new agent's written consent to the appointment, either on the statement or attached to it; and (F) That after the change or changes are made, the street addresses of its registered office and the business office of its reciprocal agent will be identical.

(A) Its name;

(B) The street address of its current registered office;

(C) If the current registered office is to be changed, the street address of its new registered office;

(D) The name of its current registered agent;

(E) If the current registered agent is to be changed, the name of its new registered agent with the new agent's written consent to the appointment, either on the statement or attached to it; and

(F) That after the change or changes are made, the street addresses of its registered office and the business office of its reciprocal agent will be identical.

(2) If a registered agent changes the street address of the registered agent's business office, he or she may change the street address of the registered office of any foreign insurer holding a certificate of authority to transact business in Arkansas or any domestic reciprocal insurer for which he or she is the registered agent by: (A) Notifying the insurer in writing of the change; and (B) Signing, either manually or in facsimile, and delivering to the commissioner for filing a statement of change that: (i) Complies with the requirements of subsection (a) of this section; and (ii) Recites that the insurer has been notified of the change.

(A) Notifying the insurer in writing of the change; and

(B) Signing, either manually or in facsimile, and delivering to the commissioner for filing a statement of change that: (i) Complies with the requirements of subsection (a) of this section; and (ii) Recites that the insurer has been notified of the change.

(i) Complies with the requirements of subsection (a) of this section; and

(ii) Recites that the insurer has been notified of the change.

(h) (1) The registered agent of a partnership, limited partnership, joint venture, limited liability company, or corporation, holding a license under this section, may resign his or her agency appointment by signing and delivering to the commissioner for filing the original and two (2) exact or conformed copies of a statement of resignation. The statement of resignation may include a statement that the registered office is also discontinued. (2) After filing the statement, the commissioner shall attach the filing receipt to one (1) copy and mail the copy and receipt to the registered office if not discontinued. The commissioner shall mail the other copy to the partnership, limited partnership, joint venture, limited liability company, or corporation at its principal office address shown in its most recent annual report. (3) The agency appointment is terminated, and the registered office discontinued if so provided, on the thirty-first day after the date on which the statement was filed.

(1) The registered agent of a partnership, limited partnership, joint venture, limited liability company, or corporation, holding a license under this section, may resign his or her agency appointment by signing and delivering to the commissioner for filing the original and two (2) exact or conformed copies of a statement of resignation. The statement of resignation may include a statement that the registered office is also discontinued.

(2) After filing the statement, the commissioner shall attach the filing receipt to one (1) copy and mail the copy and receipt to the registered office if not discontinued. The commissioner shall mail the other copy to the partnership, limited partnership, joint venture, limited liability company, or corporation at its principal office address shown in its most recent annual report.

(3) The agency appointment is terminated, and the registered office discontinued if so provided, on the thirty-first day after the date on which the statement was filed.

(i) (1) The registered agent of a partnership, limited partnership, joint venture, limited liability company, or corporation holding a license issued pursuant to this section in Arkansas is the insurer's agent for service of process, notice, or demand required or permitted by law to be served on it. (2) A partnership, limited partnership, joint venture, limited liability company, or corporation may be served by registered or certified mail, return receipt requested, addressed to its managing partner, manager, president, or secretary at its principal office shown in its application for a license if it: (A) Has no registered agent or its registered agent cannot with reasonable diligence be served; (B) Has withdrawn from transacting business in this state; or (C) Has had its license revoked under this subchapter. (3) Service is perfected at the earliest of: (A) The date the insurer receives the mail; (B) The date shown on the return receipt, if signed on behalf of the insurer; or (C) Five (5) days after its deposit in the United States mail, as evidenced by the postmark, if mailed postpaid and correctly addressed. (4) This section does not prescribe the only means or necessarily the required means of serving a partnership, limited partnership, joint venture, limited liability company, or corporation holding a license under this section.

(1) The registered agent of a partnership, limited partnership, joint venture, limited liability company, or corporation holding a license issued pursuant to this section in Arkansas is the insurer's agent for service of process, notice, or demand required or permitted by law to be served on it.

(2) A partnership, limited partnership, joint venture, limited liability company, or corporation may be served by registered or certified mail, return receipt requested, addressed to its managing partner, manager, president, or secretary at its principal office shown in its application for a license if it: (A) Has no registered agent or its registered agent cannot with reasonable diligence be served; (B) Has withdrawn from transacting business in this state; or (C) Has had its license revoked under this subchapter.

(A) Has no registered agent or its registered agent cannot with reasonable diligence be served;

(B) Has withdrawn from transacting business in this state; or

(C) Has had its license revoked under this subchapter.

(3) Service is perfected at the earliest of: (A) The date the insurer receives the mail; (B) The date shown on the return receipt, if signed on behalf of the insurer; or (C) Five (5) days after its deposit in the United States mail, as evidenced by the postmark, if mailed postpaid and correctly addressed.

(A) The date the insurer receives the mail;

(B) The date shown on the return receipt, if signed on behalf of the insurer; or

(C) Five (5) days after its deposit in the United States mail, as evidenced by the postmark, if mailed postpaid and correctly addressed.

(4) This section does not prescribe the only means or necessarily the required means of serving a partnership, limited partnership, joint venture, limited liability company, or corporation holding a license under this section.

Amended by Act 2019, No. 315,§ 2649, eff. 7/24/2019.

Acts 1959, No. 148, § 155; 1983, No. 522, §§ 13, 14; 1985, No. 484, §§ 1, 2; A.S.A. 1947, §§ 66-2812, 66-2812.1, 66-2812.2; Acts 1987, No. 456, § 11; 1987, No. 622, § 3; 1991, No. 1143, § 1; 1997, No. 1004, § 1; 2001, No. 580, § 13.
Ark. Code Ann. § 23-66-209 — AR Code / Title 23 / Chapter 66 / Subchapter 2 / Section 23-66-209
Hearings - Procedures
Status: in_force

(a) (1) Whenever the Insurance Commissioner has reason to believe that any person has been engaged or is engaging in this state in any unfair method of competition or any unfair or deceptive act or practice, whether or not defined in § 23-66-206 or § 23-66-312 and that a proceeding by the commissioner in respect thereto would be to the interest of the public, the commissioner shall issue and serve upon the person a statement of the charges in that respect and a notice of a hearing thereon to be held at a time and place fixed in the notice, which shall not be fewer than ten (10) days after the date of the service thereof. (2) If the person in subdivision (a)(1) of this section is a depository institution, the commissioner shall have the power to require the depository institution to produce books, papers, records, correspondence, or other documents that the commissioner deems relevant only to an inquiry of the insurance activities of the depository institution. (b) At the time and place fixed for the hearing, the person shall have an opportunity to be heard and to show cause why an order should not be made by the commissioner requiring such a person to cease and desist from the acts, methods, or practices so complained of. Upon good cause shown, the commissioner shall permit any person to intervene, appear, and be heard at the hearing by counsel or in person. (c) Nothing contained in this subchapter shall require the observance at the hearing of formal rules of pleading or evidence. (d) (1) Upon the hearing, the commissioner: (A) May administer oaths, examine and cross-examine witnesses, and receive oral and documentary evidence; and (B) Shall have the power to subpoena witnesses, compel their attendance, and require the production of books, papers, records, correspondence, or other documents that the commissioner deems relevant to the inquiry. (2) (A) The commissioner may, upon the hearing, and shall, upon the request of any party, cause to be made a stenographic record of all the evidence and all the proceedings had at such a hearing. (B) If no stenographic record is made and if a judicial review is sought, the commissioner shall prepare a statement of the evidence and proceeding for use on review. (3) In case of a refusal of any person to comply with any subpoena issued pursuant to this subsection or to testify with respect to any matter concerning which the person may be lawfully interrogated, the Pulaski County Circuit Court or the circuit court of the county where the party resides, on application of the commissioner, may issue an order requiring the person to comply with the subpoena and to testify. Any failure to obey the order of the court may be punished by the court as a contempt thereof. (e) (1) Statements of charges, notices, orders, and other processes of the commissioner under this subchapter may be served by anyone authorized by the commissioner, either in the manner provided by law for service of process in civil actions or by registering and mailing a copy thereof to the person affected by such a statement, notice, order, or other process at his or her or its residence or principal office or place of business. (2) The verified return by the person so serving the statement, notice, order, or other process setting forth the manner of the service shall be proof of process, and the return postcard receipt for the statement, notice, order, or other process, registered and mailed as described in this section, shall be proof of the service of process. Acts 1959, No. 148, § 214; 1973, No. 41, § 3; A.S.A. 1947, § 66-3007; Acts 2003, No. 1747, § 5.

(a) (1) Whenever the Insurance Commissioner has reason to believe that any person has been engaged or is engaging in this state in any unfair method of competition or any unfair or deceptive act or practice, whether or not defined in § 23-66-206 or § 23-66-312 and that a proceeding by the commissioner in respect thereto would be to the interest of the public, the commissioner shall issue and serve upon the person a statement of the charges in that respect and a notice of a hearing thereon to be held at a time and place fixed in the notice, which shall not be fewer than ten (10) days after the date of the service thereof. (2) If the person in subdivision (a)(1) of this section is a depository institution, the commissioner shall have the power to require the depository institution to produce books, papers, records, correspondence, or other documents that the commissioner deems relevant only to an inquiry of the insurance activities of the depository institution.

(1) Whenever the Insurance Commissioner has reason to believe that any person has been engaged or is engaging in this state in any unfair method of competition or any unfair or deceptive act or practice, whether or not defined in § 23-66-206 or § 23-66-312 and that a proceeding by the commissioner in respect thereto would be to the interest of the public, the commissioner shall issue and serve upon the person a statement of the charges in that respect and a notice of a hearing thereon to be held at a time and place fixed in the notice, which shall not be fewer than ten (10) days after the date of the service thereof.

(2) If the person in subdivision (a)(1) of this section is a depository institution, the commissioner shall have the power to require the depository institution to produce books, papers, records, correspondence, or other documents that the commissioner deems relevant only to an inquiry of the insurance activities of the depository institution.

(b) At the time and place fixed for the hearing, the person shall have an opportunity to be heard and to show cause why an order should not be made by the commissioner requiring such a person to cease and desist from the acts, methods, or practices so complained of. Upon good cause shown, the commissioner shall permit any person to intervene, appear, and be heard at the hearing by counsel or in person.

(c) Nothing contained in this subchapter shall require the observance at the hearing of formal rules of pleading or evidence.

(d) (1) Upon the hearing, the commissioner: (A) May administer oaths, examine and cross-examine witnesses, and receive oral and documentary evidence; and (B) Shall have the power to subpoena witnesses, compel their attendance, and require the production of books, papers, records, correspondence, or other documents that the commissioner deems relevant to the inquiry. (2) (A) The commissioner may, upon the hearing, and shall, upon the request of any party, cause to be made a stenographic record of all the evidence and all the proceedings had at such a hearing. (B) If no stenographic record is made and if a judicial review is sought, the commissioner shall prepare a statement of the evidence and proceeding for use on review. (3) In case of a refusal of any person to comply with any subpoena issued pursuant to this subsection or to testify with respect to any matter concerning which the person may be lawfully interrogated, the Pulaski County Circuit Court or the circuit court of the county where the party resides, on application of the commissioner, may issue an order requiring the person to comply with the subpoena and to testify. Any failure to obey the order of the court may be punished by the court as a contempt thereof.

(1) Upon the hearing, the commissioner: (A) May administer oaths, examine and cross-examine witnesses, and receive oral and documentary evidence; and (B) Shall have the power to subpoena witnesses, compel their attendance, and require the production of books, papers, records, correspondence, or other documents that the commissioner deems relevant to the inquiry.

(A) May administer oaths, examine and cross-examine witnesses, and receive oral and documentary evidence; and

(B) Shall have the power to subpoena witnesses, compel their attendance, and require the production of books, papers, records, correspondence, or other documents that the commissioner deems relevant to the inquiry.

(2) (A) The commissioner may, upon the hearing, and shall, upon the request of any party, cause to be made a stenographic record of all the evidence and all the proceedings had at such a hearing. (B) If no stenographic record is made and if a judicial review is sought, the commissioner shall prepare a statement of the evidence and proceeding for use on review.

(A) The commissioner may, upon the hearing, and shall, upon the request of any party, cause to be made a stenographic record of all the evidence and all the proceedings had at such a hearing.

(B) If no stenographic record is made and if a judicial review is sought, the commissioner shall prepare a statement of the evidence and proceeding for use on review.

(3) In case of a refusal of any person to comply with any subpoena issued pursuant to this subsection or to testify with respect to any matter concerning which the person may be lawfully interrogated, the Pulaski County Circuit Court or the circuit court of the county where the party resides, on application of the commissioner, may issue an order requiring the person to comply with the subpoena and to testify. Any failure to obey the order of the court may be punished by the court as a contempt thereof.

(e) (1) Statements of charges, notices, orders, and other processes of the commissioner under this subchapter may be served by anyone authorized by the commissioner, either in the manner provided by law for service of process in civil actions or by registering and mailing a copy thereof to the person affected by such a statement, notice, order, or other process at his or her or its residence or principal office or place of business. (2) The verified return by the person so serving the statement, notice, order, or other process setting forth the manner of the service shall be proof of process, and the return postcard receipt for the statement, notice, order, or other process, registered and mailed as described in this section, shall be proof of the service of process.

