Ark. Code Ann. § 23-81-802 — AR Code / Title 23 / Chapter 81 / Subchapter 8 / Section 23-81-802
Definitions
Status: in_force

As used in this subchapter: (1) "Advertisement" means any written, electronic, or printed communication or any communication by means of recorded telephone messages or transmissions on radio, television, the Internet, or similar communications media, including film strips, motion pictures, and videos, published, disseminated, circulated, or placed before the public, directly or indirectly, to create an interest in or to induce a person to purchase or sell, assign, devise, bequest, or transfer the death benefit or ownership of a life insurance policy or an interest in a life insurance policy pursuant to a life settlement contract; (2) (A) "Broker" means a person who on behalf of an owner and for a fee, commission, or other valuable consideration offers or attempts to negotiate life settlement contracts between an owner and providers. (B) A broker represents only the owner and owes a fiduciary duty to the owner to act according to the owner's instructions and in the best interest of the owner, notwithstanding the manner in which the broker is compensated. (C) "Broker" does not include an attorney, certified public accountant, or financial planner retained in the type of practice customarily performed in his or her professional capacity to represent the owner whose compensation is not paid directly or indirectly by the provider or any other person except the owner; (3) "Business of life settlements" means an activity involved in, but not limited to, offering to enter into, soliciting, negotiating, procuring, effectuating, monitoring, or tracking life settlement contracts; (4) "Chronically ill" means: (A) Being unable to perform at least two (2) activities of daily living such as eating, toileting, transferring, bathing, dressing, or continence; (B) Requiring substantial supervision to protect the individual from threats to health and safety due to severe cognitive impairment; or (C) Having a level of disability similar to that described in subdivision (4)(A) of this section as determined by regulations of the Secretary of the United States Department of Health and Human Services if adopted by rule of the Insurance Commissioner; (5) (A) "Financing entity" means an underwriter, placement agent, lender, purchaser of securities, purchaser of a policy or certificate from a provider, credit enhancer, or any entity that has a direct ownership in a policy or certificate that is the subject of a life settlement contract, but: (i) Whose principal activity related to the transaction is providing funds to effect the life settlement contract or purchase of one (1) or more policies; and (ii) Has an agreement in writing with one (1) or more providers to finance the acquisition of life settlement contracts. (B) "Financing entity" does not include a nonaccredited investor or purchaser; (6) "Financing transaction" means a transaction in which a licensed provider obtains financing from a financing entity, including without limitation any secured or unsecured financing, any securitization transaction, or any securities offering that either is registered or exempt from registration under federal and state securities law; (7) "Fraudulent life settlement act" includes: (A) Acts or omissions committed by a person who knowingly and with intent to defraud for the purpose of depriving another of property or for pecuniary gain commits or permits its employees or its agents to engage in acts, including without limitation: (i) Presenting, causing to be presented, or preparing with knowledge and belief that it will be presented to or by a provider, premium finance lender, broker, insurer, insurance producer, or any other person, false material information, or concealing material information, as part of, in support of, or concerning a fact material to one (1) or more of the following: (a) An application for the issuance of a life settlement contract or insurance policy; (b) The underwriting of a life settlement contract or insurance policy; (c) A claim for payment or benefit pursuant to a life settlement contract or insurance policy; (d) Premiums paid on an insurance policy; (e) Payments and changes in ownership or beneficiary made in accordance with the terms of a life settlement contract or insurance policy; (f) The reinstatement or conversion of an insurance policy; (g) The solicitation, offer to enter into, or effectuation of a life settlement contract or insurance policy; (h) The issuance of written evidence of life settlement contracts or insurance; (i) Any application for or the existence of or any payments related to a loan secured directly or indirectly by any interest in a life insurance policy; or (j) Entering into any practice or plan that involves stranger-originated life insurance; (ii) Failing to disclose to the insurer when the request for such disclosure has been asked for by the insurer that the prospective insured has undergone a life expectancy evaluation by any person or entity other than the insurer or its authorized representatives in connection with the issuance of the policy; (iii) Employing any device, scheme, or artifice to defraud in the business of life settlements; or (iv) In the solicitation, application, or issuance of a life insurance policy, employing any device, scheme, or artifice in violation of state insurable interest laws; and (B) In the furtherance of a fraud or to prevent the detection of a fraud, any person commits or permits its employees or its agents to: (i) Remove, conceal, alter, destroy, or sequester from the commissioner the assets or records of a licensee or other person engaged in the business of life settlements; (ii) Misrepresent or conceal the financial condition of a licensee, financing entity, insurer, or other person; (iii) Transact the business of life settlements in violation of laws requiring a license, certificate of authority, or other legal authority for the transaction of the business of life settlements; (iv) File with the commissioner or the chief insurance regulatory official of another jurisdiction a document containing false information or otherwise concealing information about a material fact from the commissioner; (v) Engage in embezzlement, theft, misappropriation, or conversion of moneys, funds, premiums, credits, or other property of a provider, insurer, insured, owner, insurance, policy owner, or any other person engaged in the business of life settlements or insurance; (vi) Knowingly and with intent to defraud, enter into, broker, or otherwise deal in a life settlement contract, the subject of which is a life insurance policy that was obtained by presenting false information concerning any fact material to the policy or by concealing for the purpose of misleading another information concerning any fact material to the policy, when the owner or the owner's agent intended to defraud the policy's issuer; (vii) Attempt to commit, assist, aid, or abet in the commission of or conspiracy to commit the acts or omissions specified in this subdivision (7); or (viii) Misrepresent the state of residence of an owner to be a state or jurisdiction that does not have a law substantially similar to this subchapter for the purpose of evading or avoiding the provisions of this subchapter; (8) "Insured" means the person covered under the policy being considered for sale in a life settlement contract; (9) "Life expectancy" means the arithmetic mean of the number of months the insured under the life insurance policy to be settled can be expected to live considering medical records and appropriate experiential data; (10) "Life insurance producer" means any person licensed in this state as a resident or nonresident insurance producer who has received qualification or authority for life insurance coverage or a life line of coverage pursuant to § 23-64-507(a)(1) ; (11) (A) "Life settlement contract" means a written agreement entered into between a provider and an owner, establishing the terms under which compensation or anything of value will be paid, which compensation or thing of value is less than the expected death benefit of the insurance policy or certificate, in return for the owner's assignment, transfer, sale, devise, or bequest of the death benefit or any portion of an insurance policy or certificate of insurance for compensation, provided, however, that the minimum value for a life settlement contract shall be greater than a cash surrender value or accelerated death benefit available at the time of an application for a life settlement contract. (B) "Life settlement contract" also includes the transfer for compensation or value of ownership or beneficial interest in a trust or other entity that owns such policy if the trust or other entity was formed or availed of for the principal purpose of acquiring one (1) or more life insurance contracts, which life insurance contract insures the life of a person residing in this state. (C) "Life settlement contract" also includes a premium finance loan made for a policy on or before the date of issuance of the policy when: (i) The loan proceeds are not used solely to pay premiums for the policy and any costs or expenses incurred by the lender or the borrower in connection with the financing; (ii) The owner receives on the date of the premium finance loan a guarantee of the future life settlement value of the policy; or (iii) The owner agrees on the date of the premium finance loan to sell the policy or any portion of its death benefit on any date following the issuance of the policy. (D) "Life settlement contract" does not include: (i) A policy loan by a life insurance company pursuant to the terms of the life insurance policy or accelerated death provisions contained in the life insurance policy, whether issued with the original policy or as a rider; (ii) A premium finance loan, as defined herein, or any loan made by a bank or other licensed financial institution, provided that neither default on the loan nor the transfer of the policy in connection with the default is pursuant to an agreement or understanding with any other person for the purpose of evading regulation under this subchapter; (iii) A collateral assignment of a life insurance policy by an owner; (iv) An agreement in which all the parties: (a) Are closely related to the insured by blood or law; or (b) Have a lawful substantial economic interest in the continued life, health, and bodily safety of the person insured or are trusts established primarily for the benefit of such parties; (v) Any designation, consent, or agreement by an insured who is an employee of an employer in connection with the purchase by the employer or trust established by the employer of life insurance on the life of the employee; (vi) A bona fide business succession planning arrangement: (a) Between one (1) or more shareholders in a corporation or between a corporation and one (1) or more of its shareholders or one (1) or more trusts established by its shareholders; (b) Between one (1) or more partners in a partnership or between a partnership and one (1) or more of its partners or one (1) or more trusts established by its partners; or (c) Between one (1) or more members in a limited liability company or between a limited liability company and one (1) or more of its members or one (1) or more trusts established by its members; or (vii) An agreement entered into by a service recipient, or a trust established by the service recipient, and a service provider, or a trust established by the service provider, who performs significant services for the service recipient's trade or business; (12) "Net death benefit" means the amount of the life insurance policy or certificate to be settled, less any outstanding debts or liens; (13) (A) "Owner" means the owner of a life insurance policy or a certificate holder under a group policy, with or without a terminal illness, who enters or seeks to enter into a life settlement contract. (B) "Owner" is not limited to an owner of a life insurance policy or a certificate holder under a group policy that insures the life of an individual with a terminal or chronic illness or condition except when specifically addressed. (C) "Owner" does not include: (i) Any provider or other licensee under this subchapter; (ii) A qualified institutional buyer as defined in Rule 144A of the Securities Act of 1933, as amended; (iii) A financing entity; (iv) A special purpose entity; or (v) A related provider trust; (14) "Patient identifying information" means an insured's address, telephone number, facsimile number, electronic mail address, photograph or likeness, employer, employment status, social security number, or any other information that is likely to lead to the identification of the insured; (15) "Person" means any natural person or legal entity, including without limitation a partnership, limited liability company, association, trust, or corporation; (16) "Policy" means an individual or group policy, group certificate, contract, or arrangement of life insurance owned by a resident of this state, regardless of whether delivered or issued for delivery in this state; (17) "Premium finance loan" means a loan made primarily for the purposes of making premium payments on a life insurance policy, which loan is secured by an interest in such life insurance policy; (18) (A) "Provider" means a person other than an owner who enters into or effectuates a life settlement contract with an owner. (B) "Provider" does not include: (i) Any bank, savings bank, savings and loan association, or credit union; (ii) A licensed lending institution or creditor or secured party pursuant to a premium finance loan agreement which takes an assignment of a life insurance policy or certificate issued pursuant to a group life insurance policy as collateral for a loan; (iii) The insurer of a life insurance policy or rider to the extent it provides accelerated death benefits or cash surrender value under the insurance code or rules of the commissioner; (iv) Any natural person who enters into or effectuates no more than one (1) agreement in a calendar year for the transfer of a life insurance policy or certificate issued pursuant to a group life insurance policy for compensation or anything of value less than the expected death benefit payable under the policy; (v) A purchaser; (vi) Any authorized or eligible insurer that provides stop loss coverage to a provider, purchaser, financing entity, special purpose entity, or related provider trust; (vii) A financing entity; (viii) A special purpose entity; (ix) A related provider trust; (x) A broker; or (xi) An accredited investor or qualified institutional buyer as defined in, respectively, Regulation D, Rule 501 or Rule 144A of the Securities Act of 1933, as amended, who purchases a life settlement policy from a provider; (19) "Purchased policy" means a policy or group certificate that has been acquired by a provider pursuant to a life settlement contract; (20) "Purchaser" means a person who pays compensation or anything of value as consideration for a beneficial interest in a trust which is vested with, or for the assignment, transfer, or sale of, an ownership or other interest in a life insurance policy or a certificate issued pursuant to a group life insurance policy which has been the subject of a life settlement contract; (21) (A) "Related provider trust" means a titling trust or other trust established by a licensed provider or a financing entity for the sole purpose of holding the ownership or beneficial interest in purchased policies in connection with a financing transaction. (B) In order to qualify as a related provider trust, the trust must have a written agreement with the licensed provider under which the licensed provider is responsible for ensuring compliance with all statutory and regulatory requirements and under which the trust agrees to make all records and files relating to life settlement transactions available to the State Insurance Department as if those records and files were maintained directly by the licensed provider; (22) "Settled policy" means a life insurance policy or certificate that has been acquired by a provider pursuant to a life settlement contract; (23) "Special purpose entity" means a corporation, partnership, trust, limited liability company, or other legal entity formed solely to provide either directly or indirectly access to institutional capital markets: (A) For a financing entity or provider; or (B) In connection with a transaction in which: (i) The securities in the special purpose entity are acquired by the owner or by a qualified institutional buyer, as defined in Rule 144A as promulgated under the Securities Act of 1933, as amended; or (ii) The securities pay a fixed rate of return commensurate with established asset-backed institutional capital markets; (24) (A) "Stranger-originated life insurance" is a practice or plan to initiate a life insurance policy for the benefit of a third-party investor who at the time of policy origination has no insurable interest in the insured. (B) Stranger-originated life insurance practices include without limitation cases in which life insurance is purchased with resources or guarantees from or through a person or entity that at the time of policy inception could not lawfully initiate the policy himself, herself, or itself, and in which at the time of inception there is an arrangement or agreement, whether verbal or written, to directly or indirectly transfer the ownership of the policy, the policy benefits, or the policy and the policy benefits to a third party. (C) Trusts that are created to give the appearance of insurable interest and are used to initiate policies for investors violate insurable interest laws and the prohibition against wagering on life. (D) Stranger-originated life insurance arrangements do not include those practices set forth in subdivision (11)(D) of this section; and (25) "Terminally ill" means having an illness or sickness that can reasonably be expected to result in death in twenty-four (24) months or less. Acts 2009, No. 796, § 1.

As used in this subchapter:

(1) "Advertisement" means any written, electronic, or printed communication or any communication by means of recorded telephone messages or transmissions on radio, television, the Internet, or similar communications media, including film strips, motion pictures, and videos, published, disseminated, circulated, or placed before the public, directly or indirectly, to create an interest in or to induce a person to purchase or sell, assign, devise, bequest, or transfer the death benefit or ownership of a life insurance policy or an interest in a life insurance policy pursuant to a life settlement contract;

(2) (A) "Broker" means a person who on behalf of an owner and for a fee, commission, or other valuable consideration offers or attempts to negotiate life settlement contracts between an owner and providers. (B) A broker represents only the owner and owes a fiduciary duty to the owner to act according to the owner's instructions and in the best interest of the owner, notwithstanding the manner in which the broker is compensated. (C) "Broker" does not include an attorney, certified public accountant, or financial planner retained in the type of practice customarily performed in his or her professional capacity to represent the owner whose compensation is not paid directly or indirectly by the provider or any other person except the owner;

(A) "Broker" means a person who on behalf of an owner and for a fee, commission, or other valuable consideration offers or attempts to negotiate life settlement contracts between an owner and providers.

(B) A broker represents only the owner and owes a fiduciary duty to the owner to act according to the owner's instructions and in the best interest of the owner, notwithstanding the manner in which the broker is compensated.

(C) "Broker" does not include an attorney, certified public accountant, or financial planner retained in the type of practice customarily performed in his or her professional capacity to represent the owner whose compensation is not paid directly or indirectly by the provider or any other person except the owner;

(3) "Business of life settlements" means an activity involved in, but not limited to, offering to enter into, soliciting, negotiating, procuring, effectuating, monitoring, or tracking life settlement contracts;

(4) "Chronically ill" means: (A) Being unable to perform at least two (2) activities of daily living such as eating, toileting, transferring, bathing, dressing, or continence; (B) Requiring substantial supervision to protect the individual from threats to health and safety due to severe cognitive impairment; or (C) Having a level of disability similar to that described in subdivision (4)(A) of this section as determined by regulations of the Secretary of the United States Department of Health and Human Services if adopted by rule of the Insurance Commissioner;

(A) Being unable to perform at least two (2) activities of daily living such as eating, toileting, transferring, bathing, dressing, or continence;

(B) Requiring substantial supervision to protect the individual from threats to health and safety due to severe cognitive impairment; or

(C) Having a level of disability similar to that described in subdivision (4)(A) of this section as determined by regulations of the Secretary of the United States Department of Health and Human Services if adopted by rule of the Insurance Commissioner;

(5) (A) "Financing entity" means an underwriter, placement agent, lender, purchaser of securities, purchaser of a policy or certificate from a provider, credit enhancer, or any entity that has a direct ownership in a policy or certificate that is the subject of a life settlement contract, but: (i) Whose principal activity related to the transaction is providing funds to effect the life settlement contract or purchase of one (1) or more policies; and (ii) Has an agreement in writing with one (1) or more providers to finance the acquisition of life settlement contracts. (B) "Financing entity" does not include a nonaccredited investor or purchaser;

(A) "Financing entity" means an underwriter, placement agent, lender, purchaser of securities, purchaser of a policy or certificate from a provider, credit enhancer, or any entity that has a direct ownership in a policy or certificate that is the subject of a life settlement contract, but: (i) Whose principal activity related to the transaction is providing funds to effect the life settlement contract or purchase of one (1) or more policies; and (ii) Has an agreement in writing with one (1) or more providers to finance the acquisition of life settlement contracts.

(i) Whose principal activity related to the transaction is providing funds to effect the life settlement contract or purchase of one (1) or more policies; and

(ii) Has an agreement in writing with one (1) or more providers to finance the acquisition of life settlement contracts.

