Ark. Code Ann. § 23-64-402 — AR Code / Title 23 / Chapter 64 / Subchapter 4 / Section 23-64-402
Definitions
Status: in_force

(a) "Actuary" means a person who is a member in good standing of the American Academy of Actuaries. (b) "Insurer" means any person, firm, association, limited liability company, or corporation duly licensed in this state as an insurance company. (c) (1) "Managing general agent" means any person, firm, association, limited liability company, or corporation who manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office, and acts as an agent for the insurer whether known as a managing general agent, manager, or other similar term, who, with or without the authority, either separately or together with affiliates: (A) Produces, directly or indirectly, and underwrites an amount of gross direct written premium equal to or more than five percent (5%) of the policyholder surplus as reported in the last annual statement of the insurer in any one (1) quarter or year; together with (B) One (1) or more of the following activities related to the business produced: (i) Adjusts or pays claims in excess of an amount determined by the commissioner; or (ii) Negotiates reinsurance on behalf of the insurer. (2) Notwithstanding subdivision (c)(1) of this section, the following persons shall not be considered as managing general agents for the purposes of this subchapter: (A) An employee of the insurer; (B) A United States manager of the United States branch of an alien insurer; (C) An underwriting manager who, pursuant to contract, manages all or part of the insurance operations of the insurer, is under common control with the insurer, subject to the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., and whose compensation is not based on the volume of premiums written; or (D) The attorney in fact authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange under powers of attorney. (d) "Underwrite" means the authority to accept or reject risk on behalf of the insurer. Acts 1993, No. 1094, § 1; 1997, No. 1004, § 1.

(a) "Actuary" means a person who is a member in good standing of the American Academy of Actuaries.

(b) "Insurer" means any person, firm, association, limited liability company, or corporation duly licensed in this state as an insurance company.

(c) (1) "Managing general agent" means any person, firm, association, limited liability company, or corporation who manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office, and acts as an agent for the insurer whether known as a managing general agent, manager, or other similar term, who, with or without the authority, either separately or together with affiliates: (A) Produces, directly or indirectly, and underwrites an amount of gross direct written premium equal to or more than five percent (5%) of the policyholder surplus as reported in the last annual statement of the insurer in any one (1) quarter or year; together with (B) One (1) or more of the following activities related to the business produced: (i) Adjusts or pays claims in excess of an amount determined by the commissioner; or (ii) Negotiates reinsurance on behalf of the insurer. (2) Notwithstanding subdivision (c)(1) of this section, the following persons shall not be considered as managing general agents for the purposes of this subchapter: (A) An employee of the insurer; (B) A United States manager of the United States branch of an alien insurer; (C) An underwriting manager who, pursuant to contract, manages all or part of the insurance operations of the insurer, is under common control with the insurer, subject to the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., and whose compensation is not based on the volume of premiums written; or (D) The attorney in fact authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange under powers of attorney.

(1) "Managing general agent" means any person, firm, association, limited liability company, or corporation who manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office, and acts as an agent for the insurer whether known as a managing general agent, manager, or other similar term, who, with or without the authority, either separately or together with affiliates: (A) Produces, directly or indirectly, and underwrites an amount of gross direct written premium equal to or more than five percent (5%) of the policyholder surplus as reported in the last annual statement of the insurer in any one (1) quarter or year; together with (B) One (1) or more of the following activities related to the business produced: (i) Adjusts or pays claims in excess of an amount determined by the commissioner; or (ii) Negotiates reinsurance on behalf of the insurer.

(A) Produces, directly or indirectly, and underwrites an amount of gross direct written premium equal to or more than five percent (5%) of the policyholder surplus as reported in the last annual statement of the insurer in any one (1) quarter or year; together with

(B) One (1) or more of the following activities related to the business produced: (i) Adjusts or pays claims in excess of an amount determined by the commissioner; or (ii) Negotiates reinsurance on behalf of the insurer.

(i) Adjusts or pays claims in excess of an amount determined by the commissioner; or

(ii) Negotiates reinsurance on behalf of the insurer.

(2) Notwithstanding subdivision (c)(1) of this section, the following persons shall not be considered as managing general agents for the purposes of this subchapter: (A) An employee of the insurer; (B) A United States manager of the United States branch of an alien insurer; (C) An underwriting manager who, pursuant to contract, manages all or part of the insurance operations of the insurer, is under common control with the insurer, subject to the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., and whose compensation is not based on the volume of premiums written; or (D) The attorney in fact authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange under powers of attorney.

(A) An employee of the insurer;

(B) A United States manager of the United States branch of an alien insurer;

(C) An underwriting manager who, pursuant to contract, manages all or part of the insurance operations of the insurer, is under common control with the insurer, subject to the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., and whose compensation is not based on the volume of premiums written; or

(D) The attorney in fact authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange under powers of attorney.

(d) "Underwrite" means the authority to accept or reject risk on behalf of the insurer.

Acts 1993, No. 1094, § 1; 1997, No. 1004, § 1.
Ark. Code Ann. § 23-63-216 — AR Code / Title 23 / Chapter 63 / Subchapter 2 / Section 23-63-216
Annual statement and other information
Status: in_force

(a) (1) Annually on or before March 1 or within an extension of time that the Insurance Commissioner for good cause may have granted, each authorized insurer shall file with the commissioner a full and true statement of its financial condition, transactions, and affairs as of the December 31 preceding. (2) The statement shall be the appropriate and most recent National Association of Insurance Commissioners': (A) "Annual Statement Blank For Life And Accident And Health"; (B) "Property And Casualty Annual Statement Blank"; (C) "Title Insurance Annual Statement Blank"; (D) "Annual Statement Blank for Health" for use by hospital, medical, and dental service or indemnity corporations; (E) "Fraternal Annual Statement Blank"; (F) "Annual Statement Blank for Health" for health insurers or health maintenance organizations and others; or (G) Other National Association of Insurance Commissioners' convention blank as appropriate. (3) The statement shall be prepared in accordance with the most recent and appropriate companion National Association of Insurance Commissioners' "Annual and Quarterly Statement Instructions" and follow those accounting practices and procedures prescribed by the most recent and appropriate companion National Association of Insurance Commissioners' Accounting Practices and Procedures Manual. (4) Arkansas domestic insurers shall file the statement with the commissioner in hard-copy format. (5) Each authorized insurer shall file an audited financial statement on or before June 1 of each year. (6) Authorized foreign and alien insurers complying with subsection (b) of this section are deemed to have satisfied the requirement to file the statement with the commissioner. (7) The commissioner may allow a life insurer or property and casualty insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least ninety-five percent (95%) of its total premium considerations or total statutory required reserves, respectively, to file the "Annual Statement Blank for Health" as its annual statement with the companion quarterly statement forms. (8) (A) The National Association of Insurance Commissioners' annual statement convention blank shall be verified by the oath of the insurer's president or vice president and secretary, treasurer, or actuary, as applicable, or if a reciprocal insurer, by its attorney in fact or if a corporation, its like officers. (B) (i) The statement of an alien insurer shall be verified by the oath of the insurer's United States manager or other officer authorized and shall relate only to its transactions and affairs in the United States unless the commissioner requires otherwise. (ii) If the commissioner requires a statement as to the alien insurer's affairs throughout the world, the insurer shall file the statement with the commissioner as soon as reasonably possible. (C) The commissioner may waive a requirement under this section for verification under oath. (9) (A) The commissioner may refuse to continue the insurer's certificate of authority, as provided in § 23-63-211 , or may suspend or revoke the certificate of authority of an insurer failing to file its annual statement when due. (B) (i) In addition, the insurer shall be subject to a penalty of one hundred dollars ($100) for each day of delinquency. (ii) The penalty shall be collected by the commissioner, if necessary, by a civil suit brought by the commissioner in Pulaski County Circuit Court, unless the penalty is waived by the commissioner upon a showing by the insurer of good cause for its failure to file its report on or before the date due. (10) At the time of filing, the insurer shall pay the fee for filing its annual statement as prescribed by § 23-61-401 . (11) In addition to information called for and furnished in connection with its annual statement, an insurer shall furnish to the commissioner as soon as reasonably possible such information with respect to its transactions or affairs as the commissioner requests in writing. (12) (A) In accordance with the specifications applicable to annual financial statements, each authorized domestic insurer and health maintenance organization and hospital or medical service corporation, or other domestic licensee so directed by the State Insurance Department in writing shall also file with the commissioner a quarterly financial statement on a form prescribed by the commissioner not later than forty-five (45) days following the end of each of the first three (3) calendar quarters of each year, excepting the fourth quarter of each calendar year, that shall be reconciled in the annual financial statement. (B) The filing specifications of this section for annual financial reports apply to quarterly financial reports. (b) (1) (A) Except as provided in subdivision (b)(1)(B) of this section, in addition to the information required by subsection (a) of this section, an authorized insurer reporting fifty thousand dollars ($50,000) or more in annual gross premiums shall file for each line of business written in this state a market conduct annual statement, or successor product, in the general form and context, in the time frame required by, and according to instructions provided by the National Association of Insurance Commissioners. (B) An authorized insurer that reports any volume of annual gross premiums collected in long-term care annuity hybrid, long-term care life hybrid, or long-term care stand-alone lines of business written in this state shall file for each line of business written in Arkansas a market conduct annual statement, or successor product, in the general form and context, in the time frame required by, and according to instructions provided by the National Association of Insurance Commissioners. (C) If a particular line of business does not have an approved market conduct annual statement form, the authorized insurer is not required to file a report for that line of business until such time as the National Association of Insurance Commissioners adopts a market conduct annual statement form for that line of business. (2) An insurer is not required to file a market conduct annual statement under subdivision (b)(1) of this section if the insurer: (A) Sells prepaid funeral or prepaid legal products only; or (B) Is licensed only in this state. (3) The commissioner may, for good cause, grant an extension of time for filing a market conduct annual statement, if a written application for an extension of time is received at least five (5) business days before the filing due date. (4) (A) If the commissioner determines that an authorized insurer has violated subdivision (b)(1)(A) or subdivision (b)(1)(B) of this section, then the commissioner may order payment of a monetary penalty of one thousand dollars ($1,000) for failure to timely file the market conduct annual statement. (B) The monetary penalty described in subdivision (b)(4)(A) of this section shall not exceed twelve thousand dollars ($12,000) for each authorized insurer in any twelve-month period. (c) (1) Insurers shall submit the market conduct annual statement data required by subsection (b) of this section in an electronic format and manner as prescribed by the commissioner. The commissioner may designate the National Association of Insurance Commissioners to receive the market conduct annual statement on his or her behalf, for the purpose of collecting, compiling, aggregating, and reporting on market conduct annual statement data. (2) Any forms or data submitted by the insurer as market conduct annual statement data under this subsection are deemed to be documents or information obtained from the insurer by the department as examination under § 23-61-207 without the necessity of a formal examination notice under § 23-61-203 or examination report and adoption order under § 23-61-205 . (d) (1) (A) Annually on or before March 1, each domestic, foreign, and alien insurer authorized to transact business in this state shall file with the National Association of Insurance Commissioners a copy of its annual statement convention blank, along with such additional filings as prescribed by the commissioner as of the December 31 preceding. (B) The information filed with the National Association of Insurance Commissioners shall be in the same format and scope as that required by the commissioner and shall include the signed jurat page and the actuarial certification. (C) Any amendments and addendums to the annual statement filing subsequently filed with the commissioner shall also be filed with the National Association of Insurance Commissioners. (2) Foreign insurers that are domiciled in a state with a law substantially similar to this subsection and comply with their state's law are in compliance with this subsection. (3) In the absence of malice, members of the National Association of Insurance Commissioners, their committees, subcommittees, task forces, delegates, employees, and others charged with the responsibility of collecting, reviewing, analyzing, and disseminating the information developed from the filing of the annual statement convention blanks shall be acting as agents of the commissioner under the authority of this subsection and shall not be subject to civil liability for libel, slander, or another cause of action by virtue of their collection, review, and analysis or dissemination of the data and information collected from the filings required in this section. (4) The commissioner may impose the sanctions set out in subdivision (a)(9) of this section on an insurer failing to file its annual statement with the National Association of Insurance Commissioners when due or within an extension of time that the commissioner for good cause has granted. (5) Each authorized insurer shall submit its annual and quarterly statement and supplemental information to the National Association of Insurance Commissioners in electronic format as specified by the National Association of Insurance Commissioners. (e) (1) Each domestic insurer authorized to transact business in this state shall include in its annual statement an opinion, as is relevant to the lines of business the domestic insurer is authorized to write, on its life and health policy and claim reserves and its property and liability loss and loss adjustment expense reserves by a qualified actuary. (2) The opinion shall be in the format prescribed by the National Association of Insurance Commissioners' Annual and Quarterly Statement Instruction handbook. (f) (1) An insurer or a related entity licensed to do business in this state shall maintain the insurer's or the related entity's books, records, and documents in a manner that allows the commissioner to readily ascertain during an examination the insurer's or the related entity's compliance with the insurance laws of this state, rules, and the standards outlined in the most recent and appropriate companion National Association of Insurance Commissioners' Market Conduct Examiners Handbook, including without limitation company operations and management, policyholder service, marketing, producer licensing, underwriting, rating, complaint handling, grievance handling, and claims practices. (2) A health insurer or a related entity shall maintain the health insurer's or the related entity's books, records, and documents in a manner that allows the commissioner to readily ascertain during a market conduct examination the health insurer's or the related entity's practices regarding network adequacy, utilization review, quality assessment and improvement, and provider credentialing. (3) The records described under subdivisions (f)(1) and (2) of this section shall be retained for the current year plus five (5) calendar years. Amended by Act 2023, No. 469,§ 3, eff. 8/1/2023. Amended by Act 2021, No. 371,§ 1, eff. 7/28/2021. Amended by Act 2019, No. 696,§ 1, eff. 7/24/2019. Amended by Act 2019, No. 521,§ 4, eff. 7/24/2019. Amended by Act 2017, No. 283,§ 8, eff. 8/1/2017. Amended by Act 2015, No. 1223,§ 7, eff. 7/22/2015. Amended by Act 2013, No. 355,§ 5, eff. 8/16/2013. Amended by Act 2013, No. 355,§ 4, eff. 8/16/2013. Acts 1959, No. 148, § 62; 1973, No. 35, § 1; A.S.A. 1947, § 66-2220; Acts 1991, No. 723, §§ 17, 18; 1993, No. 527, §§ 2, 3; 1995, No. 1272, § 12; 1999, No. 301, § 1; 2001, No. 1604, §§ 26-28; 2005, No. 506, § 18; 2009, No. 726, § 18; 2011, No. 760, § 3; 2011, No. 1034, § 1.

(a) (1) Annually on or before March 1 or within an extension of time that the Insurance Commissioner for good cause may have granted, each authorized insurer shall file with the commissioner a full and true statement of its financial condition, transactions, and affairs as of the December 31 preceding. (2) The statement shall be the appropriate and most recent National Association of Insurance Commissioners': (A) "Annual Statement Blank For Life And Accident And Health"; (B) "Property And Casualty Annual Statement Blank"; (C) "Title Insurance Annual Statement Blank"; (D) "Annual Statement Blank for Health" for use by hospital, medical, and dental service or indemnity corporations; (E) "Fraternal Annual Statement Blank"; (F) "Annual Statement Blank for Health" for health insurers or health maintenance organizations and others; or (G) Other National Association of Insurance Commissioners' convention blank as appropriate. (3) The statement shall be prepared in accordance with the most recent and appropriate companion National Association of Insurance Commissioners' "Annual and Quarterly Statement Instructions" and follow those accounting practices and procedures prescribed by the most recent and appropriate companion National Association of Insurance Commissioners' Accounting Practices and Procedures Manual. (4) Arkansas domestic insurers shall file the statement with the commissioner in hard-copy format. (5) Each authorized insurer shall file an audited financial statement on or before June 1 of each year. (6) Authorized foreign and alien insurers complying with subsection (b) of this section are deemed to have satisfied the requirement to file the statement with the commissioner. (7) The commissioner may allow a life insurer or property and casualty insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least ninety-five percent (95%) of its total premium considerations or total statutory required reserves, respectively, to file the "Annual Statement Blank for Health" as its annual statement with the companion quarterly statement forms. (8) (A) The National Association of Insurance Commissioners' annual statement convention blank shall be verified by the oath of the insurer's president or vice president and secretary, treasurer, or actuary, as applicable, or if a reciprocal insurer, by its attorney in fact or if a corporation, its like officers. (B) (i) The statement of an alien insurer shall be verified by the oath of the insurer's United States manager or other officer authorized and shall relate only to its transactions and affairs in the United States unless the commissioner requires otherwise. (ii) If the commissioner requires a statement as to the alien insurer's affairs throughout the world, the insurer shall file the statement with the commissioner as soon as reasonably possible. (C) The commissioner may waive a requirement under this section for verification under oath. (9) (A) The commissioner may refuse to continue the insurer's certificate of authority, as provided in § 23-63-211 , or may suspend or revoke the certificate of authority of an insurer failing to file its annual statement when due. (B) (i) In addition, the insurer shall be subject to a penalty of one hundred dollars ($100) for each day of delinquency. (ii) The penalty shall be collected by the commissioner, if necessary, by a civil suit brought by the commissioner in Pulaski County Circuit Court, unless the penalty is waived by the commissioner upon a showing by the insurer of good cause for its failure to file its report on or before the date due. (10) At the time of filing, the insurer shall pay the fee for filing its annual statement as prescribed by § 23-61-401 . (11) In addition to information called for and furnished in connection with its annual statement, an insurer shall furnish to the commissioner as soon as reasonably possible such information with respect to its transactions or affairs as the commissioner requests in writing. (12) (A) In accordance with the specifications applicable to annual financial statements, each authorized domestic insurer and health maintenance organization and hospital or medical service corporation, or other domestic licensee so directed by the State Insurance Department in writing shall also file with the commissioner a quarterly financial statement on a form prescribed by the commissioner not later than forty-five (45) days following the end of each of the first three (3) calendar quarters of each year, excepting the fourth quarter of each calendar year, that shall be reconciled in the annual financial statement. (B) The filing specifications of this section for annual financial reports apply to quarterly financial reports.

(1) Annually on or before March 1 or within an extension of time that the Insurance Commissioner for good cause may have granted, each authorized insurer shall file with the commissioner a full and true statement of its financial condition, transactions, and affairs as of the December 31 preceding.