(1) Statements of charges, notices, orders, and other processes of the commissioner under this subchapter may be served by anyone authorized by the commissioner, either in the manner provided by law for service of process in civil actions or by registering and mailing a copy thereof to the person affected by such a statement, notice, order, or other process at his or her or its residence or principal office or place of business.

(2) The verified return by the person so serving the statement, notice, order, or other process setting forth the manner of the service shall be proof of process, and the return postcard receipt for the statement, notice, order, or other process, registered and mailed as described in this section, shall be proof of the service of process.

Acts 1959, No. 148, § 214; 1973, No. 41, § 3; A.S.A. 1947, § 66-3007; Acts 2003, No. 1747, § 5.
Ark. Code Ann. § 23-62-203 — AR Code / Title 23 / Chapter 62 / Subchapter 2 / Section 23-62-203
Rules
Status: in_force

The Insurance Commissioner may adopt reasonable rules to implement the provisions of this subchapter. Amended by Act 2019, No. 315,§ 2625, eff. 7/24/2019. Acts 1995, No. 1272, § 24.

The Insurance Commissioner may adopt reasonable rules to implement the provisions of this subchapter.

Amended by Act 2019, No. 315,§ 2625, eff. 7/24/2019.

Acts 1995, No. 1272, § 24.
Ark. Code Ann. § 23-17-225 — AR Code / Title 23 / Chapter 17 / Subchapter 2 / Section 23-17-225
Dissolution
Status: in_force

(a) Any cooperative may dissolve by a two-thirds (2/3) vote of the members present at any regular meeting or at any special meeting of its members called for that purpose or by the vote required in the bylaws, whichever requires the greater number. (b) A certificate of dissolution shall be signed by the president or vice president, attested by the secretary, certifying to the dissolution and stating that they have been authorized to execute and file the certificate by votes cast in person by a majority of the members of the cooperative. (c) A certificate of dissolution shall be executed, acknowledged, filed, and recorded in the same manner as the original articles of incorporation of a cooperative organized under this subchapter. (d) As soon as the Secretary of State accepts the certificate of dissolution for filing and recording and issues a certificate of dissolution, the cooperative shall be deemed to be dissolved. (e) Immediately upon the filing of the certificate with the Secretary of State, the board of directors shall cause notice of the dissolution and winding-up proceedings to be mailed to each known creditor of and claimant against the cooperative and shall publish a copy of the notice of dissolution for one (1) week in a newspaper of bona fide circulation published in the county wherein the home office of the cooperative is located. (f) However, the cooperative shall continue for the purpose of collecting its assets and paying, satisfying, and discharging any outstanding obligations, and for the purpose of doing all other acts required to adjust and wind up its business affairs, and may sue and be sued in its corporate name. (g) Any assets remaining after all obligations of the cooperative have been satisfied or discharged, or their payment provided for, shall be used: (1) In redeeming outstanding shares of capital stock, if any, at the par value thereof, plus accrued and unpaid dividends thereon; (2) In redeeming certificates of memberships; and (3) In paying to members and patrons of the cooperative, at the time of the filing of the certificate of dissolution, pro rata patronage profits. (h) (1) Any cooperative which purports to have been incorporated or reincorporated as the result of a consolidation under this subchapter but which has not complied with all the requirements for regular corporate existence, nevertheless may file a certificate of dissolution in the same manner as a validly existing cooperative. (2) A certificate of dissolution in such a case shall be authorized, executed, and filed in the same manner and shall have the same effect as is provided for validly existing cooperatives. The cooperative shall distribute its assets in the same manner as is provided for validly existing cooperatives. Acts 1951, No. 51, § 29; A.S.A. 1947, § 77-1629; Acts 1997, No. 316, § 9; 1999, No. 946, § 9.

(a) Any cooperative may dissolve by a two-thirds (2/3) vote of the members present at any regular meeting or at any special meeting of its members called for that purpose or by the vote required in the bylaws, whichever requires the greater number.

(b) A certificate of dissolution shall be signed by the president or vice president, attested by the secretary, certifying to the dissolution and stating that they have been authorized to execute and file the certificate by votes cast in person by a majority of the members of the cooperative.

(c) A certificate of dissolution shall be executed, acknowledged, filed, and recorded in the same manner as the original articles of incorporation of a cooperative organized under this subchapter.

(d) As soon as the Secretary of State accepts the certificate of dissolution for filing and recording and issues a certificate of dissolution, the cooperative shall be deemed to be dissolved.

(e) Immediately upon the filing of the certificate with the Secretary of State, the board of directors shall cause notice of the dissolution and winding-up proceedings to be mailed to each known creditor of and claimant against the cooperative and shall publish a copy of the notice of dissolution for one (1) week in a newspaper of bona fide circulation published in the county wherein the home office of the cooperative is located.

(f) However, the cooperative shall continue for the purpose of collecting its assets and paying, satisfying, and discharging any outstanding obligations, and for the purpose of doing all other acts required to adjust and wind up its business affairs, and may sue and be sued in its corporate name.

(g) Any assets remaining after all obligations of the cooperative have been satisfied or discharged, or their payment provided for, shall be used: (1) In redeeming outstanding shares of capital stock, if any, at the par value thereof, plus accrued and unpaid dividends thereon; (2) In redeeming certificates of memberships; and (3) In paying to members and patrons of the cooperative, at the time of the filing of the certificate of dissolution, pro rata patronage profits.

(1) In redeeming outstanding shares of capital stock, if any, at the par value thereof, plus accrued and unpaid dividends thereon;

(2) In redeeming certificates of memberships; and

(3) In paying to members and patrons of the cooperative, at the time of the filing of the certificate of dissolution, pro rata patronage profits.

(h) (1) Any cooperative which purports to have been incorporated or reincorporated as the result of a consolidation under this subchapter but which has not complied with all the requirements for regular corporate existence, nevertheless may file a certificate of dissolution in the same manner as a validly existing cooperative. (2) A certificate of dissolution in such a case shall be authorized, executed, and filed in the same manner and shall have the same effect as is provided for validly existing cooperatives. The cooperative shall distribute its assets in the same manner as is provided for validly existing cooperatives.

(1) Any cooperative which purports to have been incorporated or reincorporated as the result of a consolidation under this subchapter but which has not complied with all the requirements for regular corporate existence, nevertheless may file a certificate of dissolution in the same manner as a validly existing cooperative.

(2) A certificate of dissolution in such a case shall be authorized, executed, and filed in the same manner and shall have the same effect as is provided for validly existing cooperatives. The cooperative shall distribute its assets in the same manner as is provided for validly existing cooperatives.

Acts 1951, No. 51, § 29; A.S.A. 1947, § 77-1629; Acts 1997, No. 316, § 9; 1999, No. 946, § 9.
Ark. Code Ann. § 23-115-601 — AR Code / Title 23 / Chapter 115 / Subchapter 6 / Section 23-115-601
Retailers
Status: in_force

(a) The General Assembly recognizes that to conduct a successful lottery, the Office of the Arkansas Lottery must develop and maintain a statewide network of retailers that will serve the public convenience and promote the sale of tickets or shares and the playing of lotteries while ensuring the integrity of lottery operations, games, and activities. (b) The office shall make every effort to provide small retailers a chance to participate in the sales of tickets or shares. (c) The office shall provide for compensation to retailers in the form of commissions in an amount of not less than five percent (5%) of gross sales of tickets and shares and may provide for other forms of compensation for services rendered in the sale or cashing of tickets or shares. (d) (1) For purposes of display, the office shall issue a license to each person that it licenses as a retailer. (2) (A) A retailer shall post its license and keep the license conspicuously displayed in a location on the premises accessible to the public. (B) A license is not assignable or transferable. (e) (1) A person seeking to be a retailer shall apply to the Identification Bureau of the Division of Arkansas State Police for a state and federal criminal background check, to be conducted by the Identification Bureau of the Division of Arkansas State Police and the Federal Bureau of Investigation. (2) The state and federal criminal background check shall conform to applicable federal standards and shall include the taking of fingerprints. (3) The applicant shall sign a consent to the release of information for the state and federal criminal background check. (4) The office shall be responsible for the payment of any fee associated with the state and federal criminal background check. (5) Upon completion of the state and federal criminal background check, the Identification Bureau of the Division of Arkansas State Police shall forward to the office all releasable information obtained concerning the applicant. (f) (1) The office shall develop a list of objective criteria upon which the qualification of retailers shall be based. (2) The office shall develop separate criteria to govern the selection of retailers of instant tickets. (3) In developing the criteria, the office shall consider certain factors, including without limitation: (A) The applicant's financial responsibility; (B) Security of the applicant's place of business or activity; (C) Accessibility to the public; (D) The applicant's integrity; and (E) The applicant's reputation. (g) The office shall not consider political affiliation, activities, or monetary contributions to political organizations or candidates for any public office. (h) The office shall not select a person to be a retailer that: (1) (A) Is not current in filing all applicable tax returns to the State of Arkansas and in payment of all taxes, interest, and penalties owed to the State of Arkansas, excluding items under formal appeal under applicable statutes. (B) The Department of Finance and Administration shall provide to the office the information required to verify compliance with subdivision (h)(1)(A) of this section; (2) Has been convicted of a criminal offense related to the security or integrity of a lottery in this or any other jurisdiction; (3) (A) Has been convicted of any illegal gambling activity, false statements, false swearing, or perjury in this or any other jurisdiction or convicted of any crime punishable by more than one (1) year of imprisonment or a fine of more than one thousand dollars ($1,000), or both. (B) Subdivision (h)(3)(A) of this section shall not apply if the person's civil rights have been restored and at least five (5) years have elapsed from the date of the completion of the sentence without a subsequent conviction of a crime described in subdivision (h)(3)(A) of this section; (4) Has been found to have violated this chapter or any rule, policy, or procedure of the office unless: (A) Ten (10) years have passed since the violation; or (B) The office finds the violation both minor and unintentional in nature; (5) Is a vendor or an employee or agent of a vendor doing business with the office; (6) Is an employee of the office or a member of the immediate family of an employee of the office; (7) Has made a statement of material fact to the office knowing the statement to be false; or (8) (A) Is engaged exclusively in the business of selling tickets or shares. (B) Subdivision (h)(8)(A) of this section does not preclude the office from selling or giving away tickets or shares for promotional purposes. (i) (1) A person applying to become a retailer shall be charged a uniform application fee determined by rule for each lottery outlet. (2) A retailer license may be renewable annually in the discretion of the office unless canceled or terminated by the office. (3) The office may establish by rule a reasonable fee for the issuance, reissuance, fine, or penalty associated with the process, procedures, or enforcement necessary to issue or maintain a retailer license, including without limitation to cover the cost of: (A) An initial and any subsequent state and federal criminal background check under this subchapter; and (B) The reporting, communications technology, and banking processes necessary to implement and enforce this subchapter. (j) (1) A retailer or an applicant to be a retailer shall not provide a gift or compensation to: (A) The Director of the Office of the Arkansas Lottery, an employee of the office, the Secretary of the Department of Finance and Administration, or the Deputy Director of the Department of Finance and Administration; or (B) A member of the immediate family of the Director of the Office of the Arkansas Lottery, an employee of the office, the secretary, or the Deputy Director of the Department of Finance and Administration. (2) (A) A person who knowingly violates subdivision (j)(1) of this section shall be guilty of a Class A misdemeanor. (B) The Arkansas Ethics Commission shall have the authority to investigate and enforce alleged violations of subdivision (j)(1) of this section granted by §§ 7-6-217 and 7-6-218 . Amended by Act 2019, No. 910,§ 3544, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3543, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3542, eff. 7/1/2019. Amended by Act 2017, No. 334,§ 9, eff. 8/1/2017. Amended by Act 2015, No. 218,§ 25, eff. 2/26/2015. Amended by Act 2013, No. 1173,§ 16, eff. 4/12/2013. Acts 2009, No. 605, § 1; 2009, No. 606, § 1; 2009, No. 1405, § 42; 2010, No. 265, § 30; 2010, No. 294, § 30.

(a) The General Assembly recognizes that to conduct a successful lottery, the Office of the Arkansas Lottery must develop and maintain a statewide network of retailers that will serve the public convenience and promote the sale of tickets or shares and the playing of lotteries while ensuring the integrity of lottery operations, games, and activities.

(b) The office shall make every effort to provide small retailers a chance to participate in the sales of tickets or shares.

(c) The office shall provide for compensation to retailers in the form of commissions in an amount of not less than five percent (5%) of gross sales of tickets and shares and may provide for other forms of compensation for services rendered in the sale or cashing of tickets or shares.

(d) (1) For purposes of display, the office shall issue a license to each person that it licenses as a retailer. (2) (A) A retailer shall post its license and keep the license conspicuously displayed in a location on the premises accessible to the public. (B) A license is not assignable or transferable.

(1) For purposes of display, the office shall issue a license to each person that it licenses as a retailer.