(B) "Financing entity" does not include a nonaccredited investor or purchaser;

(6) "Financing transaction" means a transaction in which a licensed provider obtains financing from a financing entity, including without limitation any secured or unsecured financing, any securitization transaction, or any securities offering that either is registered or exempt from registration under federal and state securities law;

(7) "Fraudulent life settlement act" includes: (A) Acts or omissions committed by a person who knowingly and with intent to defraud for the purpose of depriving another of property or for pecuniary gain commits or permits its employees or its agents to engage in acts, including without limitation: (i) Presenting, causing to be presented, or preparing with knowledge and belief that it will be presented to or by a provider, premium finance lender, broker, insurer, insurance producer, or any other person, false material information, or concealing material information, as part of, in support of, or concerning a fact material to one (1) or more of the following: (a) An application for the issuance of a life settlement contract or insurance policy; (b) The underwriting of a life settlement contract or insurance policy; (c) A claim for payment or benefit pursuant to a life settlement contract or insurance policy; (d) Premiums paid on an insurance policy; (e) Payments and changes in ownership or beneficiary made in accordance with the terms of a life settlement contract or insurance policy; (f) The reinstatement or conversion of an insurance policy; (g) The solicitation, offer to enter into, or effectuation of a life settlement contract or insurance policy; (h) The issuance of written evidence of life settlement contracts or insurance; (i) Any application for or the existence of or any payments related to a loan secured directly or indirectly by any interest in a life insurance policy; or (j) Entering into any practice or plan that involves stranger-originated life insurance; (ii) Failing to disclose to the insurer when the request for such disclosure has been asked for by the insurer that the prospective insured has undergone a life expectancy evaluation by any person or entity other than the insurer or its authorized representatives in connection with the issuance of the policy; (iii) Employing any device, scheme, or artifice to defraud in the business of life settlements; or (iv) In the solicitation, application, or issuance of a life insurance policy, employing any device, scheme, or artifice in violation of state insurable interest laws; and (B) In the furtherance of a fraud or to prevent the detection of a fraud, any person commits or permits its employees or its agents to: (i) Remove, conceal, alter, destroy, or sequester from the commissioner the assets or records of a licensee or other person engaged in the business of life settlements; (ii) Misrepresent or conceal the financial condition of a licensee, financing entity, insurer, or other person; (iii) Transact the business of life settlements in violation of laws requiring a license, certificate of authority, or other legal authority for the transaction of the business of life settlements; (iv) File with the commissioner or the chief insurance regulatory official of another jurisdiction a document containing false information or otherwise concealing information about a material fact from the commissioner; (v) Engage in embezzlement, theft, misappropriation, or conversion of moneys, funds, premiums, credits, or other property of a provider, insurer, insured, owner, insurance, policy owner, or any other person engaged in the business of life settlements or insurance; (vi) Knowingly and with intent to defraud, enter into, broker, or otherwise deal in a life settlement contract, the subject of which is a life insurance policy that was obtained by presenting false information concerning any fact material to the policy or by concealing for the purpose of misleading another information concerning any fact material to the policy, when the owner or the owner's agent intended to defraud the policy's issuer; (vii) Attempt to commit, assist, aid, or abet in the commission of or conspiracy to commit the acts or omissions specified in this subdivision (7); or (viii) Misrepresent the state of residence of an owner to be a state or jurisdiction that does not have a law substantially similar to this subchapter for the purpose of evading or avoiding the provisions of this subchapter;

(A) Acts or omissions committed by a person who knowingly and with intent to defraud for the purpose of depriving another of property or for pecuniary gain commits or permits its employees or its agents to engage in acts, including without limitation: (i) Presenting, causing to be presented, or preparing with knowledge and belief that it will be presented to or by a provider, premium finance lender, broker, insurer, insurance producer, or any other person, false material information, or concealing material information, as part of, in support of, or concerning a fact material to one (1) or more of the following: (a) An application for the issuance of a life settlement contract or insurance policy; (b) The underwriting of a life settlement contract or insurance policy; (c) A claim for payment or benefit pursuant to a life settlement contract or insurance policy; (d) Premiums paid on an insurance policy; (e) Payments and changes in ownership or beneficiary made in accordance with the terms of a life settlement contract or insurance policy; (f) The reinstatement or conversion of an insurance policy; (g) The solicitation, offer to enter into, or effectuation of a life settlement contract or insurance policy; (h) The issuance of written evidence of life settlement contracts or insurance; (i) Any application for or the existence of or any payments related to a loan secured directly or indirectly by any interest in a life insurance policy; or (j) Entering into any practice or plan that involves stranger-originated life insurance; (ii) Failing to disclose to the insurer when the request for such disclosure has been asked for by the insurer that the prospective insured has undergone a life expectancy evaluation by any person or entity other than the insurer or its authorized representatives in connection with the issuance of the policy; (iii) Employing any device, scheme, or artifice to defraud in the business of life settlements; or (iv) In the solicitation, application, or issuance of a life insurance policy, employing any device, scheme, or artifice in violation of state insurable interest laws; and

(i) Presenting, causing to be presented, or preparing with knowledge and belief that it will be presented to or by a provider, premium finance lender, broker, insurer, insurance producer, or any other person, false material information, or concealing material information, as part of, in support of, or concerning a fact material to one (1) or more of the following: (a) An application for the issuance of a life settlement contract or insurance policy; (b) The underwriting of a life settlement contract or insurance policy; (c) A claim for payment or benefit pursuant to a life settlement contract or insurance policy; (d) Premiums paid on an insurance policy; (e) Payments and changes in ownership or beneficiary made in accordance with the terms of a life settlement contract or insurance policy; (f) The reinstatement or conversion of an insurance policy; (g) The solicitation, offer to enter into, or effectuation of a life settlement contract or insurance policy; (h) The issuance of written evidence of life settlement contracts or insurance; (i) Any application for or the existence of or any payments related to a loan secured directly or indirectly by any interest in a life insurance policy; or (j) Entering into any practice or plan that involves stranger-originated life insurance;

(a) An application for the issuance of a life settlement contract or insurance policy;

(b) The underwriting of a life settlement contract or insurance policy;

(c) A claim for payment or benefit pursuant to a life settlement contract or insurance policy;

(d) Premiums paid on an insurance policy;

(e) Payments and changes in ownership or beneficiary made in accordance with the terms of a life settlement contract or insurance policy;

(f) The reinstatement or conversion of an insurance policy;

(g) The solicitation, offer to enter into, or effectuation of a life settlement contract or insurance policy;

(h) The issuance of written evidence of life settlement contracts or insurance;

(i) Any application for or the existence of or any payments related to a loan secured directly or indirectly by any interest in a life insurance policy; or

(j) Entering into any practice or plan that involves stranger-originated life insurance;

(ii) Failing to disclose to the insurer when the request for such disclosure has been asked for by the insurer that the prospective insured has undergone a life expectancy evaluation by any person or entity other than the insurer or its authorized representatives in connection with the issuance of the policy;

(iii) Employing any device, scheme, or artifice to defraud in the business of life settlements; or

(iv) In the solicitation, application, or issuance of a life insurance policy, employing any device, scheme, or artifice in violation of state insurable interest laws; and

(B) In the furtherance of a fraud or to prevent the detection of a fraud, any person commits or permits its employees or its agents to: (i) Remove, conceal, alter, destroy, or sequester from the commissioner the assets or records of a licensee or other person engaged in the business of life settlements; (ii) Misrepresent or conceal the financial condition of a licensee, financing entity, insurer, or other person; (iii) Transact the business of life settlements in violation of laws requiring a license, certificate of authority, or other legal authority for the transaction of the business of life settlements; (iv) File with the commissioner or the chief insurance regulatory official of another jurisdiction a document containing false information or otherwise concealing information about a material fact from the commissioner; (v) Engage in embezzlement, theft, misappropriation, or conversion of moneys, funds, premiums, credits, or other property of a provider, insurer, insured, owner, insurance, policy owner, or any other person engaged in the business of life settlements or insurance; (vi) Knowingly and with intent to defraud, enter into, broker, or otherwise deal in a life settlement contract, the subject of which is a life insurance policy that was obtained by presenting false information concerning any fact material to the policy or by concealing for the purpose of misleading another information concerning any fact material to the policy, when the owner or the owner's agent intended to defraud the policy's issuer; (vii) Attempt to commit, assist, aid, or abet in the commission of or conspiracy to commit the acts or omissions specified in this subdivision (7); or (viii) Misrepresent the state of residence of an owner to be a state or jurisdiction that does not have a law substantially similar to this subchapter for the purpose of evading or avoiding the provisions of this subchapter;

(i) Remove, conceal, alter, destroy, or sequester from the commissioner the assets or records of a licensee or other person engaged in the business of life settlements;

(ii) Misrepresent or conceal the financial condition of a licensee, financing entity, insurer, or other person;

(iii) Transact the business of life settlements in violation of laws requiring a license, certificate of authority, or other legal authority for the transaction of the business of life settlements;

(iv) File with the commissioner or the chief insurance regulatory official of another jurisdiction a document containing false information or otherwise concealing information about a material fact from the commissioner;

(v) Engage in embezzlement, theft, misappropriation, or conversion of moneys, funds, premiums, credits, or other property of a provider, insurer, insured, owner, insurance, policy owner, or any other person engaged in the business of life settlements or insurance;

(vi) Knowingly and with intent to defraud, enter into, broker, or otherwise deal in a life settlement contract, the subject of which is a life insurance policy that was obtained by presenting false information concerning any fact material to the policy or by concealing for the purpose of misleading another information concerning any fact material to the policy, when the owner or the owner's agent intended to defraud the policy's issuer;

(vii) Attempt to commit, assist, aid, or abet in the commission of or conspiracy to commit the acts or omissions specified in this subdivision (7); or

(viii) Misrepresent the state of residence of an owner to be a state or jurisdiction that does not have a law substantially similar to this subchapter for the purpose of evading or avoiding the provisions of this subchapter;

(8) "Insured" means the person covered under the policy being considered for sale in a life settlement contract;

(9) "Life expectancy" means the arithmetic mean of the number of months the insured under the life insurance policy to be settled can be expected to live considering medical records and appropriate experiential data;

(10) "Life insurance producer" means any person licensed in this state as a resident or nonresident insurance producer who has received qualification or authority for life insurance coverage or a life line of coverage pursuant to § 23-64-507(a)(1) ;

(11) (A) "Life settlement contract" means a written agreement entered into between a provider and an owner, establishing the terms under which compensation or anything of value will be paid, which compensation or thing of value is less than the expected death benefit of the insurance policy or certificate, in return for the owner's assignment, transfer, sale, devise, or bequest of the death benefit or any portion of an insurance policy or certificate of insurance for compensation, provided, however, that the minimum value for a life settlement contract shall be greater than a cash surrender value or accelerated death benefit available at the time of an application for a life settlement contract. (B) "Life settlement contract" also includes the transfer for compensation or value of ownership or beneficial interest in a trust or other entity that owns such policy if the trust or other entity was formed or availed of for the principal purpose of acquiring one (1) or more life insurance contracts, which life insurance contract insures the life of a person residing in this state. (C) "Life settlement contract" also includes a premium finance loan made for a policy on or before the date of issuance of the policy when: (i) The loan proceeds are not used solely to pay premiums for the policy and any costs or expenses incurred by the lender or the borrower in connection with the financing; (ii) The owner receives on the date of the premium finance loan a guarantee of the future life settlement value of the policy; or (iii) The owner agrees on the date of the premium finance loan to sell the policy or any portion of its death benefit on any date following the issuance of the policy. (D) "Life settlement contract" does not include: (i) A policy loan by a life insurance company pursuant to the terms of the life insurance policy or accelerated death provisions contained in the life insurance policy, whether issued with the original policy or as a rider; (ii) A premium finance loan, as defined herein, or any loan made by a bank or other licensed financial institution, provided that neither default on the loan nor the transfer of the policy in connection with the default is pursuant to an agreement or understanding with any other person for the purpose of evading regulation under this subchapter; (iii) A collateral assignment of a life insurance policy by an owner; (iv) An agreement in which all the parties: (a) Are closely related to the insured by blood or law; or (b) Have a lawful substantial economic interest in the continued life, health, and bodily safety of the person insured or are trusts established primarily for the benefit of such parties; (v) Any designation, consent, or agreement by an insured who is an employee of an employer in connection with the purchase by the employer or trust established by the employer of life insurance on the life of the employee; (vi) A bona fide business succession planning arrangement: (a) Between one (1) or more shareholders in a corporation or between a corporation and one (1) or more of its shareholders or one (1) or more trusts established by its shareholders; (b) Between one (1) or more partners in a partnership or between a partnership and one (1) or more of its partners or one (1) or more trusts established by its partners; or (c) Between one (1) or more members in a limited liability company or between a limited liability company and one (1) or more of its members or one (1) or more trusts established by its members; or (vii) An agreement entered into by a service recipient, or a trust established by the service recipient, and a service provider, or a trust established by the service provider, who performs significant services for the service recipient's trade or business;

(A) "Life settlement contract" means a written agreement entered into between a provider and an owner, establishing the terms under which compensation or anything of value will be paid, which compensation or thing of value is less than the expected death benefit of the insurance policy or certificate, in return for the owner's assignment, transfer, sale, devise, or bequest of the death benefit or any portion of an insurance policy or certificate of insurance for compensation, provided, however, that the minimum value for a life settlement contract shall be greater than a cash surrender value or accelerated death benefit available at the time of an application for a life settlement contract.

(B) "Life settlement contract" also includes the transfer for compensation or value of ownership or beneficial interest in a trust or other entity that owns such policy if the trust or other entity was formed or availed of for the principal purpose of acquiring one (1) or more life insurance contracts, which life insurance contract insures the life of a person residing in this state.

(C) "Life settlement contract" also includes a premium finance loan made for a policy on or before the date of issuance of the policy when: (i) The loan proceeds are not used solely to pay premiums for the policy and any costs or expenses incurred by the lender or the borrower in connection with the financing; (ii) The owner receives on the date of the premium finance loan a guarantee of the future life settlement value of the policy; or (iii) The owner agrees on the date of the premium finance loan to sell the policy or any portion of its death benefit on any date following the issuance of the policy.

(i) The loan proceeds are not used solely to pay premiums for the policy and any costs or expenses incurred by the lender or the borrower in connection with the financing;

(ii) The owner receives on the date of the premium finance loan a guarantee of the future life settlement value of the policy; or

(iii) The owner agrees on the date of the premium finance loan to sell the policy or any portion of its death benefit on any date following the issuance of the policy.

(D) "Life settlement contract" does not include: (i) A policy loan by a life insurance company pursuant to the terms of the life insurance policy or accelerated death provisions contained in the life insurance policy, whether issued with the original policy or as a rider; (ii) A premium finance loan, as defined herein, or any loan made by a bank or other licensed financial institution, provided that neither default on the loan nor the transfer of the policy in connection with the default is pursuant to an agreement or understanding with any other person for the purpose of evading regulation under this subchapter; (iii) A collateral assignment of a life insurance policy by an owner; (iv) An agreement in which all the parties: (a) Are closely related to the insured by blood or law; or (b) Have a lawful substantial economic interest in the continued life, health, and bodily safety of the person insured or are trusts established primarily for the benefit of such parties; (v) Any designation, consent, or agreement by an insured who is an employee of an employer in connection with the purchase by the employer or trust established by the employer of life insurance on the life of the employee; (vi) A bona fide business succession planning arrangement: (a) Between one (1) or more shareholders in a corporation or between a corporation and one (1) or more of its shareholders or one (1) or more trusts established by its shareholders; (b) Between one (1) or more partners in a partnership or between a partnership and one (1) or more of its partners or one (1) or more trusts established by its partners; or (c) Between one (1) or more members in a limited liability company or between a limited liability company and one (1) or more of its members or one (1) or more trusts established by its members; or (vii) An agreement entered into by a service recipient, or a trust established by the service recipient, and a service provider, or a trust established by the service provider, who performs significant services for the service recipient's trade or business;

(i) A policy loan by a life insurance company pursuant to the terms of the life insurance policy or accelerated death provisions contained in the life insurance policy, whether issued with the original policy or as a rider;

(ii) A premium finance loan, as defined herein, or any loan made by a bank or other licensed financial institution, provided that neither default on the loan nor the transfer of the policy in connection with the default is pursuant to an agreement or understanding with any other person for the purpose of evading regulation under this subchapter;

(iii) A collateral assignment of a life insurance policy by an owner;

(iv) An agreement in which all the parties: (a) Are closely related to the insured by blood or law; or (b) Have a lawful substantial economic interest in the continued life, health, and bodily safety of the person insured or are trusts established primarily for the benefit of such parties;

(a) Are closely related to the insured by blood or law; or

(b) Have a lawful substantial economic interest in the continued life, health, and bodily safety of the person insured or are trusts established primarily for the benefit of such parties;

(v) Any designation, consent, or agreement by an insured who is an employee of an employer in connection with the purchase by the employer or trust established by the employer of life insurance on the life of the employee;

(vi) A bona fide business succession planning arrangement: (a) Between one (1) or more shareholders in a corporation or between a corporation and one (1) or more of its shareholders or one (1) or more trusts established by its shareholders; (b) Between one (1) or more partners in a partnership or between a partnership and one (1) or more of its partners or one (1) or more trusts established by its partners; or (c) Between one (1) or more members in a limited liability company or between a limited liability company and one (1) or more of its members or one (1) or more trusts established by its members; or

(a) Between one (1) or more shareholders in a corporation or between a corporation and one (1) or more of its shareholders or one (1) or more trusts established by its shareholders;

(b) Between one (1) or more partners in a partnership or between a partnership and one (1) or more of its partners or one (1) or more trusts established by its partners; or

(c) Between one (1) or more members in a limited liability company or between a limited liability company and one (1) or more of its members or one (1) or more trusts established by its members; or

(vii) An agreement entered into by a service recipient, or a trust established by the service recipient, and a service provider, or a trust established by the service provider, who performs significant services for the service recipient's trade or business;

(12) "Net death benefit" means the amount of the life insurance policy or certificate to be settled, less any outstanding debts or liens;

(13) (A) "Owner" means the owner of a life insurance policy or a certificate holder under a group policy, with or without a terminal illness, who enters or seeks to enter into a life settlement contract. (B) "Owner" is not limited to an owner of a life insurance policy or a certificate holder under a group policy that insures the life of an individual with a terminal or chronic illness or condition except when specifically addressed. (C) "Owner" does not include: (i) Any provider or other licensee under this subchapter; (ii) A qualified institutional buyer as defined in Rule 144A of the Securities Act of 1933, as amended; (iii) A financing entity; (iv) A special purpose entity; or (v) A related provider trust;

(A) "Owner" means the owner of a life insurance policy or a certificate holder under a group policy, with or without a terminal illness, who enters or seeks to enter into a life settlement contract.