(2) The statement shall be the appropriate and most recent National Association of Insurance Commissioners': (A) "Annual Statement Blank For Life And Accident And Health"; (B) "Property And Casualty Annual Statement Blank"; (C) "Title Insurance Annual Statement Blank"; (D) "Annual Statement Blank for Health" for use by hospital, medical, and dental service or indemnity corporations; (E) "Fraternal Annual Statement Blank"; (F) "Annual Statement Blank for Health" for health insurers or health maintenance organizations and others; or (G) Other National Association of Insurance Commissioners' convention blank as appropriate.

(A) "Annual Statement Blank For Life And Accident And Health";

(B) "Property And Casualty Annual Statement Blank";

(C) "Title Insurance Annual Statement Blank";

(D) "Annual Statement Blank for Health" for use by hospital, medical, and dental service or indemnity corporations;

(E) "Fraternal Annual Statement Blank";

(F) "Annual Statement Blank for Health" for health insurers or health maintenance organizations and others; or

(G) Other National Association of Insurance Commissioners' convention blank as appropriate.

(3) The statement shall be prepared in accordance with the most recent and appropriate companion National Association of Insurance Commissioners' "Annual and Quarterly Statement Instructions" and follow those accounting practices and procedures prescribed by the most recent and appropriate companion National Association of Insurance Commissioners' Accounting Practices and Procedures Manual.

(4) Arkansas domestic insurers shall file the statement with the commissioner in hard-copy format.

(5) Each authorized insurer shall file an audited financial statement on or before June 1 of each year.

(6) Authorized foreign and alien insurers complying with subsection (b) of this section are deemed to have satisfied the requirement to file the statement with the commissioner.

(7) The commissioner may allow a life insurer or property and casualty insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least ninety-five percent (95%) of its total premium considerations or total statutory required reserves, respectively, to file the "Annual Statement Blank for Health" as its annual statement with the companion quarterly statement forms.

(8) (A) The National Association of Insurance Commissioners' annual statement convention blank shall be verified by the oath of the insurer's president or vice president and secretary, treasurer, or actuary, as applicable, or if a reciprocal insurer, by its attorney in fact or if a corporation, its like officers. (B) (i) The statement of an alien insurer shall be verified by the oath of the insurer's United States manager or other officer authorized and shall relate only to its transactions and affairs in the United States unless the commissioner requires otherwise. (ii) If the commissioner requires a statement as to the alien insurer's affairs throughout the world, the insurer shall file the statement with the commissioner as soon as reasonably possible. (C) The commissioner may waive a requirement under this section for verification under oath.

(A) The National Association of Insurance Commissioners' annual statement convention blank shall be verified by the oath of the insurer's president or vice president and secretary, treasurer, or actuary, as applicable, or if a reciprocal insurer, by its attorney in fact or if a corporation, its like officers.

(B) (i) The statement of an alien insurer shall be verified by the oath of the insurer's United States manager or other officer authorized and shall relate only to its transactions and affairs in the United States unless the commissioner requires otherwise. (ii) If the commissioner requires a statement as to the alien insurer's affairs throughout the world, the insurer shall file the statement with the commissioner as soon as reasonably possible.

(i) The statement of an alien insurer shall be verified by the oath of the insurer's United States manager or other officer authorized and shall relate only to its transactions and affairs in the United States unless the commissioner requires otherwise.

(ii) If the commissioner requires a statement as to the alien insurer's affairs throughout the world, the insurer shall file the statement with the commissioner as soon as reasonably possible.

(C) The commissioner may waive a requirement under this section for verification under oath.

(9) (A) The commissioner may refuse to continue the insurer's certificate of authority, as provided in § 23-63-211 , or may suspend or revoke the certificate of authority of an insurer failing to file its annual statement when due. (B) (i) In addition, the insurer shall be subject to a penalty of one hundred dollars ($100) for each day of delinquency. (ii) The penalty shall be collected by the commissioner, if necessary, by a civil suit brought by the commissioner in Pulaski County Circuit Court, unless the penalty is waived by the commissioner upon a showing by the insurer of good cause for its failure to file its report on or before the date due.

(A) The commissioner may refuse to continue the insurer's certificate of authority, as provided in § 23-63-211 , or may suspend or revoke the certificate of authority of an insurer failing to file its annual statement when due.

(B) (i) In addition, the insurer shall be subject to a penalty of one hundred dollars ($100) for each day of delinquency. (ii) The penalty shall be collected by the commissioner, if necessary, by a civil suit brought by the commissioner in Pulaski County Circuit Court, unless the penalty is waived by the commissioner upon a showing by the insurer of good cause for its failure to file its report on or before the date due.

(i) In addition, the insurer shall be subject to a penalty of one hundred dollars ($100) for each day of delinquency.

(ii) The penalty shall be collected by the commissioner, if necessary, by a civil suit brought by the commissioner in Pulaski County Circuit Court, unless the penalty is waived by the commissioner upon a showing by the insurer of good cause for its failure to file its report on or before the date due.

(10) At the time of filing, the insurer shall pay the fee for filing its annual statement as prescribed by § 23-61-401 .

(11) In addition to information called for and furnished in connection with its annual statement, an insurer shall furnish to the commissioner as soon as reasonably possible such information with respect to its transactions or affairs as the commissioner requests in writing.

(12) (A) In accordance with the specifications applicable to annual financial statements, each authorized domestic insurer and health maintenance organization and hospital or medical service corporation, or other domestic licensee so directed by the State Insurance Department in writing shall also file with the commissioner a quarterly financial statement on a form prescribed by the commissioner not later than forty-five (45) days following the end of each of the first three (3) calendar quarters of each year, excepting the fourth quarter of each calendar year, that shall be reconciled in the annual financial statement. (B) The filing specifications of this section for annual financial reports apply to quarterly financial reports.

(A) In accordance with the specifications applicable to annual financial statements, each authorized domestic insurer and health maintenance organization and hospital or medical service corporation, or other domestic licensee so directed by the State Insurance Department in writing shall also file with the commissioner a quarterly financial statement on a form prescribed by the commissioner not later than forty-five (45) days following the end of each of the first three (3) calendar quarters of each year, excepting the fourth quarter of each calendar year, that shall be reconciled in the annual financial statement.

(B) The filing specifications of this section for annual financial reports apply to quarterly financial reports.

(b) (1) (A) Except as provided in subdivision (b)(1)(B) of this section, in addition to the information required by subsection (a) of this section, an authorized insurer reporting fifty thousand dollars ($50,000) or more in annual gross premiums shall file for each line of business written in this state a market conduct annual statement, or successor product, in the general form and context, in the time frame required by, and according to instructions provided by the National Association of Insurance Commissioners. (B) An authorized insurer that reports any volume of annual gross premiums collected in long-term care annuity hybrid, long-term care life hybrid, or long-term care stand-alone lines of business written in this state shall file for each line of business written in Arkansas a market conduct annual statement, or successor product, in the general form and context, in the time frame required by, and according to instructions provided by the National Association of Insurance Commissioners. (C) If a particular line of business does not have an approved market conduct annual statement form, the authorized insurer is not required to file a report for that line of business until such time as the National Association of Insurance Commissioners adopts a market conduct annual statement form for that line of business. (2) An insurer is not required to file a market conduct annual statement under subdivision (b)(1) of this section if the insurer: (A) Sells prepaid funeral or prepaid legal products only; or (B) Is licensed only in this state. (3) The commissioner may, for good cause, grant an extension of time for filing a market conduct annual statement, if a written application for an extension of time is received at least five (5) business days before the filing due date. (4) (A) If the commissioner determines that an authorized insurer has violated subdivision (b)(1)(A) or subdivision (b)(1)(B) of this section, then the commissioner may order payment of a monetary penalty of one thousand dollars ($1,000) for failure to timely file the market conduct annual statement. (B) The monetary penalty described in subdivision (b)(4)(A) of this section shall not exceed twelve thousand dollars ($12,000) for each authorized insurer in any twelve-month period.

(1) (A) Except as provided in subdivision (b)(1)(B) of this section, in addition to the information required by subsection (a) of this section, an authorized insurer reporting fifty thousand dollars ($50,000) or more in annual gross premiums shall file for each line of business written in this state a market conduct annual statement, or successor product, in the general form and context, in the time frame required by, and according to instructions provided by the National Association of Insurance Commissioners. (B) An authorized insurer that reports any volume of annual gross premiums collected in long-term care annuity hybrid, long-term care life hybrid, or long-term care stand-alone lines of business written in this state shall file for each line of business written in Arkansas a market conduct annual statement, or successor product, in the general form and context, in the time frame required by, and according to instructions provided by the National Association of Insurance Commissioners. (C) If a particular line of business does not have an approved market conduct annual statement form, the authorized insurer is not required to file a report for that line of business until such time as the National Association of Insurance Commissioners adopts a market conduct annual statement form for that line of business.

(A) Except as provided in subdivision (b)(1)(B) of this section, in addition to the information required by subsection (a) of this section, an authorized insurer reporting fifty thousand dollars ($50,000) or more in annual gross premiums shall file for each line of business written in this state a market conduct annual statement, or successor product, in the general form and context, in the time frame required by, and according to instructions provided by the National Association of Insurance Commissioners.

(B) An authorized insurer that reports any volume of annual gross premiums collected in long-term care annuity hybrid, long-term care life hybrid, or long-term care stand-alone lines of business written in this state shall file for each line of business written in Arkansas a market conduct annual statement, or successor product, in the general form and context, in the time frame required by, and according to instructions provided by the National Association of Insurance Commissioners.

(C) If a particular line of business does not have an approved market conduct annual statement form, the authorized insurer is not required to file a report for that line of business until such time as the National Association of Insurance Commissioners adopts a market conduct annual statement form for that line of business.

(2) An insurer is not required to file a market conduct annual statement under subdivision (b)(1) of this section if the insurer: (A) Sells prepaid funeral or prepaid legal products only; or (B) Is licensed only in this state.

(A) Sells prepaid funeral or prepaid legal products only; or

(B) Is licensed only in this state.

(3) The commissioner may, for good cause, grant an extension of time for filing a market conduct annual statement, if a written application for an extension of time is received at least five (5) business days before the filing due date.

(4) (A) If the commissioner determines that an authorized insurer has violated subdivision (b)(1)(A) or subdivision (b)(1)(B) of this section, then the commissioner may order payment of a monetary penalty of one thousand dollars ($1,000) for failure to timely file the market conduct annual statement. (B) The monetary penalty described in subdivision (b)(4)(A) of this section shall not exceed twelve thousand dollars ($12,000) for each authorized insurer in any twelve-month period.

(A) If the commissioner determines that an authorized insurer has violated subdivision (b)(1)(A) or subdivision (b)(1)(B) of this section, then the commissioner may order payment of a monetary penalty of one thousand dollars ($1,000) for failure to timely file the market conduct annual statement.

(B) The monetary penalty described in subdivision (b)(4)(A) of this section shall not exceed twelve thousand dollars ($12,000) for each authorized insurer in any twelve-month period.

(c) (1) Insurers shall submit the market conduct annual statement data required by subsection (b) of this section in an electronic format and manner as prescribed by the commissioner. The commissioner may designate the National Association of Insurance Commissioners to receive the market conduct annual statement on his or her behalf, for the purpose of collecting, compiling, aggregating, and reporting on market conduct annual statement data. (2) Any forms or data submitted by the insurer as market conduct annual statement data under this subsection are deemed to be documents or information obtained from the insurer by the department as examination under § 23-61-207 without the necessity of a formal examination notice under § 23-61-203 or examination report and adoption order under § 23-61-205 .

(1) Insurers shall submit the market conduct annual statement data required by subsection (b) of this section in an electronic format and manner as prescribed by the commissioner. The commissioner may designate the National Association of Insurance Commissioners to receive the market conduct annual statement on his or her behalf, for the purpose of collecting, compiling, aggregating, and reporting on market conduct annual statement data.

(2) Any forms or data submitted by the insurer as market conduct annual statement data under this subsection are deemed to be documents or information obtained from the insurer by the department as examination under § 23-61-207 without the necessity of a formal examination notice under § 23-61-203 or examination report and adoption order under § 23-61-205 .

(d) (1) (A) Annually on or before March 1, each domestic, foreign, and alien insurer authorized to transact business in this state shall file with the National Association of Insurance Commissioners a copy of its annual statement convention blank, along with such additional filings as prescribed by the commissioner as of the December 31 preceding. (B) The information filed with the National Association of Insurance Commissioners shall be in the same format and scope as that required by the commissioner and shall include the signed jurat page and the actuarial certification. (C) Any amendments and addendums to the annual statement filing subsequently filed with the commissioner shall also be filed with the National Association of Insurance Commissioners. (2) Foreign insurers that are domiciled in a state with a law substantially similar to this subsection and comply with their state's law are in compliance with this subsection. (3) In the absence of malice, members of the National Association of Insurance Commissioners, their committees, subcommittees, task forces, delegates, employees, and others charged with the responsibility of collecting, reviewing, analyzing, and disseminating the information developed from the filing of the annual statement convention blanks shall be acting as agents of the commissioner under the authority of this subsection and shall not be subject to civil liability for libel, slander, or another cause of action by virtue of their collection, review, and analysis or dissemination of the data and information collected from the filings required in this section. (4) The commissioner may impose the sanctions set out in subdivision (a)(9) of this section on an insurer failing to file its annual statement with the National Association of Insurance Commissioners when due or within an extension of time that the commissioner for good cause has granted. (5) Each authorized insurer shall submit its annual and quarterly statement and supplemental information to the National Association of Insurance Commissioners in electronic format as specified by the National Association of Insurance Commissioners.

(1) (A) Annually on or before March 1, each domestic, foreign, and alien insurer authorized to transact business in this state shall file with the National Association of Insurance Commissioners a copy of its annual statement convention blank, along with such additional filings as prescribed by the commissioner as of the December 31 preceding. (B) The information filed with the National Association of Insurance Commissioners shall be in the same format and scope as that required by the commissioner and shall include the signed jurat page and the actuarial certification. (C) Any amendments and addendums to the annual statement filing subsequently filed with the commissioner shall also be filed with the National Association of Insurance Commissioners.

(A) Annually on or before March 1, each domestic, foreign, and alien insurer authorized to transact business in this state shall file with the National Association of Insurance Commissioners a copy of its annual statement convention blank, along with such additional filings as prescribed by the commissioner as of the December 31 preceding.

(B) The information filed with the National Association of Insurance Commissioners shall be in the same format and scope as that required by the commissioner and shall include the signed jurat page and the actuarial certification.

(C) Any amendments and addendums to the annual statement filing subsequently filed with the commissioner shall also be filed with the National Association of Insurance Commissioners.

(2) Foreign insurers that are domiciled in a state with a law substantially similar to this subsection and comply with their state's law are in compliance with this subsection.

(3) In the absence of malice, members of the National Association of Insurance Commissioners, their committees, subcommittees, task forces, delegates, employees, and others charged with the responsibility of collecting, reviewing, analyzing, and disseminating the information developed from the filing of the annual statement convention blanks shall be acting as agents of the commissioner under the authority of this subsection and shall not be subject to civil liability for libel, slander, or another cause of action by virtue of their collection, review, and analysis or dissemination of the data and information collected from the filings required in this section.

(4) The commissioner may impose the sanctions set out in subdivision (a)(9) of this section on an insurer failing to file its annual statement with the National Association of Insurance Commissioners when due or within an extension of time that the commissioner for good cause has granted.

(5) Each authorized insurer shall submit its annual and quarterly statement and supplemental information to the National Association of Insurance Commissioners in electronic format as specified by the National Association of Insurance Commissioners.

(e) (1) Each domestic insurer authorized to transact business in this state shall include in its annual statement an opinion, as is relevant to the lines of business the domestic insurer is authorized to write, on its life and health policy and claim reserves and its property and liability loss and loss adjustment expense reserves by a qualified actuary. (2) The opinion shall be in the format prescribed by the National Association of Insurance Commissioners' Annual and Quarterly Statement Instruction handbook.

(1) Each domestic insurer authorized to transact business in this state shall include in its annual statement an opinion, as is relevant to the lines of business the domestic insurer is authorized to write, on its life and health policy and claim reserves and its property and liability loss and loss adjustment expense reserves by a qualified actuary.

(2) The opinion shall be in the format prescribed by the National Association of Insurance Commissioners' Annual and Quarterly Statement Instruction handbook.

(f) (1) An insurer or a related entity licensed to do business in this state shall maintain the insurer's or the related entity's books, records, and documents in a manner that allows the commissioner to readily ascertain during an examination the insurer's or the related entity's compliance with the insurance laws of this state, rules, and the standards outlined in the most recent and appropriate companion National Association of Insurance Commissioners' Market Conduct Examiners Handbook, including without limitation company operations and management, policyholder service, marketing, producer licensing, underwriting, rating, complaint handling, grievance handling, and claims practices. (2) A health insurer or a related entity shall maintain the health insurer's or the related entity's books, records, and documents in a manner that allows the commissioner to readily ascertain during a market conduct examination the health insurer's or the related entity's practices regarding network adequacy, utilization review, quality assessment and improvement, and provider credentialing. (3) The records described under subdivisions (f)(1) and (2) of this section shall be retained for the current year plus five (5) calendar years.

(1) An insurer or a related entity licensed to do business in this state shall maintain the insurer's or the related entity's books, records, and documents in a manner that allows the commissioner to readily ascertain during an examination the insurer's or the related entity's compliance with the insurance laws of this state, rules, and the standards outlined in the most recent and appropriate companion National Association of Insurance Commissioners' Market Conduct Examiners Handbook, including without limitation company operations and management, policyholder service, marketing, producer licensing, underwriting, rating, complaint handling, grievance handling, and claims practices.

(2) A health insurer or a related entity shall maintain the health insurer's or the related entity's books, records, and documents in a manner that allows the commissioner to readily ascertain during a market conduct examination the health insurer's or the related entity's practices regarding network adequacy, utilization review, quality assessment and improvement, and provider credentialing.

(3) The records described under subdivisions (f)(1) and (2) of this section shall be retained for the current year plus five (5) calendar years.

Amended by Act 2023, No. 469,§ 3, eff. 8/1/2023.

Amended by Act 2021, No. 371,§ 1, eff. 7/28/2021.

Amended by Act 2019, No. 696,§ 1, eff. 7/24/2019.

Amended by Act 2019, No. 521,§ 4, eff. 7/24/2019.

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

Amended by Act 2015, No. 1223,§ 7, eff. 7/22/2015.