(2) (A) A retailer shall post its license and keep the license conspicuously displayed in a location on the premises accessible to the public. (B) A license is not assignable or transferable.

(A) A retailer shall post its license and keep the license conspicuously displayed in a location on the premises accessible to the public.

(B) A license is not assignable or transferable.

(e) (1) A person seeking to be a retailer shall apply to the Identification Bureau of the Division of Arkansas State Police for a state and federal criminal background check, to be conducted by the Identification Bureau of the Division of Arkansas State Police and the Federal Bureau of Investigation. (2) The state and federal criminal background check shall conform to applicable federal standards and shall include the taking of fingerprints. (3) The applicant shall sign a consent to the release of information for the state and federal criminal background check. (4) The office shall be responsible for the payment of any fee associated with the state and federal criminal background check. (5) Upon completion of the state and federal criminal background check, the Identification Bureau of the Division of Arkansas State Police shall forward to the office all releasable information obtained concerning the applicant.

(1) A person seeking to be a retailer shall apply to the Identification Bureau of the Division of Arkansas State Police for a state and federal criminal background check, to be conducted by the Identification Bureau of the Division of Arkansas State Police and the Federal Bureau of Investigation.

(2) The state and federal criminal background check shall conform to applicable federal standards and shall include the taking of fingerprints.

(3) The applicant shall sign a consent to the release of information for the state and federal criminal background check.

(4) The office shall be responsible for the payment of any fee associated with the state and federal criminal background check.

(5) Upon completion of the state and federal criminal background check, the Identification Bureau of the Division of Arkansas State Police shall forward to the office all releasable information obtained concerning the applicant.

(f) (1) The office shall develop a list of objective criteria upon which the qualification of retailers shall be based. (2) The office shall develop separate criteria to govern the selection of retailers of instant tickets. (3) In developing the criteria, the office shall consider certain factors, including without limitation: (A) The applicant's financial responsibility; (B) Security of the applicant's place of business or activity; (C) Accessibility to the public; (D) The applicant's integrity; and (E) The applicant's reputation.

(1) The office shall develop a list of objective criteria upon which the qualification of retailers shall be based.

(2) The office shall develop separate criteria to govern the selection of retailers of instant tickets.

(3) In developing the criteria, the office shall consider certain factors, including without limitation: (A) The applicant's financial responsibility; (B) Security of the applicant's place of business or activity; (C) Accessibility to the public; (D) The applicant's integrity; and (E) The applicant's reputation.

(A) The applicant's financial responsibility;

(B) Security of the applicant's place of business or activity;

(C) Accessibility to the public;

(D) The applicant's integrity; and

(E) The applicant's reputation.

(g) The office shall not consider political affiliation, activities, or monetary contributions to political organizations or candidates for any public office.

(h) The office shall not select a person to be a retailer that: (1) (A) Is not current in filing all applicable tax returns to the State of Arkansas and in payment of all taxes, interest, and penalties owed to the State of Arkansas, excluding items under formal appeal under applicable statutes. (B) The Department of Finance and Administration shall provide to the office the information required to verify compliance with subdivision (h)(1)(A) of this section; (2) Has been convicted of a criminal offense related to the security or integrity of a lottery in this or any other jurisdiction; (3) (A) Has been convicted of any illegal gambling activity, false statements, false swearing, or perjury in this or any other jurisdiction or convicted of any crime punishable by more than one (1) year of imprisonment or a fine of more than one thousand dollars ($1,000), or both. (B) Subdivision (h)(3)(A) of this section shall not apply if the person's civil rights have been restored and at least five (5) years have elapsed from the date of the completion of the sentence without a subsequent conviction of a crime described in subdivision (h)(3)(A) of this section; (4) Has been found to have violated this chapter or any rule, policy, or procedure of the office unless: (A) Ten (10) years have passed since the violation; or (B) The office finds the violation both minor and unintentional in nature; (5) Is a vendor or an employee or agent of a vendor doing business with the office; (6) Is an employee of the office or a member of the immediate family of an employee of the office; (7) Has made a statement of material fact to the office knowing the statement to be false; or (8) (A) Is engaged exclusively in the business of selling tickets or shares. (B) Subdivision (h)(8)(A) of this section does not preclude the office from selling or giving away tickets or shares for promotional purposes.

(1) (A) Is not current in filing all applicable tax returns to the State of Arkansas and in payment of all taxes, interest, and penalties owed to the State of Arkansas, excluding items under formal appeal under applicable statutes. (B) The Department of Finance and Administration shall provide to the office the information required to verify compliance with subdivision (h)(1)(A) of this section;

(A) Is not current in filing all applicable tax returns to the State of Arkansas and in payment of all taxes, interest, and penalties owed to the State of Arkansas, excluding items under formal appeal under applicable statutes.

(B) The Department of Finance and Administration shall provide to the office the information required to verify compliance with subdivision (h)(1)(A) of this section;

(2) Has been convicted of a criminal offense related to the security or integrity of a lottery in this or any other jurisdiction;

(3) (A) Has been convicted of any illegal gambling activity, false statements, false swearing, or perjury in this or any other jurisdiction or convicted of any crime punishable by more than one (1) year of imprisonment or a fine of more than one thousand dollars ($1,000), or both. (B) Subdivision (h)(3)(A) of this section shall not apply if the person's civil rights have been restored and at least five (5) years have elapsed from the date of the completion of the sentence without a subsequent conviction of a crime described in subdivision (h)(3)(A) of this section;

(A) Has been convicted of any illegal gambling activity, false statements, false swearing, or perjury in this or any other jurisdiction or convicted of any crime punishable by more than one (1) year of imprisonment or a fine of more than one thousand dollars ($1,000), or both.

(B) Subdivision (h)(3)(A) of this section shall not apply if the person's civil rights have been restored and at least five (5) years have elapsed from the date of the completion of the sentence without a subsequent conviction of a crime described in subdivision (h)(3)(A) of this section;

(4) Has been found to have violated this chapter or any rule, policy, or procedure of the office unless: (A) Ten (10) years have passed since the violation; or (B) The office finds the violation both minor and unintentional in nature;

(A) Ten (10) years have passed since the violation; or

(B) The office finds the violation both minor and unintentional in nature;

(5) Is a vendor or an employee or agent of a vendor doing business with the office;

(6) Is an employee of the office or a member of the immediate family of an employee of the office;

(7) Has made a statement of material fact to the office knowing the statement to be false; or

(8) (A) Is engaged exclusively in the business of selling tickets or shares. (B) Subdivision (h)(8)(A) of this section does not preclude the office from selling or giving away tickets or shares for promotional purposes.

(A) Is engaged exclusively in the business of selling tickets or shares.

(B) Subdivision (h)(8)(A) of this section does not preclude the office from selling or giving away tickets or shares for promotional purposes.

(i) (1) A person applying to become a retailer shall be charged a uniform application fee determined by rule for each lottery outlet. (2) A retailer license may be renewable annually in the discretion of the office unless canceled or terminated by the office. (3) The office may establish by rule a reasonable fee for the issuance, reissuance, fine, or penalty associated with the process, procedures, or enforcement necessary to issue or maintain a retailer license, including without limitation to cover the cost of: (A) An initial and any subsequent state and federal criminal background check under this subchapter; and (B) The reporting, communications technology, and banking processes necessary to implement and enforce this subchapter.

(1) A person applying to become a retailer shall be charged a uniform application fee determined by rule for each lottery outlet.

(2) A retailer license may be renewable annually in the discretion of the office unless canceled or terminated by the office.

(3) The office may establish by rule a reasonable fee for the issuance, reissuance, fine, or penalty associated with the process, procedures, or enforcement necessary to issue or maintain a retailer license, including without limitation to cover the cost of: (A) An initial and any subsequent state and federal criminal background check under this subchapter; and (B) The reporting, communications technology, and banking processes necessary to implement and enforce this subchapter.

(A) An initial and any subsequent state and federal criminal background check under this subchapter; and

(B) The reporting, communications technology, and banking processes necessary to implement and enforce this subchapter.

(j) (1) A retailer or an applicant to be a retailer shall not provide a gift or compensation to: (A) The Director of the Office of the Arkansas Lottery, an employee of the office, the Secretary of the Department of Finance and Administration, or the Deputy Director of the Department of Finance and Administration; or (B) A member of the immediate family of the Director of the Office of the Arkansas Lottery, an employee of the office, the secretary, or the Deputy Director of the Department of Finance and Administration. (2) (A) A person who knowingly violates subdivision (j)(1) of this section shall be guilty of a Class A misdemeanor. (B) The Arkansas Ethics Commission shall have the authority to investigate and enforce alleged violations of subdivision (j)(1) of this section granted by §§ 7-6-217 and 7-6-218 .

(1) A retailer or an applicant to be a retailer shall not provide a gift or compensation to: (A) The Director of the Office of the Arkansas Lottery, an employee of the office, the Secretary of the Department of Finance and Administration, or the Deputy Director of the Department of Finance and Administration; or (B) A member of the immediate family of the Director of the Office of the Arkansas Lottery, an employee of the office, the secretary, or the Deputy Director of the Department of Finance and Administration.

(A) The Director of the Office of the Arkansas Lottery, an employee of the office, the Secretary of the Department of Finance and Administration, or the Deputy Director of the Department of Finance and Administration; or

(B) A member of the immediate family of the Director of the Office of the Arkansas Lottery, an employee of the office, the secretary, or the Deputy Director of the Department of Finance and Administration.

(2) (A) A person who knowingly violates subdivision (j)(1) of this section shall be guilty of a Class A misdemeanor. (B) The Arkansas Ethics Commission shall have the authority to investigate and enforce alleged violations of subdivision (j)(1) of this section granted by §§ 7-6-217 and 7-6-218 .

(A) A person who knowingly violates subdivision (j)(1) of this section shall be guilty of a Class A misdemeanor.

(B) The Arkansas Ethics Commission shall have the authority to investigate and enforce alleged violations of subdivision (j)(1) of this section granted by §§ 7-6-217 and 7-6-218 .

Amended by Act 2019, No. 910,§ 3544, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 3543, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 3542, eff. 7/1/2019.

Amended by Act 2017, No. 334,§ 9, eff. 8/1/2017.

Amended by Act 2015, No. 218,§ 25, eff. 2/26/2015.

Amended by Act 2013, No. 1173,§ 16, eff. 4/12/2013.

Acts 2009, No. 605, § 1; 2009, No. 606, § 1; 2009, No. 1405, § 42; 2010, No. 265, § 30; 2010, No. 294, § 30.
Ark. Code Ann. § 23-79-503 — AR Code / Title 23 / Chapter 79 / Subchapter 5 / Section 23-79-503
Definitions
Status: in_force