(B) "Owner" is not limited to an owner of a life insurance policy or a certificate holder under a group policy that insures the life of an individual with a terminal or chronic illness or condition except when specifically addressed.

(C) "Owner" does not include: (i) Any provider or other licensee under this subchapter; (ii) A qualified institutional buyer as defined in Rule 144A of the Securities Act of 1933, as amended; (iii) A financing entity; (iv) A special purpose entity; or (v) A related provider trust;

(i) Any provider or other licensee under this subchapter;

(ii) A qualified institutional buyer as defined in Rule 144A of the Securities Act of 1933, as amended;

(iii) A financing entity;

(iv) A special purpose entity; or

(v) A related provider trust;

(14) "Patient identifying information" means an insured's address, telephone number, facsimile number, electronic mail address, photograph or likeness, employer, employment status, social security number, or any other information that is likely to lead to the identification of the insured;

(15) "Person" means any natural person or legal entity, including without limitation a partnership, limited liability company, association, trust, or corporation;

(16) "Policy" means an individual or group policy, group certificate, contract, or arrangement of life insurance owned by a resident of this state, regardless of whether delivered or issued for delivery in this state;

(17) "Premium finance loan" means a loan made primarily for the purposes of making premium payments on a life insurance policy, which loan is secured by an interest in such life insurance policy;

(18) (A) "Provider" means a person other than an owner who enters into or effectuates a life settlement contract with an owner. (B) "Provider" does not include: (i) Any bank, savings bank, savings and loan association, or credit union; (ii) A licensed lending institution or creditor or secured party pursuant to a premium finance loan agreement which takes an assignment of a life insurance policy or certificate issued pursuant to a group life insurance policy as collateral for a loan; (iii) The insurer of a life insurance policy or rider to the extent it provides accelerated death benefits or cash surrender value under the insurance code or rules of the commissioner; (iv) Any natural person who enters into or effectuates no more than one (1) agreement in a calendar year for the transfer of a life insurance policy or certificate issued pursuant to a group life insurance policy for compensation or anything of value less than the expected death benefit payable under the policy; (v) A purchaser; (vi) Any authorized or eligible insurer that provides stop loss coverage to a provider, purchaser, financing entity, special purpose entity, or related provider trust; (vii) A financing entity; (viii) A special purpose entity; (ix) A related provider trust; (x) A broker; or (xi) An accredited investor or qualified institutional buyer as defined in, respectively, Regulation D, Rule 501 or Rule 144A of the Securities Act of 1933, as amended, who purchases a life settlement policy from a provider;

(A) "Provider" means a person other than an owner who enters into or effectuates a life settlement contract with an owner.

(B) "Provider" does not include: (i) Any bank, savings bank, savings and loan association, or credit union; (ii) A licensed lending institution or creditor or secured party pursuant to a premium finance loan agreement which takes an assignment of a life insurance policy or certificate issued pursuant to a group life insurance policy as collateral for a loan; (iii) The insurer of a life insurance policy or rider to the extent it provides accelerated death benefits or cash surrender value under the insurance code or rules of the commissioner; (iv) Any natural person who enters into or effectuates no more than one (1) agreement in a calendar year for the transfer of a life insurance policy or certificate issued pursuant to a group life insurance policy for compensation or anything of value less than the expected death benefit payable under the policy; (v) A purchaser; (vi) Any authorized or eligible insurer that provides stop loss coverage to a provider, purchaser, financing entity, special purpose entity, or related provider trust; (vii) A financing entity; (viii) A special purpose entity; (ix) A related provider trust; (x) A broker; or (xi) An accredited investor or qualified institutional buyer as defined in, respectively, Regulation D, Rule 501 or Rule 144A of the Securities Act of 1933, as amended, who purchases a life settlement policy from a provider;

(i) Any bank, savings bank, savings and loan association, or credit union;

(ii) A licensed lending institution or creditor or secured party pursuant to a premium finance loan agreement which takes an assignment of a life insurance policy or certificate issued pursuant to a group life insurance policy as collateral for a loan;

(iii) The insurer of a life insurance policy or rider to the extent it provides accelerated death benefits or cash surrender value under the insurance code or rules of the commissioner;

(iv) Any natural person who enters into or effectuates no more than one (1) agreement in a calendar year for the transfer of a life insurance policy or certificate issued pursuant to a group life insurance policy for compensation or anything of value less than the expected death benefit payable under the policy;

(v) A purchaser;

(vi) Any authorized or eligible insurer that provides stop loss coverage to a provider, purchaser, financing entity, special purpose entity, or related provider trust;

(vii) A financing entity;

(viii) A special purpose entity;

(ix) A related provider trust;

(x) A broker; or

(xi) An accredited investor or qualified institutional buyer as defined in, respectively, Regulation D, Rule 501 or Rule 144A of the Securities Act of 1933, as amended, who purchases a life settlement policy from a provider;

(19) "Purchased policy" means a policy or group certificate that has been acquired by a provider pursuant to a life settlement contract;

(20) "Purchaser" means a person who pays compensation or anything of value as consideration for a beneficial interest in a trust which is vested with, or for the assignment, transfer, or sale of, an ownership or other interest in a life insurance policy or a certificate issued pursuant to a group life insurance policy which has been the subject of a life settlement contract;

(21) (A) "Related provider trust" means a titling trust or other trust established by a licensed provider or a financing entity for the sole purpose of holding the ownership or beneficial interest in purchased policies in connection with a financing transaction. (B) In order to qualify as a related provider trust, the trust must have a written agreement with the licensed provider under which the licensed provider is responsible for ensuring compliance with all statutory and regulatory requirements and under which the trust agrees to make all records and files relating to life settlement transactions available to the State Insurance Department as if those records and files were maintained directly by the licensed provider;

(A) "Related provider trust" means a titling trust or other trust established by a licensed provider or a financing entity for the sole purpose of holding the ownership or beneficial interest in purchased policies in connection with a financing transaction.

(B) In order to qualify as a related provider trust, the trust must have a written agreement with the licensed provider under which the licensed provider is responsible for ensuring compliance with all statutory and regulatory requirements and under which the trust agrees to make all records and files relating to life settlement transactions available to the State Insurance Department as if those records and files were maintained directly by the licensed provider;

(22) "Settled policy" means a life insurance policy or certificate that has been acquired by a provider pursuant to a life settlement contract;

(23) "Special purpose entity" means a corporation, partnership, trust, limited liability company, or other legal entity formed solely to provide either directly or indirectly access to institutional capital markets: (A) For a financing entity or provider; or (B) In connection with a transaction in which: (i) The securities in the special purpose entity are acquired by the owner or by a qualified institutional buyer, as defined in Rule 144A as promulgated under the Securities Act of 1933, as amended; or (ii) The securities pay a fixed rate of return commensurate with established asset-backed institutional capital markets;

(A) For a financing entity or provider; or

(B) In connection with a transaction in which: (i) The securities in the special purpose entity are acquired by the owner or by a qualified institutional buyer, as defined in Rule 144A as promulgated under the Securities Act of 1933, as amended; or (ii) The securities pay a fixed rate of return commensurate with established asset-backed institutional capital markets;

(i) The securities in the special purpose entity are acquired by the owner or by a qualified institutional buyer, as defined in Rule 144A as promulgated under the Securities Act of 1933, as amended; or

(ii) The securities pay a fixed rate of return commensurate with established asset-backed institutional capital markets;

(24) (A) "Stranger-originated life insurance" is a practice or plan to initiate a life insurance policy for the benefit of a third-party investor who at the time of policy origination has no insurable interest in the insured. (B) Stranger-originated life insurance practices include without limitation cases in which life insurance is purchased with resources or guarantees from or through a person or entity that at the time of policy inception could not lawfully initiate the policy himself, herself, or itself, and in which at the time of inception there is an arrangement or agreement, whether verbal or written, to directly or indirectly transfer the ownership of the policy, the policy benefits, or the policy and the policy benefits to a third party. (C) Trusts that are created to give the appearance of insurable interest and are used to initiate policies for investors violate insurable interest laws and the prohibition against wagering on life. (D) Stranger-originated life insurance arrangements do not include those practices set forth in subdivision (11)(D) of this section; and

(A) "Stranger-originated life insurance" is a practice or plan to initiate a life insurance policy for the benefit of a third-party investor who at the time of policy origination has no insurable interest in the insured.

(B) Stranger-originated life insurance practices include without limitation cases in which life insurance is purchased with resources or guarantees from or through a person or entity that at the time of policy inception could not lawfully initiate the policy himself, herself, or itself, and in which at the time of inception there is an arrangement or agreement, whether verbal or written, to directly or indirectly transfer the ownership of the policy, the policy benefits, or the policy and the policy benefits to a third party.

(C) Trusts that are created to give the appearance of insurable interest and are used to initiate policies for investors violate insurable interest laws and the prohibition against wagering on life.

(D) Stranger-originated life insurance arrangements do not include those practices set forth in subdivision (11)(D) of this section; and

(25) "Terminally ill" means having an illness or sickness that can reasonably be expected to result in death in twenty-four (24) months or less.

Acts 2009, No. 796, § 1.
Ark. Code Ann. § 23-92-404 — AR Code / Title 23 / Chapter 92 / Subchapter 4 / Section 23-92-404
Licensing and renewal
Status: in_force

(a) Except as otherwise provided in this subchapter, no person shall provide, advertise, or otherwise hold itself out as providing professional employer services in Arkansas unless the person is licensed as a professional service organization under this subchapter. (b) (1) Each professional employer organization required to be licensed under this subchapter shall provide the Insurance Commissioner information required by the commissioner on forms prescribed by the commissioner. (2) The information required under subdivision (b)(1) of this section shall include the following information: (A) The legal name of the professional employer organization and all other names under which the professional employer organization conducts business; (B) The address of the principal place of business of the professional employer organization and the address of each office it maintains in Arkansas; (C) The professional employer organization's taxpayer or employer identification number; (D) A list by jurisdiction of each name under which the professional employer organization has operated in the preceding five (5) years, including any fictitious names, alternative names, names of predecessors, and, if known, successor business entities; (E) A statement of ownership that shall include the name and evidence of the business experience of all controlling persons; (F) A statement of each controlling person disclosing any interest in any other professional employer organization, whether licensed or not in Arkansas, in which the controlling person has a ten percent (10%) or greater interest; (G) A statement of management, which shall include the name and evidence of the business experience of any person who serves as president or chief executive officer or otherwise has the authority to act as senior executive officer of the professional employer organization; and (H) (i) A financial statement setting forth the financial condition of the professional employer organization as of a date not earlier than one hundred eighty (180) days before the date the financial statement is submitted to the commissioner. (ii) The financial statement under subdivision (b)(1)(H)(i) of this section shall be prepared in accordance with generally accepted accounting principles, and unless the professional employer organization provides financial assurance as set forth in § 23-92-408(a)(2) , the financial statement shall be audited by an independent certified public accountant licensed to practice in Arkansas or the state of domicile of the professional employer organization. (iii) A professional employer organization group may submit combined or consolidated financial statements to meet the requirements of this section. (c) (1) Each professional employer organization operating within this state as of July 16, 2003, shall complete its initial licensing no later than December 31, 2003. (2) Each professional employer organization not operating within Arkansas as of July 16, 2003, shall complete its initial licensing before beginning operations within this state. (d) (1) No later than the biennial anniversary date of its licensing, each licensee shall renew its licensing by notifying the commissioner of any changes in the information provided in the licensee's most recent licensing or renewal and by paying a renewal fee. (2) If a licensee under this subchapter fails to renew its license at the time of renewal and pay the renewal fee, its license shall become delinquent. (3) (A) Licensees under this subchapter shall have thirty (30) days after the renewal date in which to renew their licenses and pay in addition to the renewal fee under subdivision (d)(1) of this section a late fee not to exceed one thousand dollars ($1,000). (B) If payment is not received within the thirty-day time period under subdivision (d)(3)(A) of this section: (i) The license shall automatically become void without further action by the commissioner; and (ii) (a) The commissioner shall enter a temporary order compelling the professional employer organization to cease and desist from any professional employer services in Arkansas. (b) The order under subdivision (d)(3)(B)(ii)( a ) of this section shall provide for an opportunity for the professional employer organization to request a hearing. (c) If the professional employer organization does not request a hearing within thirty (30) days after the entry of the order or if the commissioner finds after a hearing that the professional employer organization's license should not be renewed, the order entered under subdivision (d)(3)(B)(ii)( a ) of this section shall become permanent. (d) The commissioner shall provide a copy of the order entered under subdivision (d)(3)(B)(ii) (a) of this section to the Workers' Compensation Commission and the Division of Workforce Services or their successors. (e) (1) A professional employer organization group may satisfy any reporting and financial requirements of this subchapter on a consolidated basis. (2) As a condition of licensing as a professional employer organization group, each affiliate of the professional employer organization group shall guarantee payment of all financial obligations with respect to wages, employment taxes, and employee benefits of each affiliate of the professional employer organization group. (f) (1) A professional employer organization is exempt from the licensing requirements contained in subsections (a)-(e) of this section and §§ 23-92-405 , 23-92-406 , and 23-92-408 if the professional employer organization: (A) Submits a properly executed request for exemption on a form provided by the State Insurance Department; (B) Is domiciled outside of Arkansas and is licensed or registered as a professional employer organization in another state that has requirements the same or greater than this subchapter; (C) Does not maintain an office in this state or solicit in any manner clients located or domiciled within this state; and (D) Has one hundred (100) or fewer covered employees employed or domiciled in Arkansas. (2) A professional employer organization's exemption from the licensing requirements under this subchapter shall be valid for two (2) years, subject to renewal, for as long as the professional employer organization: (A) Continues to qualify for the exemption; and (B) On or before the biennial anniversary date of the original grant of exemption, requests the exemption to continue. (g) The commissioner shall maintain a list of professional employer organizations licensed or exempted under this subchapter. (h) The commissioner may prescribe forms necessary to promote the efficient administration of this section. (i) The commissioner shall reject an application for a license or for an exemption from license if the commissioner finds that: (1) Any controlling person named in the license or exemption application is not of good moral character, business integrity, or financial responsibility; or (2) The controlling person has violated a provision of this subchapter. (j) A person engaged in the business of providing professional employer services shall be subject to licensing under this subchapter regardless of its use of the name "professional employer organization", "PEO", "staff leasing company", "licensed staff leasing company", "employee leasing company", or any other name. Amended by Act 2019, No. 910,§ 609, eff. 7/1/2019. Acts 2003, No. 1750, § 1.

(a) Except as otherwise provided in this subchapter, no person shall provide, advertise, or otherwise hold itself out as providing professional employer services in Arkansas unless the person is licensed as a professional service organization under this subchapter.

(b) (1) Each professional employer organization required to be licensed under this subchapter shall provide the Insurance Commissioner information required by the commissioner on forms prescribed by the commissioner. (2) The information required under subdivision (b)(1) of this section shall include the following information: (A) The legal name of the professional employer organization and all other names under which the professional employer organization conducts business; (B) The address of the principal place of business of the professional employer organization and the address of each office it maintains in Arkansas; (C) The professional employer organization's taxpayer or employer identification number; (D) A list by jurisdiction of each name under which the professional employer organization has operated in the preceding five (5) years, including any fictitious names, alternative names, names of predecessors, and, if known, successor business entities; (E) A statement of ownership that shall include the name and evidence of the business experience of all controlling persons; (F) A statement of each controlling person disclosing any interest in any other professional employer organization, whether licensed or not in Arkansas, in which the controlling person has a ten percent (10%) or greater interest; (G) A statement of management, which shall include the name and evidence of the business experience of any person who serves as president or chief executive officer or otherwise has the authority to act as senior executive officer of the professional employer organization; and (H) (i) A financial statement setting forth the financial condition of the professional employer organization as of a date not earlier than one hundred eighty (180) days before the date the financial statement is submitted to the commissioner. (ii) The financial statement under subdivision (b)(1)(H)(i) of this section shall be prepared in accordance with generally accepted accounting principles, and unless the professional employer organization provides financial assurance as set forth in § 23-92-408(a)(2) , the financial statement shall be audited by an independent certified public accountant licensed to practice in Arkansas or the state of domicile of the professional employer organization. (iii) A professional employer organization group may submit combined or consolidated financial statements to meet the requirements of this section.