Amended by Act 2013, No. 355,§ 5, eff. 8/16/2013.

Amended by Act 2013, No. 355,§ 4, eff. 8/16/2013.

Acts 1959, No. 148, § 62; 1973, No. 35, § 1; A.S.A. 1947, § 66-2220; Acts 1991, No. 723, §§ 17, 18; 1993, No. 527, §§ 2, 3; 1995, No. 1272, § 12; 1999, No. 301, § 1; 2001, No. 1604, §§ 26-28; 2005, No. 506, § 18; 2009, No. 726, § 18; 2011, No. 760, § 3; 2011, No. 1034, § 1.
Ark. Code Ann. § 23-99-403 — AR Code / Title 23 / Chapter 99 / Subchapter 4 / Section 23-99-403
Definitions
Status: in_force

As used in this subchapter: (1) "Acute condition" means a medical condition, illness, or disease having a short and relatively severe course; (2) "Commissioner" means the Insurance Commissioner; (3) "Covered person" means a person on whose behalf the healthcare insurer issuing or delivering the health benefit plan is obligated to pay benefits pursuant to the health benefit plan; (4) (A) "Health benefit plan" means any individual, blanket, or group plan, policy, or contract for healthcare services issued or delivered by a healthcare insurer in this state, including indemnity and managed care plans and including self-insured governmental and church plans, but excluding plans providing healthcare services pursuant to Arkansas Constitution, Article 5, § 32, the Workers' Compensation Law, § 11-9-101 et seq., and the Public Employee Workers' Compensation Act, § 21-5-601 et seq. (B) "Health benefit plan" does not include an accident-only, specified disease, hospital indemnity, long-term care, disability income, or other limited-benefit health insurance policy; (5) "Healthcare insurer" or "insurer" means any insurance company, hospital and medical service corporation, or health maintenance organization issuing or delivering health benefit plans in this state and subject to the following laws: (A) The Arkansas Insurance Code; (B) Section 23-76-101 et seq., pertaining to health maintenance organizations; (C) Section 23-75-101 et seq., pertaining to hospital and medical service corporations; and (D) Any successor laws of the foregoing; (6) "Managed care plan" means a health benefit plan that either requires a covered person to use or creates incentives, including financial incentives, for a covered person to use participating providers; (7) (A) "Orthotic device" means an external device that is: (i) Intended to restore physiological function or cosmesis to a patient; and (ii) Custom-designed, fabricated, assembled, fitted, or adjusted for the patient using the device prior to or concurrent with the delivery of the device to the patient. (B) "Orthotic device" does not include a cane, a crutch, a corset, a dental appliance, an elastic hose, an elastic support, a fabric support, a generic arch support, a low-temperature plastic splint, a soft cervical collar, a truss, or other similar device that: (i) Is carried in stock and sold without therapeutic modification by a corset shop, department store, drug store, surgical supply facility, or similar retail entity; and (ii) Has no significant impact on the neuromuscular, musculoskeletal, or neuromusculoskeletal functions of the body; (8) "Orthotic service" means the evaluation and treatment of a condition that requires the use of an orthotic device; (9) "Participating provider" means a provider who or that has agreed to provide healthcare services to covered persons with an expectation of receiving payment, other than coinsurance, copayments, or deductibles, directly or indirectly, from the healthcare insurer; (10) "Person" or "entity" means and includes, individually and collectively, any individual, corporation, partnership, firm, trust, association, voluntary organization, or any other form of business enterprise or legal entity; (11) "Policyholder" means the employer, union, individual, or other person or entity that purchases, issues, or sponsors a health benefit plan; (12) (A) "Prosthetic device" means an external device that is: (i) Intended to replace an absent external body part for the purpose of restoring physiological function or cosmesis to a patient; and (ii) Custom-designed, fabricated, assembled, fitted, or adjusted for the patient using the device prior to or concurrent with being delivered to the patient. (B) "Prosthetic device" does not include an artificial eye, an artificial ear, a dental appliance, a cosmetic device such as artificial eyelashes or wigs, a device used exclusively for athletic purposes, an artificial facial device, or other device that does not have a significant impact on the neuromuscular, musculoskeletal, or neuromusculoskeletal functions of the body; (13) "Prosthetic service" means the evaluation and treatment of a condition that requires the use of a prosthetic device; (14) "Specialty" means a provider's particular area of specialty within his or her licensed scope of practice; and (15) "Type" of provider means the licensed scope of practice. Acts 1997, No. 1196, § 3; 2009, No. 950, § 1.

As used in this subchapter:

(1) "Acute condition" means a medical condition, illness, or disease having a short and relatively severe course;

(2) "Commissioner" means the Insurance Commissioner;

(3) "Covered person" means a person on whose behalf the healthcare insurer issuing or delivering the health benefit plan is obligated to pay benefits pursuant to the health benefit plan;

(4) (A) "Health benefit plan" means any individual, blanket, or group plan, policy, or contract for healthcare services issued or delivered by a healthcare insurer in this state, including indemnity and managed care plans and including self-insured governmental and church plans, but excluding plans providing healthcare services pursuant to Arkansas Constitution, Article 5, § 32, the Workers' Compensation Law, § 11-9-101 et seq., and the Public Employee Workers' Compensation Act, § 21-5-601 et seq. (B) "Health benefit plan" does not include an accident-only, specified disease, hospital indemnity, long-term care, disability income, or other limited-benefit health insurance policy;

(A) "Health benefit plan" means any individual, blanket, or group plan, policy, or contract for healthcare services issued or delivered by a healthcare insurer in this state, including indemnity and managed care plans and including self-insured governmental and church plans, but excluding plans providing healthcare services pursuant to Arkansas Constitution, Article 5, § 32, the Workers' Compensation Law, § 11-9-101 et seq., and the Public Employee Workers' Compensation Act, § 21-5-601 et seq.

(B) "Health benefit plan" does not include an accident-only, specified disease, hospital indemnity, long-term care, disability income, or other limited-benefit health insurance policy;

(5) "Healthcare insurer" or "insurer" means any insurance company, hospital and medical service corporation, or health maintenance organization issuing or delivering health benefit plans in this state and subject to the following laws: (A) The Arkansas Insurance Code; (B) Section 23-76-101 et seq., pertaining to health maintenance organizations; (C) Section 23-75-101 et seq., pertaining to hospital and medical service corporations; and (D) Any successor laws of the foregoing;

(A) The Arkansas Insurance Code;

(B) Section 23-76-101 et seq., pertaining to health maintenance organizations;

(C) Section 23-75-101 et seq., pertaining to hospital and medical service corporations; and

(D) Any successor laws of the foregoing;

(6) "Managed care plan" means a health benefit plan that either requires a covered person to use or creates incentives, including financial incentives, for a covered person to use participating providers;

(7) (A) "Orthotic device" means an external device that is: (i) Intended to restore physiological function or cosmesis to a patient; and (ii) Custom-designed, fabricated, assembled, fitted, or adjusted for the patient using the device prior to or concurrent with the delivery of the device to the patient. (B) "Orthotic device" does not include a cane, a crutch, a corset, a dental appliance, an elastic hose, an elastic support, a fabric support, a generic arch support, a low-temperature plastic splint, a soft cervical collar, a truss, or other similar device that: (i) Is carried in stock and sold without therapeutic modification by a corset shop, department store, drug store, surgical supply facility, or similar retail entity; and (ii) Has no significant impact on the neuromuscular, musculoskeletal, or neuromusculoskeletal functions of the body;

(A) "Orthotic device" means an external device that is: (i) Intended to restore physiological function or cosmesis to a patient; and (ii) Custom-designed, fabricated, assembled, fitted, or adjusted for the patient using the device prior to or concurrent with the delivery of the device to the patient.

(i) Intended to restore physiological function or cosmesis to a patient; and

(ii) Custom-designed, fabricated, assembled, fitted, or adjusted for the patient using the device prior to or concurrent with the delivery of the device to the patient.

(B) "Orthotic device" does not include a cane, a crutch, a corset, a dental appliance, an elastic hose, an elastic support, a fabric support, a generic arch support, a low-temperature plastic splint, a soft cervical collar, a truss, or other similar device that: (i) Is carried in stock and sold without therapeutic modification by a corset shop, department store, drug store, surgical supply facility, or similar retail entity; and (ii) Has no significant impact on the neuromuscular, musculoskeletal, or neuromusculoskeletal functions of the body;

(i) Is carried in stock and sold without therapeutic modification by a corset shop, department store, drug store, surgical supply facility, or similar retail entity; and

(ii) Has no significant impact on the neuromuscular, musculoskeletal, or neuromusculoskeletal functions of the body;

(8) "Orthotic service" means the evaluation and treatment of a condition that requires the use of an orthotic device;

(9) "Participating provider" means a provider who or that has agreed to provide healthcare services to covered persons with an expectation of receiving payment, other than coinsurance, copayments, or deductibles, directly or indirectly, from the healthcare insurer;

(10) "Person" or "entity" means and includes, individually and collectively, any individual, corporation, partnership, firm, trust, association, voluntary organization, or any other form of business enterprise or legal entity;

(11) "Policyholder" means the employer, union, individual, or other person or entity that purchases, issues, or sponsors a health benefit plan;

(12) (A) "Prosthetic device" means an external device that is: (i) Intended to replace an absent external body part for the purpose of restoring physiological function or cosmesis to a patient; and (ii) Custom-designed, fabricated, assembled, fitted, or adjusted for the patient using the device prior to or concurrent with being delivered to the patient. (B) "Prosthetic device" does not include an artificial eye, an artificial ear, a dental appliance, a cosmetic device such as artificial eyelashes or wigs, a device used exclusively for athletic purposes, an artificial facial device, or other device that does not have a significant impact on the neuromuscular, musculoskeletal, or neuromusculoskeletal functions of the body;

(A) "Prosthetic device" means an external device that is: (i) Intended to replace an absent external body part for the purpose of restoring physiological function or cosmesis to a patient; and (ii) Custom-designed, fabricated, assembled, fitted, or adjusted for the patient using the device prior to or concurrent with being delivered to the patient.

(i) Intended to replace an absent external body part for the purpose of restoring physiological function or cosmesis to a patient; and

(ii) Custom-designed, fabricated, assembled, fitted, or adjusted for the patient using the device prior to or concurrent with being delivered to the patient.

(B) "Prosthetic device" does not include an artificial eye, an artificial ear, a dental appliance, a cosmetic device such as artificial eyelashes or wigs, a device used exclusively for athletic purposes, an artificial facial device, or other device that does not have a significant impact on the neuromuscular, musculoskeletal, or neuromusculoskeletal functions of the body;

(13) "Prosthetic service" means the evaluation and treatment of a condition that requires the use of a prosthetic device;

(14) "Specialty" means a provider's particular area of specialty within his or her licensed scope of practice; and

(15) "Type" of provider means the licensed scope of practice.

Acts 1997, No. 1196, § 3; 2009, No. 950, § 1.
Ark. Code Ann. § 23-112-1015 — AR Code / Title 23 / Chapter 112 / Subchapter 10 / Section 23-112-1015
Change of ownership of dealer - Family succession
Status: in_force

(a) The following conditions apply to a proposed sale of the business assets, transfer of the stock, or other transaction that will result in a change of ownership of a dealer, except a transaction described in subsection (b) of this section: (1) The dealer shall: (A) Provide written notice to the manufacturer within sixty (60) days before the proposed closing of the transaction; and (B) Include all supporting documentation as may be reasonably required by the manufacturer or distributor to determine if an objection to the sale may be made; (2) In the absence of a breach by the selling dealer of its dealer agreement or a failure to comply with subdivision (a)(1) of this section, the manufacturer or distributor shall not object to the proposed change in ownership unless the prospective transferee meets one (1) or more of the following: (A) The prospective transferee has previously been terminated by the manufacturer for breach of its dealer agreement; (B) The prospective transferee has been convicted of a felony or any crime of fraud, deceit, or moral turpitude in the preceding ten (10) years; (C) The prospective transferee does not have: (i) An application for a recreational vehicle dealer's license pending; or (ii) A tentative dealer agreement with a recreational vehicle manufacturer to conduct business as a dealer in this state; (D) The prospective transferee does not have an active line of credit sufficient to purchase a manufacturer's product; or (E) In the preceding ten (10) years the prospective transferee has undergone: (i) Bankruptcy; (ii) Insolvency; (iii) A general assignment for the benefit of creditors; or (iv) The appointment of a receiver, trustee, or conservator to take possession of the transferee's business or property; and (3) (A) If the manufacturer or distributor objects to a proposed change of ownership, the manufacturer or distributor shall give written notice of its reasons to the dealer within fifteen (15) business days after receipt of the dealer's notification and complete documentation. (B) If the manufacturer or distributor does not give timely notice of its objection, the change or sale shall be deemed approved. (C) The manufacturer or distributor has the burden of proof when objecting to the proposed change of ownership. (b) The following conditions apply concerning the death, incapacity, or retirement of the designated dealer principal: (1) It is unlawful for a manufacturer or distributor: (A) To fail to provide a dealer an opportunity to designate in writing a family member as a successor to the dealership; and (B) To prevent or refuse to honor the succession to a dealership by a family member unless the manufacturer or distributor has provided to the dealer written notice of its objections within thirty (30) days after receipt of the dealer's modification of the dealer's succession plan; (2) In the absence of a breach of the dealer agreement, the manufacturer or distributor may object to the succession for the following reasons: (A) Conviction of the successor of a felony or any crime of fraud, deceit, or moral turpitude in the preceding ten (10) years; (B) Bankruptcy or insolvency of the successor in the preceding ten (10) years; (C) Prior termination by the manufacturer or distributor of the successor for breach of a dealer agreement; (D) The lack of an active line of credit for the successor sufficient to purchase the manufacturer's product; or (E) The lack of: (i) A pending application for a recreational vehicle dealer's license; or (ii) A tentative dealer agreement with a recreational vehicle manufacturer to conduct business as a dealer in this state; (3) The manufacturer or distributor has the burden of proof regarding its objection to the succession to a dealership by a family member; and (4) The consent of the manufacturer or distributor is required for the succession to a dealership by a family member if the succession involves a relocation of the business or an alteration of the terms and conditions of the dealer agreement. (c) The dealer shall notify the Arkansas Motor Vehicle Commission of any change in ownership in accordance with § 23-112-1019 . Added by Act 2013, No. 1043,§ 10, eff. 1/1/2014.

(a) The following conditions apply to a proposed sale of the business assets, transfer of the stock, or other transaction that will result in a change of ownership of a dealer, except a transaction described in subsection (b) of this section: (1) The dealer shall: (A) Provide written notice to the manufacturer within sixty (60) days before the proposed closing of the transaction; and (B) Include all supporting documentation as may be reasonably required by the manufacturer or distributor to determine if an objection to the sale may be made; (2) In the absence of a breach by the selling dealer of its dealer agreement or a failure to comply with subdivision (a)(1) of this section, the manufacturer or distributor shall not object to the proposed change in ownership unless the prospective transferee meets one (1) or more of the following: (A) The prospective transferee has previously been terminated by the manufacturer for breach of its dealer agreement; (B) The prospective transferee has been convicted of a felony or any crime of fraud, deceit, or moral turpitude in the preceding ten (10) years; (C) The prospective transferee does not have: (i) An application for a recreational vehicle dealer's license pending; or (ii) A tentative dealer agreement with a recreational vehicle manufacturer to conduct business as a dealer in this state; (D) The prospective transferee does not have an active line of credit sufficient to purchase a manufacturer's product; or (E) In the preceding ten (10) years the prospective transferee has undergone: (i) Bankruptcy; (ii) Insolvency; (iii) A general assignment for the benefit of creditors; or (iv) The appointment of a receiver, trustee, or conservator to take possession of the transferee's business or property; and (3) (A) If the manufacturer or distributor objects to a proposed change of ownership, the manufacturer or distributor shall give written notice of its reasons to the dealer within fifteen (15) business days after receipt of the dealer's notification and complete documentation. (B) If the manufacturer or distributor does not give timely notice of its objection, the change or sale shall be deemed approved. (C) The manufacturer or distributor has the burden of proof when objecting to the proposed change of ownership.

(1) The dealer shall: (A) Provide written notice to the manufacturer within sixty (60) days before the proposed closing of the transaction; and (B) Include all supporting documentation as may be reasonably required by the manufacturer or distributor to determine if an objection to the sale may be made;

(A) Provide written notice to the manufacturer within sixty (60) days before the proposed closing of the transaction; and

(B) Include all supporting documentation as may be reasonably required by the manufacturer or distributor to determine if an objection to the sale may be made;

(2) In the absence of a breach by the selling dealer of its dealer agreement or a failure to comply with subdivision (a)(1) of this section, the manufacturer or distributor shall not object to the proposed change in ownership unless the prospective transferee meets one (1) or more of the following: (A) The prospective transferee has previously been terminated by the manufacturer for breach of its dealer agreement; (B) The prospective transferee has been convicted of a felony or any crime of fraud, deceit, or moral turpitude in the preceding ten (10) years; (C) The prospective transferee does not have: (i) An application for a recreational vehicle dealer's license pending; or (ii) A tentative dealer agreement with a recreational vehicle manufacturer to conduct business as a dealer in this state; (D) The prospective transferee does not have an active line of credit sufficient to purchase a manufacturer's product; or (E) In the preceding ten (10) years the prospective transferee has undergone: (i) Bankruptcy; (ii) Insolvency; (iii) A general assignment for the benefit of creditors; or (iv) The appointment of a receiver, trustee, or conservator to take possession of the transferee's business or property; and

(A) The prospective transferee has previously been terminated by the manufacturer for breach of its dealer agreement;

(B) The prospective transferee has been convicted of a felony or any crime of fraud, deceit, or moral turpitude in the preceding ten (10) years;

(C) The prospective transferee does not have: (i) An application for a recreational vehicle dealer's license pending; or (ii) A tentative dealer agreement with a recreational vehicle manufacturer to conduct business as a dealer in this state;

(i) An application for a recreational vehicle dealer's license pending; or

(ii) A tentative dealer agreement with a recreational vehicle manufacturer to conduct business as a dealer in this state;

(D) The prospective transferee does not have an active line of credit sufficient to purchase a manufacturer's product; or

(E) In the preceding ten (10) years the prospective transferee has undergone: (i) Bankruptcy; (ii) Insolvency; (iii) A general assignment for the benefit of creditors; or (iv) The appointment of a receiver, trustee, or conservator to take possession of the transferee's business or property; and

(i) Bankruptcy;

(ii) Insolvency;

(iii) A general assignment for the benefit of creditors; or

(iv) The appointment of a receiver, trustee, or conservator to take possession of the transferee's business or property; and

(3) (A) If the manufacturer or distributor objects to a proposed change of ownership, the manufacturer or distributor shall give written notice of its reasons to the dealer within fifteen (15) business days after receipt of the dealer's notification and complete documentation. (B) If the manufacturer or distributor does not give timely notice of its objection, the change or sale shall be deemed approved. (C) The manufacturer or distributor has the burden of proof when objecting to the proposed change of ownership.