As used in this subchapter: (1) "Agent" means any person who is licensed to sell health insurance in this state; (2) "Board" means the Board of Directors of the Arkansas Comprehensive Health Insurance Pool; (3) "Church plan" has the same meaning given that term in the Health Insurance Portability and Accountability Act of 1996; (4) "Commissioner" means the Insurance Commissioner; (5) "Continuation coverage" means continuation of coverage under a group health plan or other health insurance coverage for former employees or dependents of former employees that would otherwise have terminated under the terms of that coverage pursuant to any continuation provisions under federal or state law, including the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), as amended, § 23-86-114 of the Arkansas Insurance Code, or any other similar requirement in another state; (6) "Covered person" means a person who is and continues to remain eligible for pool coverage and is covered under one (1) of the plans offered by the pool; (7) (A) "Creditable coverage" means, with respect to a federally eligible individual or a qualified trade adjustment assistance eligible person, coverage of the individual under any of the following: (i) A group health plan; (ii) Health insurance coverage, including group health insurance coverage; (iii) Medicare; (iv) Medical assistance; (v) 10 U.S.C. § 1071 et seq.; (vi) A medical care program of the Indian Health Service or of a tribal organization; (vii) A state health benefits risk pool; (viii) A health plan offered under 5 U.S.C. § 8901 et seq.; (ix) A public health plan, as defined in regulations consistent with section 104 of the Health Insurance Portability and Accountability Act of 1996 that may be promulgated by the Secretary of the United States Department of Health and Human Services; and (x) A health benefit plan under section 5(e) of the Peace Corps Act, 22 U.S.C. § 2504(e) . (B) "Creditable coverage" does not include: (i) Coverage consisting solely of coverage of excepted benefits as defined in section 2791(C) of Title XXVII of the Public Health Service Act, 42 U.S.C. § 300gg-91 ; or (ii) (a) Any period of coverage under subdivisions (7)(A)(i)-(x) of this section that occurred before a break of more than sixty-three (63) days during all of which the individual was not covered under subdivisions (7)(A)(i)-(x) of this section. (b) Any period that an individual is in a waiting period for any coverage under a group health plan or for group health insurance coverage or is in an affiliation period under the terms of health insurance coverage offered by a health maintenance organization shall not be taken into account in determining if there has been a break of more than sixty-three (63) days in any creditable coverage; (8) "Department" means the State Insurance Department; (9) "Excess or stop-loss coverage" means an arrangement whereby an insurer insures against the risk that any one (1) claim will exceed a specific dollar amount or that the entire loss of a self-insurance plan will exceed a specific amount; (10) "Federally eligible individual" means an individual resident of Arkansas: (A) For whom: (i) As of the date on which the individual seeks pool coverage under § 23-79-509 , the aggregate of the periods of creditable coverage is eighteen (18) or more months; and (ii) The most recent prior creditable coverage was under group health insurance coverage offered by an insurer, a group health plan, a governmental plan, a church plan, or health insurance coverage offered in connection with any such plans; (B) Who is not eligible for coverage under: (i) A group health plan; (ii) Part A or Part B of Medicare; or (iii) Medical assistance and does not have other health insurance coverage; (C) With respect to whom the most recent coverage within the coverage period described in subdivision (10)(A)(i) of this section was not terminated based upon a factor related to nonpayment of premiums or fraud; (D) If the individual has been offered the option of continuation coverage under a Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) continuation provision or under a similar state program, who elected such coverage; and (E) Who, if the individual elected the continuation coverage, has exhausted the continuation coverage under such a provision or program; (11) "Governmental plan" has the same meaning given that term in the federal Health Insurance Portability and Accountability Act of 1996; (12) "Group health plan" has the same meaning given that term in the federal Health Insurance Portability and Accountability Act of 1996; (13) (A) "Health insurance" means any hospital and medical expense-incurred policy, certificate, or contract provided by an insurer, hospital or medical service corporation, health maintenance organization, or any other healthcare plan or arrangement that pays for or furnishes medical or healthcare services whether by insurance or otherwise and includes any excess or stop-loss coverage. (B) "Health insurance" does not include long-term care, disability income, short-term, accident, dental-only, vision-only, fixed indemnity, limited-benefit or credit insurance, coverage issued as a supplement to liability insurance, insurance arising out of workers' compensation or similar law, automobile medical-payment insurance, or insurance under which benefits are payable with or without regard to fault and that is statutorily required to be contained in any liability insurance policy or equivalent self-insurance; (14) "Health maintenance organization" shall have the same meaning as defined in § 23-76-102 ; (15) "Hospital" shall have the same meaning as defined in § 20-9-201 ; (16) "Individual health insurance coverage" means health insurance coverage offered to individuals in the individual market but does not include short-term, limited-duration insurance; (17) (A) "Insurer" means any entity that provides health insurance, including excess or stop-loss health insurance, in the State of Arkansas. (B) For the purposes of this subchapter, "insurer" includes an insurance company, medical services plans, hospital plans, hospital medical service corporations, health maintenance organizations, fraternal benefits society, or any other entity providing a plan of health insurance or health benefits subject to state insurance regulation; (18) "Medical assistance" means the state medical assistance program provided under Title XIX of the Social Security Act or under any similar program of healthcare benefits in a state other than Arkansas; (19) (A) (i) "Medically necessary" means that a service, drug, supply, or article is necessary and appropriate for the diagnosis or treatment of an illness or injury in accord with generally accepted standards of medical practice at the time the service, drug, or supply is provided. (ii) When specifically applied to a confinement, "medically necessary" further means that the diagnosis or treatment of the covered person's medical symptoms or condition cannot be safely provided to that person as an outpatient. (B) A service, drug, supply, or article shall not be medically necessary if it: (i) Is investigational, experimental, or for research purposes; (ii) Is provided solely for the convenience of the patient, the patient's family, physician, hospital, or any other provider; (iii) Exceeds in scope, duration, or intensity that level of care that is needed to provide safe, adequate, and appropriate diagnosis or treatment; (iv) Could have been omitted without adversely affecting the covered person's condition or the quality of medical care; or (v) Involves the use of a medical device, drug, or substance not formally approved by the United States Food and Drug Administration; (20) "Medicare" means coverage under Part A and Part B of Title XVIII of the Social Security Act, 42 U.S.C. § 1395 et seq.; (21) "Physician" means a person licensed to practice medicine as duly licensed by the State of Arkansas; (22) "Plan" means the comprehensive health insurance plan as adopted by the board or by rule; (23) "Plan administrator" means the insurer designated under § 23-79-508 to carry out the provisions of the plan of operation; (24) "Plan of operation" means the plan of operation of the pool, including articles, bylaws, and operating rules adopted by the board pursuant to this subchapter; (25) "Provider" means any hospital, skilled nursing facility, hospice, home health agency, physician, pharmacist, or any other person or entity licensed in Arkansas to furnish medical care, articles, and supplies; (26) "Qualified high-risk pool" has the same meaning given that term in the Health Insurance Portability and Accountability Act of 1996; (27) "Qualified trade adjustment assistance eligible person" means a person who is a trade adjustment assistance eligible person as defined by this section and for whom, on the date an application for the individual is received by the pool under § 23-79-509 , has an aggregate of at least three (3) months of creditable coverage without a break in coverage of sixty-three (63) days or more; (28) "Resident eligible person" means a person who: (A) Has been legally domiciled in the State of Arkansas for a period of at least: (i) Ninety (90) days and continues to be domiciled in Arkansas; or (ii) Thirty (30) days, continues to be domiciled in Arkansas, and was covered under a qualified high-risk pool in another state up until sixty-three (63) days or less prior to the date that the pool receives his or her application for coverage; and (B) Is not eligible for coverage under: (i) A group health plan; (ii) Part A or Part B of Medicare; or (iii) Medical assistance as defined in this section and does not have other health insurance coverage as defined in this section; and (29) "Trade adjustment assistance eligible person" means a person who is legally domiciled in the State of Arkansas on the date of application to the pool and is eligible for the tax credit for health insurance coverage premiums under section 35 of the Internal Revenue Code of 1986. Acts 1997, No. 292, § 3; 1997, No. 1000, § 24; 1999, No. 1356, § 1; 2003, No. 1327, § 2.

As used in this subchapter:

(1) "Agent" means any person who is licensed to sell health insurance in this state;

(2) "Board" means the Board of Directors of the Arkansas Comprehensive Health Insurance Pool;

(3) "Church plan" has the same meaning given that term in the Health Insurance Portability and Accountability Act of 1996;

(4) "Commissioner" means the Insurance Commissioner;

(5) "Continuation coverage" means continuation of coverage under a group health plan or other health insurance coverage for former employees or dependents of former employees that would otherwise have terminated under the terms of that coverage pursuant to any continuation provisions under federal or state law, including the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), as amended, § 23-86-114 of the Arkansas Insurance Code, or any other similar requirement in another state;

(6) "Covered person" means a person who is and continues to remain eligible for pool coverage and is covered under one (1) of the plans offered by the pool;

(7) (A) "Creditable coverage" means, with respect to a federally eligible individual or a qualified trade adjustment assistance eligible person, coverage of the individual under any of the following: (i) A group health plan; (ii) Health insurance coverage, including group health insurance coverage; (iii) Medicare; (iv) Medical assistance; (v) 10 U.S.C. § 1071 et seq.; (vi) A medical care program of the Indian Health Service or of a tribal organization; (vii) A state health benefits risk pool; (viii) A health plan offered under 5 U.S.C. § 8901 et seq.; (ix) A public health plan, as defined in regulations consistent with section 104 of the Health Insurance Portability and Accountability Act of 1996 that may be promulgated by the Secretary of the United States Department of Health and Human Services; and (x) A health benefit plan under section 5(e) of the Peace Corps Act, 22 U.S.C. § 2504(e) . (B) "Creditable coverage" does not include: (i) Coverage consisting solely of coverage of excepted benefits as defined in section 2791(C) of Title XXVII of the Public Health Service Act, 42 U.S.C. § 300gg-91 ; or (ii) (a) Any period of coverage under subdivisions (7)(A)(i)-(x) of this section that occurred before a break of more than sixty-three (63) days during all of which the individual was not covered under subdivisions (7)(A)(i)-(x) of this section. (b) Any period that an individual is in a waiting period for any coverage under a group health plan or for group health insurance coverage or is in an affiliation period under the terms of health insurance coverage offered by a health maintenance organization shall not be taken into account in determining if there has been a break of more than sixty-three (63) days in any creditable coverage;

(A) "Creditable coverage" means, with respect to a federally eligible individual or a qualified trade adjustment assistance eligible person, coverage of the individual under any of the following: (i) A group health plan; (ii) Health insurance coverage, including group health insurance coverage; (iii) Medicare; (iv) Medical assistance; (v) 10 U.S.C. § 1071 et seq.; (vi) A medical care program of the Indian Health Service or of a tribal organization; (vii) A state health benefits risk pool; (viii) A health plan offered under 5 U.S.C. § 8901 et seq.; (ix) A public health plan, as defined in regulations consistent with section 104 of the Health Insurance Portability and Accountability Act of 1996 that may be promulgated by the Secretary of the United States Department of Health and Human Services; and (x) A health benefit plan under section 5(e) of the Peace Corps Act, 22 U.S.C. § 2504(e) .

(i) A group health plan;

(ii) Health insurance coverage, including group health insurance coverage;

(iii) Medicare;

(iv) Medical assistance;

(v) 10 U.S.C. § 1071 et seq.;

(vi) A medical care program of the Indian Health Service or of a tribal organization;

(vii) A state health benefits risk pool;

(viii) A health plan offered under 5 U.S.C. § 8901 et seq.;

(ix) A public health plan, as defined in regulations consistent with section 104 of the Health Insurance Portability and Accountability Act of 1996 that may be promulgated by the Secretary of the United States Department of Health and Human Services; and

(x) A health benefit plan under section 5(e) of the Peace Corps Act, 22 U.S.C. § 2504(e) .

(B) "Creditable coverage" does not include: (i) Coverage consisting solely of coverage of excepted benefits as defined in section 2791(C) of Title XXVII of the Public Health Service Act, 42 U.S.C. § 300gg-91 ; or (ii) (a) Any period of coverage under subdivisions (7)(A)(i)-(x) of this section that occurred before a break of more than sixty-three (63) days during all of which the individual was not covered under subdivisions (7)(A)(i)-(x) of this section. (b) Any period that an individual is in a waiting period for any coverage under a group health plan or for group health insurance coverage or is in an affiliation period under the terms of health insurance coverage offered by a health maintenance organization shall not be taken into account in determining if there has been a break of more than sixty-three (63) days in any creditable coverage;

(i) Coverage consisting solely of coverage of excepted benefits as defined in section 2791(C) of Title XXVII of the Public Health Service Act, 42 U.S.C. § 300gg-91 ; or

(ii) (a) Any period of coverage under subdivisions (7)(A)(i)-(x) of this section that occurred before a break of more than sixty-three (63) days during all of which the individual was not covered under subdivisions (7)(A)(i)-(x) of this section. (b) Any period that an individual is in a waiting period for any coverage under a group health plan or for group health insurance coverage or is in an affiliation period under the terms of health insurance coverage offered by a health maintenance organization shall not be taken into account in determining if there has been a break of more than sixty-three (63) days in any creditable coverage;

(a) Any period of coverage under subdivisions (7)(A)(i)-(x) of this section that occurred before a break of more than sixty-three (63) days during all of which the individual was not covered under subdivisions (7)(A)(i)-(x) of this section.

(b) Any period that an individual is in a waiting period for any coverage under a group health plan or for group health insurance coverage or is in an affiliation period under the terms of health insurance coverage offered by a health maintenance organization shall not be taken into account in determining if there has been a break of more than sixty-three (63) days in any creditable coverage;

(8) "Department" means the State Insurance Department;

(9) "Excess or stop-loss coverage" means an arrangement whereby an insurer insures against the risk that any one (1) claim will exceed a specific dollar amount or that the entire loss of a self-insurance plan will exceed a specific amount;

(10) "Federally eligible individual" means an individual resident of Arkansas: (A) For whom: (i) As of the date on which the individual seeks pool coverage under § 23-79-509 , the aggregate of the periods of creditable coverage is eighteen (18) or more months; and (ii) The most recent prior creditable coverage was under group health insurance coverage offered by an insurer, a group health plan, a governmental plan, a church plan, or health insurance coverage offered in connection with any such plans; (B) Who is not eligible for coverage under: (i) A group health plan; (ii) Part A or Part B of Medicare; or (iii) Medical assistance and does not have other health insurance coverage; (C) With respect to whom the most recent coverage within the coverage period described in subdivision (10)(A)(i) of this section was not terminated based upon a factor related to nonpayment of premiums or fraud; (D) If the individual has been offered the option of continuation coverage under a Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) continuation provision or under a similar state program, who elected such coverage; and (E) Who, if the individual elected the continuation coverage, has exhausted the continuation coverage under such a provision or program;

(A) For whom: (i) As of the date on which the individual seeks pool coverage under § 23-79-509 , the aggregate of the periods of creditable coverage is eighteen (18) or more months; and (ii) The most recent prior creditable coverage was under group health insurance coverage offered by an insurer, a group health plan, a governmental plan, a church plan, or health insurance coverage offered in connection with any such plans;

(i) As of the date on which the individual seeks pool coverage under § 23-79-509 , the aggregate of the periods of creditable coverage is eighteen (18) or more months; and

(ii) The most recent prior creditable coverage was under group health insurance coverage offered by an insurer, a group health plan, a governmental plan, a church plan, or health insurance coverage offered in connection with any such plans;

(B) Who is not eligible for coverage under: (i) A group health plan; (ii) Part A or Part B of Medicare; or (iii) Medical assistance and does not have other health insurance coverage;

(i) A group health plan;

(ii) Part A or Part B of Medicare; or

(iii) Medical assistance and does not have other health insurance coverage;

(C) With respect to whom the most recent coverage within the coverage period described in subdivision (10)(A)(i) of this section was not terminated based upon a factor related to nonpayment of premiums or fraud;

(D) If the individual has been offered the option of continuation coverage under a Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) continuation provision or under a similar state program, who elected such coverage; and

(E) Who, if the individual elected the continuation coverage, has exhausted the continuation coverage under such a provision or program;

(11) "Governmental plan" has the same meaning given that term in the federal Health Insurance Portability and Accountability Act of 1996;

(12) "Group health plan" has the same meaning given that term in the federal Health Insurance Portability and Accountability Act of 1996;

(13) (A) "Health insurance" means any hospital and medical expense-incurred policy, certificate, or contract provided by an insurer, hospital or medical service corporation, health maintenance organization, or any other healthcare plan or arrangement that pays for or furnishes medical or healthcare services whether by insurance or otherwise and includes any excess or stop-loss coverage. (B) "Health insurance" does not include long-term care, disability income, short-term, accident, dental-only, vision-only, fixed indemnity, limited-benefit or credit insurance, coverage issued as a supplement to liability insurance, insurance arising out of workers' compensation or similar law, automobile medical-payment insurance, or insurance under which benefits are payable with or without regard to fault and that is statutorily required to be contained in any liability insurance policy or equivalent self-insurance;

(A) "Health insurance" means any hospital and medical expense-incurred policy, certificate, or contract provided by an insurer, hospital or medical service corporation, health maintenance organization, or any other healthcare plan or arrangement that pays for or furnishes medical or healthcare services whether by insurance or otherwise and includes any excess or stop-loss coverage.