(1) Each professional employer organization required to be licensed under this subchapter shall provide the Insurance Commissioner information required by the commissioner on forms prescribed by the commissioner.

(2) The information required under subdivision (b)(1) of this section shall include the following information: (A) The legal name of the professional employer organization and all other names under which the professional employer organization conducts business; (B) The address of the principal place of business of the professional employer organization and the address of each office it maintains in Arkansas; (C) The professional employer organization's taxpayer or employer identification number; (D) A list by jurisdiction of each name under which the professional employer organization has operated in the preceding five (5) years, including any fictitious names, alternative names, names of predecessors, and, if known, successor business entities; (E) A statement of ownership that shall include the name and evidence of the business experience of all controlling persons; (F) A statement of each controlling person disclosing any interest in any other professional employer organization, whether licensed or not in Arkansas, in which the controlling person has a ten percent (10%) or greater interest; (G) A statement of management, which shall include the name and evidence of the business experience of any person who serves as president or chief executive officer or otherwise has the authority to act as senior executive officer of the professional employer organization; and (H) (i) A financial statement setting forth the financial condition of the professional employer organization as of a date not earlier than one hundred eighty (180) days before the date the financial statement is submitted to the commissioner. (ii) The financial statement under subdivision (b)(1)(H)(i) of this section shall be prepared in accordance with generally accepted accounting principles, and unless the professional employer organization provides financial assurance as set forth in § 23-92-408(a)(2) , the financial statement shall be audited by an independent certified public accountant licensed to practice in Arkansas or the state of domicile of the professional employer organization. (iii) A professional employer organization group may submit combined or consolidated financial statements to meet the requirements of this section.

(A) The legal name of the professional employer organization and all other names under which the professional employer organization conducts business;

(B) The address of the principal place of business of the professional employer organization and the address of each office it maintains in Arkansas;

(C) The professional employer organization's taxpayer or employer identification number;

(D) A list by jurisdiction of each name under which the professional employer organization has operated in the preceding five (5) years, including any fictitious names, alternative names, names of predecessors, and, if known, successor business entities;

(E) A statement of ownership that shall include the name and evidence of the business experience of all controlling persons;

(F) A statement of each controlling person disclosing any interest in any other professional employer organization, whether licensed or not in Arkansas, in which the controlling person has a ten percent (10%) or greater interest;

(G) A statement of management, which shall include the name and evidence of the business experience of any person who serves as president or chief executive officer or otherwise has the authority to act as senior executive officer of the professional employer organization; and

(H) (i) A financial statement setting forth the financial condition of the professional employer organization as of a date not earlier than one hundred eighty (180) days before the date the financial statement is submitted to the commissioner. (ii) The financial statement under subdivision (b)(1)(H)(i) of this section shall be prepared in accordance with generally accepted accounting principles, and unless the professional employer organization provides financial assurance as set forth in § 23-92-408(a)(2) , the financial statement shall be audited by an independent certified public accountant licensed to practice in Arkansas or the state of domicile of the professional employer organization. (iii) A professional employer organization group may submit combined or consolidated financial statements to meet the requirements of this section.

(i) A financial statement setting forth the financial condition of the professional employer organization as of a date not earlier than one hundred eighty (180) days before the date the financial statement is submitted to the commissioner.

(ii) The financial statement under subdivision (b)(1)(H)(i) of this section shall be prepared in accordance with generally accepted accounting principles, and unless the professional employer organization provides financial assurance as set forth in § 23-92-408(a)(2) , the financial statement shall be audited by an independent certified public accountant licensed to practice in Arkansas or the state of domicile of the professional employer organization.

(iii) A professional employer organization group may submit combined or consolidated financial statements to meet the requirements of this section.

(c) (1) Each professional employer organization operating within this state as of July 16, 2003, shall complete its initial licensing no later than December 31, 2003. (2) Each professional employer organization not operating within Arkansas as of July 16, 2003, shall complete its initial licensing before beginning operations within this state.

(1) Each professional employer organization operating within this state as of July 16, 2003, shall complete its initial licensing no later than December 31, 2003.

(2) Each professional employer organization not operating within Arkansas as of July 16, 2003, shall complete its initial licensing before beginning operations within this state.

(d) (1) No later than the biennial anniversary date of its licensing, each licensee shall renew its licensing by notifying the commissioner of any changes in the information provided in the licensee's most recent licensing or renewal and by paying a renewal fee. (2) If a licensee under this subchapter fails to renew its license at the time of renewal and pay the renewal fee, its license shall become delinquent. (3) (A) Licensees under this subchapter shall have thirty (30) days after the renewal date in which to renew their licenses and pay in addition to the renewal fee under subdivision (d)(1) of this section a late fee not to exceed one thousand dollars ($1,000). (B) If payment is not received within the thirty-day time period under subdivision (d)(3)(A) of this section: (i) The license shall automatically become void without further action by the commissioner; and (ii) (a) The commissioner shall enter a temporary order compelling the professional employer organization to cease and desist from any professional employer services in Arkansas. (b) The order under subdivision (d)(3)(B)(ii)( a ) of this section shall provide for an opportunity for the professional employer organization to request a hearing. (c) If the professional employer organization does not request a hearing within thirty (30) days after the entry of the order or if the commissioner finds after a hearing that the professional employer organization's license should not be renewed, the order entered under subdivision (d)(3)(B)(ii)( a ) of this section shall become permanent. (d) The commissioner shall provide a copy of the order entered under subdivision (d)(3)(B)(ii) (a) of this section to the Workers' Compensation Commission and the Division of Workforce Services or their successors. (e) (1) A professional employer organization group may satisfy any reporting and financial requirements of this subchapter on a consolidated basis. (2) As a condition of licensing as a professional employer organization group, each affiliate of the professional employer organization group shall guarantee payment of all financial obligations with respect to wages, employment taxes, and employee benefits of each affiliate of the professional employer organization group. (f) (1) A professional employer organization is exempt from the licensing requirements contained in subsections (a)-(e) of this section and §§ 23-92-405 , 23-92-406 , and 23-92-408 if the professional employer organization: (A) Submits a properly executed request for exemption on a form provided by the State Insurance Department; (B) Is domiciled outside of Arkansas and is licensed or registered as a professional employer organization in another state that has requirements the same or greater than this subchapter; (C) Does not maintain an office in this state or solicit in any manner clients located or domiciled within this state; and (D) Has one hundred (100) or fewer covered employees employed or domiciled in Arkansas. (2) A professional employer organization's exemption from the licensing requirements under this subchapter shall be valid for two (2) years, subject to renewal, for as long as the professional employer organization: (A) Continues to qualify for the exemption; and (B) On or before the biennial anniversary date of the original grant of exemption, requests the exemption to continue. (g) The commissioner shall maintain a list of professional employer organizations licensed or exempted under this subchapter. (h) The commissioner may prescribe forms necessary to promote the efficient administration of this section. (i) The commissioner shall reject an application for a license or for an exemption from license if the commissioner finds that: (1) Any controlling person named in the license or exemption application is not of good moral character, business integrity, or financial responsibility; or (2) The controlling person has violated a provision of this subchapter. (j) A person engaged in the business of providing professional employer services shall be subject to licensing under this subchapter regardless of its use of the name "professional employer organization", "PEO", "staff leasing company", "licensed staff leasing company", "employee leasing company", or any other name.

(1) No later than the biennial anniversary date of its licensing, each licensee shall renew its licensing by notifying the commissioner of any changes in the information provided in the licensee's most recent licensing or renewal and by paying a renewal fee.

(2) If a licensee under this subchapter fails to renew its license at the time of renewal and pay the renewal fee, its license shall become delinquent.

(3) (A) Licensees under this subchapter shall have thirty (30) days after the renewal date in which to renew their licenses and pay in addition to the renewal fee under subdivision (d)(1) of this section a late fee not to exceed one thousand dollars ($1,000). (B) If payment is not received within the thirty-day time period under subdivision (d)(3)(A) of this section: (i) The license shall automatically become void without further action by the commissioner; and (ii) (a) The commissioner shall enter a temporary order compelling the professional employer organization to cease and desist from any professional employer services in Arkansas. (b) The order under subdivision (d)(3)(B)(ii)( a ) of this section shall provide for an opportunity for the professional employer organization to request a hearing. (c) If the professional employer organization does not request a hearing within thirty (30) days after the entry of the order or if the commissioner finds after a hearing that the professional employer organization's license should not be renewed, the order entered under subdivision (d)(3)(B)(ii)( a ) of this section shall become permanent. (d) The commissioner shall provide a copy of the order entered under subdivision (d)(3)(B)(ii) (a) of this section to the Workers' Compensation Commission and the Division of Workforce Services or their successors. (e) (1) A professional employer organization group may satisfy any reporting and financial requirements of this subchapter on a consolidated basis. (2) As a condition of licensing as a professional employer organization group, each affiliate of the professional employer organization group shall guarantee payment of all financial obligations with respect to wages, employment taxes, and employee benefits of each affiliate of the professional employer organization group. (f) (1) A professional employer organization is exempt from the licensing requirements contained in subsections (a)-(e) of this section and §§ 23-92-405 , 23-92-406 , and 23-92-408 if the professional employer organization: (A) Submits a properly executed request for exemption on a form provided by the State Insurance Department; (B) Is domiciled outside of Arkansas and is licensed or registered as a professional employer organization in another state that has requirements the same or greater than this subchapter; (C) Does not maintain an office in this state or solicit in any manner clients located or domiciled within this state; and (D) Has one hundred (100) or fewer covered employees employed or domiciled in Arkansas. (2) A professional employer organization's exemption from the licensing requirements under this subchapter shall be valid for two (2) years, subject to renewal, for as long as the professional employer organization: (A) Continues to qualify for the exemption; and (B) On or before the biennial anniversary date of the original grant of exemption, requests the exemption to continue. (g) The commissioner shall maintain a list of professional employer organizations licensed or exempted under this subchapter. (h) The commissioner may prescribe forms necessary to promote the efficient administration of this section. (i) The commissioner shall reject an application for a license or for an exemption from license if the commissioner finds that: (1) Any controlling person named in the license or exemption application is not of good moral character, business integrity, or financial responsibility; or (2) The controlling person has violated a provision of this subchapter. (j) A person engaged in the business of providing professional employer services shall be subject to licensing under this subchapter regardless of its use of the name "professional employer organization", "PEO", "staff leasing company", "licensed staff leasing company", "employee leasing company", or any other name.

(A) Licensees under this subchapter shall have thirty (30) days after the renewal date in which to renew their licenses and pay in addition to the renewal fee under subdivision (d)(1) of this section a late fee not to exceed one thousand dollars ($1,000).

(B) If payment is not received within the thirty-day time period under subdivision (d)(3)(A) of this section: (i) The license shall automatically become void without further action by the commissioner; and (ii) (a) The commissioner shall enter a temporary order compelling the professional employer organization to cease and desist from any professional employer services in Arkansas. (b) The order under subdivision (d)(3)(B)(ii)( a ) of this section shall provide for an opportunity for the professional employer organization to request a hearing. (c) If the professional employer organization does not request a hearing within thirty (30) days after the entry of the order or if the commissioner finds after a hearing that the professional employer organization's license should not be renewed, the order entered under subdivision (d)(3)(B)(ii)( a ) of this section shall become permanent. (d) The commissioner shall provide a copy of the order entered under subdivision (d)(3)(B)(ii) (a) of this section to the Workers' Compensation Commission and the Division of Workforce Services or their successors. (e) (1) A professional employer organization group may satisfy any reporting and financial requirements of this subchapter on a consolidated basis. (2) As a condition of licensing as a professional employer organization group, each affiliate of the professional employer organization group shall guarantee payment of all financial obligations with respect to wages, employment taxes, and employee benefits of each affiliate of the professional employer organization group. (f) (1) A professional employer organization is exempt from the licensing requirements contained in subsections (a)-(e) of this section and §§ 23-92-405 , 23-92-406 , and 23-92-408 if the professional employer organization: (A) Submits a properly executed request for exemption on a form provided by the State Insurance Department; (B) Is domiciled outside of Arkansas and is licensed or registered as a professional employer organization in another state that has requirements the same or greater than this subchapter; (C) Does not maintain an office in this state or solicit in any manner clients located or domiciled within this state; and (D) Has one hundred (100) or fewer covered employees employed or domiciled in Arkansas. (2) A professional employer organization's exemption from the licensing requirements under this subchapter shall be valid for two (2) years, subject to renewal, for as long as the professional employer organization: (A) Continues to qualify for the exemption; and (B) On or before the biennial anniversary date of the original grant of exemption, requests the exemption to continue. (g) The commissioner shall maintain a list of professional employer organizations licensed or exempted under this subchapter. (h) The commissioner may prescribe forms necessary to promote the efficient administration of this section. (i) The commissioner shall reject an application for a license or for an exemption from license if the commissioner finds that: (1) Any controlling person named in the license or exemption application is not of good moral character, business integrity, or financial responsibility; or (2) The controlling person has violated a provision of this subchapter. (j) A person engaged in the business of providing professional employer services shall be subject to licensing under this subchapter regardless of its use of the name "professional employer organization", "PEO", "staff leasing company", "licensed staff leasing company", "employee leasing company", or any other name.

(i) The license shall automatically become void without further action by the commissioner; and

(ii) (a) The commissioner shall enter a temporary order compelling the professional employer organization to cease and desist from any professional employer services in Arkansas. (b) The order under subdivision (d)(3)(B)(ii)( a ) of this section shall provide for an opportunity for the professional employer organization to request a hearing. (c) If the professional employer organization does not request a hearing within thirty (30) days after the entry of the order or if the commissioner finds after a hearing that the professional employer organization's license should not be renewed, the order entered under subdivision (d)(3)(B)(ii)( a ) of this section shall become permanent. (d) The commissioner shall provide a copy of the order entered under subdivision (d)(3)(B)(ii) (a) of this section to the Workers' Compensation Commission and the Division of Workforce Services or their successors. (e) (1) A professional employer organization group may satisfy any reporting and financial requirements of this subchapter on a consolidated basis. (2) As a condition of licensing as a professional employer organization group, each affiliate of the professional employer organization group shall guarantee payment of all financial obligations with respect to wages, employment taxes, and employee benefits of each affiliate of the professional employer organization group. (f) (1) A professional employer organization is exempt from the licensing requirements contained in subsections (a)-(e) of this section and §§ 23-92-405 , 23-92-406 , and 23-92-408 if the professional employer organization: (A) Submits a properly executed request for exemption on a form provided by the State Insurance Department; (B) Is domiciled outside of Arkansas and is licensed or registered as a professional employer organization in another state that has requirements the same or greater than this subchapter; (C) Does not maintain an office in this state or solicit in any manner clients located or domiciled within this state; and (D) Has one hundred (100) or fewer covered employees employed or domiciled in Arkansas. (2) A professional employer organization's exemption from the licensing requirements under this subchapter shall be valid for two (2) years, subject to renewal, for as long as the professional employer organization: (A) Continues to qualify for the exemption; and (B) On or before the biennial anniversary date of the original grant of exemption, requests the exemption to continue. (g) The commissioner shall maintain a list of professional employer organizations licensed or exempted under this subchapter. (h) The commissioner may prescribe forms necessary to promote the efficient administration of this section. (i) The commissioner shall reject an application for a license or for an exemption from license if the commissioner finds that: (1) Any controlling person named in the license or exemption application is not of good moral character, business integrity, or financial responsibility; or (2) The controlling person has violated a provision of this subchapter. (j) A person engaged in the business of providing professional employer services shall be subject to licensing under this subchapter regardless of its use of the name "professional employer organization", "PEO", "staff leasing company", "licensed staff leasing company", "employee leasing company", or any other name.

(a) The commissioner shall enter a temporary order compelling the professional employer organization to cease and desist from any professional employer services in Arkansas.

(b) The order under subdivision (d)(3)(B)(ii)( a ) of this section shall provide for an opportunity for the professional employer organization to request a hearing.

(c) If the professional employer organization does not request a hearing within thirty (30) days after the entry of the order or if the commissioner finds after a hearing that the professional employer organization's license should not be renewed, the order entered under subdivision (d)(3)(B)(ii)( a ) of this section shall become permanent.

(d) The commissioner shall provide a copy of the order entered under subdivision (d)(3)(B)(ii) (a) of this section to the Workers' Compensation Commission and the Division of Workforce Services or their successors.

(e) (1) A professional employer organization group may satisfy any reporting and financial requirements of this subchapter on a consolidated basis. (2) As a condition of licensing as a professional employer organization group, each affiliate of the professional employer organization group shall guarantee payment of all financial obligations with respect to wages, employment taxes, and employee benefits of each affiliate of the professional employer organization group.

(1) A professional employer organization group may satisfy any reporting and financial requirements of this subchapter on a consolidated basis.

(2) As a condition of licensing as a professional employer organization group, each affiliate of the professional employer organization group shall guarantee payment of all financial obligations with respect to wages, employment taxes, and employee benefits of each affiliate of the professional employer organization group.