(A) If the manufacturer or distributor objects to a proposed change of ownership, the manufacturer or distributor shall give written notice of its reasons to the dealer within fifteen (15) business days after receipt of the dealer's notification and complete documentation.

(B) If the manufacturer or distributor does not give timely notice of its objection, the change or sale shall be deemed approved.

(C) The manufacturer or distributor has the burden of proof when objecting to the proposed change of ownership.

(b) The following conditions apply concerning the death, incapacity, or retirement of the designated dealer principal: (1) It is unlawful for a manufacturer or distributor: (A) To fail to provide a dealer an opportunity to designate in writing a family member as a successor to the dealership; and (B) To prevent or refuse to honor the succession to a dealership by a family member unless the manufacturer or distributor has provided to the dealer written notice of its objections within thirty (30) days after receipt of the dealer's modification of the dealer's succession plan; (2) In the absence of a breach of the dealer agreement, the manufacturer or distributor may object to the succession for the following reasons: (A) Conviction of the successor of a felony or any crime of fraud, deceit, or moral turpitude in the preceding ten (10) years; (B) Bankruptcy or insolvency of the successor in the preceding ten (10) years; (C) Prior termination by the manufacturer or distributor of the successor for breach of a dealer agreement; (D) The lack of an active line of credit for the successor sufficient to purchase the manufacturer's product; or (E) The lack of: (i) A pending application for a recreational vehicle dealer's license; or (ii) A tentative dealer agreement with a recreational vehicle manufacturer to conduct business as a dealer in this state; (3) The manufacturer or distributor has the burden of proof regarding its objection to the succession to a dealership by a family member; and (4) The consent of the manufacturer or distributor is required for the succession to a dealership by a family member if the succession involves a relocation of the business or an alteration of the terms and conditions of the dealer agreement.

(1) It is unlawful for a manufacturer or distributor: (A) To fail to provide a dealer an opportunity to designate in writing a family member as a successor to the dealership; and (B) To prevent or refuse to honor the succession to a dealership by a family member unless the manufacturer or distributor has provided to the dealer written notice of its objections within thirty (30) days after receipt of the dealer's modification of the dealer's succession plan;

(A) To fail to provide a dealer an opportunity to designate in writing a family member as a successor to the dealership; and

(B) To prevent or refuse to honor the succession to a dealership by a family member unless the manufacturer or distributor has provided to the dealer written notice of its objections within thirty (30) days after receipt of the dealer's modification of the dealer's succession plan;

(2) In the absence of a breach of the dealer agreement, the manufacturer or distributor may object to the succession for the following reasons: (A) Conviction of the successor of a felony or any crime of fraud, deceit, or moral turpitude in the preceding ten (10) years; (B) Bankruptcy or insolvency of the successor in the preceding ten (10) years; (C) Prior termination by the manufacturer or distributor of the successor for breach of a dealer agreement; (D) The lack of an active line of credit for the successor sufficient to purchase the manufacturer's product; or (E) The lack of: (i) A pending application for a recreational vehicle dealer's license; or (ii) A tentative dealer agreement with a recreational vehicle manufacturer to conduct business as a dealer in this state;

(A) Conviction of the successor of a felony or any crime of fraud, deceit, or moral turpitude in the preceding ten (10) years;

(B) Bankruptcy or insolvency of the successor in the preceding ten (10) years;

(C) Prior termination by the manufacturer or distributor of the successor for breach of a dealer agreement;

(D) The lack of an active line of credit for the successor sufficient to purchase the manufacturer's product; or

(E) The lack of: (i) A pending application for a recreational vehicle dealer's license; or (ii) A tentative dealer agreement with a recreational vehicle manufacturer to conduct business as a dealer in this state;

(i) A pending application for a recreational vehicle dealer's license; or

(ii) A tentative dealer agreement with a recreational vehicle manufacturer to conduct business as a dealer in this state;

(3) The manufacturer or distributor has the burden of proof regarding its objection to the succession to a dealership by a family member; and

(4) The consent of the manufacturer or distributor is required for the succession to a dealership by a family member if the succession involves a relocation of the business or an alteration of the terms and conditions of the dealer agreement.

(c) The dealer shall notify the Arkansas Motor Vehicle Commission of any change in ownership in accordance with § 23-112-1019 .

Added by Act 2013, No. 1043,§ 10, eff. 1/1/2014.
Ark. Code Ann. § 23-69-502 — AR Code / Title 23 / Chapter 69 / Subchapter 5 / Section 23-69-502
Legislative findings - Purpose
Status: in_force

(a) The General Assembly finds that: (1) There is not a basis or procedure for the transfer and novation of insurance policies from a transferring insurer to an assuming insurer by way of an insurance business transfer without the affirmative consent of policyholders or reinsureds; and (2) There is a need to provide a basis and procedures for the transfer and novation of insurance policies from a transferring insurer to an assuming insurer by way of an insurance business transfer without the affirmative consent of policyholders or reinsureds if the transfer and novation is conducted by a court order. (b) (1) The purpose of this subchapter is to establish the requirements for notice and disclosure and standards and procedures for the approval of a transfer and novation by the Insurance Commissioner and the Pulaski County Circuit Court under an insurance business transfer plan. (2) However, it is not the purpose of this subchapter to limit or restrict other means of effecting a transfer or novation. Added by Act 2021, No. 1018,§ 1, eff. 7/28/2021.

(a) The General Assembly finds that: (1) There is not a basis or procedure for the transfer and novation of insurance policies from a transferring insurer to an assuming insurer by way of an insurance business transfer without the affirmative consent of policyholders or reinsureds; and (2) There is a need to provide a basis and procedures for the transfer and novation of insurance policies from a transferring insurer to an assuming insurer by way of an insurance business transfer without the affirmative consent of policyholders or reinsureds if the transfer and novation is conducted by a court order.

(1) There is not a basis or procedure for the transfer and novation of insurance policies from a transferring insurer to an assuming insurer by way of an insurance business transfer without the affirmative consent of policyholders or reinsureds; and

(2) There is a need to provide a basis and procedures for the transfer and novation of insurance policies from a transferring insurer to an assuming insurer by way of an insurance business transfer without the affirmative consent of policyholders or reinsureds if the transfer and novation is conducted by a court order.

(b) (1) The purpose of this subchapter is to establish the requirements for notice and disclosure and standards and procedures for the approval of a transfer and novation by the Insurance Commissioner and the Pulaski County Circuit Court under an insurance business transfer plan. (2) However, it is not the purpose of this subchapter to limit or restrict other means of effecting a transfer or novation.

(1) The purpose of this subchapter is to establish the requirements for notice and disclosure and standards and procedures for the approval of a transfer and novation by the Insurance Commissioner and the Pulaski County Circuit Court under an insurance business transfer plan.

(2) However, it is not the purpose of this subchapter to limit or restrict other means of effecting a transfer or novation.

Added by Act 2021, No. 1018,§ 1, eff. 7/28/2021.
Ark. Code Ann. § 23-66-213 — AR Code / Title 23 / Chapter 66 / Subchapter 2 / Section 23-66-213
Judicial review by intervenor
Status: in_force

(a) If, after a hearing under § 23-66-210 or § 23-66-211 , the report of the Insurance Commissioner does not charge a violation of this subchapter, then any intervenor in the proceedings may within thirty (30) days after the service of the report cause a petition, notice of appeal, or petition for writ of certiorari to be filed in the Pulaski County Circuit Court for review of the report. (b) Upon the review, the court shall have authority to issue appropriate orders and decrees in connection therewith, including, if the court finds that it is to the interest of the public, orders enjoining and restraining the continuance of any method of competition, act, or practice which it finds, notwithstanding the report of the commissioner, constitutes a violation of this subchapter and contains penalties pursuant to § 23-66-212 . Acts 1959, No. 148, § 218; 1973, No. 41, § 7; A.S.A. 1947, § 66-3011.

(a) If, after a hearing under § 23-66-210 or § 23-66-211 , the report of the Insurance Commissioner does not charge a violation of this subchapter, then any intervenor in the proceedings may within thirty (30) days after the service of the report cause a petition, notice of appeal, or petition for writ of certiorari to be filed in the Pulaski County Circuit Court for review of the report.

(b) Upon the review, the court shall have authority to issue appropriate orders and decrees in connection therewith, including, if the court finds that it is to the interest of the public, orders enjoining and restraining the continuance of any method of competition, act, or practice which it finds, notwithstanding the report of the commissioner, constitutes a violation of this subchapter and contains penalties pursuant to § 23-66-212 .

Acts 1959, No. 148, § 218; 1973, No. 41, § 7; A.S.A. 1947, § 66-3011.
Ark. Code Ann. § 23-99-1504 — AR Code / Title 23 / Chapter 99 / Subchapter 15 / Section 23-99-1504
Rules
Status: in_force

The Insurance Commissioner shall develop and promulgate rules for the implementation and administration of this subchapter. Added by Act 2021, No. 1105,§ 1, eff. 7/28/2021.

The Insurance Commissioner shall develop and promulgate rules for the implementation and administration of this subchapter.

Added by Act 2021, No. 1105,§ 1, eff. 7/28/2021.
Ark. Code Ann. § 23-63-1316 — AR Code / Title 23 / Chapter 63 / Subchapter 13 / Section 23-63-1316
Notices
Status: in_force

All notices by the Insurance Commissioner to an insurer that may result in regulatory action under this subchapter shall be effective on dispatch if transmitted by certified mail, or in the case of any other transmission shall be effective on the insurer's receipt of the notice. Acts 1995, No. 622, § 1; 2011, No. 760, § 4.

All notices by the Insurance Commissioner to an insurer that may result in regulatory action under this subchapter shall be effective on dispatch if transmitted by certified mail, or in the case of any other transmission shall be effective on the insurer's receipt of the notice.

Acts 1995, No. 622, § 1; 2011, No. 760, § 4.
Ark. Code Ann. § 23-99-1125 — AR Code / Title 23 / Chapter 99 / Subchapter 11 / Section 23-99-1125
Eligibility for prior authorization exemption following finalized exemption rescission or denial
Status: in_force

(a) After a final determination or review affirming the rescission or denial of an exemption for a specific healthcare service under § 23-99-1120 , a healthcare insurer shall conduct another evaluation to determine whether or not the exemption should be granted or reinstated based on the six-month evaluation period that follows the evaluation period that formed the basis of the rescission or denial of an exemption. (b) A time period that is included in a previous evaluation or determination period shall not be included in a subsequent evaluation period. Added by Act 2023, No. 575,§ 5, eff. 8/1/2023.

(a) After a final determination or review affirming the rescission or denial of an exemption for a specific healthcare service under § 23-99-1120 , a healthcare insurer shall conduct another evaluation to determine whether or not the exemption should be granted or reinstated based on the six-month evaluation period that follows the evaluation period that formed the basis of the rescission or denial of an exemption.

(b) A time period that is included in a previous evaluation or determination period shall not be included in a subsequent evaluation period.

Added by Act 2023, No. 575,§ 5, eff. 8/1/2023.
Ark. Code Ann. § 23-12-1005 — AR Code / Title 23 / Chapter 12 / Subchapter 10 / Section 23-12-1005
Inadequate action or unreasonable refusal - Action on complaint
Status: in_force

(a) (1) (A) Prior to any request by a state, municipal, or county official for sanctions against any railroad company for violation of any rule promulgated pursuant to this subchapter, the state, municipal, or county official shall state the claim or complaint in writing by certified mail to the registered agent of the railroad company in question. (B) (i) Within forty-five (45) days after the receipt of the written claim or complaint by the railroad company, the railroad company shall respond to the claim or complaint, stating with specificity the corrective action taken, any corrective or remedial action planned and the time for its completion, or the reason for any refusal on the part of the railroad to correct the situation. (ii) This response shall be in writing to the complaining official by certified mail. (2) (A) In the event the issue is not then resolved to the satisfaction of the complaining official, the official shall notify the State Highway Commission in writing. (B) (i) Within sixty (60) days after receipt of the complaint, the commission shall hold a hearing on the complaint. (ii) Notice of the hearing shall be given the railroad and the complainant at least twenty (20) days before the hearing. (C) After appropriate notice and hearing on the complaint and within twenty (20) days after the hearing, the commission or its designated representative shall determine the adequacy of the railroad's action or the reasonableness of its refusal under the circumstances. (3) (A) If the commission makes a finding of inadequate action or unreasonable refusal on the part of the railroad based on information presented at a hearing before the commission or before a designated representative of the commission, the railroad company charged with the violation shall be subject to a penalty of not less than two hundred dollars ($200) nor more than ten thousand dollars ($10,000) per occurrence, the penalty to be assessed by the commission. (B) (i) The decision of the commission may be appealed to the circuit court of the county in which the violation occurred at any time within thirty (30) days after the decision is rendered. (ii) Provided, the decision of the commission shall be final unless appealed as authorized herein. (b) (1) If the state owns the highway where the questioned crossing is located, all moneys recovered under the provisions of this section shall be placed into the State Highway and Transportation Department Fund. (2) All other moneys recovered under this section shall be divided equally between the State Highway and Transportation Department Fund and the general, road, or highway fund of the county or municipality which owns the highway, road, or street where the questioned crossing is located. Amended by Act 2019, No. 315,§ 2413, eff. 7/24/2019. Acts 1993, No. 726, § 3; 1995, No. 668, § 1.

(a) (1) (A) Prior to any request by a state, municipal, or county official for sanctions against any railroad company for violation of any rule promulgated pursuant to this subchapter, the state, municipal, or county official shall state the claim or complaint in writing by certified mail to the registered agent of the railroad company in question. (B) (i) Within forty-five (45) days after the receipt of the written claim or complaint by the railroad company, the railroad company shall respond to the claim or complaint, stating with specificity the corrective action taken, any corrective or remedial action planned and the time for its completion, or the reason for any refusal on the part of the railroad to correct the situation. (ii) This response shall be in writing to the complaining official by certified mail. (2) (A) In the event the issue is not then resolved to the satisfaction of the complaining official, the official shall notify the State Highway Commission in writing. (B) (i) Within sixty (60) days after receipt of the complaint, the commission shall hold a hearing on the complaint. (ii) Notice of the hearing shall be given the railroad and the complainant at least twenty (20) days before the hearing. (C) After appropriate notice and hearing on the complaint and within twenty (20) days after the hearing, the commission or its designated representative shall determine the adequacy of the railroad's action or the reasonableness of its refusal under the circumstances. (3) (A) If the commission makes a finding of inadequate action or unreasonable refusal on the part of the railroad based on information presented at a hearing before the commission or before a designated representative of the commission, the railroad company charged with the violation shall be subject to a penalty of not less than two hundred dollars ($200) nor more than ten thousand dollars ($10,000) per occurrence, the penalty to be assessed by the commission. (B) (i) The decision of the commission may be appealed to the circuit court of the county in which the violation occurred at any time within thirty (30) days after the decision is rendered. (ii) Provided, the decision of the commission shall be final unless appealed as authorized herein.

(1) (A) Prior to any request by a state, municipal, or county official for sanctions against any railroad company for violation of any rule promulgated pursuant to this subchapter, the state, municipal, or county official shall state the claim or complaint in writing by certified mail to the registered agent of the railroad company in question. (B) (i) Within forty-five (45) days after the receipt of the written claim or complaint by the railroad company, the railroad company shall respond to the claim or complaint, stating with specificity the corrective action taken, any corrective or remedial action planned and the time for its completion, or the reason for any refusal on the part of the railroad to correct the situation. (ii) This response shall be in writing to the complaining official by certified mail.

(A) Prior to any request by a state, municipal, or county official for sanctions against any railroad company for violation of any rule promulgated pursuant to this subchapter, the state, municipal, or county official shall state the claim or complaint in writing by certified mail to the registered agent of the railroad company in question.

(B) (i) Within forty-five (45) days after the receipt of the written claim or complaint by the railroad company, the railroad company shall respond to the claim or complaint, stating with specificity the corrective action taken, any corrective or remedial action planned and the time for its completion, or the reason for any refusal on the part of the railroad to correct the situation. (ii) This response shall be in writing to the complaining official by certified mail.

(i) Within forty-five (45) days after the receipt of the written claim or complaint by the railroad company, the railroad company shall respond to the claim or complaint, stating with specificity the corrective action taken, any corrective or remedial action planned and the time for its completion, or the reason for any refusal on the part of the railroad to correct the situation.

(ii) This response shall be in writing to the complaining official by certified mail.

(2) (A) In the event the issue is not then resolved to the satisfaction of the complaining official, the official shall notify the State Highway Commission in writing. (B) (i) Within sixty (60) days after receipt of the complaint, the commission shall hold a hearing on the complaint. (ii) Notice of the hearing shall be given the railroad and the complainant at least twenty (20) days before the hearing. (C) After appropriate notice and hearing on the complaint and within twenty (20) days after the hearing, the commission or its designated representative shall determine the adequacy of the railroad's action or the reasonableness of its refusal under the circumstances.

(A) In the event the issue is not then resolved to the satisfaction of the complaining official, the official shall notify the State Highway Commission in writing.

(B) (i) Within sixty (60) days after receipt of the complaint, the commission shall hold a hearing on the complaint. (ii) Notice of the hearing shall be given the railroad and the complainant at least twenty (20) days before the hearing.

(i) Within sixty (60) days after receipt of the complaint, the commission shall hold a hearing on the complaint.

(ii) Notice of the hearing shall be given the railroad and the complainant at least twenty (20) days before the hearing.

(C) After appropriate notice and hearing on the complaint and within twenty (20) days after the hearing, the commission or its designated representative shall determine the adequacy of the railroad's action or the reasonableness of its refusal under the circumstances.