(B) "Health insurance" does not include long-term care, disability income, short-term, accident, dental-only, vision-only, fixed indemnity, limited-benefit or credit insurance, coverage issued as a supplement to liability insurance, insurance arising out of workers' compensation or similar law, automobile medical-payment insurance, or insurance under which benefits are payable with or without regard to fault and that is statutorily required to be contained in any liability insurance policy or equivalent self-insurance;

(14) "Health maintenance organization" shall have the same meaning as defined in § 23-76-102 ;

(15) "Hospital" shall have the same meaning as defined in § 20-9-201 ;

(16) "Individual health insurance coverage" means health insurance coverage offered to individuals in the individual market but does not include short-term, limited-duration insurance;

(17) (A) "Insurer" means any entity that provides health insurance, including excess or stop-loss health insurance, in the State of Arkansas. (B) For the purposes of this subchapter, "insurer" includes an insurance company, medical services plans, hospital plans, hospital medical service corporations, health maintenance organizations, fraternal benefits society, or any other entity providing a plan of health insurance or health benefits subject to state insurance regulation;

(A) "Insurer" means any entity that provides health insurance, including excess or stop-loss health insurance, in the State of Arkansas.

(B) For the purposes of this subchapter, "insurer" includes an insurance company, medical services plans, hospital plans, hospital medical service corporations, health maintenance organizations, fraternal benefits society, or any other entity providing a plan of health insurance or health benefits subject to state insurance regulation;

(18) "Medical assistance" means the state medical assistance program provided under Title XIX of the Social Security Act or under any similar program of healthcare benefits in a state other than Arkansas;

(19) (A) (i) "Medically necessary" means that a service, drug, supply, or article is necessary and appropriate for the diagnosis or treatment of an illness or injury in accord with generally accepted standards of medical practice at the time the service, drug, or supply is provided. (ii) When specifically applied to a confinement, "medically necessary" further means that the diagnosis or treatment of the covered person's medical symptoms or condition cannot be safely provided to that person as an outpatient. (B) A service, drug, supply, or article shall not be medically necessary if it: (i) Is investigational, experimental, or for research purposes; (ii) Is provided solely for the convenience of the patient, the patient's family, physician, hospital, or any other provider; (iii) Exceeds in scope, duration, or intensity that level of care that is needed to provide safe, adequate, and appropriate diagnosis or treatment; (iv) Could have been omitted without adversely affecting the covered person's condition or the quality of medical care; or (v) Involves the use of a medical device, drug, or substance not formally approved by the United States Food and Drug Administration;

(A) (i) "Medically necessary" means that a service, drug, supply, or article is necessary and appropriate for the diagnosis or treatment of an illness or injury in accord with generally accepted standards of medical practice at the time the service, drug, or supply is provided. (ii) When specifically applied to a confinement, "medically necessary" further means that the diagnosis or treatment of the covered person's medical symptoms or condition cannot be safely provided to that person as an outpatient.

(i) "Medically necessary" means that a service, drug, supply, or article is necessary and appropriate for the diagnosis or treatment of an illness or injury in accord with generally accepted standards of medical practice at the time the service, drug, or supply is provided.

(ii) When specifically applied to a confinement, "medically necessary" further means that the diagnosis or treatment of the covered person's medical symptoms or condition cannot be safely provided to that person as an outpatient.

(B) A service, drug, supply, or article shall not be medically necessary if it: (i) Is investigational, experimental, or for research purposes; (ii) Is provided solely for the convenience of the patient, the patient's family, physician, hospital, or any other provider; (iii) Exceeds in scope, duration, or intensity that level of care that is needed to provide safe, adequate, and appropriate diagnosis or treatment; (iv) Could have been omitted without adversely affecting the covered person's condition or the quality of medical care; or (v) Involves the use of a medical device, drug, or substance not formally approved by the United States Food and Drug Administration;

(i) Is investigational, experimental, or for research purposes;

(ii) Is provided solely for the convenience of the patient, the patient's family, physician, hospital, or any other provider;

(iii) Exceeds in scope, duration, or intensity that level of care that is needed to provide safe, adequate, and appropriate diagnosis or treatment;

(iv) Could have been omitted without adversely affecting the covered person's condition or the quality of medical care; or

(v) Involves the use of a medical device, drug, or substance not formally approved by the United States Food and Drug Administration;

(20) "Medicare" means coverage under Part A and Part B of Title XVIII of the Social Security Act, 42 U.S.C. § 1395 et seq.;

(21) "Physician" means a person licensed to practice medicine as duly licensed by the State of Arkansas;

(22) "Plan" means the comprehensive health insurance plan as adopted by the board or by rule;

(23) "Plan administrator" means the insurer designated under § 23-79-508 to carry out the provisions of the plan of operation;

(24) "Plan of operation" means the plan of operation of the pool, including articles, bylaws, and operating rules adopted by the board pursuant to this subchapter;

(25) "Provider" means any hospital, skilled nursing facility, hospice, home health agency, physician, pharmacist, or any other person or entity licensed in Arkansas to furnish medical care, articles, and supplies;

(26) "Qualified high-risk pool" has the same meaning given that term in the Health Insurance Portability and Accountability Act of 1996;

(27) "Qualified trade adjustment assistance eligible person" means a person who is a trade adjustment assistance eligible person as defined by this section and for whom, on the date an application for the individual is received by the pool under § 23-79-509 , has an aggregate of at least three (3) months of creditable coverage without a break in coverage of sixty-three (63) days or more;

(28) "Resident eligible person" means a person who: (A) Has been legally domiciled in the State of Arkansas for a period of at least: (i) Ninety (90) days and continues to be domiciled in Arkansas; or (ii) Thirty (30) days, continues to be domiciled in Arkansas, and was covered under a qualified high-risk pool in another state up until sixty-three (63) days or less prior to the date that the pool receives his or her application for coverage; and (B) Is not eligible for coverage under: (i) A group health plan; (ii) Part A or Part B of Medicare; or (iii) Medical assistance as defined in this section and does not have other health insurance coverage as defined in this section; and

(A) Has been legally domiciled in the State of Arkansas for a period of at least: (i) Ninety (90) days and continues to be domiciled in Arkansas; or (ii) Thirty (30) days, continues to be domiciled in Arkansas, and was covered under a qualified high-risk pool in another state up until sixty-three (63) days or less prior to the date that the pool receives his or her application for coverage; and

(i) Ninety (90) days and continues to be domiciled in Arkansas; or

(ii) Thirty (30) days, continues to be domiciled in Arkansas, and was covered under a qualified high-risk pool in another state up until sixty-three (63) days or less prior to the date that the pool receives his or her application for coverage; and

(B) Is not eligible for coverage under: (i) A group health plan; (ii) Part A or Part B of Medicare; or (iii) Medical assistance as defined in this section and does not have other health insurance coverage as defined in this section; and

(i) A group health plan;

(ii) Part A or Part B of Medicare; or

(iii) Medical assistance as defined in this section and does not have other health insurance coverage as defined in this section; and

(29) "Trade adjustment assistance eligible person" means a person who is legally domiciled in the State of Arkansas on the date of application to the pool and is eligible for the tax credit for health insurance coverage premiums under section 35 of the Internal Revenue Code of 1986.

Acts 1997, No. 292, § 3; 1997, No. 1000, § 24; 1999, No. 1356, § 1; 2003, No. 1327, § 2.
Ark. Code Ann. § 23-67-208 — AR Code / Title 23 / Chapter 67 / Subchapter 2 / Section 23-67-208
Rate standards
Status: in_force

(a) Rates shall not be excessive, inadequate, or unfairly discriminatory. (b) A rate in a competitive market is assumed not to be excessive. A rate is excessive in a competitive or noncompetitive market if it is likely to produce a profit from Arkansas business that is unreasonably high in relation to past and prospective loss experience for that class of business which the filing affects or if expenses are unreasonably high in relation to services rendered. (c) A rate is clearly inadequate if, together with the investment income attributable to it, it fails to satisfy projected losses and expenses in the class of business to which it applies. (d) (1) A rate is not unfairly discriminatory in relation to another in the same class of business if it reflects equitably the differences in expected losses and expenses. Rates are not unfairly discriminatory because different premiums result for policyholders with like loss exposures but different expense factors, or with like expense factors but different loss exposures, if the rates reflect the differences with reasonable accuracy. (2) A rate shall be deemed unfairly discriminatory as to a risk or group of risks if the application of premium discounts, credits, or surcharges among the risks does not bear a reasonable relationship to the expected loss and expense experience among the various risks. Acts 1987, No. 959, § 6.

(a) Rates shall not be excessive, inadequate, or unfairly discriminatory.

(b) A rate in a competitive market is assumed not to be excessive. A rate is excessive in a competitive or noncompetitive market if it is likely to produce a profit from Arkansas business that is unreasonably high in relation to past and prospective loss experience for that class of business which the filing affects or if expenses are unreasonably high in relation to services rendered.

(c) A rate is clearly inadequate if, together with the investment income attributable to it, it fails to satisfy projected losses and expenses in the class of business to which it applies.

(d) (1) A rate is not unfairly discriminatory in relation to another in the same class of business if it reflects equitably the differences in expected losses and expenses. Rates are not unfairly discriminatory because different premiums result for policyholders with like loss exposures but different expense factors, or with like expense factors but different loss exposures, if the rates reflect the differences with reasonable accuracy. (2) A rate shall be deemed unfairly discriminatory as to a risk or group of risks if the application of premium discounts, credits, or surcharges among the risks does not bear a reasonable relationship to the expected loss and expense experience among the various risks.

(1) A rate is not unfairly discriminatory in relation to another in the same class of business if it reflects equitably the differences in expected losses and expenses. Rates are not unfairly discriminatory because different premiums result for policyholders with like loss exposures but different expense factors, or with like expense factors but different loss exposures, if the rates reflect the differences with reasonable accuracy.

(2) A rate shall be deemed unfairly discriminatory as to a risk or group of risks if the application of premium discounts, credits, or surcharges among the risks does not bear a reasonable relationship to the expected loss and expense experience among the various risks.