(f) (1) A professional employer organization is exempt from the licensing requirements contained in subsections (a)-(e) of this section and §§ 23-92-405 , 23-92-406 , and 23-92-408 if the professional employer organization: (A) Submits a properly executed request for exemption on a form provided by the State Insurance Department; (B) Is domiciled outside of Arkansas and is licensed or registered as a professional employer organization in another state that has requirements the same or greater than this subchapter; (C) Does not maintain an office in this state or solicit in any manner clients located or domiciled within this state; and (D) Has one hundred (100) or fewer covered employees employed or domiciled in Arkansas. (2) A professional employer organization's exemption from the licensing requirements under this subchapter shall be valid for two (2) years, subject to renewal, for as long as the professional employer organization: (A) Continues to qualify for the exemption; and (B) On or before the biennial anniversary date of the original grant of exemption, requests the exemption to continue.

(1) A professional employer organization is exempt from the licensing requirements contained in subsections (a)-(e) of this section and §§ 23-92-405 , 23-92-406 , and 23-92-408 if the professional employer organization: (A) Submits a properly executed request for exemption on a form provided by the State Insurance Department; (B) Is domiciled outside of Arkansas and is licensed or registered as a professional employer organization in another state that has requirements the same or greater than this subchapter; (C) Does not maintain an office in this state or solicit in any manner clients located or domiciled within this state; and (D) Has one hundred (100) or fewer covered employees employed or domiciled in Arkansas.

(A) Submits a properly executed request for exemption on a form provided by the State Insurance Department;

(B) Is domiciled outside of Arkansas and is licensed or registered as a professional employer organization in another state that has requirements the same or greater than this subchapter;

(C) Does not maintain an office in this state or solicit in any manner clients located or domiciled within this state; and

(D) Has one hundred (100) or fewer covered employees employed or domiciled in Arkansas.

(2) A professional employer organization's exemption from the licensing requirements under this subchapter shall be valid for two (2) years, subject to renewal, for as long as the professional employer organization: (A) Continues to qualify for the exemption; and (B) On or before the biennial anniversary date of the original grant of exemption, requests the exemption to continue.

(A) Continues to qualify for the exemption; and

(B) On or before the biennial anniversary date of the original grant of exemption, requests the exemption to continue.

(g) The commissioner shall maintain a list of professional employer organizations licensed or exempted under this subchapter.

(h) The commissioner may prescribe forms necessary to promote the efficient administration of this section.

(i) The commissioner shall reject an application for a license or for an exemption from license if the commissioner finds that: (1) Any controlling person named in the license or exemption application is not of good moral character, business integrity, or financial responsibility; or (2) The controlling person has violated a provision of this subchapter.

(1) Any controlling person named in the license or exemption application is not of good moral character, business integrity, or financial responsibility; or

(2) The controlling person has violated a provision of this subchapter.

(j) A person engaged in the business of providing professional employer services shall be subject to licensing under this subchapter regardless of its use of the name "professional employer organization", "PEO", "staff leasing company", "licensed staff leasing company", "employee leasing company", or any other name.

Amended by Act 2019, No. 910,§ 609, eff. 7/1/2019.

Acts 2003, No. 1750, § 1.
Ark. Code Ann. § 23-80-405 — AR Code / Title 23 / Chapter 80 / Subchapter 4 / Section 23-80-405
Enrollment
Status: in_force

(a) Upon enrollment of a covered person, a health benefit plan shall issue a uniform prescription drug information card or other technology in accordance with the requirements of § 23-80-404 . (b) Upon any change in a covered person's coverage that impacts in content or format any information contained on a uniform prescription drug information card or other technology, a health benefit plan shall issue new uniform prescription drug information cards or other technology to all covered persons in accordance with the requirements of § 23-80-404 . (c) (1) A newly issued uniform prescription drug information card or other technology shall be updated with the latest coverage information and shall conform to the standards of the National Council for Prescription Drug Programs then in effect, and to the implementation guide then in use, or a national format established in an administrative rule by the Insurance Commissioner. (2) However, a health benefit plan may issue stickers to covered persons to update cards as may be established in an administrative rule by the commissioner. Acts 2001, No. 1409, § 5.

(a) Upon enrollment of a covered person, a health benefit plan shall issue a uniform prescription drug information card or other technology in accordance with the requirements of § 23-80-404 .

(b) Upon any change in a covered person's coverage that impacts in content or format any information contained on a uniform prescription drug information card or other technology, a health benefit plan shall issue new uniform prescription drug information cards or other technology to all covered persons in accordance with the requirements of § 23-80-404 .

(c) (1) A newly issued uniform prescription drug information card or other technology shall be updated with the latest coverage information and shall conform to the standards of the National Council for Prescription Drug Programs then in effect, and to the implementation guide then in use, or a national format established in an administrative rule by the Insurance Commissioner. (2) However, a health benefit plan may issue stickers to covered persons to update cards as may be established in an administrative rule by the commissioner.

(1) A newly issued uniform prescription drug information card or other technology shall be updated with the latest coverage information and shall conform to the standards of the National Council for Prescription Drug Programs then in effect, and to the implementation guide then in use, or a national format established in an administrative rule by the Insurance Commissioner.

(2) However, a health benefit plan may issue stickers to covered persons to update cards as may be established in an administrative rule by the commissioner.

Acts 2001, No. 1409, § 5.
Ark. Code Ann. § 23-63-837 — AR Code / Title 23 / Chapter 63 / Subchapter 8 / Section 23-63-837
Property and facilities for fossil or synthetic fuel production
Status: in_force

(a) An insurer may invest in property and facilities, and any interests and rights in properties and facilities, for the development and production of fossil or synthetic fuel or other minerals, including, but not limited to, investments relating to: (1) The exploration for and development and production of those fuels and minerals; and (2) Ownership and control of the property, facilities, interests, and rights. (b) Investment in property and facilities, and any interests and rights in the properties and facilities for the development and production of fossil or synthetic fuel or other minerals under this section shall not exceed two percent (2%) of the insurer's assets. Acts 1959, No. 148, § 131.2, as added by Acts 1983, No. 522, § 6; A.S.A. 1947, § 66-2637.

(a) An insurer may invest in property and facilities, and any interests and rights in properties and facilities, for the development and production of fossil or synthetic fuel or other minerals, including, but not limited to, investments relating to: (1) The exploration for and development and production of those fuels and minerals; and (2) Ownership and control of the property, facilities, interests, and rights.

(1) The exploration for and development and production of those fuels and minerals; and

(2) Ownership and control of the property, facilities, interests, and rights.

(b) Investment in property and facilities, and any interests and rights in the properties and facilities for the development and production of fossil or synthetic fuel or other minerals under this section shall not exceed two percent (2%) of the insurer's assets.

Acts 1959, No. 148, § 131.2, as added by Acts 1983, No. 522, § 6; A.S.A. 1947, § 66-2637.
Ark. Code Ann. § 23-17-513 — AR Code / Title 23 / Chapter 17 / Subchapter 5 / Section 23-17-513
Arkansas Public Service Commission - Jurisdiction over pole attachments
Status: in_force

(a) This subchapter does not limit, abrogate, or supersede the jurisdiction of the Arkansas Public Service Commission, or any rule or order of the commission concerning pole attachments under § 23-4-1001 et seq., or any agreement of a public utility pole owner and attacher related to the rates, terms, and conditions for a pole attachment. (b) This subchapter does not authorize: (1) Any attachment or installation to or on an electric-cooperative-owned pole; (2) Any attachment or installation within a nonpublic right-of-way acquired by an electric cooperative; or (3) Use of an electric-cooperative-owned line, duct, conduit, similar structure, or equipment of any type. (c) This subchapter does not authorize: (1) Any attachment or installation to or on an investor-owned electric-utility-owned pole; (2) Any attachment or installation within a nonpublic right-of-way acquired by an investor-owned electric public utility; or (3) Use of an investor-owned electric-public-utility-owned line, duct, conduit, similar structure, or equipment of any type. Added by Act 2019, No. 999,§ 1, eff. 9/1/2019. Added by Act 2019, No. 797,§ 1, eff. 9/1/2019.

(a) This subchapter does not limit, abrogate, or supersede the jurisdiction of the Arkansas Public Service Commission, or any rule or order of the commission concerning pole attachments under § 23-4-1001 et seq., or any agreement of a public utility pole owner and attacher related to the rates, terms, and conditions for a pole attachment.

(b) This subchapter does not authorize: (1) Any attachment or installation to or on an electric-cooperative-owned pole; (2) Any attachment or installation within a nonpublic right-of-way acquired by an electric cooperative; or (3) Use of an electric-cooperative-owned line, duct, conduit, similar structure, or equipment of any type.

(1) Any attachment or installation to or on an electric-cooperative-owned pole;

(2) Any attachment or installation within a nonpublic right-of-way acquired by an electric cooperative; or

(3) Use of an electric-cooperative-owned line, duct, conduit, similar structure, or equipment of any type.

(c) This subchapter does not authorize: (1) Any attachment or installation to or on an investor-owned electric-utility-owned pole; (2) Any attachment or installation within a nonpublic right-of-way acquired by an investor-owned electric public utility; or (3) Use of an investor-owned electric-public-utility-owned line, duct, conduit, similar structure, or equipment of any type.

(1) Any attachment or installation to or on an investor-owned electric-utility-owned pole;

(2) Any attachment or installation within a nonpublic right-of-way acquired by an investor-owned electric public utility; or

(3) Use of an investor-owned electric-public-utility-owned line, duct, conduit, similar structure, or equipment of any type.

Added by Act 2019, No. 999,§ 1, eff. 9/1/2019.

Added by Act 2019, No. 797,§ 1, eff. 9/1/2019.
Ark. Code Ann. § 23-68-126 — AR Code / Title 23 / Chapter 68 / Section 23-68-126
Priority of distribution of general assets
Status: in_force

(a) (1) The priority of distribution of claims from the general assets of the insurer's estate shall be in accordance with the order in which each class of claims is set forth in this section. (2) Every claim in each class shall be paid in full, or adequate funds retained for the payment, before the members of the next class receive any payment. (3) No subclasses shall be established within any class. (b) The order of distribution of claims shall be: (1) Class 1. The costs and expenses of administration, including, but not limited to, the following: (A) The actual and necessary costs of preserving or recovering the assets of the insurer; (B) Compensation for all services rendered in the liquidation; (C) Any necessary filing fees from which the receiver is not exempt under § 23-68-122 ; (D) The fees and mileage payable to witnesses; (E) Reasonable attorney's fees; and (F) The reasonable expenses of the Arkansas Property and Casualty Insurance Guaranty Fund, or any other domestic or foreign guaranty fund or guaranty association, for the handling of claims; (2) Class 2. (A) All claims under policies for losses incurred, including third-party claims, and all claims of a domestic or foreign guaranty fund or guaranty association. (B) All claims under life insurance and annuity policies, whether for death proceeds, annuity proceeds, or investment values, shall be treated as loss claims. (C) That portion of any loss, for which indemnification is provided by other benefits or advantages recovered by the claimant shall not be included in this class, other than benefits or advantages recovered or recoverable in discharge of familial obligations of support, or by way of succession at death, or as proceeds of life insurance, or as gratuities. (D) No payment by an employer to his or her employee shall be treated as a gratuity; (3) Class 3. Claims under nonassessable policies for unearned premium or other premium refunds; (4) Class 4. Claims of the United States Government not included in Class 2 or 3 above; (5) Class 5. Debts due to employees for services performed to the extent that they do not exceed one thousand dollars ($1,000) and represent payment for services performed within one (1) year before the filing of the petition for liquidation. Officers and directors shall not be entitled to the benefit of this priority. The priority shall be in lieu of any similar priority which may be authorized by law as to wages or compensation of employees; (6) Class 6. All claims against the insurer for liability for bodily injury to or destruction of tangible property which are not under policies, and claims of general creditors; (7) Class 7. Claims of any state or local government. Claims, including those of any state or local governmental body for a penalty or forfeiture, shall be allowed in this class only to the extent of the pecuniary loss sustained from the act, transaction, or proceeding out of which the penalty or forfeiture arose, with reasonable and actual costs occasioned thereby. The remainder of the claim shall be postponed to the class of claims under subdivision (b)(10) of this section; (8) Class 8. Claims filed late or any other claims other than claims under subdivisions (b)(9) and (10) of this section; (9) Class 9. Surplus notes, or similar obligations, and premium refunds on assessable policies. Payments to members of domestic mutual insurance companies shall be limited in accordance with law; (10) Class 10. The claims of shareholders or other owners. (c) (1) Every claim under a separate account established under the provisions of § 23-81-402 providing that the income, gains, and losses, realized and unrealized, from assets allocated to the separate account shall be credited to or charged against the account without regard to other income, gains, or losses of the life insurance company and, to the extent provided under the applicable contracts, that that portion of the assets of any such separate account equal to the reserves and other contract liabilities with respect to the separate account shall not be chargeable with liabilities arising out of any other business the company may conduct, shall be satisfied out of the assets in the separate account equal to the reserves maintained in the account for the contracts. (2) To the extent, if any, reserves maintained in the separate account are in excess of the amounts needed to satisfy claims under the separate account contracts, the excess shall be treated as general assets of the life insurance company. Acts 1959, No. 148, § 664; 1983, No. 522, § 36; A.S.A. 1947, § 66-4827; Acts 1993, No. 901, § 37; 1997, No. 1000, § 9.

(a) (1) The priority of distribution of claims from the general assets of the insurer's estate shall be in accordance with the order in which each class of claims is set forth in this section. (2) Every claim in each class shall be paid in full, or adequate funds retained for the payment, before the members of the next class receive any payment. (3) No subclasses shall be established within any class.

(1) The priority of distribution of claims from the general assets of the insurer's estate shall be in accordance with the order in which each class of claims is set forth in this section.

(2) Every claim in each class shall be paid in full, or adequate funds retained for the payment, before the members of the next class receive any payment.

(3) No subclasses shall be established within any class.

(b) The order of distribution of claims shall be: (1) Class 1. The costs and expenses of administration, including, but not limited to, the following: (A) The actual and necessary costs of preserving or recovering the assets of the insurer; (B) Compensation for all services rendered in the liquidation; (C) Any necessary filing fees from which the receiver is not exempt under § 23-68-122 ; (D) The fees and mileage payable to witnesses; (E) Reasonable attorney's fees; and (F) The reasonable expenses of the Arkansas Property and Casualty Insurance Guaranty Fund, or any other domestic or foreign guaranty fund or guaranty association, for the handling of claims; (2) Class 2. (A) All claims under policies for losses incurred, including third-party claims, and all claims of a domestic or foreign guaranty fund or guaranty association. (B) All claims under life insurance and annuity policies, whether for death proceeds, annuity proceeds, or investment values, shall be treated as loss claims. (C) That portion of any loss, for which indemnification is provided by other benefits or advantages recovered by the claimant shall not be included in this class, other than benefits or advantages recovered or recoverable in discharge of familial obligations of support, or by way of succession at death, or as proceeds of life insurance, or as gratuities. (D) No payment by an employer to his or her employee shall be treated as a gratuity; (3) Class 3. Claims under nonassessable policies for unearned premium or other premium refunds; (4) Class 4. Claims of the United States Government not included in Class 2 or 3 above; (5) Class 5. Debts due to employees for services performed to the extent that they do not exceed one thousand dollars ($1,000) and represent payment for services performed within one (1) year before the filing of the petition for liquidation. Officers and directors shall not be entitled to the benefit of this priority. The priority shall be in lieu of any similar priority which may be authorized by law as to wages or compensation of employees; (6) Class 6. All claims against the insurer for liability for bodily injury to or destruction of tangible property which are not under policies, and claims of general creditors; (7) Class 7. Claims of any state or local government. Claims, including those of any state or local governmental body for a penalty or forfeiture, shall be allowed in this class only to the extent of the pecuniary loss sustained from the act, transaction, or proceeding out of which the penalty or forfeiture arose, with reasonable and actual costs occasioned thereby. The remainder of the claim shall be postponed to the class of claims under subdivision (b)(10) of this section; (8) Class 8. Claims filed late or any other claims other than claims under subdivisions (b)(9) and (10) of this section; (9) Class 9. Surplus notes, or similar obligations, and premium refunds on assessable policies. Payments to members of domestic mutual insurance companies shall be limited in accordance with law; (10) Class 10. The claims of shareholders or other owners.

(1) Class 1. The costs and expenses of administration, including, but not limited to, the following: (A) The actual and necessary costs of preserving or recovering the assets of the insurer; (B) Compensation for all services rendered in the liquidation; (C) Any necessary filing fees from which the receiver is not exempt under § 23-68-122 ; (D) The fees and mileage payable to witnesses; (E) Reasonable attorney's fees; and (F) The reasonable expenses of the Arkansas Property and Casualty Insurance Guaranty Fund, or any other domestic or foreign guaranty fund or guaranty association, for the handling of claims;

(A) The actual and necessary costs of preserving or recovering the assets of the insurer;

(B) Compensation for all services rendered in the liquidation;

(C) Any necessary filing fees from which the receiver is not exempt under § 23-68-122 ;

(D) The fees and mileage payable to witnesses;

(E) Reasonable attorney's fees; and

(F) The reasonable expenses of the Arkansas Property and Casualty Insurance Guaranty Fund, or any other domestic or foreign guaranty fund or guaranty association, for the handling of claims;

(2) Class 2. (A) All claims under policies for losses incurred, including third-party claims, and all claims of a domestic or foreign guaranty fund or guaranty association. (B) All claims under life insurance and annuity policies, whether for death proceeds, annuity proceeds, or investment values, shall be treated as loss claims. (C) That portion of any loss, for which indemnification is provided by other benefits or advantages recovered by the claimant shall not be included in this class, other than benefits or advantages recovered or recoverable in discharge of familial obligations of support, or by way of succession at death, or as proceeds of life insurance, or as gratuities. (D) No payment by an employer to his or her employee shall be treated as a gratuity;

(A) All claims under policies for losses incurred, including third-party claims, and all claims of a domestic or foreign guaranty fund or guaranty association.