(3) (A) If the commission makes a finding of inadequate action or unreasonable refusal on the part of the railroad based on information presented at a hearing before the commission or before a designated representative of the commission, the railroad company charged with the violation shall be subject to a penalty of not less than two hundred dollars ($200) nor more than ten thousand dollars ($10,000) per occurrence, the penalty to be assessed by the commission. (B) (i) The decision of the commission may be appealed to the circuit court of the county in which the violation occurred at any time within thirty (30) days after the decision is rendered. (ii) Provided, the decision of the commission shall be final unless appealed as authorized herein.

(A) If the commission makes a finding of inadequate action or unreasonable refusal on the part of the railroad based on information presented at a hearing before the commission or before a designated representative of the commission, the railroad company charged with the violation shall be subject to a penalty of not less than two hundred dollars ($200) nor more than ten thousand dollars ($10,000) per occurrence, the penalty to be assessed by the commission.

(B) (i) The decision of the commission may be appealed to the circuit court of the county in which the violation occurred at any time within thirty (30) days after the decision is rendered. (ii) Provided, the decision of the commission shall be final unless appealed as authorized herein.

(i) The decision of the commission may be appealed to the circuit court of the county in which the violation occurred at any time within thirty (30) days after the decision is rendered.

(ii) Provided, the decision of the commission shall be final unless appealed as authorized herein.

(b) (1) If the state owns the highway where the questioned crossing is located, all moneys recovered under the provisions of this section shall be placed into the State Highway and Transportation Department Fund. (2) All other moneys recovered under this section shall be divided equally between the State Highway and Transportation Department Fund and the general, road, or highway fund of the county or municipality which owns the highway, road, or street where the questioned crossing is located.

(1) If the state owns the highway where the questioned crossing is located, all moneys recovered under the provisions of this section shall be placed into the State Highway and Transportation Department Fund.

(2) All other moneys recovered under this section shall be divided equally between the State Highway and Transportation Department Fund and the general, road, or highway fund of the county or municipality which owns the highway, road, or street where the questioned crossing is located.

Amended by Act 2019, No. 315,§ 2413, eff. 7/24/2019.

Acts 1993, No. 726, § 3; 1995, No. 668, § 1.
Ark. Code Ann. § 23-18-603 — AR Code / Title 23 / Chapter 18 / Subchapter 6 / Section 23-18-603
Definitions
Status: in_force

As used in this subchapter: (1) "Avoided cost" means: (A) For an electric utility other than a municipal utility, the twelve-month average for the prior calendar year of the applicable Locational Marginal Price associated with the electric utility's load zone in the following applicable Independent System Operator market: (i) The Midcontinent Independent System Operator; or (ii) The Southwest Power Pool; or (B) For a municipal utility, the definition provided by the governing body of the municipal utility; (2) "Commission" means the Arkansas Public Service Commission or other appropriate governing body for an electric utility as defined in subdivision (3) of this section; (3) "Electric utility" means a public or investor-owned utility, an electric cooperative, or any private power supplier or marketer that is engaged in the business of supplying electric energy to the ultimate consumer or any customer classes within the state; (4) "Monthly grid charge" means a charge expressed in dollars per kilowatt applied to the nameplate alternating current capacity of the net-metering facility; (5) (A) "Municipal utility" means a utility system owned or operated by a municipality that provides electricity. (B) "Municipal utility" includes without limitation a: (i) Utility system managed or operated by a nonprofit corporation under § 14-199-701 et seq.; and (ii) Utility system owned or operated by a municipality or by a consolidated utility district under the General Consolidated Public Utility System Improvement District Law, § 14-217-101 et seq.; (6) "Net excess generation" means the amount of electricity as measured in kilowatt hours or kilowatt hours multiplied by the applicable rate that a net-metering customer has fed back to the electric utility that exceeds the amount of electricity as measured in kilowatt hours or kilowatt hours multiplied by the applicable rate used by that customer during the applicable period determined by a commission; (7) "Net metering" means a billing option that measures the amount of electricity as measured in kilowatt hours supplied by an electric utility to an individual net-metering customer and separately measuring the electricity as measured in kilowatt hours generated by an individual net-metering customer's net-metering facility and fed back to the electric utility; (8) (A) "Net-metering customer" means an individual customer of an electric utility that: (i) Is an owner of a net-metering facility; (ii) Leases a net-metering facility subject to the following limitations: (a) A lease shall not permit the sale of electric energy measured in kilowatt hours or electric capacity measured in kilowatts between the lessor and lessee; and (b) A lease shall not include any charge per kilowatt hour or any charge per kilowatt; or (iii) (a) Is a government entity or other entity that is exempt from state and federal income tax, and that, for the sole purpose of this subchapter, obtains electric energy from a net-metering facility under a service contract qualifying for safe-harbor protection as provided under 26 U.S.C. § 7701(e)(3)(A) , as in effect on August 16, 2022. (b) Revenues collected under contracts for obtaining electric energy from a net-metering facility under a service contract qualifying for safe-harbor protection as provided under 26 U.S.C. § 7701(e)(3)(A) , as in effect on August 16, 2022, are exempt from state and local sales taxes. (B) "Net-metering customer" does not mean a customer that is an interruptible customer of the electric utility and takes service under an electric utility's rate schedule for interruptible service, unless a commission has: (i) Considered an application and issued an order, before December 31, 2022, addressing an individual net-metering customer's application for approval of a net-metering facility with a nameplate generating capacity in excess of ten thousand kilowatts (10,000 kW) where an individual net-metering customer also takes service under an electric utility's rate schedule for interruptible service; and (ii) Concluded that it is in the public interest for that individual interruptible customer to be a net-metering customer; (9) "Net-metering facility" means a facility for the production of electric energy to meet all or part of a net-metering customer's need for electric energy within a single utility's allocated service territory that: (A) Uses solar, wind, hydroelectric, geothermal, or biomass resources to generate electricity, including, but not limited to, fuel cells and micro turbines that generate electricity if the fuel source is entirely derived from renewable resources; (B) (i) Has a nameplate generating capacity of not more than: (a) For a residential customer for residential use, the lesser of twenty-five kilowatts (25 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months unless an individual net-metering customer's net-metering facility with a greater amount is included in a standard interconnection agreement executed before December 31, 2022; (b) For nonresidential customers of electric utilities for nonresidential use, less than or equal to the lesser of five thousand kilowatts (5,000 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months within a single utility's allocated service territory where a single net-metering facility is physically located behind a net-metering customer's electric utility meter that represents one hundred percent (100%) of the net-metering customer's energy usage served by the net-metering facility; or (c) For customers of a municipal utility, the limits established by the governing body of the municipal utility under § 23-18-605 . (ii) (a) The total nameplate generating capacity of all net-metering facilities owned by, leased by, or providing electric energy under one (1) or more qualifying service contracts of an individual net-metering customer serving multiple meter locations under common ownership of any net-metering customer, within a single utility's allocated service territory, shall be less than or equal to the lesser of five thousand kilowatts (5,000 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months, unless: (1) A commission approved a greater amount for an individual net-metering customer before December 31, 2022; (2) An individual net-metering customer has executed a contract with a net-metering facility developer by February 22, 2023, to purchase a net-metering facility with a nameplate capacity not to exceed twenty thousand kilowatts (20,000 kW) and has filed the contract with a commission under a protective order by March 31, 2023; or (3) An individual net-metering customer filed an application with a commission for approval of a net-metering facility with a nameplate generating capacity not to exceed twenty thousand kilowatts (20,000 kW) before December 31, 2022. (b) (1) A net-metering facility serving multiple meter locations under common ownership shall be located on a separate property from any other net-metering facility or only co-locate on a property with one (1) other net-metering facility within a single utility's allocated service territory. (2) For a net-metering facility under subdivision (9)(B)(ii) (b)(1) of this section, the nameplate generating capacity under this subdivision (9)(B)(ii) includes the total kilowatt nameplate-generating capacity of all net-metering facilities serving multiple meter locations under common ownership within a single electric utility's allocated service territory owned by, leased by, or providing electric energy under one (1) or more qualifying service contracts to a net-metering customer, including without limitation any net-metering facilities serving multiple meter locations under common ownership; (C) Is located in Arkansas; (D) Can operate in parallel with an electric utility's existing distribution facilities or, if permitted by the electric utility, an electric utility's transmission facilities; (E) Is intended to offset part or all of an individual net-metering customer's requirements for electricity; and (F) (i) May include an energy storage device that is configured to receive electric energy solely from a net-metering facility. (ii) The capacity of an energy storage device shall not be used to calculate the capacity limits listed in subdivision (9)(B) of this section if the energy storage device is configured to receive electric energy solely from a net-metering facility; (10) "Net-metering surplus" means the dollar value resulting from multiplying the avoided cost of the electric utility to all kilowatt hours supplied to the electric utility by a net-metering customer during the applicable billing period under § 23-18-604(c)(4) ; and (11) "Renewable energy credit" means the environmental, economic, and social attributes of a unit of electricity, such as a megawatt hour, generated from renewable fuels that can be sold or traded separately. Amended by Act 2023, No. 278,§ 1, eff. 3/13/2023. Amended by Act 2019, No. 464,§ 1, eff. 7/24/2019. Amended by Act 2015, No. 827,§ 1, eff. 7/22/2015. Acts 2001, No. 1781, § 3; 2007, No. 1026, § 1.

As used in this subchapter:

(1) "Avoided cost" means: (A) For an electric utility other than a municipal utility, the twelve-month average for the prior calendar year of the applicable Locational Marginal Price associated with the electric utility's load zone in the following applicable Independent System Operator market: (i) The Midcontinent Independent System Operator; or (ii) The Southwest Power Pool; or (B) For a municipal utility, the definition provided by the governing body of the municipal utility;

(A) For an electric utility other than a municipal utility, the twelve-month average for the prior calendar year of the applicable Locational Marginal Price associated with the electric utility's load zone in the following applicable Independent System Operator market: (i) The Midcontinent Independent System Operator; or (ii) The Southwest Power Pool; or

(i) The Midcontinent Independent System Operator; or

(ii) The Southwest Power Pool; or

(B) For a municipal utility, the definition provided by the governing body of the municipal utility;

(2) "Commission" means the Arkansas Public Service Commission or other appropriate governing body for an electric utility as defined in subdivision (3) of this section;

(3) "Electric utility" means a public or investor-owned utility, an electric cooperative, or any private power supplier or marketer that is engaged in the business of supplying electric energy to the ultimate consumer or any customer classes within the state;

(4) "Monthly grid charge" means a charge expressed in dollars per kilowatt applied to the nameplate alternating current capacity of the net-metering facility;

(5) (A) "Municipal utility" means a utility system owned or operated by a municipality that provides electricity. (B) "Municipal utility" includes without limitation a: (i) Utility system managed or operated by a nonprofit corporation under § 14-199-701 et seq.; and (ii) Utility system owned or operated by a municipality or by a consolidated utility district under the General Consolidated Public Utility System Improvement District Law, § 14-217-101 et seq.;

(A) "Municipal utility" means a utility system owned or operated by a municipality that provides electricity.

(B) "Municipal utility" includes without limitation a: (i) Utility system managed or operated by a nonprofit corporation under § 14-199-701 et seq.; and (ii) Utility system owned or operated by a municipality or by a consolidated utility district under the General Consolidated Public Utility System Improvement District Law, § 14-217-101 et seq.;

(i) Utility system managed or operated by a nonprofit corporation under § 14-199-701 et seq.; and

(ii) Utility system owned or operated by a municipality or by a consolidated utility district under the General Consolidated Public Utility System Improvement District Law, § 14-217-101 et seq.;

(6) "Net excess generation" means the amount of electricity as measured in kilowatt hours or kilowatt hours multiplied by the applicable rate that a net-metering customer has fed back to the electric utility that exceeds the amount of electricity as measured in kilowatt hours or kilowatt hours multiplied by the applicable rate used by that customer during the applicable period determined by a commission;

(7) "Net metering" means a billing option that measures the amount of electricity as measured in kilowatt hours supplied by an electric utility to an individual net-metering customer and separately measuring the electricity as measured in kilowatt hours generated by an individual net-metering customer's net-metering facility and fed back to the electric utility;

(8) (A) "Net-metering customer" means an individual customer of an electric utility that: (i) Is an owner of a net-metering facility; (ii) Leases a net-metering facility subject to the following limitations: (a) A lease shall not permit the sale of electric energy measured in kilowatt hours or electric capacity measured in kilowatts between the lessor and lessee; and (b) A lease shall not include any charge per kilowatt hour or any charge per kilowatt; or (iii) (a) Is a government entity or other entity that is exempt from state and federal income tax, and that, for the sole purpose of this subchapter, obtains electric energy from a net-metering facility under a service contract qualifying for safe-harbor protection as provided under 26 U.S.C. § 7701(e)(3)(A) , as in effect on August 16, 2022. (b) Revenues collected under contracts for obtaining electric energy from a net-metering facility under a service contract qualifying for safe-harbor protection as provided under 26 U.S.C. § 7701(e)(3)(A) , as in effect on August 16, 2022, are exempt from state and local sales taxes. (B) "Net-metering customer" does not mean a customer that is an interruptible customer of the electric utility and takes service under an electric utility's rate schedule for interruptible service, unless a commission has: (i) Considered an application and issued an order, before December 31, 2022, addressing an individual net-metering customer's application for approval of a net-metering facility with a nameplate generating capacity in excess of ten thousand kilowatts (10,000 kW) where an individual net-metering customer also takes service under an electric utility's rate schedule for interruptible service; and (ii) Concluded that it is in the public interest for that individual interruptible customer to be a net-metering customer;

(A) "Net-metering customer" means an individual customer of an electric utility that: (i) Is an owner of a net-metering facility; (ii) Leases a net-metering facility subject to the following limitations: (a) A lease shall not permit the sale of electric energy measured in kilowatt hours or electric capacity measured in kilowatts between the lessor and lessee; and (b) A lease shall not include any charge per kilowatt hour or any charge per kilowatt; or (iii) (a) Is a government entity or other entity that is exempt from state and federal income tax, and that, for the sole purpose of this subchapter, obtains electric energy from a net-metering facility under a service contract qualifying for safe-harbor protection as provided under 26 U.S.C. § 7701(e)(3)(A) , as in effect on August 16, 2022. (b) Revenues collected under contracts for obtaining electric energy from a net-metering facility under a service contract qualifying for safe-harbor protection as provided under 26 U.S.C. § 7701(e)(3)(A) , as in effect on August 16, 2022, are exempt from state and local sales taxes.

(i) Is an owner of a net-metering facility;

(ii) Leases a net-metering facility subject to the following limitations: (a) A lease shall not permit the sale of electric energy measured in kilowatt hours or electric capacity measured in kilowatts between the lessor and lessee; and (b) A lease shall not include any charge per kilowatt hour or any charge per kilowatt; or

(a) A lease shall not permit the sale of electric energy measured in kilowatt hours or electric capacity measured in kilowatts between the lessor and lessee; and

(b) A lease shall not include any charge per kilowatt hour or any charge per kilowatt; or

(iii) (a) Is a government entity or other entity that is exempt from state and federal income tax, and that, for the sole purpose of this subchapter, obtains electric energy from a net-metering facility under a service contract qualifying for safe-harbor protection as provided under 26 U.S.C. § 7701(e)(3)(A) , as in effect on August 16, 2022. (b) Revenues collected under contracts for obtaining electric energy from a net-metering facility under a service contract qualifying for safe-harbor protection as provided under 26 U.S.C. § 7701(e)(3)(A) , as in effect on August 16, 2022, are exempt from state and local sales taxes.

(a) Is a government entity or other entity that is exempt from state and federal income tax, and that, for the sole purpose of this subchapter, obtains electric energy from a net-metering facility under a service contract qualifying for safe-harbor protection as provided under 26 U.S.C. § 7701(e)(3)(A) , as in effect on August 16, 2022.

(b) Revenues collected under contracts for obtaining electric energy from a net-metering facility under a service contract qualifying for safe-harbor protection as provided under 26 U.S.C. § 7701(e)(3)(A) , as in effect on August 16, 2022, are exempt from state and local sales taxes.