Acts 1987, No. 959, § 6.
Ark. Code Ann. § 23-72-103 — AR Code / Title 23 / Chapter 72 / Section 23-72-103
Other provisions applicable
Status: in_force

In addition to the provisions contained in this chapter, other chapters and provisions of the Arkansas Insurance Code shall apply to mutual assessment life and disability insurers, to the extent so applicable, as follows: (1) Sections 23-60-101 - 23-60-108 and 23-60-110 , scope of Arkansas Insurance Code; (2) Section 23-61-101 et seq., § 23-61-201 et seq., and § 23-61-301 et seq., the Insurance Commissioner; (3) Sections 23-63-102 - 23-63-104 , 23-63-201 - 23-63-216 , 23-63-301 , and 23-63-302 , authorization of insurers and general requirements, with the exception of the following sections: (A) Section 23-63-205 , capital funds required; (B) Section 23-63-207 , special surplus requirement; and (C) Section 23-63-206 , bond or deposit requirement; (4) Applicable provisions of § 23-63-601 et seq., assets and liabilities; (5) Applicable provisions of § 23-63-801 et seq., investments; (6) Section 23-64-101 et seq., agents, brokers, and producers; (7) Section 23-65-101 et seq., unauthorized insurers; (8) Sections 23-66-201 - 23-66-213 , 23-66-301 - 23-66-306 , 23-66-308 - 23-66-311 , 23-66-313 , 23-66-314 , and 23-66-501 - 23-66-513 , trade practice and frauds; (9) Sections 23-79-101 - 23-79-107 , 23-79-109 - 23-79-128 , 23-79-131 - 23-79-134 , and 23-79-202 - 23-79-210 , the insurance contract, except: (A) Sections 23-79-131 - 23-79-134 , exemption of proceeds; (B) Section 23-79-204 , venue; and (C) Section 23-79-205 , registered agents for service of process; (10) The following provisions of §§ 23-69-101 - 23-69-103 , 23-69-105 - 23-69-141 , 23-69-143 , and 23-69-149 - 23-69-156 , organization and corporate procedures of domestic stock and mutual insurers: (A) Section 23-69-103 , inapplicability of general corporation statutes; (B) Section 23-69-107 , amendment of articles of incorporation; (C) Section 23-69-111 , corporate powers in general; (D) Section 23-69-111 , contributions; (E) Section 23-69-120 , meetings of stockholders or members; (F) Section 23-69-123 , corrupt practices - penalty; (G) Section 23-69-110 , removal of director - vacancies; (H) Section 23-69-108 , officers; (I) Section 23-69-109 , prohibited pecuniary interest of officials; (J) Section 23-69-134 , home office and records and penalty for unlawful removal of records; (K) Section 23-69-135 , voucher for expenditures; (L) Section 23-69-136 , situs of personal property for taxation; (M) Section 23-69-137 , management and exclusive agency contracts; (N) Sections 23-69-151 - 23-69-154 , voluntary dissolution; (O) Section 23-69-155 , mutual member's share of assets on liquidation; and (P) Section 23-69-156 , extinguishment of unused corporate charters; (11) Applicable provisions of § 23-68-101 et seq., rehabilitation and liquidation; and (12) Section 23-62-205 , reinsurance. Amended by Act 2021, No. 367,§ 18, eff. 7/28/2021. Acts 1959, No. 148, § 578; A.S.A. 1947, § 66-4523; Acts 1991, No. 804, § 3; 2001, No. 1566, § 15.

In addition to the provisions contained in this chapter, other chapters and provisions of the Arkansas Insurance Code shall apply to mutual assessment life and disability insurers, to the extent so applicable, as follows:

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

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

(3) Sections 23-63-102 - 23-63-104 , 23-63-201 - 23-63-216 , 23-63-301 , and 23-63-302 , authorization of insurers and general requirements, with the exception of the following sections: (A) Section 23-63-205 , capital funds required; (B) Section 23-63-207 , special surplus requirement; and (C) Section 23-63-206 , bond or deposit requirement;

(A) Section 23-63-205 , capital funds required;

(B) Section 23-63-207 , special surplus requirement; and

(C) Section 23-63-206 , bond or deposit requirement;

(4) Applicable provisions of § 23-63-601 et seq., assets and liabilities;

(5) Applicable provisions of § 23-63-801 et seq., investments;

(6) Section 23-64-101 et seq., agents, brokers, and producers;

(7) Section 23-65-101 et seq., unauthorized insurers;

(8) Sections 23-66-201 - 23-66-213 , 23-66-301 - 23-66-306 , 23-66-308 - 23-66-311 , 23-66-313 , 23-66-314 , and 23-66-501 - 23-66-513 , trade practice and frauds;

(9) Sections 23-79-101 - 23-79-107 , 23-79-109 - 23-79-128 , 23-79-131 - 23-79-134 , and 23-79-202 - 23-79-210 , the insurance contract, except: (A) Sections 23-79-131 - 23-79-134 , exemption of proceeds; (B) Section 23-79-204 , venue; and (C) Section 23-79-205 , registered agents for service of process;

(A) Sections 23-79-131 - 23-79-134 , exemption of proceeds;

(B) Section 23-79-204 , venue; and

(C) Section 23-79-205 , registered agents for service of process;

(10) The following provisions of §§ 23-69-101 - 23-69-103 , 23-69-105 - 23-69-141 , 23-69-143 , and 23-69-149 - 23-69-156 , organization and corporate procedures of domestic stock and mutual insurers: (A) Section 23-69-103 , inapplicability of general corporation statutes; (B) Section 23-69-107 , amendment of articles of incorporation; (C) Section 23-69-111 , corporate powers in general; (D) Section 23-69-111 , contributions; (E) Section 23-69-120 , meetings of stockholders or members; (F) Section 23-69-123 , corrupt practices - penalty; (G) Section 23-69-110 , removal of director - vacancies; (H) Section 23-69-108 , officers; (I) Section 23-69-109 , prohibited pecuniary interest of officials; (J) Section 23-69-134 , home office and records and penalty for unlawful removal of records; (K) Section 23-69-135 , voucher for expenditures; (L) Section 23-69-136 , situs of personal property for taxation; (M) Section 23-69-137 , management and exclusive agency contracts; (N) Sections 23-69-151 - 23-69-154 , voluntary dissolution; (O) Section 23-69-155 , mutual member's share of assets on liquidation; and (P) Section 23-69-156 , extinguishment of unused corporate charters;

(A) Section 23-69-103 , inapplicability of general corporation statutes;

(B) Section 23-69-107 , amendment of articles of incorporation;

(C) Section 23-69-111 , corporate powers in general;

(D) Section 23-69-111 , contributions;

(E) Section 23-69-120 , meetings of stockholders or members;

(F) Section 23-69-123 , corrupt practices - penalty;

(G) Section 23-69-110 , removal of director - vacancies;

(H) Section 23-69-108 , officers;

(I) Section 23-69-109 , prohibited pecuniary interest of officials;

(J) Section 23-69-134 , home office and records and penalty for unlawful removal of records;

(K) Section 23-69-135 , voucher for expenditures;

(L) Section 23-69-136 , situs of personal property for taxation;

(M) Section 23-69-137 , management and exclusive agency contracts;

(N) Sections 23-69-151 - 23-69-154 , voluntary dissolution;

(O) Section 23-69-155 , mutual member's share of assets on liquidation; and

(P) Section 23-69-156 , extinguishment of unused corporate charters;

(11) Applicable provisions of § 23-68-101 et seq., rehabilitation and liquidation; and

(12) Section 23-62-205 , reinsurance.

Amended by Act 2021, No. 367,§ 18, eff. 7/28/2021.

Acts 1959, No. 148, § 578; A.S.A. 1947, § 66-4523; Acts 1991, No. 804, § 3; 2001, No. 1566, § 15.
Ark. Code Ann. § 23-89-403 — AR Code / Title 23 / Chapter 89 / Subchapter 4 / Section 23-89-403
Bodily injury coverage required
Status: in_force

(a) (1) No automobile liability insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle shall be delivered or issued for delivery in this state with respect to any motor vehicle registered or principally garaged in this state unless coverage is provided therein or supplemental thereto and is not less than limits described in § 27-19-605 , under provisions filed with and approved by the Insurance Commissioner, for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of bodily injury, sickness, or disease, including death, resulting therefrom. (2) However, the coverage required to be provided under this section shall not be applicable when any insured named in the policy has rejected the coverage in writing, and this rejection shall continue until withdrawn in writing by the insured. (3) (A) Should a named insured or applicant purchase third-party liability coverage in greater limits than the minimum provided in § 27-19-605 , the insurer shall have available and the agent shall offer a named insured or applicant coverage required under this section in limits up to his or her third-party liability limits. (B) No insurer shall be required to offer, provide, or make available coverage conforming to this section in connection with an excess policy, umbrella policy, or any other policy which does not provide primary motor vehicle insurance for liabilities arising out of the ownership, maintenance, or use of a specifically identified motor vehicle. (C) (i) An insured or applicant not desiring to purchase higher limits shall reject the increased limits in writing on the application for insurance coverage, although agents must offer the increased limits to all new applicants for insurance on and after the passage of this act. (ii) The requirement for written rejection shall be applicable to new business written on and after January 1, 2000. (iii) For an existing business, insurers shall provide at the next two (2) renewals after the passage of this act notice that such increased limits are available. (D) When an existing-named insured has coverage under this section less than the insured's third-party liability limits, that coverage shall not change on July 30, 1999, unless a named insured requests in writing to purchase the higher limits. (b) After a named insured or applicant for insurance rejects this coverage, the insurer or any of its affiliates shall not be required to notify any insured in any renewal, reinstatement, substitute, amended, or replacement policy as to the availability of such coverage. Acts 1965, No. 464, § 1; 1977, No. 532, § 1; 1983, No. 732, § 1; A.S.A. 1947, § 66-4003; Acts 1995, No. 527, § 2; 1995, No. 1334, § 1; 1997, No. 203, § 1; 1999, No. 899, § 1; 2001, No. 1276, § 1.

(a) (1) No automobile liability insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle shall be delivered or issued for delivery in this state with respect to any motor vehicle registered or principally garaged in this state unless coverage is provided therein or supplemental thereto and is not less than limits described in § 27-19-605 , under provisions filed with and approved by the Insurance Commissioner, for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of bodily injury, sickness, or disease, including death, resulting therefrom. (2) However, the coverage required to be provided under this section shall not be applicable when any insured named in the policy has rejected the coverage in writing, and this rejection shall continue until withdrawn in writing by the insured. (3) (A) Should a named insured or applicant purchase third-party liability coverage in greater limits than the minimum provided in § 27-19-605 , the insurer shall have available and the agent shall offer a named insured or applicant coverage required under this section in limits up to his or her third-party liability limits. (B) No insurer shall be required to offer, provide, or make available coverage conforming to this section in connection with an excess policy, umbrella policy, or any other policy which does not provide primary motor vehicle insurance for liabilities arising out of the ownership, maintenance, or use of a specifically identified motor vehicle. (C) (i) An insured or applicant not desiring to purchase higher limits shall reject the increased limits in writing on the application for insurance coverage, although agents must offer the increased limits to all new applicants for insurance on and after the passage of this act. (ii) The requirement for written rejection shall be applicable to new business written on and after January 1, 2000. (iii) For an existing business, insurers shall provide at the next two (2) renewals after the passage of this act notice that such increased limits are available. (D) When an existing-named insured has coverage under this section less than the insured's third-party liability limits, that coverage shall not change on July 30, 1999, unless a named insured requests in writing to purchase the higher limits.

(1) No automobile liability insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle shall be delivered or issued for delivery in this state with respect to any motor vehicle registered or principally garaged in this state unless coverage is provided therein or supplemental thereto and is not less than limits described in § 27-19-605 , under provisions filed with and approved by the Insurance Commissioner, for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of bodily injury, sickness, or disease, including death, resulting therefrom.

(2) However, the coverage required to be provided under this section shall not be applicable when any insured named in the policy has rejected the coverage in writing, and this rejection shall continue until withdrawn in writing by the insured.

(3) (A) Should a named insured or applicant purchase third-party liability coverage in greater limits than the minimum provided in § 27-19-605 , the insurer shall have available and the agent shall offer a named insured or applicant coverage required under this section in limits up to his or her third-party liability limits. (B) No insurer shall be required to offer, provide, or make available coverage conforming to this section in connection with an excess policy, umbrella policy, or any other policy which does not provide primary motor vehicle insurance for liabilities arising out of the ownership, maintenance, or use of a specifically identified motor vehicle. (C) (i) An insured or applicant not desiring to purchase higher limits shall reject the increased limits in writing on the application for insurance coverage, although agents must offer the increased limits to all new applicants for insurance on and after the passage of this act. (ii) The requirement for written rejection shall be applicable to new business written on and after January 1, 2000. (iii) For an existing business, insurers shall provide at the next two (2) renewals after the passage of this act notice that such increased limits are available. (D) When an existing-named insured has coverage under this section less than the insured's third-party liability limits, that coverage shall not change on July 30, 1999, unless a named insured requests in writing to purchase the higher limits.

(A) Should a named insured or applicant purchase third-party liability coverage in greater limits than the minimum provided in § 27-19-605 , the insurer shall have available and the agent shall offer a named insured or applicant coverage required under this section in limits up to his or her third-party liability limits.

(B) No insurer shall be required to offer, provide, or make available coverage conforming to this section in connection with an excess policy, umbrella policy, or any other policy which does not provide primary motor vehicle insurance for liabilities arising out of the ownership, maintenance, or use of a specifically identified motor vehicle.

(C) (i) An insured or applicant not desiring to purchase higher limits shall reject the increased limits in writing on the application for insurance coverage, although agents must offer the increased limits to all new applicants for insurance on and after the passage of this act. (ii) The requirement for written rejection shall be applicable to new business written on and after January 1, 2000. (iii) For an existing business, insurers shall provide at the next two (2) renewals after the passage of this act notice that such increased limits are available.

(i) An insured or applicant not desiring to purchase higher limits shall reject the increased limits in writing on the application for insurance coverage, although agents must offer the increased limits to all new applicants for insurance on and after the passage of this act.

(ii) The requirement for written rejection shall be applicable to new business written on and after January 1, 2000.