(B) All claims under life insurance and annuity policies, whether for death proceeds, annuity proceeds, or investment values, shall be treated as loss claims.

(C) That portion of any loss, for which indemnification is provided by other benefits or advantages recovered by the claimant shall not be included in this class, other than benefits or advantages recovered or recoverable in discharge of familial obligations of support, or by way of succession at death, or as proceeds of life insurance, or as gratuities.

(D) No payment by an employer to his or her employee shall be treated as a gratuity;

(3) Class 3. Claims under nonassessable policies for unearned premium or other premium refunds;

(4) Class 4. Claims of the United States Government not included in Class 2 or 3 above;

(5) Class 5. Debts due to employees for services performed to the extent that they do not exceed one thousand dollars ($1,000) and represent payment for services performed within one (1) year before the filing of the petition for liquidation. Officers and directors shall not be entitled to the benefit of this priority. The priority shall be in lieu of any similar priority which may be authorized by law as to wages or compensation of employees;

(6) Class 6. All claims against the insurer for liability for bodily injury to or destruction of tangible property which are not under policies, and claims of general creditors;

(7) Class 7. Claims of any state or local government. Claims, including those of any state or local governmental body for a penalty or forfeiture, shall be allowed in this class only to the extent of the pecuniary loss sustained from the act, transaction, or proceeding out of which the penalty or forfeiture arose, with reasonable and actual costs occasioned thereby. The remainder of the claim shall be postponed to the class of claims under subdivision (b)(10) of this section;

(8) Class 8. Claims filed late or any other claims other than claims under subdivisions (b)(9) and (10) of this section;

(9) Class 9. Surplus notes, or similar obligations, and premium refunds on assessable policies. Payments to members of domestic mutual insurance companies shall be limited in accordance with law;

(10) Class 10. The claims of shareholders or other owners.

(c) (1) Every claim under a separate account established under the provisions of § 23-81-402 providing that the income, gains, and losses, realized and unrealized, from assets allocated to the separate account shall be credited to or charged against the account without regard to other income, gains, or losses of the life insurance company and, to the extent provided under the applicable contracts, that that portion of the assets of any such separate account equal to the reserves and other contract liabilities with respect to the separate account shall not be chargeable with liabilities arising out of any other business the company may conduct, shall be satisfied out of the assets in the separate account equal to the reserves maintained in the account for the contracts. (2) To the extent, if any, reserves maintained in the separate account are in excess of the amounts needed to satisfy claims under the separate account contracts, the excess shall be treated as general assets of the life insurance company.

(1) Every claim under a separate account established under the provisions of § 23-81-402 providing that the income, gains, and losses, realized and unrealized, from assets allocated to the separate account shall be credited to or charged against the account without regard to other income, gains, or losses of the life insurance company and, to the extent provided under the applicable contracts, that that portion of the assets of any such separate account equal to the reserves and other contract liabilities with respect to the separate account shall not be chargeable with liabilities arising out of any other business the company may conduct, shall be satisfied out of the assets in the separate account equal to the reserves maintained in the account for the contracts.

(2) To the extent, if any, reserves maintained in the separate account are in excess of the amounts needed to satisfy claims under the separate account contracts, the excess shall be treated as general assets of the life insurance company.

Acts 1959, No. 148, § 664; 1983, No. 522, § 36; A.S.A. 1947, § 66-4827; Acts 1993, No. 901, § 37; 1997, No. 1000, § 9.
Ark. Code Ann. § 23-4-302 — AR Code / Title 23 / Chapter 4 / Subchapter 3 / Section 23-4-302
Legislative findings and purpose
Status: in_force

(a) The General Assembly finds that: (1) The people of the State of Arkansas are faced with rapidly rising utility costs; (2) Residents of the state are finding it increasingly difficult to afford basic utility usage; (3) The people of Arkansas need aggressive and effective representation in utility rate hearings and other utility-related proceedings; and (4) In order to make informed decisions about their energy consumption, the people of this state need to be informed about the rate-making process and the opportunity to reduce utility bills through conservation measures and the use of alternative energy sources. (b) The General Assembly finds that the public policy and responsibility of the state as set forth in this section can best be attained with the establishment of the Consumer Utilities Rate Advocacy Division within the Office of the Attorney General, and it is the purpose of this subchapter to create this division. Acts 1981 (Ex. Sess.), No. 39, § 2; A.S.A. 1947, § 73-217n.

(a) The General Assembly finds that: (1) The people of the State of Arkansas are faced with rapidly rising utility costs; (2) Residents of the state are finding it increasingly difficult to afford basic utility usage; (3) The people of Arkansas need aggressive and effective representation in utility rate hearings and other utility-related proceedings; and (4) In order to make informed decisions about their energy consumption, the people of this state need to be informed about the rate-making process and the opportunity to reduce utility bills through conservation measures and the use of alternative energy sources.

(1) The people of the State of Arkansas are faced with rapidly rising utility costs;

(2) Residents of the state are finding it increasingly difficult to afford basic utility usage;

(3) The people of Arkansas need aggressive and effective representation in utility rate hearings and other utility-related proceedings; and

(4) In order to make informed decisions about their energy consumption, the people of this state need to be informed about the rate-making process and the opportunity to reduce utility bills through conservation measures and the use of alternative energy sources.

(b) The General Assembly finds that the public policy and responsibility of the state as set forth in this section can best be attained with the establishment of the Consumer Utilities Rate Advocacy Division within the Office of the Attorney General, and it is the purpose of this subchapter to create this division.

Acts 1981 (Ex. Sess.), No. 39, § 2; A.S.A. 1947, § 73-217n.
Ark. Code Ann. § 23-47-307 — AR Code / Title 23 / Chapter 47 / Subchapter 3 / Section 23-47-307
Discharge
Status: in_force

(a) (1) Payment made pursuant to this subchapter in accordance with an agency account discharges the bank from all claims for amounts so paid, whether or not the payment is consistent with the beneficial ownership of the account as between parties, beneficiaries, or their successors. (2) Payment may be made whether or not a party, beneficiary, or agent is disabled, incapacitated, or deceased when payment is requested, received, or made. (b) (1) Protection under this section does not extend to payments made after a bank has received written notice from a party, or from the personal representative, surviving spouse, or heir or devisee of a deceased party, to the effect that payments in accordance with the terms of the agency account should not be permitted and the bank has had a reasonable opportunity to act on it when payment is made. (2) Unless the notice is withdrawn by the person giving it, the successor of any deceased party must concur in a request for payment if the bank is to be protected under this section. (3) Unless a bank has been served with process in an action or proceeding, no other notice or other information shown to have been available to the bank affects its right to protection under this section. (c) A bank that receives written notice pursuant to this section or otherwise that has reason to believe that a dispute exists as to the rights of the parties may refuse, without liability, to make payments in accordance with the terms of the agency account. (d) Protection of a bank under this section does not affect the rights of parties in disputes between themselves or their successors concerning the beneficial ownership of sums on deposit in agency accounts or payments made from agency accounts. Acts 1997, No. 89, § 1.

(a) (1) Payment made pursuant to this subchapter in accordance with an agency account discharges the bank from all claims for amounts so paid, whether or not the payment is consistent with the beneficial ownership of the account as between parties, beneficiaries, or their successors. (2) Payment may be made whether or not a party, beneficiary, or agent is disabled, incapacitated, or deceased when payment is requested, received, or made.

(1) Payment made pursuant to this subchapter in accordance with an agency account discharges the bank from all claims for amounts so paid, whether or not the payment is consistent with the beneficial ownership of the account as between parties, beneficiaries, or their successors.

(2) Payment may be made whether or not a party, beneficiary, or agent is disabled, incapacitated, or deceased when payment is requested, received, or made.

(b) (1) Protection under this section does not extend to payments made after a bank has received written notice from a party, or from the personal representative, surviving spouse, or heir or devisee of a deceased party, to the effect that payments in accordance with the terms of the agency account should not be permitted and the bank has had a reasonable opportunity to act on it when payment is made. (2) Unless the notice is withdrawn by the person giving it, the successor of any deceased party must concur in a request for payment if the bank is to be protected under this section. (3) Unless a bank has been served with process in an action or proceeding, no other notice or other information shown to have been available to the bank affects its right to protection under this section.

(1) Protection under this section does not extend to payments made after a bank has received written notice from a party, or from the personal representative, surviving spouse, or heir or devisee of a deceased party, to the effect that payments in accordance with the terms of the agency account should not be permitted and the bank has had a reasonable opportunity to act on it when payment is made.

(2) Unless the notice is withdrawn by the person giving it, the successor of any deceased party must concur in a request for payment if the bank is to be protected under this section.

(3) Unless a bank has been served with process in an action or proceeding, no other notice or other information shown to have been available to the bank affects its right to protection under this section.

(c) A bank that receives written notice pursuant to this section or otherwise that has reason to believe that a dispute exists as to the rights of the parties may refuse, without liability, to make payments in accordance with the terms of the agency account.

(d) Protection of a bank under this section does not affect the rights of parties in disputes between themselves or their successors concerning the beneficial ownership of sums on deposit in agency accounts or payments made from agency accounts.

Acts 1997, No. 89, § 1.
Ark. Code Ann. § 23-12-409 — AR Code / Title 23 / Chapter 12 / Subchapter 4 / Section 23-12-409
Signals and signboards required at tunnels
Status: in_force

(a) (1) Every person, company, or corporation operating any railroad in this state or any receivers for any railroad company in this state are required to erect, operate, and maintain an automatic block signal system at all tunnels located upon their lines in this state. (2) The block signal is to be located at least two thousand five hundred feet (2,500') from each end of the tunnel. It shall be constructed as to warn all approaching crews whenever a train is within the tunnel or within two thousand five hundred feet (2,500') of either end of the tunnel. (b) (1) The railroad companies, corporations, or receivers operating any railroad in this state shall erect and maintain a signboard within one (1) mile of each end of all tunnels located on their lines in this state in order to warn engine crews that they are approaching a tunnel. (2) The signboard shall contain and display in large letters the following instruction: "ONE MILE TO TUNNEL - DANGER." (c) This section shall not apply to tunnels fewer than one thousand five hundred feet (1,500') in length. (d) Any railroad company or corporation, person, or receiver for any company or railroad operating a railroad within this state who shall violate or fail to comply with the provisions of this section shall upon conviction be fined in any sum not less than fifty dollars ($50.00) nor more than one hundred dollars ($100). Each day of violation or failure to comply with the provisions of this section shall constitute a separate offense. Acts 1915, No. 74, §§ 1-3; C. & M. Dig., §§ 8498-8500; Pope's Dig., §§ 11074-11076; A.S.A. 1947, §§ 73-713 -- 73-715.

(a) (1) Every person, company, or corporation operating any railroad in this state or any receivers for any railroad company in this state are required to erect, operate, and maintain an automatic block signal system at all tunnels located upon their lines in this state. (2) The block signal is to be located at least two thousand five hundred feet (2,500') from each end of the tunnel. It shall be constructed as to warn all approaching crews whenever a train is within the tunnel or within two thousand five hundred feet (2,500') of either end of the tunnel.

(1) Every person, company, or corporation operating any railroad in this state or any receivers for any railroad company in this state are required to erect, operate, and maintain an automatic block signal system at all tunnels located upon their lines in this state.

(2) The block signal is to be located at least two thousand five hundred feet (2,500') from each end of the tunnel. It shall be constructed as to warn all approaching crews whenever a train is within the tunnel or within two thousand five hundred feet (2,500') of either end of the tunnel.

(b) (1) The railroad companies, corporations, or receivers operating any railroad in this state shall erect and maintain a signboard within one (1) mile of each end of all tunnels located on their lines in this state in order to warn engine crews that they are approaching a tunnel. (2) The signboard shall contain and display in large letters the following instruction: "ONE MILE TO TUNNEL - DANGER."

(1) The railroad companies, corporations, or receivers operating any railroad in this state shall erect and maintain a signboard within one (1) mile of each end of all tunnels located on their lines in this state in order to warn engine crews that they are approaching a tunnel.

(2) The signboard shall contain and display in large letters the following instruction: "ONE MILE TO TUNNEL - DANGER."

(c) This section shall not apply to tunnels fewer than one thousand five hundred feet (1,500') in length.

(d) Any railroad company or corporation, person, or receiver for any company or railroad operating a railroad within this state who shall violate or fail to comply with the provisions of this section shall upon conviction be fined in any sum not less than fifty dollars ($50.00) nor more than one hundred dollars ($100). Each day of violation or failure to comply with the provisions of this section shall constitute a separate offense.

Acts 1915, No. 74, §§ 1-3; C. & M. Dig., §§ 8498-8500; Pope's Dig., §§ 11074-11076; A.S.A. 1947, §§ 73-713 -- 73-715.
Ark. Code Ann. § 23-95-108 — AR Code / Title 23 / Chapter 95 / Section 23-95-108
Rules
Status: in_force

The Insurance Commissioner shall have the authority to promulgate rules necessary to effectuate the purpose of this chapter. Amended by Act 2019, No. 315,§ 2787, eff. 7/24/2019. Acts 1987, No. 896, § 9.

The Insurance Commissioner shall have the authority to promulgate rules necessary to effectuate the purpose of this chapter.

Amended by Act 2019, No. 315,§ 2787, eff. 7/24/2019.

Acts 1987, No. 896, § 9.
Ark. Code Ann. § 23-17-302 — AR Code / Title 23 / Chapter 17 / Subchapter 3 / Section 23-17-302
Legislative findings and declarations
Status: in_force

The General Assembly finds and declares that changes in pricing for telephone services mandated by the Federal Communications Commission and made necessary by the divestiture of Southwestern Bell Telephone Company from American Telephone and Telegraph Company will cause significant increases in the cost of local exchange telephone service which could force some local exchange telephone customers to discontinue service. The public interest requires that the extent of such rate increases be ameliorated by the creation of a statewide fund that will partially offset such rate increases. The purpose of the fund created by this subchapter is to ensure a smooth and nondisruptive transition from the present pricing system to the system dictated by the Federal Communications Commission and the divestiture and to ensure that rates for local telephone service are at reasonable levels. Acts 1983, No. 483, § 2; A.S.A. 1947, § 73-2602.

The General Assembly finds and declares that changes in pricing for telephone services mandated by the Federal Communications Commission and made necessary by the divestiture of Southwestern Bell Telephone Company from American Telephone and Telegraph Company will cause significant increases in the cost of local exchange telephone service which could force some local exchange telephone customers to discontinue service. The public interest requires that the extent of such rate increases be ameliorated by the creation of a statewide fund that will partially offset such rate increases. The purpose of the fund created by this subchapter is to ensure a smooth and nondisruptive transition from the present pricing system to the system dictated by the Federal Communications Commission and the divestiture and to ensure that rates for local telephone service are at reasonable levels.

Acts 1983, No. 483, § 2; A.S.A. 1947, § 73-2602.
Ark. Code Ann. § 23-67-212 — AR Code / Title 23 / Chapter 67 / Subchapter 2 / Section 23-67-212
Procedural requirements
Status: in_force

(a) (1) Rates filed pursuant to this section shall be filed in such form and manner as prescribed by the Insurance Commissioner. (2) An insurer may satisfy its obligation to file supplementary rate information or supporting information by filing a reference to a filing made by an advisory organization, with or without deviation. (b) Each filing and supporting nonproprietary information filed under this chapter shall, as soon as filed, be open to public inspection. Notwithstanding the provisions of the Freedom of Information Act of 1967, § 25-19-101 et seq., information which is a trade secret or of a proprietary nature, or both, shall not be open to public inspection. Acts 1987, No. 959, § 7; 1997, No. 1000, § 5.

(a) (1) Rates filed pursuant to this section shall be filed in such form and manner as prescribed by the Insurance Commissioner. (2) An insurer may satisfy its obligation to file supplementary rate information or supporting information by filing a reference to a filing made by an advisory organization, with or without deviation.

(1) Rates filed pursuant to this section shall be filed in such form and manner as prescribed by the Insurance Commissioner.

(2) An insurer may satisfy its obligation to file supplementary rate information or supporting information by filing a reference to a filing made by an advisory organization, with or without deviation.

(b) Each filing and supporting nonproprietary information filed under this chapter shall, as soon as filed, be open to public inspection. Notwithstanding the provisions of the Freedom of Information Act of 1967, § 25-19-101 et seq., information which is a trade secret or of a proprietary nature, or both, shall not be open to public inspection.