(B) "Net-metering customer" does not mean a customer that is an interruptible customer of the electric utility and takes service under an electric utility's rate schedule for interruptible service, unless a commission has: (i) Considered an application and issued an order, before December 31, 2022, addressing an individual net-metering customer's application for approval of a net-metering facility with a nameplate generating capacity in excess of ten thousand kilowatts (10,000 kW) where an individual net-metering customer also takes service under an electric utility's rate schedule for interruptible service; and (ii) Concluded that it is in the public interest for that individual interruptible customer to be a net-metering customer;

(i) Considered an application and issued an order, before December 31, 2022, addressing an individual net-metering customer's application for approval of a net-metering facility with a nameplate generating capacity in excess of ten thousand kilowatts (10,000 kW) where an individual net-metering customer also takes service under an electric utility's rate schedule for interruptible service; and

(ii) Concluded that it is in the public interest for that individual interruptible customer to be a net-metering customer;

(9) "Net-metering facility" means a facility for the production of electric energy to meet all or part of a net-metering customer's need for electric energy within a single utility's allocated service territory that: (A) Uses solar, wind, hydroelectric, geothermal, or biomass resources to generate electricity, including, but not limited to, fuel cells and micro turbines that generate electricity if the fuel source is entirely derived from renewable resources; (B) (i) Has a nameplate generating capacity of not more than: (a) For a residential customer for residential use, the lesser of twenty-five kilowatts (25 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months unless an individual net-metering customer's net-metering facility with a greater amount is included in a standard interconnection agreement executed before December 31, 2022; (b) For nonresidential customers of electric utilities for nonresidential use, less than or equal to the lesser of five thousand kilowatts (5,000 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months within a single utility's allocated service territory where a single net-metering facility is physically located behind a net-metering customer's electric utility meter that represents one hundred percent (100%) of the net-metering customer's energy usage served by the net-metering facility; or (c) For customers of a municipal utility, the limits established by the governing body of the municipal utility under § 23-18-605 . (ii) (a) The total nameplate generating capacity of all net-metering facilities owned by, leased by, or providing electric energy under one (1) or more qualifying service contracts of an individual net-metering customer serving multiple meter locations under common ownership of any net-metering customer, within a single utility's allocated service territory, shall be less than or equal to the lesser of five thousand kilowatts (5,000 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months, unless: (1) A commission approved a greater amount for an individual net-metering customer before December 31, 2022; (2) An individual net-metering customer has executed a contract with a net-metering facility developer by February 22, 2023, to purchase a net-metering facility with a nameplate capacity not to exceed twenty thousand kilowatts (20,000 kW) and has filed the contract with a commission under a protective order by March 31, 2023; or (3) An individual net-metering customer filed an application with a commission for approval of a net-metering facility with a nameplate generating capacity not to exceed twenty thousand kilowatts (20,000 kW) before December 31, 2022. (b) (1) A net-metering facility serving multiple meter locations under common ownership shall be located on a separate property from any other net-metering facility or only co-locate on a property with one (1) other net-metering facility within a single utility's allocated service territory. (2) For a net-metering facility under subdivision (9)(B)(ii) (b)(1) of this section, the nameplate generating capacity under this subdivision (9)(B)(ii) includes the total kilowatt nameplate-generating capacity of all net-metering facilities serving multiple meter locations under common ownership within a single electric utility's allocated service territory owned by, leased by, or providing electric energy under one (1) or more qualifying service contracts to a net-metering customer, including without limitation any net-metering facilities serving multiple meter locations under common ownership; (C) Is located in Arkansas; (D) Can operate in parallel with an electric utility's existing distribution facilities or, if permitted by the electric utility, an electric utility's transmission facilities; (E) Is intended to offset part or all of an individual net-metering customer's requirements for electricity; and (F) (i) May include an energy storage device that is configured to receive electric energy solely from a net-metering facility. (ii) The capacity of an energy storage device shall not be used to calculate the capacity limits listed in subdivision (9)(B) of this section if the energy storage device is configured to receive electric energy solely from a net-metering facility;

(A) Uses solar, wind, hydroelectric, geothermal, or biomass resources to generate electricity, including, but not limited to, fuel cells and micro turbines that generate electricity if the fuel source is entirely derived from renewable resources;

(B) (i) Has a nameplate generating capacity of not more than: (a) For a residential customer for residential use, the lesser of twenty-five kilowatts (25 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months unless an individual net-metering customer's net-metering facility with a greater amount is included in a standard interconnection agreement executed before December 31, 2022; (b) For nonresidential customers of electric utilities for nonresidential use, less than or equal to the lesser of five thousand kilowatts (5,000 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months within a single utility's allocated service territory where a single net-metering facility is physically located behind a net-metering customer's electric utility meter that represents one hundred percent (100%) of the net-metering customer's energy usage served by the net-metering facility; or (c) For customers of a municipal utility, the limits established by the governing body of the municipal utility under § 23-18-605 . (ii) (a) The total nameplate generating capacity of all net-metering facilities owned by, leased by, or providing electric energy under one (1) or more qualifying service contracts of an individual net-metering customer serving multiple meter locations under common ownership of any net-metering customer, within a single utility's allocated service territory, shall be less than or equal to the lesser of five thousand kilowatts (5,000 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months, unless: (1) A commission approved a greater amount for an individual net-metering customer before December 31, 2022; (2) An individual net-metering customer has executed a contract with a net-metering facility developer by February 22, 2023, to purchase a net-metering facility with a nameplate capacity not to exceed twenty thousand kilowatts (20,000 kW) and has filed the contract with a commission under a protective order by March 31, 2023; or (3) An individual net-metering customer filed an application with a commission for approval of a net-metering facility with a nameplate generating capacity not to exceed twenty thousand kilowatts (20,000 kW) before December 31, 2022. (b) (1) A net-metering facility serving multiple meter locations under common ownership shall be located on a separate property from any other net-metering facility or only co-locate on a property with one (1) other net-metering facility within a single utility's allocated service territory. (2) For a net-metering facility under subdivision (9)(B)(ii) (b)(1) of this section, the nameplate generating capacity under this subdivision (9)(B)(ii) includes the total kilowatt nameplate-generating capacity of all net-metering facilities serving multiple meter locations under common ownership within a single electric utility's allocated service territory owned by, leased by, or providing electric energy under one (1) or more qualifying service contracts to a net-metering customer, including without limitation any net-metering facilities serving multiple meter locations under common ownership;

(i) Has a nameplate generating capacity of not more than: (a) For a residential customer for residential use, the lesser of twenty-five kilowatts (25 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months unless an individual net-metering customer's net-metering facility with a greater amount is included in a standard interconnection agreement executed before December 31, 2022; (b) For nonresidential customers of electric utilities for nonresidential use, less than or equal to the lesser of five thousand kilowatts (5,000 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months within a single utility's allocated service territory where a single net-metering facility is physically located behind a net-metering customer's electric utility meter that represents one hundred percent (100%) of the net-metering customer's energy usage served by the net-metering facility; or (c) For customers of a municipal utility, the limits established by the governing body of the municipal utility under § 23-18-605 .

(a) For a residential customer for residential use, the lesser of twenty-five kilowatts (25 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months unless an individual net-metering customer's net-metering facility with a greater amount is included in a standard interconnection agreement executed before December 31, 2022;

(b) For nonresidential customers of electric utilities for nonresidential use, less than or equal to the lesser of five thousand kilowatts (5,000 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months within a single utility's allocated service territory where a single net-metering facility is physically located behind a net-metering customer's electric utility meter that represents one hundred percent (100%) of the net-metering customer's energy usage served by the net-metering facility; or

(c) For customers of a municipal utility, the limits established by the governing body of the municipal utility under § 23-18-605 .

(ii) (a) The total nameplate generating capacity of all net-metering facilities owned by, leased by, or providing electric energy under one (1) or more qualifying service contracts of an individual net-metering customer serving multiple meter locations under common ownership of any net-metering customer, within a single utility's allocated service territory, shall be less than or equal to the lesser of five thousand kilowatts (5,000 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months, unless: (1) A commission approved a greater amount for an individual net-metering customer before December 31, 2022; (2) An individual net-metering customer has executed a contract with a net-metering facility developer by February 22, 2023, to purchase a net-metering facility with a nameplate capacity not to exceed twenty thousand kilowatts (20,000 kW) and has filed the contract with a commission under a protective order by March 31, 2023; or (3) An individual net-metering customer filed an application with a commission for approval of a net-metering facility with a nameplate generating capacity not to exceed twenty thousand kilowatts (20,000 kW) before December 31, 2022. (b) (1) A net-metering facility serving multiple meter locations under common ownership shall be located on a separate property from any other net-metering facility or only co-locate on a property with one (1) other net-metering facility within a single utility's allocated service territory. (2) For a net-metering facility under subdivision (9)(B)(ii) (b)(1) of this section, the nameplate generating capacity under this subdivision (9)(B)(ii) includes the total kilowatt nameplate-generating capacity of all net-metering facilities serving multiple meter locations under common ownership within a single electric utility's allocated service territory owned by, leased by, or providing electric energy under one (1) or more qualifying service contracts to a net-metering customer, including without limitation any net-metering facilities serving multiple meter locations under common ownership;

(a) The total nameplate generating capacity of all net-metering facilities owned by, leased by, or providing electric energy under one (1) or more qualifying service contracts of an individual net-metering customer serving multiple meter locations under common ownership of any net-metering customer, within a single utility's allocated service territory, shall be less than or equal to the lesser of five thousand kilowatts (5,000 kW) alternating current or one hundred percent (100%) of the net-metering customer's highest monthly usage in the previous twelve (12) months, unless: (1) A commission approved a greater amount for an individual net-metering customer before December 31, 2022; (2) An individual net-metering customer has executed a contract with a net-metering facility developer by February 22, 2023, to purchase a net-metering facility with a nameplate capacity not to exceed twenty thousand kilowatts (20,000 kW) and has filed the contract with a commission under a protective order by March 31, 2023; or (3) An individual net-metering customer filed an application with a commission for approval of a net-metering facility with a nameplate generating capacity not to exceed twenty thousand kilowatts (20,000 kW) before December 31, 2022.

(1) A commission approved a greater amount for an individual net-metering customer before December 31, 2022;

(2) An individual net-metering customer has executed a contract with a net-metering facility developer by February 22, 2023, to purchase a net-metering facility with a nameplate capacity not to exceed twenty thousand kilowatts (20,000 kW) and has filed the contract with a commission under a protective order by March 31, 2023; or

(3) An individual net-metering customer filed an application with a commission for approval of a net-metering facility with a nameplate generating capacity not to exceed twenty thousand kilowatts (20,000 kW) before December 31, 2022.

(b) (1) A net-metering facility serving multiple meter locations under common ownership shall be located on a separate property from any other net-metering facility or only co-locate on a property with one (1) other net-metering facility within a single utility's allocated service territory. (2) For a net-metering facility under subdivision (9)(B)(ii) (b)(1) of this section, the nameplate generating capacity under this subdivision (9)(B)(ii) includes the total kilowatt nameplate-generating capacity of all net-metering facilities serving multiple meter locations under common ownership within a single electric utility's allocated service territory owned by, leased by, or providing electric energy under one (1) or more qualifying service contracts to a net-metering customer, including without limitation any net-metering facilities serving multiple meter locations under common ownership;

(1) A net-metering facility serving multiple meter locations under common ownership shall be located on a separate property from any other net-metering facility or only co-locate on a property with one (1) other net-metering facility within a single utility's allocated service territory.

(2) For a net-metering facility under subdivision (9)(B)(ii) (b)(1) of this section, the nameplate generating capacity under this subdivision (9)(B)(ii) includes the total kilowatt nameplate-generating capacity of all net-metering facilities serving multiple meter locations under common ownership within a single electric utility's allocated service territory owned by, leased by, or providing electric energy under one (1) or more qualifying service contracts to a net-metering customer, including without limitation any net-metering facilities serving multiple meter locations under common ownership;

(C) Is located in Arkansas;

(D) Can operate in parallel with an electric utility's existing distribution facilities or, if permitted by the electric utility, an electric utility's transmission facilities;

(E) Is intended to offset part or all of an individual net-metering customer's requirements for electricity; and

(F) (i) May include an energy storage device that is configured to receive electric energy solely from a net-metering facility. (ii) The capacity of an energy storage device shall not be used to calculate the capacity limits listed in subdivision (9)(B) of this section if the energy storage device is configured to receive electric energy solely from a net-metering facility;

(i) May include an energy storage device that is configured to receive electric energy solely from a net-metering facility.

(ii) The capacity of an energy storage device shall not be used to calculate the capacity limits listed in subdivision (9)(B) of this section if the energy storage device is configured to receive electric energy solely from a net-metering facility;

(10) "Net-metering surplus" means the dollar value resulting from multiplying the avoided cost of the electric utility to all kilowatt hours supplied to the electric utility by a net-metering customer during the applicable billing period under § 23-18-604(c)(4) ; and

(11) "Renewable energy credit" means the environmental, economic, and social attributes of a unit of electricity, such as a megawatt hour, generated from renewable fuels that can be sold or traded separately.

Amended by Act 2023, No. 278,§ 1, eff. 3/13/2023.

Amended by Act 2019, No. 464,§ 1, eff. 7/24/2019.

Amended by Act 2015, No. 827,§ 1, eff. 7/22/2015.

Acts 2001, No. 1781, § 3; 2007, No. 1026, § 1.
Ark. Code Ann. § 23-40-122 — AR Code / Title 23 / Chapter 40 / Section 23-40-122
Cancellation or transfer
Status: in_force

(a) A purchaser may cancel or transfer a prepaid contract under this section, whether revocable or irrevocable, or whether cash-funded or funded by insurance or an annuity, at any time before performance of the contract by the seller, under the following conditions: (1) In the case of a cash-funded or trust-funded prepaid contract: (A) Before the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser is entitled to receive a refund of not less than one hundred percent (100%) of all sums paid to the seller by the purchaser, not to exceed the contract price; (B) After the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser or, if the purchaser is someone other than the prepaid contract beneficiary, the contract beneficiary's family member or responsible party as determined under § 20-17-102(d) , is entitled to receive one hundred percent (100%) of the amount paid to the seller by the purchaser, not to exceed the contract price; (C) Before the death of the contract beneficiary, if the prepaid contract is irrevocable, the purchaser shall not have the right to a refund of any funds paid by him or her or proceeds paid to the seller but shall have the right to change the provider of the contract services and merchandise to a substitute provider, in which event the seller shall transfer to the substitute provider not less than one hundred percent (100%) of the amount paid to the seller by the purchaser, not to exceed the contract price; or (D) (i) After the death of the contract beneficiary, if the prepaid contract is irrevocable, the purchaser or, if the purchaser is someone other than the prepaid contract beneficiary, the contract beneficiary's family member or responsible party as determined under § 20-17-102(d) , does not have the right to a refund of any funds paid by the purchaser or proceeds paid to the seller but does have the right to change the provider of the contract services and merchandise to a substitute provider. (ii) If a substitute provider is used under subdivision (a)(1)(D)(i) of this section, then the seller shall transfer to the substitute provider one hundred percent (100%) of the amount paid to the seller by the purchaser, not to exceed the contract price; (2) In the case of a prepaid contract funded by life insurance: (A) Before the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser shall have the right to receive not less than one hundred percent (100%) of the cash surrender value of the policy used to fund the prepaid contract, not to exceed the premium paid by the purchaser; (B) After the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser, if the purchaser is someone other than the prepaid contract beneficiary, or his or her designee is entitled to receive not less than one hundred percent (100%) of the policy proceeds paid to the seller, not to exceed the original face amount of the policy; or (C) (i) Before the death of the contract beneficiary, if the contract is irrevocable, the purchaser shall not have the right to a refund of any funds paid to the seller or the insurance company but shall have the right to change the provider of the prepaid contract services and merchandise to a substitute provider, in which event the seller shall assign or transfer to the substitute provider, as directed by the prepaid contract purchaser, the life insurance policy used to fund the prepaid contract or funds in an amount not less than one hundred percent (100%) of the cash surrender value of the policy used to fund the prepaid contract, not to exceed the premium paid by the purchaser. (ii) After the death of the contract beneficiary, if the contract is irrevocable, the seller shall transfer to the substitute provider not less than one hundred percent (100%) of the policy proceeds paid to the seller, not to exceed the original face amount of the policy; or (3) In the case of a prepaid contract funded by an annuity: (A) Before the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser is entitled to receive a refund of not less than one hundred percent (100%) of the annuity value, not to exceed the premium paid by the purchaser for the annuity funding the prepaid contract; (B) After the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser, if the purchaser is someone other than the prepaid contract beneficiary, or his or her designee is entitled to receive not less than one hundred percent (100%) of the annuity proceeds received by the seller, not to exceed the premium paid by the purchaser; or (C) (i) Before the death of the contract beneficiary, if the prepaid contract is irrevocable, the purchaser shall not have the right to a refund of any funds paid to the seller but shall have the right to change the provider of the prepaid contract services and merchandise to a substitute provider, in which event the seller shall assign or transfer to the substitute provider, as directed by the contract purchaser, the annuity policy used to fund the prepaid contract, which shall be in an amount of not less than one hundred percent (100%) of the annuity value, not to exceed the premium paid by the purchaser. (ii) After the death of the contract beneficiary, the seller shall transfer to the substitute provider not less than one hundred percent (100%) of the annuity proceeds received by the seller, not to exceed the premiums paid by the purchaser. (b) (1) A seller or funding life insurance company may collect a fee for the transfer or cancellation of a prepaid contract to a substitute provider. (2) The Insurance Commissioner by rule shall establish the fee for a transfer or cancellation of a prepaid contract under subdivision (b)(1) of this section. (c) (1) (A) In the case of cancellations, reassignments, or transfers, a seller is entitled to retain any accrued interest income on a cash-funded prepaid funeral benefits contract that is being transferred to a substitute provider. (B) On an insurance-funded or annuity-funded prepaid funeral benefits contract that is being transferred to a substitute provider, a seller shall be entitled to retain any accrued interest income on the policy used to fund the insurance-funded or annuity-funded prepaid funeral benefits contract from the policy inception date up to the reassignment or transfer date. (2) A substitute provider shall be entitled to retain any accrued interest income on the funding mechanism from the completion date of the reassignment or transfer. Amended by Act 2023, No. 345,§ 6, eff. 8/1/2023. Amended by Act 2019, No. 521,§ 2, eff. 7/24/2019. Amended by Act 2015, No. 880,§ 2, eff. 7/22/2015. Acts 1995, No. 852, § 12; 2003, No. 987, § 5[4].

(a) A purchaser may cancel or transfer a prepaid contract under this section, whether revocable or irrevocable, or whether cash-funded or funded by insurance or an annuity, at any time before performance of the contract by the seller, under the following conditions: (1) In the case of a cash-funded or trust-funded prepaid contract: (A) Before the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser is entitled to receive a refund of not less than one hundred percent (100%) of all sums paid to the seller by the purchaser, not to exceed the contract price; (B) After the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser or, if the purchaser is someone other than the prepaid contract beneficiary, the contract beneficiary's family member or responsible party as determined under § 20-17-102(d) , is entitled to receive one hundred percent (100%) of the amount paid to the seller by the purchaser, not to exceed the contract price; (C) Before the death of the contract beneficiary, if the prepaid contract is irrevocable, the purchaser shall not have the right to a refund of any funds paid by him or her or proceeds paid to the seller but shall have the right to change the provider of the contract services and merchandise to a substitute provider, in which event the seller shall transfer to the substitute provider not less than one hundred percent (100%) of the amount paid to the seller by the purchaser, not to exceed the contract price; or (D) (i) After the death of the contract beneficiary, if the prepaid contract is irrevocable, the purchaser or, if the purchaser is someone other than the prepaid contract beneficiary, the contract beneficiary's family member or responsible party as determined under § 20-17-102(d) , does not have the right to a refund of any funds paid by the purchaser or proceeds paid to the seller but does have the right to change the provider of the contract services and merchandise to a substitute provider. (ii) If a substitute provider is used under subdivision (a)(1)(D)(i) of this section, then the seller shall transfer to the substitute provider one hundred percent (100%) of the amount paid to the seller by the purchaser, not to exceed the contract price; (2) In the case of a prepaid contract funded by life insurance: (A) Before the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser shall have the right to receive not less than one hundred percent (100%) of the cash surrender value of the policy used to fund the prepaid contract, not to exceed the premium paid by the purchaser; (B) After the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser, if the purchaser is someone other than the prepaid contract beneficiary, or his or her designee is entitled to receive not less than one hundred percent (100%) of the policy proceeds paid to the seller, not to exceed the original face amount of the policy; or (C) (i) Before the death of the contract beneficiary, if the contract is irrevocable, the purchaser shall not have the right to a refund of any funds paid to the seller or the insurance company but shall have the right to change the provider of the prepaid contract services and merchandise to a substitute provider, in which event the seller shall assign or transfer to the substitute provider, as directed by the prepaid contract purchaser, the life insurance policy used to fund the prepaid contract or funds in an amount not less than one hundred percent (100%) of the cash surrender value of the policy used to fund the prepaid contract, not to exceed the premium paid by the purchaser. (ii) After the death of the contract beneficiary, if the contract is irrevocable, the seller shall transfer to the substitute provider not less than one hundred percent (100%) of the policy proceeds paid to the seller, not to exceed the original face amount of the policy; or (3) In the case of a prepaid contract funded by an annuity: (A) Before the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser is entitled to receive a refund of not less than one hundred percent (100%) of the annuity value, not to exceed the premium paid by the purchaser for the annuity funding the prepaid contract; (B) After the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser, if the purchaser is someone other than the prepaid contract beneficiary, or his or her designee is entitled to receive not less than one hundred percent (100%) of the annuity proceeds received by the seller, not to exceed the premium paid by the purchaser; or (C) (i) Before the death of the contract beneficiary, if the prepaid contract is irrevocable, the purchaser shall not have the right to a refund of any funds paid to the seller but shall have the right to change the provider of the prepaid contract services and merchandise to a substitute provider, in which event the seller shall assign or transfer to the substitute provider, as directed by the contract purchaser, the annuity policy used to fund the prepaid contract, which shall be in an amount of not less than one hundred percent (100%) of the annuity value, not to exceed the premium paid by the purchaser. (ii) After the death of the contract beneficiary, the seller shall transfer to the substitute provider not less than one hundred percent (100%) of the annuity proceeds received by the seller, not to exceed the premiums paid by the purchaser.