(iii) For an existing business, insurers shall provide at the next two (2) renewals after the passage of this act notice that such increased limits are available.

(D) When an existing-named insured has coverage under this section less than the insured's third-party liability limits, that coverage shall not change on July 30, 1999, unless a named insured requests in writing to purchase the higher limits.

(b) After a named insured or applicant for insurance rejects this coverage, the insurer or any of its affiliates shall not be required to notify any insured in any renewal, reinstatement, substitute, amended, or replacement policy as to the availability of such coverage.

Acts 1965, No. 464, § 1; 1977, No. 532, § 1; 1983, No. 732, § 1; A.S.A. 1947, § 66-4003; Acts 1995, No. 527, § 2; 1995, No. 1334, § 1; 1997, No. 203, § 1; 1999, No. 899, § 1; 2001, No. 1276, § 1.
Ark. Code Ann. § 23-96-104 — AR Code / Title 23 / Chapter 96 / Section 23-96-104
Definitions
Status: in_force

As used in this chapter: (1) "Account" means any of the two (2) accounts created under § 23-96-109 ; (2) "Association" means the Arkansas Life and Health Insurance Guaranty Association created under § 23-96-109 ; (3) "Authorized assessment" or the term "authorized" when used in the context of assessments means a resolution by the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association has been passed whereby an assessment will be called immediately or in the future from member insurers for a specified amount. An assessment is authorized when the resolution is passed; (4) "Benefit plan" means a specific employee, union, or association of natural persons benefit plan; (5) (A) "Called assessment" or the term "called" when used in the context of assessments means that a notice has been issued by the Arkansas Life and Health Insurance Guaranty Association to member insurers requiring that an authorized assessment be paid within the time frame set forth within the notice. (B) An authorized assessment becomes a called assessment when notice is mailed by the Arkansas Life and Health Insurance Guaranty Association to member insurers; (6) "Commissioner" means the Insurance Commissioner of this state; (7) "Contractual obligations" means any obligation under a policy or contract or certificate under a group policy or contract, or portion thereof for which coverage is provided under § 23-96-107 ; (8) "Covered policy" or "covered contract" means any policy or contract or portion of a policy or contract for which coverage is provided under § 23-96-107 ; (9) "Extra-contractual claims" includes, for example, claims relating to bad faith in the payment of claims, punitive or exemplary damages, or attorney's fees and costs; (10) (A) "Health benefit plan" means any hospital or medical expense policy or certificate, health maintenance organization subscriber contract, or any other similar health contract. (B) "Health benefit plan" does not include: (i) Accident-only insurance; (ii) Credit insurance; (iii) Dental-only insurance; (iv) Vision-only insurance; (v) Medicare supplement insurance; (vi) Benefits for long-term care, home health care, community-based care, or any combination of the benefits described in this subdivision (10)(B)(vi); (vii) Disability income insurance; (viii) Coverage for on-site medical clinics; or (ix) Specified disease, hospital confinement indemnity, or limited benefit health insurance if the types of coverage do not provide coordination of benefits and are provided under separate policies or certificates; (11) "Impaired insurer" means a member insurer which, after March 9, 1989, is not an insolvent insurer and is placed under an order of rehabilitation or conservation by a court of competent jurisdiction; (12) "Insolvent insurer" means a member insurer which, after March 9, 1989, is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency; (13) "Member insurer" means any insurer or health maintenance organization licensed or which holds a certificate of authority to transact in this state any kind of insurance or health maintenance organization business for which coverage is provided under § 23-96-107 , and includes any insurer or health maintenance organization whose license or certificate of authority in this state may have been suspended, revoked, not renewed, or voluntarily withdrawn, but does not include: (A) A hospital or medical service organization, whether profit or nonprofit; (B) A fraternal benefit society; (C) A mandatory state pooling plan; (D) A burial association; (E) An insurance exchange; (F) Prepaid funeral trusts; (G) An organization that has a certificate or license limited to the issuance of charitable gift annuities; or (H) Any entity similar to any of those listed in subdivisions (13)(A)-(G) of this section; (14) "Moody's Corporate Bond Yield Average" means the Monthly Average Corporates as published by Moody's Investors Service, Inc., or any successor thereto; (15) (A) "Owner" of a policy or contract and "policyholder", "policy owner", and "contract owner" mean the person who is identified as the legal owner under the terms of the policy or contract or who is otherwise vested with legal title to the policy or contract through a valid assignment completed according to the terms of the policy or contract and properly recorded as the owner on the books of the member insurer. (B) "Owner", "contract owner", "policyholder", and "policy owner" do not include persons with a mere beneficial interest in a policy or contract; (16) (A) "Person" means any individual, corporation, limited liability company, partnership, association, governmental body or entity, or voluntary organization. (B) It is the intent of the General Assembly that "person" shall include a claimant or beneficiary who is receiving annuity benefits as provided in § 11-9-210 and § 23-96-114(b) and § 23-96-114(f) ; (17) "Plan sponsor" means: (A) The employer in the case of a benefit plan established or maintained by a single employer; (B) The employee organization in the case of a benefit plan established or maintained by an employee organization; or (C) In a case of a benefit plan established or maintained by two (2) or more employers or jointly by one (1) or more employers and one (1) or more employee organizations, the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan; (18) (A) "Premiums" means amounts or considerations, by whatever name called, received on covered policies or contracts less returned premiums, considerations, and deposits and less dividends and experience credits. (B) (i) "Premiums" does not include amounts or considerations received for any policies or contracts or for the portions of policies or contracts for which coverage is not provided under § 23-96-106 , except that assessable premiums shall not be reduced on account of § 23-96-106(a)(3) , relating to interest limitations and § 23-96-114(a)(2) , relating to limitations with respect to one (1) individual, one (1) participant, and one (1) policy or contract owner. (ii) However, "premiums" does not include: (a) Any premiums in excess of one million dollars ($1,000,000) on an unallocated annuity contract not issued under a governmental retirement benefit plan, or its trustee, established under section 401(k), section 403(b), or section 457 of the Internal Revenue Code; or (b) With respect to multiple nongroup policies of life insurance owned by one (1) owner, whether the policy or contract owner is an individual, firm, corporation, or other person, and whether the persons insured are officers, managers, employees, or other persons, premiums in excess of one million dollars ($1,000,000) with respect to these policies or contracts, regardless of the number of policies or contracts held by the owner; (19) (A) "Principal place of business" of a plan sponsor or a person other than a natural person means the single state in which the natural persons who establish policy for the direction, control, and coordination of the operations of the entity as a whole primarily exercise that function, determined by the Arkansas Life and Health Insurance Guaranty Association in its reasonable judgment by considering the following factors: (i) The state in which the primary executive and administrative headquarters of the entity is located; (ii) The state in which the principal office of the chief executive officer of the entity is located; (iii) The state in which the board of directors, or similar governing person or persons, of the entity conducts the majority of its meetings; (iv) The state in which the executive or management committee of the board of directors, or similar governing person or persons, of the entity conducts the majority of its meetings; (v) The state from which the management of the overall operations of the entity is directed; and (vi) (a) In the case of a benefit plan sponsored by affiliated companies composing a consolidated corporation, the state in which the holding company or controlling affiliate has its principal place of business as determined using the above factors. (b) However, in the case of a plan sponsor, if more than fifty percent (50%) of the participants in the benefit plan are employed in a single state, that state shall be deemed to be the principal place of business of the plan sponsor. (B) The principal place of business of a plan sponsor of a benefit plan described in subdivision (17)(C) of this section shall be deemed to be the principal place of business of the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan that, in lieu of a specific or clear designation of a principal place of business, shall be deemed to be the principal place of business of the employer or employee organization that has the largest investment in the benefit plan in question; (20) "Receivership court" means the court in the insolvent or impaired insurer's state having jurisdiction over the conservation, rehabilitation, or liquidation of the member insurer; (21) "Resident" means a person to whom a contractual obligation is owed and who resides in this state on the date of entry of a court order that determines a member insurer to be an impaired insurer or a court order that determines a member insurer to be an insolvent insurer. A person may be a resident of only one (1) state, which in the case of a person other than a natural person shall be its principal place of business. Citizens of the United States that are either (i) residents of foreign countries, or (ii) residents of United States possessions, territories, or protectorates that do not have an association similar to the Arkansas Life and Health Insurance Guaranty Association created by this chapter shall be deemed residents of the state of domicile of the member insurer that issued the policies or contracts; (22) "State" means a state, the District of Columbia, Puerto Rico, and a United States possession, territory, or protectorate; (23) "Structured settlement annuity" means an annuity purchased in order to fund periodic payments for a plaintiff or other claimant in payment for or with respect to personal injury suffered by the plaintiff or other claimant; (24) "Supplemental contract" means a written agreement entered into for the distribution of proceeds under a life, health, or an annuity policy or contract; and (25) (A) "Unallocated annuity contract" means an annuity contract or group annuity certificate which is not issued to and owned by an individual, except to the extent of any annuity benefits guaranteed to an individual by an insurer under such contract or certificate. (B) It is the intent of the General Assembly that an annuity contract as provided for in § 11-9-210 , shall not be an "unallocated annuity contract". Amended by Act 2019, No. 520,§ 2, eff. 7/24/2019. Amended by Act 2013, No. 456,§ 1, eff. 8/16/2013. Acts 1989, No. 444, § 5; 1991, No. 651, § 2; 1997, No. 950, § 1; 2001, No. 1603, §§ 48, 49; 2001, No. 1604, § 119.

As used in this chapter:

(1) "Account" means any of the two (2) accounts created under § 23-96-109 ;

(2) "Association" means the Arkansas Life and Health Insurance Guaranty Association created under § 23-96-109 ;

(3) "Authorized assessment" or the term "authorized" when used in the context of assessments means a resolution by the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association has been passed whereby an assessment will be called immediately or in the future from member insurers for a specified amount. An assessment is authorized when the resolution is passed;

(4) "Benefit plan" means a specific employee, union, or association of natural persons benefit plan;

(5) (A) "Called assessment" or the term "called" when used in the context of assessments means that a notice has been issued by the Arkansas Life and Health Insurance Guaranty Association to member insurers requiring that an authorized assessment be paid within the time frame set forth within the notice. (B) An authorized assessment becomes a called assessment when notice is mailed by the Arkansas Life and Health Insurance Guaranty Association to member insurers;

(A) "Called assessment" or the term "called" when used in the context of assessments means that a notice has been issued by the Arkansas Life and Health Insurance Guaranty Association to member insurers requiring that an authorized assessment be paid within the time frame set forth within the notice.

(B) An authorized assessment becomes a called assessment when notice is mailed by the Arkansas Life and Health Insurance Guaranty Association to member insurers;

(6) "Commissioner" means the Insurance Commissioner of this state;

(7) "Contractual obligations" means any obligation under a policy or contract or certificate under a group policy or contract, or portion thereof for which coverage is provided under § 23-96-107 ;

(8) "Covered policy" or "covered contract" means any policy or contract or portion of a policy or contract for which coverage is provided under § 23-96-107 ;

(9) "Extra-contractual claims" includes, for example, claims relating to bad faith in the payment of claims, punitive or exemplary damages, or attorney's fees and costs;

(10) (A) "Health benefit plan" means any hospital or medical expense policy or certificate, health maintenance organization subscriber contract, or any other similar health contract. (B) "Health benefit plan" does not include: (i) Accident-only insurance; (ii) Credit insurance; (iii) Dental-only insurance; (iv) Vision-only insurance; (v) Medicare supplement insurance; (vi) Benefits for long-term care, home health care, community-based care, or any combination of the benefits described in this subdivision (10)(B)(vi); (vii) Disability income insurance; (viii) Coverage for on-site medical clinics; or (ix) Specified disease, hospital confinement indemnity, or limited benefit health insurance if the types of coverage do not provide coordination of benefits and are provided under separate policies or certificates;

(A) "Health benefit plan" means any hospital or medical expense policy or certificate, health maintenance organization subscriber contract, or any other similar health contract.