Acts 1987, No. 959, § 7; 1997, No. 1000, § 5.
Ark. Code Ann. § 23-96-115 — AR Code / Title 23 / Chapter 96 / Section 23-96-115
Assessments - Tax credits
Status: in_force

(a) (1) For the purpose of providing the funds necessary to carry out the powers and duties of the Arkansas Life and Health Insurance Guaranty Association, the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association shall assess the member insurers, separately for each account, at such time and for such amounts as the board finds necessary. (2) Assessments shall be due not less than thirty (30) days after prior written notice to the member insurers and shall accrue interest at ten percent (10%) per annum on and after the due date. (b) There shall be two (2) classes of assessments, as follows: (1) (A) Class A assessments shall be authorized and called for the purpose of meeting administrative and legal costs and other expenses. (B) Class A assessments may be authorized and called whether or not related to a particular impaired insurer or insolvent insurer; and (2) Class B assessments shall be authorized and called to the extent necessary to carry out the powers and duties of the association under § 23-96-106(b) , §§ 23-96-110 - 23-96-114 , and 23-96-120 with regard to an impaired insurer or an insolvent insurer. (c) (1) (A) (i) The amount of a Class A assessment shall be determined by the board and may be authorized and called on a pro rata or non-pro rata basis. (ii) If pro rata, the board may provide that the Class A assessment be credited against future Class B assessments. (B) The amount of a Class B assessment, except for assessments related to long-term care insurance, shall be allocated for assessment purposes between the accounts and among the subaccounts of the life insurance and annuity account under an allocation formula which may be based on the premiums or reserves of the impaired or insolvent insurer or any other standard deemed by the board in its sole discretion as being fair and reasonable under the circumstances. (C) (i) The amount of the Class B assessment for long-term care insurance written by the impaired or insolvent insurer shall be allocated according to the methodology included in the plan of operation and approved by the Insurance Commissioner. (ii) The methodology shall provide for fifty percent (50%) of the assessment to be allocated to health member insurers and fifty percent (50%) of the assessment to be allocated to life and annuity member insurers. (2) Class B assessments against member insurers for each account shall be in the proportion that the premiums received on business in this state by each assessed member insurer or policies or contracts covered by each account for the three (3) most recent calendar years for which information is available preceding the year in which the member insurer became insolvent, or in the case of an assessment with respect to an impaired insurer, the three (3) most recent calendar years for which information is available preceding the year in which the member insurer became impaired, bears to such premiums received on business in this state for such calendar years by all assessed member insurers. (3) Assessments for funds to meet the requirements of the association with respect to an impaired insurer or insolvent insurer shall not be authorized or called until necessary to implement the purpose of this chapter. (d) (1) Classification of assessments under subsection (b) of this section and computation of assessments under subsection (c) of this section shall be made with a reasonable degree of accuracy, recognizing that exact determinations may not always be possible. (2) The association shall notify each member insurer of its anticipated pro rata share of an authorized assessment not yet called within one hundred eighty (180) days after the assessment is authorized. (e) (1) The association may abate or defer, in whole or in part, the assessment of a member insurer if, in the opinion of the board, payment of the assessment would endanger the ability of the member insurer to fulfill its contractual obligations. (2) If an assessment against a member insurer is abated or deferred in whole or in part, the amount by which such assessment is abated or deferred may be assessed against the other member insurers in a manner consistent with the basis for assessments stated in this section. (3) Once the conditions that caused a deferral have been removed or rectified, the member insurer shall pay all assessments that were deferred under a repayment plan approved by the association. (f) (1) (A) Subject to the provisions of subdivision (f)(1)(B) of this section, the total of all assessments authorized by the association with respect to a member insurer for each subaccount of the life insurance and annuity account and for the health account shall not in any one (1) calendar year exceed two percent (2%) of such insurer's average annual premiums received in this state on the policies and contracts covered by the subaccount or account during the three (3) calendar years preceding the year in which the member insurer became an impaired insurer or insolvent insurer. (B) If two (2) or more assessments are authorized in one (1) calendar year with respect to member insurers that become impaired or insolvent in different calendar years, the average annual premiums for purposes of the aggregate assessment percentage limitation referenced in subdivision (f)(1)(A) of this section shall be equal and limited to the higher of the three-year average annual premiums for the applicable subaccount or account as calculated under this section. (C) If the maximum assessment, together with the other assets of the association in any account, does not provide in any one (1) year in either account an amount sufficient to carry out the responsibilities of the association, the necessary additional funds shall be assessed as soon thereafter as permitted by this chapter. (2) The board may provide in the plan of operation a method of allocating funds among claims, whether relating to one (1) or more impaired insurers or insolvent insurers, when the maximum assessment will be insufficient to cover anticipated claims. (3) If the maximum assessment for any subaccount of the life and annuity account in any one (1) year does not provide an amount sufficient to carry out the responsibilities of the association, then pursuant to subdivision (c)(2) of this section, the board shall assess the other subaccounts of the life and annuity account for the necessary additional amount, subject to the maximum stated in subdivision (f)(1) of this section. (g) (1) The board may, by an equitable method as established in the plan of operation, refund to member insurers, in proportion to the contribution of each member insurer to that account, the amount by which the assets of the account exceed the amount the board finds is necessary to carry out during the coming year the obligations of the association with regard to that account, including assets accruing from assignment, subrogation, net realized gains, and income from investments. (2) A reasonable amount may be retained in any account to provide funds for the continuing expenses of the association and for future losses claims. (h) It shall be proper for any member insurer, in determining its premium rates and policyholder dividends as to any kind of insurance or health maintenance organization business within the scope of this chapter, to consider the amount reasonably necessary to meet its assessment obligations under this chapter. (i) (1) The association shall issue to each member insurer paying an assessment under this chapter, other than Class A assessment, a certificate of contribution, in a form prescribed by the commissioner, for the amount of the assessment so paid. (2) All outstanding certificates shall be of equal dignity and priority without reference to amounts or dates of issue. (3) A certificate of contribution may be shown by the member insurer in its financial statement as an asset in such form and for such amount, if any, and period of time as the commissioner may approve. (j) (1) (A) A member insurer may offset against its premium tax liability to this state an assessment described in subsection (i) of this section to the extent of twenty percent (20%) of the amount of the assessment for each of the five (5) calendar years following the year in which the assessment was paid. (B) If a member insurer should cease doing business, all uncredited assessments may be credited against its premium tax liability for the year it ceases doing business. (2) (A) (i) A member insurer that is exempt from taxes referenced in subdivision (j)(1) of this section may recoup its assessments by a surcharge on its premiums in a sum reasonably calculated to recoup the assessments over a reasonable period of time, as approved by the commissioner. (ii) Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax, the medical loss ratio, or agent commission. (iii) If a member insurer collects excess surcharges, the member insurer shall remit the excess amount to the association, and the excess amount shall be applied to reduce future assessments in the appropriate amount. (B) Any sums which are acquired by refund, under subsection (g) of this section, from the association by member insurers and which have theretofore been offset against premium taxes as provided in subdivision (j)(1)(A) of this section, shall be paid by such insurers to this state as the tax authorities may require. (C) The association shall notify the commissioner that the refunds have been made. Amended by Act 2019, No. 520,§ 2, eff. 7/24/2019. Acts 1989, No. 444, §§ 9, 13; 1997, No. 950, § 1; 2001, No. 1603, § 63.

(a) (1) For the purpose of providing the funds necessary to carry out the powers and duties of the Arkansas Life and Health Insurance Guaranty Association, the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association shall assess the member insurers, separately for each account, at such time and for such amounts as the board finds necessary. (2) Assessments shall be due not less than thirty (30) days after prior written notice to the member insurers and shall accrue interest at ten percent (10%) per annum on and after the due date.

(1) For the purpose of providing the funds necessary to carry out the powers and duties of the Arkansas Life and Health Insurance Guaranty Association, the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association shall assess the member insurers, separately for each account, at such time and for such amounts as the board finds necessary.

(2) Assessments shall be due not less than thirty (30) days after prior written notice to the member insurers and shall accrue interest at ten percent (10%) per annum on and after the due date.

(b) There shall be two (2) classes of assessments, as follows: (1) (A) Class A assessments shall be authorized and called for the purpose of meeting administrative and legal costs and other expenses. (B) Class A assessments may be authorized and called whether or not related to a particular impaired insurer or insolvent insurer; and (2) Class B assessments shall be authorized and called to the extent necessary to carry out the powers and duties of the association under § 23-96-106(b) , §§ 23-96-110 - 23-96-114 , and 23-96-120 with regard to an impaired insurer or an insolvent insurer.

(1) (A) Class A assessments shall be authorized and called for the purpose of meeting administrative and legal costs and other expenses. (B) Class A assessments may be authorized and called whether or not related to a particular impaired insurer or insolvent insurer; and

(A) Class A assessments shall be authorized and called for the purpose of meeting administrative and legal costs and other expenses.

(B) Class A assessments may be authorized and called whether or not related to a particular impaired insurer or insolvent insurer; and

(2) Class B assessments shall be authorized and called to the extent necessary to carry out the powers and duties of the association under § 23-96-106(b) , §§ 23-96-110 - 23-96-114 , and 23-96-120 with regard to an impaired insurer or an insolvent insurer.

(c) (1) (A) (i) The amount of a Class A assessment shall be determined by the board and may be authorized and called on a pro rata or non-pro rata basis. (ii) If pro rata, the board may provide that the Class A assessment be credited against future Class B assessments. (B) The amount of a Class B assessment, except for assessments related to long-term care insurance, shall be allocated for assessment purposes between the accounts and among the subaccounts of the life insurance and annuity account under an allocation formula which may be based on the premiums or reserves of the impaired or insolvent insurer or any other standard deemed by the board in its sole discretion as being fair and reasonable under the circumstances. (C) (i) The amount of the Class B assessment for long-term care insurance written by the impaired or insolvent insurer shall be allocated according to the methodology included in the plan of operation and approved by the Insurance Commissioner. (ii) The methodology shall provide for fifty percent (50%) of the assessment to be allocated to health member insurers and fifty percent (50%) of the assessment to be allocated to life and annuity member insurers. (2) Class B assessments against member insurers for each account shall be in the proportion that the premiums received on business in this state by each assessed member insurer or policies or contracts covered by each account for the three (3) most recent calendar years for which information is available preceding the year in which the member insurer became insolvent, or in the case of an assessment with respect to an impaired insurer, the three (3) most recent calendar years for which information is available preceding the year in which the member insurer became impaired, bears to such premiums received on business in this state for such calendar years by all assessed member insurers. (3) Assessments for funds to meet the requirements of the association with respect to an impaired insurer or insolvent insurer shall not be authorized or called until necessary to implement the purpose of this chapter.

(1) (A) (i) The amount of a Class A assessment shall be determined by the board and may be authorized and called on a pro rata or non-pro rata basis. (ii) If pro rata, the board may provide that the Class A assessment be credited against future Class B assessments. (B) The amount of a Class B assessment, except for assessments related to long-term care insurance, shall be allocated for assessment purposes between the accounts and among the subaccounts of the life insurance and annuity account under an allocation formula which may be based on the premiums or reserves of the impaired or insolvent insurer or any other standard deemed by the board in its sole discretion as being fair and reasonable under the circumstances. (C) (i) The amount of the Class B assessment for long-term care insurance written by the impaired or insolvent insurer shall be allocated according to the methodology included in the plan of operation and approved by the Insurance Commissioner. (ii) The methodology shall provide for fifty percent (50%) of the assessment to be allocated to health member insurers and fifty percent (50%) of the assessment to be allocated to life and annuity member insurers.

(A) (i) The amount of a Class A assessment shall be determined by the board and may be authorized and called on a pro rata or non-pro rata basis. (ii) If pro rata, the board may provide that the Class A assessment be credited against future Class B assessments.

(i) The amount of a Class A assessment shall be determined by the board and may be authorized and called on a pro rata or non-pro rata basis.

(ii) If pro rata, the board may provide that the Class A assessment be credited against future Class B assessments.

(B) The amount of a Class B assessment, except for assessments related to long-term care insurance, shall be allocated for assessment purposes between the accounts and among the subaccounts of the life insurance and annuity account under an allocation formula which may be based on the premiums or reserves of the impaired or insolvent insurer or any other standard deemed by the board in its sole discretion as being fair and reasonable under the circumstances.

(C) (i) The amount of the Class B assessment for long-term care insurance written by the impaired or insolvent insurer shall be allocated according to the methodology included in the plan of operation and approved by the Insurance Commissioner. (ii) The methodology shall provide for fifty percent (50%) of the assessment to be allocated to health member insurers and fifty percent (50%) of the assessment to be allocated to life and annuity member insurers.

(i) The amount of the Class B assessment for long-term care insurance written by the impaired or insolvent insurer shall be allocated according to the methodology included in the plan of operation and approved by the Insurance Commissioner.

(ii) The methodology shall provide for fifty percent (50%) of the assessment to be allocated to health member insurers and fifty percent (50%) of the assessment to be allocated to life and annuity member insurers.

(2) Class B assessments against member insurers for each account shall be in the proportion that the premiums received on business in this state by each assessed member insurer or policies or contracts covered by each account for the three (3) most recent calendar years for which information is available preceding the year in which the member insurer became insolvent, or in the case of an assessment with respect to an impaired insurer, the three (3) most recent calendar years for which information is available preceding the year in which the member insurer became impaired, bears to such premiums received on business in this state for such calendar years by all assessed member insurers.

(3) Assessments for funds to meet the requirements of the association with respect to an impaired insurer or insolvent insurer shall not be authorized or called until necessary to implement the purpose of this chapter.

(d) (1) Classification of assessments under subsection (b) of this section and computation of assessments under subsection (c) of this section shall be made with a reasonable degree of accuracy, recognizing that exact determinations may not always be possible. (2) The association shall notify each member insurer of its anticipated pro rata share of an authorized assessment not yet called within one hundred eighty (180) days after the assessment is authorized.

(1) Classification of assessments under subsection (b) of this section and computation of assessments under subsection (c) of this section shall be made with a reasonable degree of accuracy, recognizing that exact determinations may not always be possible.

(2) The association shall notify each member insurer of its anticipated pro rata share of an authorized assessment not yet called within one hundred eighty (180) days after the assessment is authorized.

(e) (1) The association may abate or defer, in whole or in part, the assessment of a member insurer if, in the opinion of the board, payment of the assessment would endanger the ability of the member insurer to fulfill its contractual obligations. (2) If an assessment against a member insurer is abated or deferred in whole or in part, the amount by which such assessment is abated or deferred may be assessed against the other member insurers in a manner consistent with the basis for assessments stated in this section. (3) Once the conditions that caused a deferral have been removed or rectified, the member insurer shall pay all assessments that were deferred under a repayment plan approved by the association.

(1) The association may abate or defer, in whole or in part, the assessment of a member insurer if, in the opinion of the board, payment of the assessment would endanger the ability of the member insurer to fulfill its contractual obligations.

(2) If an assessment against a member insurer is abated or deferred in whole or in part, the amount by which such assessment is abated or deferred may be assessed against the other member insurers in a manner consistent with the basis for assessments stated in this section.

(3) Once the conditions that caused a deferral have been removed or rectified, the member insurer shall pay all assessments that were deferred under a repayment plan approved by the association.

(f) (1) (A) Subject to the provisions of subdivision (f)(1)(B) of this section, the total of all assessments authorized by the association with respect to a member insurer for each subaccount of the life insurance and annuity account and for the health account shall not in any one (1) calendar year exceed two percent (2%) of such insurer's average annual premiums received in this state on the policies and contracts covered by the subaccount or account during the three (3) calendar years preceding the year in which the member insurer became an impaired insurer or insolvent insurer. (B) If two (2) or more assessments are authorized in one (1) calendar year with respect to member insurers that become impaired or insolvent in different calendar years, the average annual premiums for purposes of the aggregate assessment percentage limitation referenced in subdivision (f)(1)(A) of this section shall be equal and limited to the higher of the three-year average annual premiums for the applicable subaccount or account as calculated under this section. (C) If the maximum assessment, together with the other assets of the association in any account, does not provide in any one (1) year in either account an amount sufficient to carry out the responsibilities of the association, the necessary additional funds shall be assessed as soon thereafter as permitted by this chapter. (2) The board may provide in the plan of operation a method of allocating funds among claims, whether relating to one (1) or more impaired insurers or insolvent insurers, when the maximum assessment will be insufficient to cover anticipated claims. (3) If the maximum assessment for any subaccount of the life and annuity account in any one (1) year does not provide an amount sufficient to carry out the responsibilities of the association, then pursuant to subdivision (c)(2) of this section, the board shall assess the other subaccounts of the life and annuity account for the necessary additional amount, subject to the maximum stated in subdivision (f)(1) of this section.

(1) (A) Subject to the provisions of subdivision (f)(1)(B) of this section, the total of all assessments authorized by the association with respect to a member insurer for each subaccount of the life insurance and annuity account and for the health account shall not in any one (1) calendar year exceed two percent (2%) of such insurer's average annual premiums received in this state on the policies and contracts covered by the subaccount or account during the three (3) calendar years preceding the year in which the member insurer became an impaired insurer or insolvent insurer. (B) If two (2) or more assessments are authorized in one (1) calendar year with respect to member insurers that become impaired or insolvent in different calendar years, the average annual premiums for purposes of the aggregate assessment percentage limitation referenced in subdivision (f)(1)(A) of this section shall be equal and limited to the higher of the three-year average annual premiums for the applicable subaccount or account as calculated under this section. (C) If the maximum assessment, together with the other assets of the association in any account, does not provide in any one (1) year in either account an amount sufficient to carry out the responsibilities of the association, the necessary additional funds shall be assessed as soon thereafter as permitted by this chapter.

(A) Subject to the provisions of subdivision (f)(1)(B) of this section, the total of all assessments authorized by the association with respect to a member insurer for each subaccount of the life insurance and annuity account and for the health account shall not in any one (1) calendar year exceed two percent (2%) of such insurer's average annual premiums received in this state on the policies and contracts covered by the subaccount or account during the three (3) calendar years preceding the year in which the member insurer became an impaired insurer or insolvent insurer.