(1) In the case of a cash-funded or trust-funded prepaid contract: (A) Before the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser is entitled to receive a refund of not less than one hundred percent (100%) of all sums paid to the seller by the purchaser, not to exceed the contract price; (B) After the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser or, if the purchaser is someone other than the prepaid contract beneficiary, the contract beneficiary's family member or responsible party as determined under § 20-17-102(d) , is entitled to receive one hundred percent (100%) of the amount paid to the seller by the purchaser, not to exceed the contract price; (C) Before the death of the contract beneficiary, if the prepaid contract is irrevocable, the purchaser shall not have the right to a refund of any funds paid by him or her or proceeds paid to the seller but shall have the right to change the provider of the contract services and merchandise to a substitute provider, in which event the seller shall transfer to the substitute provider not less than one hundred percent (100%) of the amount paid to the seller by the purchaser, not to exceed the contract price; or (D) (i) After the death of the contract beneficiary, if the prepaid contract is irrevocable, the purchaser or, if the purchaser is someone other than the prepaid contract beneficiary, the contract beneficiary's family member or responsible party as determined under § 20-17-102(d) , does not have the right to a refund of any funds paid by the purchaser or proceeds paid to the seller but does have the right to change the provider of the contract services and merchandise to a substitute provider. (ii) If a substitute provider is used under subdivision (a)(1)(D)(i) of this section, then the seller shall transfer to the substitute provider one hundred percent (100%) of the amount paid to the seller by the purchaser, not to exceed the contract price;

(A) Before the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser is entitled to receive a refund of not less than one hundred percent (100%) of all sums paid to the seller by the purchaser, not to exceed the contract price;

(B) After the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser or, if the purchaser is someone other than the prepaid contract beneficiary, the contract beneficiary's family member or responsible party as determined under § 20-17-102(d) , is entitled to receive one hundred percent (100%) of the amount paid to the seller by the purchaser, not to exceed the contract price;

(C) Before the death of the contract beneficiary, if the prepaid contract is irrevocable, the purchaser shall not have the right to a refund of any funds paid by him or her or proceeds paid to the seller but shall have the right to change the provider of the contract services and merchandise to a substitute provider, in which event the seller shall transfer to the substitute provider not less than one hundred percent (100%) of the amount paid to the seller by the purchaser, not to exceed the contract price; or

(D) (i) After the death of the contract beneficiary, if the prepaid contract is irrevocable, the purchaser or, if the purchaser is someone other than the prepaid contract beneficiary, the contract beneficiary's family member or responsible party as determined under § 20-17-102(d) , does not have the right to a refund of any funds paid by the purchaser or proceeds paid to the seller but does have the right to change the provider of the contract services and merchandise to a substitute provider. (ii) If a substitute provider is used under subdivision (a)(1)(D)(i) of this section, then the seller shall transfer to the substitute provider one hundred percent (100%) of the amount paid to the seller by the purchaser, not to exceed the contract price;

(i) After the death of the contract beneficiary, if the prepaid contract is irrevocable, the purchaser or, if the purchaser is someone other than the prepaid contract beneficiary, the contract beneficiary's family member or responsible party as determined under § 20-17-102(d) , does not have the right to a refund of any funds paid by the purchaser or proceeds paid to the seller but does have the right to change the provider of the contract services and merchandise to a substitute provider.

(ii) If a substitute provider is used under subdivision (a)(1)(D)(i) of this section, then the seller shall transfer to the substitute provider one hundred percent (100%) of the amount paid to the seller by the purchaser, not to exceed the contract price;

(2) In the case of a prepaid contract funded by life insurance: (A) Before the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser shall have the right to receive not less than one hundred percent (100%) of the cash surrender value of the policy used to fund the prepaid contract, not to exceed the premium paid by the purchaser; (B) After the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser, if the purchaser is someone other than the prepaid contract beneficiary, or his or her designee is entitled to receive not less than one hundred percent (100%) of the policy proceeds paid to the seller, not to exceed the original face amount of the policy; or (C) (i) Before the death of the contract beneficiary, if the contract is irrevocable, the purchaser shall not have the right to a refund of any funds paid to the seller or the insurance company but shall have the right to change the provider of the prepaid contract services and merchandise to a substitute provider, in which event the seller shall assign or transfer to the substitute provider, as directed by the prepaid contract purchaser, the life insurance policy used to fund the prepaid contract or funds in an amount not less than one hundred percent (100%) of the cash surrender value of the policy used to fund the prepaid contract, not to exceed the premium paid by the purchaser. (ii) After the death of the contract beneficiary, if the contract is irrevocable, the seller shall transfer to the substitute provider not less than one hundred percent (100%) of the policy proceeds paid to the seller, not to exceed the original face amount of the policy; or

(A) Before the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser shall have the right to receive not less than one hundred percent (100%) of the cash surrender value of the policy used to fund the prepaid contract, not to exceed the premium paid by the purchaser;

(B) After the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser, if the purchaser is someone other than the prepaid contract beneficiary, or his or her designee is entitled to receive not less than one hundred percent (100%) of the policy proceeds paid to the seller, not to exceed the original face amount of the policy; or

(C) (i) Before the death of the contract beneficiary, if the contract is irrevocable, the purchaser shall not have the right to a refund of any funds paid to the seller or the insurance company but shall have the right to change the provider of the prepaid contract services and merchandise to a substitute provider, in which event the seller shall assign or transfer to the substitute provider, as directed by the prepaid contract purchaser, the life insurance policy used to fund the prepaid contract or funds in an amount not less than one hundred percent (100%) of the cash surrender value of the policy used to fund the prepaid contract, not to exceed the premium paid by the purchaser. (ii) After the death of the contract beneficiary, if the contract is irrevocable, the seller shall transfer to the substitute provider not less than one hundred percent (100%) of the policy proceeds paid to the seller, not to exceed the original face amount of the policy; or

(i) Before the death of the contract beneficiary, if the contract is irrevocable, the purchaser shall not have the right to a refund of any funds paid to the seller or the insurance company but shall have the right to change the provider of the prepaid contract services and merchandise to a substitute provider, in which event the seller shall assign or transfer to the substitute provider, as directed by the prepaid contract purchaser, the life insurance policy used to fund the prepaid contract or funds in an amount not less than one hundred percent (100%) of the cash surrender value of the policy used to fund the prepaid contract, not to exceed the premium paid by the purchaser.

(ii) After the death of the contract beneficiary, if the contract is irrevocable, the seller shall transfer to the substitute provider not less than one hundred percent (100%) of the policy proceeds paid to the seller, not to exceed the original face amount of the policy; or

(3) In the case of a prepaid contract funded by an annuity: (A) Before the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser is entitled to receive a refund of not less than one hundred percent (100%) of the annuity value, not to exceed the premium paid by the purchaser for the annuity funding the prepaid contract; (B) After the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser, if the purchaser is someone other than the prepaid contract beneficiary, or his or her designee is entitled to receive not less than one hundred percent (100%) of the annuity proceeds received by the seller, not to exceed the premium paid by the purchaser; or (C) (i) Before the death of the contract beneficiary, if the prepaid contract is irrevocable, the purchaser shall not have the right to a refund of any funds paid to the seller but shall have the right to change the provider of the prepaid contract services and merchandise to a substitute provider, in which event the seller shall assign or transfer to the substitute provider, as directed by the contract purchaser, the annuity policy used to fund the prepaid contract, which shall be in an amount of not less than one hundred percent (100%) of the annuity value, not to exceed the premium paid by the purchaser. (ii) After the death of the contract beneficiary, the seller shall transfer to the substitute provider not less than one hundred percent (100%) of the annuity proceeds received by the seller, not to exceed the premiums paid by the purchaser.

(A) Before the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser is entitled to receive a refund of not less than one hundred percent (100%) of the annuity value, not to exceed the premium paid by the purchaser for the annuity funding the prepaid contract;

(B) After the death of the contract beneficiary, if the prepaid contract is revocable, the purchaser, if the purchaser is someone other than the prepaid contract beneficiary, or his or her designee is entitled to receive not less than one hundred percent (100%) of the annuity proceeds received by the seller, not to exceed the premium paid by the purchaser; or

(C) (i) Before the death of the contract beneficiary, if the prepaid contract is irrevocable, the purchaser shall not have the right to a refund of any funds paid to the seller but shall have the right to change the provider of the prepaid contract services and merchandise to a substitute provider, in which event the seller shall assign or transfer to the substitute provider, as directed by the contract purchaser, the annuity policy used to fund the prepaid contract, which shall be in an amount of not less than one hundred percent (100%) of the annuity value, not to exceed the premium paid by the purchaser. (ii) After the death of the contract beneficiary, the seller shall transfer to the substitute provider not less than one hundred percent (100%) of the annuity proceeds received by the seller, not to exceed the premiums paid by the purchaser.

(i) Before the death of the contract beneficiary, if the prepaid contract is irrevocable, the purchaser shall not have the right to a refund of any funds paid to the seller but shall have the right to change the provider of the prepaid contract services and merchandise to a substitute provider, in which event the seller shall assign or transfer to the substitute provider, as directed by the contract purchaser, the annuity policy used to fund the prepaid contract, which shall be in an amount of not less than one hundred percent (100%) of the annuity value, not to exceed the premium paid by the purchaser.

(ii) After the death of the contract beneficiary, the seller shall transfer to the substitute provider not less than one hundred percent (100%) of the annuity proceeds received by the seller, not to exceed the premiums paid by the purchaser.

(b) (1) A seller or funding life insurance company may collect a fee for the transfer or cancellation of a prepaid contract to a substitute provider. (2) The Insurance Commissioner by rule shall establish the fee for a transfer or cancellation of a prepaid contract under subdivision (b)(1) of this section.

(1) A seller or funding life insurance company may collect a fee for the transfer or cancellation of a prepaid contract to a substitute provider.

(2) The Insurance Commissioner by rule shall establish the fee for a transfer or cancellation of a prepaid contract under subdivision (b)(1) of this section.

(c) (1) (A) In the case of cancellations, reassignments, or transfers, a seller is entitled to retain any accrued interest income on a cash-funded prepaid funeral benefits contract that is being transferred to a substitute provider. (B) On an insurance-funded or annuity-funded prepaid funeral benefits contract that is being transferred to a substitute provider, a seller shall be entitled to retain any accrued interest income on the policy used to fund the insurance-funded or annuity-funded prepaid funeral benefits contract from the policy inception date up to the reassignment or transfer date. (2) A substitute provider shall be entitled to retain any accrued interest income on the funding mechanism from the completion date of the reassignment or transfer.

(1) (A) In the case of cancellations, reassignments, or transfers, a seller is entitled to retain any accrued interest income on a cash-funded prepaid funeral benefits contract that is being transferred to a substitute provider. (B) On an insurance-funded or annuity-funded prepaid funeral benefits contract that is being transferred to a substitute provider, a seller shall be entitled to retain any accrued interest income on the policy used to fund the insurance-funded or annuity-funded prepaid funeral benefits contract from the policy inception date up to the reassignment or transfer date.

(A) In the case of cancellations, reassignments, or transfers, a seller is entitled to retain any accrued interest income on a cash-funded prepaid funeral benefits contract that is being transferred to a substitute provider.

(B) On an insurance-funded or annuity-funded prepaid funeral benefits contract that is being transferred to a substitute provider, a seller shall be entitled to retain any accrued interest income on the policy used to fund the insurance-funded or annuity-funded prepaid funeral benefits contract from the policy inception date up to the reassignment or transfer date.

(2) A substitute provider shall be entitled to retain any accrued interest income on the funding mechanism from the completion date of the reassignment or transfer.

Amended by Act 2023, No. 345,§ 6, eff. 8/1/2023.

Amended by Act 2019, No. 521,§ 2, eff. 7/24/2019.

Amended by Act 2015, No. 880,§ 2, eff. 7/22/2015.

Acts 1995, No. 852, § 12; 2003, No. 987, § 5[4].
Ark. Code Ann. § 23-61-103 — AR Code / Title 23 / Chapter 61 / Subchapter 1 / Section 23-61-103
Insurance Commissioner - Powers and duties
Status: in_force

(a) The Insurance Commissioner shall enforce the provisions of the Arkansas Insurance Code and shall execute the duties imposed upon him or her by the Arkansas Insurance Code. (b) The commissioner shall have the powers and authority expressly conferred upon him or her by or reasonably implied from the provisions of the Arkansas Insurance Code. (c) The commissioner is authorized to enter into regulatory cooperation and coordination agreements with other governmental regulatory agencies within and outside of this state with respect to the regulation of the business of insurance, including, but not limited to: (1) Licensing of insurance companies; (2) Licensing of producers; (3) Regulation of premium rates and policy forms; (4) Regulation of insurer solvency and insurance receiverships; and (5) Other matters relating to the effective regulation of the business of insurance. (d) (1) The commissioner may conduct such examinations and investigations of insurance matters, in addition to examinations and investigations expressly authorized, as he or she may deem proper to determine whether any person has violated any provision of the Arkansas Insurance Code or to secure information useful in the lawful administration of any such provision. The cost of these additional examinations or investigations shall be borne by the state. (2) Notwithstanding any other provision of law, active investigatory or examination files as maintained by the State Insurance Department shall be deemed confidential and privileged and shall not be made open to the public until: (A) The matter under investigation or examination is deemed closed by the commissioner; or (B) Referred to any law enforcement authority and made subject to public disclosure by the authority. (3) At such time that any matter investigated or examined has been set for an administrative hearing pursuant to § 23-61-304 or § 25-15-208 , investigation or examination information shall be made available as provided in § 25-15-208 . (4) Unless otherwise exempted by subdivision (d)(5) of this section, actuarial formulas and assumptions certified by a qualified actuary are confidential and privileged when submitted to comply with a rate or form filing requirement of the department, including, but not limited to, any actuarial report: (A) Required, submitted, or attached to any filing made to the department under § 23-67-211 , for rate and form filings of an insurer, or to those submitted under § 23-63-216 for annual statements of an insurer; or (B) Submitted to the department to comply with any form and rate filing requirement imposed by statute or rule upon licensed insurers, health maintenance organizations, fraternal benefit societies, and hospital and medical service corporations. (5) Subdivisions (d)(2) and (d)(4) of this section do not prohibit release by the commissioner of active investigatory or examination files: (A) At the discretion of the commissioner, to a person or persons that the commissioner determines to be aggrieved or affected by the examination or investigation; or (B) To state, federal, or local law enforcement or regulatory agencies or private organizations established for tracking or preventing insurance violations, or to the National Association of Insurance Commissioners. (6) Release of active investigatory or examination files under subdivision (d)(5) of this section does not abrogate or modify the confidential nature of investigatory or examination files under subdivision (d)(2) of this section. (e) (1) The commissioner may delegate to any assistant, deputy, examiner, or employee of the department the exercise or discharge in the commissioner's name of any power, duty, or function, whether ministerial, discretionary, or of whatever character which may be vested by the Arkansas Insurance Code in the commissioner. (2) The commissioner shall be responsible for the official acts of his or her deputy, assistant, examiner, or employee acting in the commissioner's name and by his or her authority. (f) (1) (A) To the extent not otherwise governed by the Trade Practices Act, § 23-66-201 et seq., § 23-65-101 et seq., or a law or rule providing specific injunctive powers to the commissioner, if it appears to the commissioner upon sufficient grounds or evidence that any person has engaged in or is about to engage in any act or practice constituting a violation of an insurance law, rule, or order of this state, the commissioner may summarily order the person to cease and desist from the act or practice. (B) (i) Upon the entry of the cease and desist order under subdivision (f)(1)(A) of this section, the commissioner shall promptly notify the person who is the subject of the order: (a) That the order has been entered; and (b) Of his or her right to a hearing concerning the order. (ii) The notification shall include a copy of the order or a detailed statement of the reasons for the order. (2) (A) A hearing shall be held under § 23-61-301 et seq. on the written request of the person aggrieved by the cease and desist order under subdivision (f)(1)(A) of this section if the request is received by the commissioner within thirty (30) days of the date of the entry of the order or if ordered by the commissioner. (B) If no hearing is requested and none is ordered by the commissioner, the order shall remain in effect until it is modified or vacated by the commissioner. (C) If a hearing is requested or ordered, the commissioner after notice and opportunity for hearing: (i) May affirm, modify, or vacate the order; and (ii) Shall conduct the hearing within ten (10) days of the date a hearing is requested or ordered by the commissioner. (3) (A) After issuance of an order under this subsection, the commissioner may apply to the Pulaski County Circuit Court to temporarily or permanently enjoin the act or practice and to enforce compliance with the insurance laws of this state. (B) However, without issuing such an order, the commissioner may apply directly to the Pulaski County Circuit Court for relief. (4) Upon a proper showing, a permanent or temporary injunction, restraining order, or writ of mandamus shall be granted. (5) (A) The commissioner may also seek and the appropriate court shall grant, upon proper showing, any other ancillary relief that may be in the public interest. (B) The relief may include: (i) The appointment of a receiver, temporary receiver, or conservator; (ii) A declaratory judgment; (iii) An accounting; (iv) A disgorgement of profits; (v) The assessment of a fine not to exceed the total amount of money, property, or other value received in connection with an insurance law violation; or (vi) Any other relief appropriate to protect the public interest. (6) The commissioner is not required to post a bond as a condition for obtaining relief under this subsection. (7) This subsection does not prohibit or restrict the informal disposition of a proceeding or allegations that might give rise to a proceeding by stipulation, settlement, consent, or default in lieu of a formal or informal hearing on the allegations or in lieu of the sanctions authorized by this subsection. Amended by Act 2015, No. 1210,§ 1, eff. 7/22/2015. Acts 1959, No. 148, §§ 22, 25; A.S.A. 1947, §§ 66-2107, 66-2110; Acts 1997, No. 956, § 1; 1999, No. 453, § 1; 2001, No. 1239, § 2; 2009, No. 717, § 1; 2009, No. 726, § 5.