(B) "Health benefit plan" does not include: (i) Accident-only insurance; (ii) Credit insurance; (iii) Dental-only insurance; (iv) Vision-only insurance; (v) Medicare supplement insurance; (vi) Benefits for long-term care, home health care, community-based care, or any combination of the benefits described in this subdivision (10)(B)(vi); (vii) Disability income insurance; (viii) Coverage for on-site medical clinics; or (ix) Specified disease, hospital confinement indemnity, or limited benefit health insurance if the types of coverage do not provide coordination of benefits and are provided under separate policies or certificates;

(i) Accident-only insurance;

(ii) Credit insurance;

(iii) Dental-only insurance;

(iv) Vision-only insurance;

(v) Medicare supplement insurance;

(vi) Benefits for long-term care, home health care, community-based care, or any combination of the benefits described in this subdivision (10)(B)(vi);

(vii) Disability income insurance;

(viii) Coverage for on-site medical clinics; or

(ix) Specified disease, hospital confinement indemnity, or limited benefit health insurance if the types of coverage do not provide coordination of benefits and are provided under separate policies or certificates;

(11) "Impaired insurer" means a member insurer which, after March 9, 1989, is not an insolvent insurer and is placed under an order of rehabilitation or conservation by a court of competent jurisdiction;

(12) "Insolvent insurer" means a member insurer which, after March 9, 1989, is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency;

(13) "Member insurer" means any insurer or health maintenance organization licensed or which holds a certificate of authority to transact in this state any kind of insurance or health maintenance organization business for which coverage is provided under § 23-96-107 , and includes any insurer or health maintenance organization whose license or certificate of authority in this state may have been suspended, revoked, not renewed, or voluntarily withdrawn, but does not include: (A) A hospital or medical service organization, whether profit or nonprofit; (B) A fraternal benefit society; (C) A mandatory state pooling plan; (D) A burial association; (E) An insurance exchange; (F) Prepaid funeral trusts; (G) An organization that has a certificate or license limited to the issuance of charitable gift annuities; or (H) Any entity similar to any of those listed in subdivisions (13)(A)-(G) of this section;

(A) A hospital or medical service organization, whether profit or nonprofit;

(B) A fraternal benefit society;

(C) A mandatory state pooling plan;

(D) A burial association;

(E) An insurance exchange;

(F) Prepaid funeral trusts;

(G) An organization that has a certificate or license limited to the issuance of charitable gift annuities; or

(H) Any entity similar to any of those listed in subdivisions (13)(A)-(G) of this section;

(14) "Moody's Corporate Bond Yield Average" means the Monthly Average Corporates as published by Moody's Investors Service, Inc., or any successor thereto;

(15) (A) "Owner" of a policy or contract and "policyholder", "policy owner", and "contract owner" mean the person who is identified as the legal owner under the terms of the policy or contract or who is otherwise vested with legal title to the policy or contract through a valid assignment completed according to the terms of the policy or contract and properly recorded as the owner on the books of the member insurer. (B) "Owner", "contract owner", "policyholder", and "policy owner" do not include persons with a mere beneficial interest in a policy or contract;

(A) "Owner" of a policy or contract and "policyholder", "policy owner", and "contract owner" mean the person who is identified as the legal owner under the terms of the policy or contract or who is otherwise vested with legal title to the policy or contract through a valid assignment completed according to the terms of the policy or contract and properly recorded as the owner on the books of the member insurer.

(B) "Owner", "contract owner", "policyholder", and "policy owner" do not include persons with a mere beneficial interest in a policy or contract;

(16) (A) "Person" means any individual, corporation, limited liability company, partnership, association, governmental body or entity, or voluntary organization. (B) It is the intent of the General Assembly that "person" shall include a claimant or beneficiary who is receiving annuity benefits as provided in § 11-9-210 and § 23-96-114(b) and § 23-96-114(f) ;

(A) "Person" means any individual, corporation, limited liability company, partnership, association, governmental body or entity, or voluntary organization.

(B) It is the intent of the General Assembly that "person" shall include a claimant or beneficiary who is receiving annuity benefits as provided in § 11-9-210 and § 23-96-114(b) and § 23-96-114(f) ;

(17) "Plan sponsor" means: (A) The employer in the case of a benefit plan established or maintained by a single employer; (B) The employee organization in the case of a benefit plan established or maintained by an employee organization; or (C) In a case of a benefit plan established or maintained by two (2) or more employers or jointly by one (1) or more employers and one (1) or more employee organizations, the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan;

(A) The employer in the case of a benefit plan established or maintained by a single employer;

(B) The employee organization in the case of a benefit plan established or maintained by an employee organization; or

(C) In a case of a benefit plan established or maintained by two (2) or more employers or jointly by one (1) or more employers and one (1) or more employee organizations, the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan;

(18) (A) "Premiums" means amounts or considerations, by whatever name called, received on covered policies or contracts less returned premiums, considerations, and deposits and less dividends and experience credits. (B) (i) "Premiums" does not include amounts or considerations received for any policies or contracts or for the portions of policies or contracts for which coverage is not provided under § 23-96-106 , except that assessable premiums shall not be reduced on account of § 23-96-106(a)(3) , relating to interest limitations and § 23-96-114(a)(2) , relating to limitations with respect to one (1) individual, one (1) participant, and one (1) policy or contract owner. (ii) However, "premiums" does not include: (a) Any premiums in excess of one million dollars ($1,000,000) on an unallocated annuity contract not issued under a governmental retirement benefit plan, or its trustee, established under section 401(k), section 403(b), or section 457 of the Internal Revenue Code; or (b) With respect to multiple nongroup policies of life insurance owned by one (1) owner, whether the policy or contract owner is an individual, firm, corporation, or other person, and whether the persons insured are officers, managers, employees, or other persons, premiums in excess of one million dollars ($1,000,000) with respect to these policies or contracts, regardless of the number of policies or contracts held by the owner;

(A) "Premiums" means amounts or considerations, by whatever name called, received on covered policies or contracts less returned premiums, considerations, and deposits and less dividends and experience credits.

(B) (i) "Premiums" does not include amounts or considerations received for any policies or contracts or for the portions of policies or contracts for which coverage is not provided under § 23-96-106 , except that assessable premiums shall not be reduced on account of § 23-96-106(a)(3) , relating to interest limitations and § 23-96-114(a)(2) , relating to limitations with respect to one (1) individual, one (1) participant, and one (1) policy or contract owner. (ii) However, "premiums" does not include: (a) Any premiums in excess of one million dollars ($1,000,000) on an unallocated annuity contract not issued under a governmental retirement benefit plan, or its trustee, established under section 401(k), section 403(b), or section 457 of the Internal Revenue Code; or (b) With respect to multiple nongroup policies of life insurance owned by one (1) owner, whether the policy or contract owner is an individual, firm, corporation, or other person, and whether the persons insured are officers, managers, employees, or other persons, premiums in excess of one million dollars ($1,000,000) with respect to these policies or contracts, regardless of the number of policies or contracts held by the owner;

(i) "Premiums" does not include amounts or considerations received for any policies or contracts or for the portions of policies or contracts for which coverage is not provided under § 23-96-106 , except that assessable premiums shall not be reduced on account of § 23-96-106(a)(3) , relating to interest limitations and § 23-96-114(a)(2) , relating to limitations with respect to one (1) individual, one (1) participant, and one (1) policy or contract owner.

(ii) However, "premiums" does not include: (a) Any premiums in excess of one million dollars ($1,000,000) on an unallocated annuity contract not issued under a governmental retirement benefit plan, or its trustee, established under section 401(k), section 403(b), or section 457 of the Internal Revenue Code; or (b) With respect to multiple nongroup policies of life insurance owned by one (1) owner, whether the policy or contract owner is an individual, firm, corporation, or other person, and whether the persons insured are officers, managers, employees, or other persons, premiums in excess of one million dollars ($1,000,000) with respect to these policies or contracts, regardless of the number of policies or contracts held by the owner;

(a) Any premiums in excess of one million dollars ($1,000,000) on an unallocated annuity contract not issued under a governmental retirement benefit plan, or its trustee, established under section 401(k), section 403(b), or section 457 of the Internal Revenue Code; or

(b) With respect to multiple nongroup policies of life insurance owned by one (1) owner, whether the policy or contract owner is an individual, firm, corporation, or other person, and whether the persons insured are officers, managers, employees, or other persons, premiums in excess of one million dollars ($1,000,000) with respect to these policies or contracts, regardless of the number of policies or contracts held by the owner;

(19) (A) "Principal place of business" of a plan sponsor or a person other than a natural person means the single state in which the natural persons who establish policy for the direction, control, and coordination of the operations of the entity as a whole primarily exercise that function, determined by the Arkansas Life and Health Insurance Guaranty Association in its reasonable judgment by considering the following factors: (i) The state in which the primary executive and administrative headquarters of the entity is located; (ii) The state in which the principal office of the chief executive officer of the entity is located; (iii) The state in which the board of directors, or similar governing person or persons, of the entity conducts the majority of its meetings; (iv) The state in which the executive or management committee of the board of directors, or similar governing person or persons, of the entity conducts the majority of its meetings; (v) The state from which the management of the overall operations of the entity is directed; and (vi) (a) In the case of a benefit plan sponsored by affiliated companies composing a consolidated corporation, the state in which the holding company or controlling affiliate has its principal place of business as determined using the above factors. (b) However, in the case of a plan sponsor, if more than fifty percent (50%) of the participants in the benefit plan are employed in a single state, that state shall be deemed to be the principal place of business of the plan sponsor. (B) The principal place of business of a plan sponsor of a benefit plan described in subdivision (17)(C) of this section shall be deemed to be the principal place of business of the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan that, in lieu of a specific or clear designation of a principal place of business, shall be deemed to be the principal place of business of the employer or employee organization that has the largest investment in the benefit plan in question;

(A) "Principal place of business" of a plan sponsor or a person other than a natural person means the single state in which the natural persons who establish policy for the direction, control, and coordination of the operations of the entity as a whole primarily exercise that function, determined by the Arkansas Life and Health Insurance Guaranty Association in its reasonable judgment by considering the following factors: (i) The state in which the primary executive and administrative headquarters of the entity is located; (ii) The state in which the principal office of the chief executive officer of the entity is located; (iii) The state in which the board of directors, or similar governing person or persons, of the entity conducts the majority of its meetings; (iv) The state in which the executive or management committee of the board of directors, or similar governing person or persons, of the entity conducts the majority of its meetings; (v) The state from which the management of the overall operations of the entity is directed; and (vi) (a) In the case of a benefit plan sponsored by affiliated companies composing a consolidated corporation, the state in which the holding company or controlling affiliate has its principal place of business as determined using the above factors. (b) However, in the case of a plan sponsor, if more than fifty percent (50%) of the participants in the benefit plan are employed in a single state, that state shall be deemed to be the principal place of business of the plan sponsor.

(i) The state in which the primary executive and administrative headquarters of the entity is located;

(ii) The state in which the principal office of the chief executive officer of the entity is located;

(iii) The state in which the board of directors, or similar governing person or persons, of the entity conducts the majority of its meetings;

(iv) The state in which the executive or management committee of the board of directors, or similar governing person or persons, of the entity conducts the majority of its meetings;

(v) The state from which the management of the overall operations of the entity is directed; and

(vi) (a) In the case of a benefit plan sponsored by affiliated companies composing a consolidated corporation, the state in which the holding company or controlling affiliate has its principal place of business as determined using the above factors. (b) However, in the case of a plan sponsor, if more than fifty percent (50%) of the participants in the benefit plan are employed in a single state, that state shall be deemed to be the principal place of business of the plan sponsor.

(a) In the case of a benefit plan sponsored by affiliated companies composing a consolidated corporation, the state in which the holding company or controlling affiliate has its principal place of business as determined using the above factors.

(b) However, in the case of a plan sponsor, if more than fifty percent (50%) of the participants in the benefit plan are employed in a single state, that state shall be deemed to be the principal place of business of the plan sponsor.

(B) The principal place of business of a plan sponsor of a benefit plan described in subdivision (17)(C) of this section shall be deemed to be the principal place of business of the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan that, in lieu of a specific or clear designation of a principal place of business, shall be deemed to be the principal place of business of the employer or employee organization that has the largest investment in the benefit plan in question;

(20) "Receivership court" means the court in the insolvent or impaired insurer's state having jurisdiction over the conservation, rehabilitation, or liquidation of the member insurer;

(21) "Resident" means a person to whom a contractual obligation is owed and who resides in this state on the date of entry of a court order that determines a member insurer to be an impaired insurer or a court order that determines a member insurer to be an insolvent insurer. A person may be a resident of only one (1) state, which in the case of a person other than a natural person shall be its principal place of business. Citizens of the United States that are either (i) residents of foreign countries, or (ii) residents of United States possessions, territories, or protectorates that do not have an association similar to the Arkansas Life and Health Insurance Guaranty Association created by this chapter shall be deemed residents of the state of domicile of the member insurer that issued the policies or contracts;

(22) "State" means a state, the District of Columbia, Puerto Rico, and a United States possession, territory, or protectorate;

(23) "Structured settlement annuity" means an annuity purchased in order to fund periodic payments for a plaintiff or other claimant in payment for or with respect to personal injury suffered by the plaintiff or other claimant;

(24) "Supplemental contract" means a written agreement entered into for the distribution of proceeds under a life, health, or an annuity policy or contract; and

(25) (A) "Unallocated annuity contract" means an annuity contract or group annuity certificate which is not issued to and owned by an individual, except to the extent of any annuity benefits guaranteed to an individual by an insurer under such contract or certificate. (B) It is the intent of the General Assembly that an annuity contract as provided for in § 11-9-210 , shall not be an "unallocated annuity contract".

(A) "Unallocated annuity contract" means an annuity contract or group annuity certificate which is not issued to and owned by an individual, except to the extent of any annuity benefits guaranteed to an individual by an insurer under such contract or certificate.

(B) It is the intent of the General Assembly that an annuity contract as provided for in § 11-9-210 , shall not be an "unallocated annuity contract".

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

Amended by Act 2013, No. 456,§ 1, eff. 8/16/2013.

Acts 1989, No. 444, § 5; 1991, No. 651, § 2; 1997, No. 950, § 1; 2001, No. 1603, §§ 48, 49; 2001, No. 1604, § 119.