(B) If two (2) or more assessments are authorized in one (1) calendar year with respect to member insurers that become impaired or insolvent in different calendar years, the average annual premiums for purposes of the aggregate assessment percentage limitation referenced in subdivision (f)(1)(A) of this section shall be equal and limited to the higher of the three-year average annual premiums for the applicable subaccount or account as calculated under this section.

(C) If the maximum assessment, together with the other assets of the association in any account, does not provide in any one (1) year in either account an amount sufficient to carry out the responsibilities of the association, the necessary additional funds shall be assessed as soon thereafter as permitted by this chapter.

(2) The board may provide in the plan of operation a method of allocating funds among claims, whether relating to one (1) or more impaired insurers or insolvent insurers, when the maximum assessment will be insufficient to cover anticipated claims.

(3) If the maximum assessment for any subaccount of the life and annuity account in any one (1) year does not provide an amount sufficient to carry out the responsibilities of the association, then pursuant to subdivision (c)(2) of this section, the board shall assess the other subaccounts of the life and annuity account for the necessary additional amount, subject to the maximum stated in subdivision (f)(1) of this section.

(g) (1) The board may, by an equitable method as established in the plan of operation, refund to member insurers, in proportion to the contribution of each member insurer to that account, the amount by which the assets of the account exceed the amount the board finds is necessary to carry out during the coming year the obligations of the association with regard to that account, including assets accruing from assignment, subrogation, net realized gains, and income from investments. (2) A reasonable amount may be retained in any account to provide funds for the continuing expenses of the association and for future losses claims.

(1) The board may, by an equitable method as established in the plan of operation, refund to member insurers, in proportion to the contribution of each member insurer to that account, the amount by which the assets of the account exceed the amount the board finds is necessary to carry out during the coming year the obligations of the association with regard to that account, including assets accruing from assignment, subrogation, net realized gains, and income from investments.

(2) A reasonable amount may be retained in any account to provide funds for the continuing expenses of the association and for future losses claims.

(h) It shall be proper for any member insurer, in determining its premium rates and policyholder dividends as to any kind of insurance or health maintenance organization business within the scope of this chapter, to consider the amount reasonably necessary to meet its assessment obligations under this chapter.

(i) (1) The association shall issue to each member insurer paying an assessment under this chapter, other than Class A assessment, a certificate of contribution, in a form prescribed by the commissioner, for the amount of the assessment so paid. (2) All outstanding certificates shall be of equal dignity and priority without reference to amounts or dates of issue. (3) A certificate of contribution may be shown by the member insurer in its financial statement as an asset in such form and for such amount, if any, and period of time as the commissioner may approve.

(1) The association shall issue to each member insurer paying an assessment under this chapter, other than Class A assessment, a certificate of contribution, in a form prescribed by the commissioner, for the amount of the assessment so paid.

(2) All outstanding certificates shall be of equal dignity and priority without reference to amounts or dates of issue.

(3) A certificate of contribution may be shown by the member insurer in its financial statement as an asset in such form and for such amount, if any, and period of time as the commissioner may approve.

(j) (1) (A) A member insurer may offset against its premium tax liability to this state an assessment described in subsection (i) of this section to the extent of twenty percent (20%) of the amount of the assessment for each of the five (5) calendar years following the year in which the assessment was paid. (B) If a member insurer should cease doing business, all uncredited assessments may be credited against its premium tax liability for the year it ceases doing business. (2) (A) (i) A member insurer that is exempt from taxes referenced in subdivision (j)(1) of this section may recoup its assessments by a surcharge on its premiums in a sum reasonably calculated to recoup the assessments over a reasonable period of time, as approved by the commissioner. (ii) Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax, the medical loss ratio, or agent commission. (iii) If a member insurer collects excess surcharges, the member insurer shall remit the excess amount to the association, and the excess amount shall be applied to reduce future assessments in the appropriate amount. (B) Any sums which are acquired by refund, under subsection (g) of this section, from the association by member insurers and which have theretofore been offset against premium taxes as provided in subdivision (j)(1)(A) of this section, shall be paid by such insurers to this state as the tax authorities may require. (C) The association shall notify the commissioner that the refunds have been made.

(1) (A) A member insurer may offset against its premium tax liability to this state an assessment described in subsection (i) of this section to the extent of twenty percent (20%) of the amount of the assessment for each of the five (5) calendar years following the year in which the assessment was paid. (B) If a member insurer should cease doing business, all uncredited assessments may be credited against its premium tax liability for the year it ceases doing business.

(A) A member insurer may offset against its premium tax liability to this state an assessment described in subsection (i) of this section to the extent of twenty percent (20%) of the amount of the assessment for each of the five (5) calendar years following the year in which the assessment was paid.

(B) If a member insurer should cease doing business, all uncredited assessments may be credited against its premium tax liability for the year it ceases doing business.

(2) (A) (i) A member insurer that is exempt from taxes referenced in subdivision (j)(1) of this section may recoup its assessments by a surcharge on its premiums in a sum reasonably calculated to recoup the assessments over a reasonable period of time, as approved by the commissioner. (ii) Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax, the medical loss ratio, or agent commission. (iii) If a member insurer collects excess surcharges, the member insurer shall remit the excess amount to the association, and the excess amount shall be applied to reduce future assessments in the appropriate amount. (B) Any sums which are acquired by refund, under subsection (g) of this section, from the association by member insurers and which have theretofore been offset against premium taxes as provided in subdivision (j)(1)(A) of this section, shall be paid by such insurers to this state as the tax authorities may require. (C) The association shall notify the commissioner that the refunds have been made.

(A) (i) A member insurer that is exempt from taxes referenced in subdivision (j)(1) of this section may recoup its assessments by a surcharge on its premiums in a sum reasonably calculated to recoup the assessments over a reasonable period of time, as approved by the commissioner. (ii) Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax, the medical loss ratio, or agent commission. (iii) If a member insurer collects excess surcharges, the member insurer shall remit the excess amount to the association, and the excess amount shall be applied to reduce future assessments in the appropriate amount.

(i) A member insurer that is exempt from taxes referenced in subdivision (j)(1) of this section may recoup its assessments by a surcharge on its premiums in a sum reasonably calculated to recoup the assessments over a reasonable period of time, as approved by the commissioner.

(ii) Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax, the medical loss ratio, or agent commission.

(iii) If a member insurer collects excess surcharges, the member insurer shall remit the excess amount to the association, and the excess amount shall be applied to reduce future assessments in the appropriate amount.

(B) Any sums which are acquired by refund, under subsection (g) of this section, from the association by member insurers and which have theretofore been offset against premium taxes as provided in subdivision (j)(1)(A) of this section, shall be paid by such insurers to this state as the tax authorities may require.

(C) The association shall notify the commissioner that the refunds have been made.

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

Acts 1989, No. 444, §§ 9, 13; 1997, No. 950, § 1; 2001, No. 1603, § 63.
Ark. Code Ann. § 23-89-209 — AR Code / Title 23 / Chapter 89 / Subchapter 2 / Section 23-89-209
Underinsured motorist coverage
Status: in_force

(a) (1) No private passenger automobile liability insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicles in this state shall be delivered or issued in this state or issued as to any private passenger automobile principally garaged in this state unless the insured has the opportunity, which he or she may reject in writing, to purchase underinsured motorist coverage. (2) After a named insured or applicant for insurance rejects underinsured motorist 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. (3) The coverage shall enable the insured or the insured's legal representative to recover from the insurer the amount of damages for bodily injuries to or death of an insured which the insured is legally entitled to recover from the owner or operator of another motor vehicle whenever the liability insurance limits of the other owner or operator are less than the amount of the damages incurred by the insured. (4) Underinsured motorist coverage shall be at least equal to the limits prescribed for bodily injury or death under § 27-19-605 . (5) Coverage of the insured pursuant to underinsured motorist coverage shall not be reduced by the tortfeasor's insurance coverage except to the extent that the injured party would receive compensation in excess of his or her damages. (b) (1) Underinsured motorist coverage as described in this section shall not be available to insureds nor shall insurers be mandated to offer that coverage unless the insured has elected uninsured motorist coverage as provided by § 23-89-403 . (2) Underinsured motorist coverage shall not be issued without uninsured motorist coverage being issued in coordination therewith. (c) If a tentative agreement to settle for the liability limits of the owner or operator of the other vehicle has been reached between the insured and the owner or operator, written notice may be given by the insured injured party to his or her underinsured motorist coverage insurer by certified mail, return receipt requested. The written notice shall include: (1) Written documentation of pecuniary losses incurred, including copies of all medical bills; (2) Written authorization or a court order authorizing the underinsured motorist insurer to obtain medical reports from all employers and medical providers; and (3) Written confirmation from the tortfeasor's liability insurer as to the amount of the alleged tortfeasor's liability limits and the terms of the tentative settlement, which shall in no event include any component sum representing punitive or exemplary damages. However, in no event shall evidence of the referenced liability limits, the fact that a tentative settlement was reached, or the terms of the tentative settlement be admissible in any civil action with the sole exceptions of: (A) Actions by underinsured motorist insurers to enforce subrogation rights as contemplated by this subchapter; (B) Actions by first party liability insureds against their insurer to enforce their contract or a settlement hereunder, if any; and (C) Actions by first party underinsured motorist insureds against their insurer to enforce their contract or a settlement hereunder. (d) (1) Within thirty (30) days of receipt of the written notice, the underinsured motorist insurer may make payment to its insured of an amount equal to the tentative settlement amount agreed to by the owner or operator of the other motor vehicle or his or her liability insurer. (2) In such event, the underinsured motorist insurer shall be entitled to subrogate to its insured's right of recovery against the owner or operator of the other motor vehicle to the extent of such payments and to the extent of any underinsured motorist insurance benefit it pays to its insured. (3) If the underinsured motorist insurer fails to pay its insured the amount of the tentative tort settlement within thirty (30) days, the underinsured motorist insurer has no right to the proceeds of any settlement or judgment between its insured and the other owner or operator and/or the owner's or operator's liability insurer, no right to otherwise recoup the amount of the underinsured motorist benefit it may pay from the other owner or operator or his or her insurer, and no right to refuse payment of its underinsured motorist coverage benefit by reason of the settlement made by its insured. (e) In the event that the tortfeasor's motor vehicle liability insurance carrier and the underinsured motorist coverage are provided by the same insurance company, the requirements of subsections (c) and (d) of this section are waived, and the underinsured party may proceed against his or her underinsured insurance carrier at any time after settlement of the underlying tortfeasor's liability policy claim. Acts 1987, No. 335, §§ 1, 2; 1991, No. 209, § 1; 1991, No. 1123, § 22; 1993, No. 1180, § 1; 1997, No. 284, § 1.

(a) (1) No private passenger automobile liability insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicles in this state shall be delivered or issued in this state or issued as to any private passenger automobile principally garaged in this state unless the insured has the opportunity, which he or she may reject in writing, to purchase underinsured motorist coverage. (2) After a named insured or applicant for insurance rejects underinsured motorist 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. (3) The coverage shall enable the insured or the insured's legal representative to recover from the insurer the amount of damages for bodily injuries to or death of an insured which the insured is legally entitled to recover from the owner or operator of another motor vehicle whenever the liability insurance limits of the other owner or operator are less than the amount of the damages incurred by the insured. (4) Underinsured motorist coverage shall be at least equal to the limits prescribed for bodily injury or death under § 27-19-605 . (5) Coverage of the insured pursuant to underinsured motorist coverage shall not be reduced by the tortfeasor's insurance coverage except to the extent that the injured party would receive compensation in excess of his or her damages.

(1) No private passenger automobile liability insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicles in this state shall be delivered or issued in this state or issued as to any private passenger automobile principally garaged in this state unless the insured has the opportunity, which he or she may reject in writing, to purchase underinsured motorist coverage.

(2) After a named insured or applicant for insurance rejects underinsured motorist 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.

(3) The coverage shall enable the insured or the insured's legal representative to recover from the insurer the amount of damages for bodily injuries to or death of an insured which the insured is legally entitled to recover from the owner or operator of another motor vehicle whenever the liability insurance limits of the other owner or operator are less than the amount of the damages incurred by the insured.

(4) Underinsured motorist coverage shall be at least equal to the limits prescribed for bodily injury or death under § 27-19-605 .

(5) Coverage of the insured pursuant to underinsured motorist coverage shall not be reduced by the tortfeasor's insurance coverage except to the extent that the injured party would receive compensation in excess of his or her damages.

(b) (1) Underinsured motorist coverage as described in this section shall not be available to insureds nor shall insurers be mandated to offer that coverage unless the insured has elected uninsured motorist coverage as provided by § 23-89-403 . (2) Underinsured motorist coverage shall not be issued without uninsured motorist coverage being issued in coordination therewith.

(1) Underinsured motorist coverage as described in this section shall not be available to insureds nor shall insurers be mandated to offer that coverage unless the insured has elected uninsured motorist coverage as provided by § 23-89-403 .

(2) Underinsured motorist coverage shall not be issued without uninsured motorist coverage being issued in coordination therewith.

(c) If a tentative agreement to settle for the liability limits of the owner or operator of the other vehicle has been reached between the insured and the owner or operator, written notice may be given by the insured injured party to his or her underinsured motorist coverage insurer by certified mail, return receipt requested. The written notice shall include: (1) Written documentation of pecuniary losses incurred, including copies of all medical bills; (2) Written authorization or a court order authorizing the underinsured motorist insurer to obtain medical reports from all employers and medical providers; and (3) Written confirmation from the tortfeasor's liability insurer as to the amount of the alleged tortfeasor's liability limits and the terms of the tentative settlement, which shall in no event include any component sum representing punitive or exemplary damages. However, in no event shall evidence of the referenced liability limits, the fact that a tentative settlement was reached, or the terms of the tentative settlement be admissible in any civil action with the sole exceptions of: (A) Actions by underinsured motorist insurers to enforce subrogation rights as contemplated by this subchapter; (B) Actions by first party liability insureds against their insurer to enforce their contract or a settlement hereunder, if any; and (C) Actions by first party underinsured motorist insureds against their insurer to enforce their contract or a settlement hereunder.

(1) Written documentation of pecuniary losses incurred, including copies of all medical bills;

(2) Written authorization or a court order authorizing the underinsured motorist insurer to obtain medical reports from all employers and medical providers; and

(3) Written confirmation from the tortfeasor's liability insurer as to the amount of the alleged tortfeasor's liability limits and the terms of the tentative settlement, which shall in no event include any component sum representing punitive or exemplary damages. However, in no event shall evidence of the referenced liability limits, the fact that a tentative settlement was reached, or the terms of the tentative settlement be admissible in any civil action with the sole exceptions of: (A) Actions by underinsured motorist insurers to enforce subrogation rights as contemplated by this subchapter; (B) Actions by first party liability insureds against their insurer to enforce their contract or a settlement hereunder, if any; and (C) Actions by first party underinsured motorist insureds against their insurer to enforce their contract or a settlement hereunder.

(A) Actions by underinsured motorist insurers to enforce subrogation rights as contemplated by this subchapter;

(B) Actions by first party liability insureds against their insurer to enforce their contract or a settlement hereunder, if any; and

(C) Actions by first party underinsured motorist insureds against their insurer to enforce their contract or a settlement hereunder.

(d) (1) Within thirty (30) days of receipt of the written notice, the underinsured motorist insurer may make payment to its insured of an amount equal to the tentative settlement amount agreed to by the owner or operator of the other motor vehicle or his or her liability insurer. (2) In such event, the underinsured motorist insurer shall be entitled to subrogate to its insured's right of recovery against the owner or operator of the other motor vehicle to the extent of such payments and to the extent of any underinsured motorist insurance benefit it pays to its insured. (3) If the underinsured motorist insurer fails to pay its insured the amount of the tentative tort settlement within thirty (30) days, the underinsured motorist insurer has no right to the proceeds of any settlement or judgment between its insured and the other owner or operator and/or the owner's or operator's liability insurer, no right to otherwise recoup the amount of the underinsured motorist benefit it may pay from the other owner or operator or his or her insurer, and no right to refuse payment of its underinsured motorist coverage benefit by reason of the settlement made by its insured.

(1) Within thirty (30) days of receipt of the written notice, the underinsured motorist insurer may make payment to its insured of an amount equal to the tentative settlement amount agreed to by the owner or operator of the other motor vehicle or his or her liability insurer.

(2) In such event, the underinsured motorist insurer shall be entitled to subrogate to its insured's right of recovery against the owner or operator of the other motor vehicle to the extent of such payments and to the extent of any underinsured motorist insurance benefit it pays to its insured.

(3) If the underinsured motorist insurer fails to pay its insured the amount of the tentative tort settlement within thirty (30) days, the underinsured motorist insurer has no right to the proceeds of any settlement or judgment between its insured and the other owner or operator and/or the owner's or operator's liability insurer, no right to otherwise recoup the amount of the underinsured motorist benefit it may pay from the other owner or operator or his or her insurer, and no right to refuse payment of its underinsured motorist coverage benefit by reason of the settlement made by its insured.

(e) In the event that the tortfeasor's motor vehicle liability insurance carrier and the underinsured motorist coverage are provided by the same insurance company, the requirements of subsections (c) and (d) of this section are waived, and the underinsured party may proceed against his or her underinsured insurance carrier at any time after settlement of the underlying tortfeasor's liability policy claim.

Acts 1987, No. 335, §§ 1, 2; 1991, No. 209, § 1; 1991, No. 1123, § 22; 1993, No. 1180, § 1; 1997, No. 284, § 1.