(a) The Insurance Commissioner shall enforce the provisions of the Arkansas Insurance Code and shall execute the duties imposed upon him or her by the Arkansas Insurance Code.

(b) The commissioner shall have the powers and authority expressly conferred upon him or her by or reasonably implied from the provisions of the Arkansas Insurance Code.

(c) The commissioner is authorized to enter into regulatory cooperation and coordination agreements with other governmental regulatory agencies within and outside of this state with respect to the regulation of the business of insurance, including, but not limited to: (1) Licensing of insurance companies; (2) Licensing of producers; (3) Regulation of premium rates and policy forms; (4) Regulation of insurer solvency and insurance receiverships; and (5) Other matters relating to the effective regulation of the business of insurance.

(1) Licensing of insurance companies;

(2) Licensing of producers;

(3) Regulation of premium rates and policy forms;

(4) Regulation of insurer solvency and insurance receiverships; and

(5) Other matters relating to the effective regulation of the business of insurance.

(d) (1) The commissioner may conduct such examinations and investigations of insurance matters, in addition to examinations and investigations expressly authorized, as he or she may deem proper to determine whether any person has violated any provision of the Arkansas Insurance Code or to secure information useful in the lawful administration of any such provision. The cost of these additional examinations or investigations shall be borne by the state. (2) Notwithstanding any other provision of law, active investigatory or examination files as maintained by the State Insurance Department shall be deemed confidential and privileged and shall not be made open to the public until: (A) The matter under investigation or examination is deemed closed by the commissioner; or (B) Referred to any law enforcement authority and made subject to public disclosure by the authority. (3) At such time that any matter investigated or examined has been set for an administrative hearing pursuant to § 23-61-304 or § 25-15-208 , investigation or examination information shall be made available as provided in § 25-15-208 . (4) Unless otherwise exempted by subdivision (d)(5) of this section, actuarial formulas and assumptions certified by a qualified actuary are confidential and privileged when submitted to comply with a rate or form filing requirement of the department, including, but not limited to, any actuarial report: (A) Required, submitted, or attached to any filing made to the department under § 23-67-211 , for rate and form filings of an insurer, or to those submitted under § 23-63-216 for annual statements of an insurer; or (B) Submitted to the department to comply with any form and rate filing requirement imposed by statute or rule upon licensed insurers, health maintenance organizations, fraternal benefit societies, and hospital and medical service corporations. (5) Subdivisions (d)(2) and (d)(4) of this section do not prohibit release by the commissioner of active investigatory or examination files: (A) At the discretion of the commissioner, to a person or persons that the commissioner determines to be aggrieved or affected by the examination or investigation; or (B) To state, federal, or local law enforcement or regulatory agencies or private organizations established for tracking or preventing insurance violations, or to the National Association of Insurance Commissioners. (6) Release of active investigatory or examination files under subdivision (d)(5) of this section does not abrogate or modify the confidential nature of investigatory or examination files under subdivision (d)(2) of this section.

(1) The commissioner may conduct such examinations and investigations of insurance matters, in addition to examinations and investigations expressly authorized, as he or she may deem proper to determine whether any person has violated any provision of the Arkansas Insurance Code or to secure information useful in the lawful administration of any such provision. The cost of these additional examinations or investigations shall be borne by the state.

(2) Notwithstanding any other provision of law, active investigatory or examination files as maintained by the State Insurance Department shall be deemed confidential and privileged and shall not be made open to the public until: (A) The matter under investigation or examination is deemed closed by the commissioner; or (B) Referred to any law enforcement authority and made subject to public disclosure by the authority.

(A) The matter under investigation or examination is deemed closed by the commissioner; or

(B) Referred to any law enforcement authority and made subject to public disclosure by the authority.

(3) At such time that any matter investigated or examined has been set for an administrative hearing pursuant to § 23-61-304 or § 25-15-208 , investigation or examination information shall be made available as provided in § 25-15-208 .

(4) Unless otherwise exempted by subdivision (d)(5) of this section, actuarial formulas and assumptions certified by a qualified actuary are confidential and privileged when submitted to comply with a rate or form filing requirement of the department, including, but not limited to, any actuarial report: (A) Required, submitted, or attached to any filing made to the department under § 23-67-211 , for rate and form filings of an insurer, or to those submitted under § 23-63-216 for annual statements of an insurer; or (B) Submitted to the department to comply with any form and rate filing requirement imposed by statute or rule upon licensed insurers, health maintenance organizations, fraternal benefit societies, and hospital and medical service corporations.

(A) Required, submitted, or attached to any filing made to the department under § 23-67-211 , for rate and form filings of an insurer, or to those submitted under § 23-63-216 for annual statements of an insurer; or

(B) Submitted to the department to comply with any form and rate filing requirement imposed by statute or rule upon licensed insurers, health maintenance organizations, fraternal benefit societies, and hospital and medical service corporations.

(5) Subdivisions (d)(2) and (d)(4) of this section do not prohibit release by the commissioner of active investigatory or examination files: (A) At the discretion of the commissioner, to a person or persons that the commissioner determines to be aggrieved or affected by the examination or investigation; or (B) To state, federal, or local law enforcement or regulatory agencies or private organizations established for tracking or preventing insurance violations, or to the National Association of Insurance Commissioners.

(A) At the discretion of the commissioner, to a person or persons that the commissioner determines to be aggrieved or affected by the examination or investigation; or

(B) To state, federal, or local law enforcement or regulatory agencies or private organizations established for tracking or preventing insurance violations, or to the National Association of Insurance Commissioners.

(6) Release of active investigatory or examination files under subdivision (d)(5) of this section does not abrogate or modify the confidential nature of investigatory or examination files under subdivision (d)(2) of this section.

(e) (1) The commissioner may delegate to any assistant, deputy, examiner, or employee of the department the exercise or discharge in the commissioner's name of any power, duty, or function, whether ministerial, discretionary, or of whatever character which may be vested by the Arkansas Insurance Code in the commissioner. (2) The commissioner shall be responsible for the official acts of his or her deputy, assistant, examiner, or employee acting in the commissioner's name and by his or her authority.

(1) The commissioner may delegate to any assistant, deputy, examiner, or employee of the department the exercise or discharge in the commissioner's name of any power, duty, or function, whether ministerial, discretionary, or of whatever character which may be vested by the Arkansas Insurance Code in the commissioner.

(2) The commissioner shall be responsible for the official acts of his or her deputy, assistant, examiner, or employee acting in the commissioner's name and by his or her authority.

(f) (1) (A) To the extent not otherwise governed by the Trade Practices Act, § 23-66-201 et seq., § 23-65-101 et seq., or a law or rule providing specific injunctive powers to the commissioner, if it appears to the commissioner upon sufficient grounds or evidence that any person has engaged in or is about to engage in any act or practice constituting a violation of an insurance law, rule, or order of this state, the commissioner may summarily order the person to cease and desist from the act or practice. (B) (i) Upon the entry of the cease and desist order under subdivision (f)(1)(A) of this section, the commissioner shall promptly notify the person who is the subject of the order: (a) That the order has been entered; and (b) Of his or her right to a hearing concerning the order. (ii) The notification shall include a copy of the order or a detailed statement of the reasons for the order. (2) (A) A hearing shall be held under § 23-61-301 et seq. on the written request of the person aggrieved by the cease and desist order under subdivision (f)(1)(A) of this section if the request is received by the commissioner within thirty (30) days of the date of the entry of the order or if ordered by the commissioner. (B) If no hearing is requested and none is ordered by the commissioner, the order shall remain in effect until it is modified or vacated by the commissioner. (C) If a hearing is requested or ordered, the commissioner after notice and opportunity for hearing: (i) May affirm, modify, or vacate the order; and (ii) Shall conduct the hearing within ten (10) days of the date a hearing is requested or ordered by the commissioner. (3) (A) After issuance of an order under this subsection, the commissioner may apply to the Pulaski County Circuit Court to temporarily or permanently enjoin the act or practice and to enforce compliance with the insurance laws of this state. (B) However, without issuing such an order, the commissioner may apply directly to the Pulaski County Circuit Court for relief. (4) Upon a proper showing, a permanent or temporary injunction, restraining order, or writ of mandamus shall be granted. (5) (A) The commissioner may also seek and the appropriate court shall grant, upon proper showing, any other ancillary relief that may be in the public interest. (B) The relief may include: (i) The appointment of a receiver, temporary receiver, or conservator; (ii) A declaratory judgment; (iii) An accounting; (iv) A disgorgement of profits; (v) The assessment of a fine not to exceed the total amount of money, property, or other value received in connection with an insurance law violation; or (vi) Any other relief appropriate to protect the public interest. (6) The commissioner is not required to post a bond as a condition for obtaining relief under this subsection. (7) This subsection does not prohibit or restrict the informal disposition of a proceeding or allegations that might give rise to a proceeding by stipulation, settlement, consent, or default in lieu of a formal or informal hearing on the allegations or in lieu of the sanctions authorized by this subsection.

(1) (A) To the extent not otherwise governed by the Trade Practices Act, § 23-66-201 et seq., § 23-65-101 et seq., or a law or rule providing specific injunctive powers to the commissioner, if it appears to the commissioner upon sufficient grounds or evidence that any person has engaged in or is about to engage in any act or practice constituting a violation of an insurance law, rule, or order of this state, the commissioner may summarily order the person to cease and desist from the act or practice. (B) (i) Upon the entry of the cease and desist order under subdivision (f)(1)(A) of this section, the commissioner shall promptly notify the person who is the subject of the order: (a) That the order has been entered; and (b) Of his or her right to a hearing concerning the order. (ii) The notification shall include a copy of the order or a detailed statement of the reasons for the order.

(A) To the extent not otherwise governed by the Trade Practices Act, § 23-66-201 et seq., § 23-65-101 et seq., or a law or rule providing specific injunctive powers to the commissioner, if it appears to the commissioner upon sufficient grounds or evidence that any person has engaged in or is about to engage in any act or practice constituting a violation of an insurance law, rule, or order of this state, the commissioner may summarily order the person to cease and desist from the act or practice.

(B) (i) Upon the entry of the cease and desist order under subdivision (f)(1)(A) of this section, the commissioner shall promptly notify the person who is the subject of the order: (a) That the order has been entered; and (b) Of his or her right to a hearing concerning the order. (ii) The notification shall include a copy of the order or a detailed statement of the reasons for the order.

(i) Upon the entry of the cease and desist order under subdivision (f)(1)(A) of this section, the commissioner shall promptly notify the person who is the subject of the order: (a) That the order has been entered; and (b) Of his or her right to a hearing concerning the order.

(a) That the order has been entered; and

(b) Of his or her right to a hearing concerning the order.

(ii) The notification shall include a copy of the order or a detailed statement of the reasons for the order.

(2) (A) A hearing shall be held under § 23-61-301 et seq. on the written request of the person aggrieved by the cease and desist order under subdivision (f)(1)(A) of this section if the request is received by the commissioner within thirty (30) days of the date of the entry of the order or if ordered by the commissioner. (B) If no hearing is requested and none is ordered by the commissioner, the order shall remain in effect until it is modified or vacated by the commissioner. (C) If a hearing is requested or ordered, the commissioner after notice and opportunity for hearing: (i) May affirm, modify, or vacate the order; and (ii) Shall conduct the hearing within ten (10) days of the date a hearing is requested or ordered by the commissioner.

(A) A hearing shall be held under § 23-61-301 et seq. on the written request of the person aggrieved by the cease and desist order under subdivision (f)(1)(A) of this section if the request is received by the commissioner within thirty (30) days of the date of the entry of the order or if ordered by the commissioner.

(B) If no hearing is requested and none is ordered by the commissioner, the order shall remain in effect until it is modified or vacated by the commissioner.

(C) If a hearing is requested or ordered, the commissioner after notice and opportunity for hearing: (i) May affirm, modify, or vacate the order; and (ii) Shall conduct the hearing within ten (10) days of the date a hearing is requested or ordered by the commissioner.

(i) May affirm, modify, or vacate the order; and

(ii) Shall conduct the hearing within ten (10) days of the date a hearing is requested or ordered by the commissioner.

(3) (A) After issuance of an order under this subsection, the commissioner may apply to the Pulaski County Circuit Court to temporarily or permanently enjoin the act or practice and to enforce compliance with the insurance laws of this state. (B) However, without issuing such an order, the commissioner may apply directly to the Pulaski County Circuit Court for relief.

(A) After issuance of an order under this subsection, the commissioner may apply to the Pulaski County Circuit Court to temporarily or permanently enjoin the act or practice and to enforce compliance with the insurance laws of this state.

(B) However, without issuing such an order, the commissioner may apply directly to the Pulaski County Circuit Court for relief.

(4) Upon a proper showing, a permanent or temporary injunction, restraining order, or writ of mandamus shall be granted.

(5) (A) The commissioner may also seek and the appropriate court shall grant, upon proper showing, any other ancillary relief that may be in the public interest. (B) The relief may include: (i) The appointment of a receiver, temporary receiver, or conservator; (ii) A declaratory judgment; (iii) An accounting; (iv) A disgorgement of profits; (v) The assessment of a fine not to exceed the total amount of money, property, or other value received in connection with an insurance law violation; or (vi) Any other relief appropriate to protect the public interest.

(A) The commissioner may also seek and the appropriate court shall grant, upon proper showing, any other ancillary relief that may be in the public interest.

(B) The relief may include: (i) The appointment of a receiver, temporary receiver, or conservator; (ii) A declaratory judgment; (iii) An accounting; (iv) A disgorgement of profits; (v) The assessment of a fine not to exceed the total amount of money, property, or other value received in connection with an insurance law violation; or (vi) Any other relief appropriate to protect the public interest.

(i) The appointment of a receiver, temporary receiver, or conservator;

(ii) A declaratory judgment;

(iii) An accounting;

(iv) A disgorgement of profits;

(v) The assessment of a fine not to exceed the total amount of money, property, or other value received in connection with an insurance law violation; or

(vi) Any other relief appropriate to protect the public interest.

(6) The commissioner is not required to post a bond as a condition for obtaining relief under this subsection.

(7) This subsection does not prohibit or restrict the informal disposition of a proceeding or allegations that might give rise to a proceeding by stipulation, settlement, consent, or default in lieu of a formal or informal hearing on the allegations or in lieu of the sanctions authorized by this subsection.

Amended by Act 2015, No. 1210,§ 1, eff. 7/22/2015.

Acts 1959, No. 148, §§ 22, 25; A.S.A. 1947, §§ 66-2107, 66-2110; Acts 1997, No. 956, § 1; 1999, No. 453, § 1; 2001, No. 1239, § 2; 2009, No. 717, § 1; 2009, No. 726, § 5.
Ark. Code Ann. § 23-66-307 — AR Code / Title 23 / Chapter 66 / Subchapter 3 / Section 23-66-307
Actions required to replace a life insurance policy or annuity - Rules - Penalties
Status: in_force

(a) The General Assembly finds that: (1) It is the public policy of this state that life and accident and health insurance producers shall provide reasonable and professional service to each insured or prospective insured; (2) Each producer is charged with the responsibility of exercising discretion and good faith in the sales presentation or transaction; (3) It is within the general welfare of the people that each life and accident and health insurance producer, when professionally advisable, shall improve upon or change the type of insurance that any insured or prospective insured presently has by providing either better coverage or an overall program of insurance more suitable for the needs of the insured, his or her family, or a business; and (4) Abuses occur when insurance producers: (A) Sell or solicit unsuitable insurance products; (B) Fail to provide reasonable or professional service to an insured or a prospective insured; or (C) Fail to exercise good faith and professional discretion in an insurance sales presentation or transaction. (b) If an insurance producer attempts to sell a new individual life insurance policy or individual annuity contract or asks or urges a person to apply for a particular kind of life insurance or annuity from a particular company, it is unlawful for the insurance producer to encourage, induce, or solicit an insured to permit an existing individual life insurance policy or an existing individual annuity contract that has developed or may develop a cash surrender value to lapse or to otherwise forfeit or surrender the existing policy or contract unless the insurance producer: (1) (A) Furnishes the policyholder a written and dated memorandum comparing the provisions of the existing policy or contract with the provisions of the proposed policy or contract. (B) The written memorandum shall be signed by the producer and by the insured to acknowledge receipt of the written memorandum; and (2) (A) Files a duplicate of the memorandum with the company represented by the producer. (B) The company and the producer shall retain the duplicate memorandum for five (5) years. (c) The Insurance Commissioner may: (1) Prescribe the form of the written memorandum required by subsection (b) of this section; and (2) Promulgate reasonable rules after notice and hearing to implement this section. (d) A violation of this section is: (1) A Class A misdemeanor; and (2) Punishable by disciplinary action under the Arkansas Insurance Code. Acts 1968 (1st Ex. Sess.), No. 12, §§ 1-4; A.S.A. 1947, §§ 66-3029 -- 66-3032; Acts 1987, No. 456, § 14; 2001, No. 1603, § 27; 2005, No. 1994, § 205; 2009, No. 539, § 1.

(a) The General Assembly finds that: (1) It is the public policy of this state that life and accident and health insurance producers shall provide reasonable and professional service to each insured or prospective insured; (2) Each producer is charged with the responsibility of exercising discretion and good faith in the sales presentation or transaction; (3) It is within the general welfare of the people that each life and accident and health insurance producer, when professionally advisable, shall improve upon or change the type of insurance that any insured or prospective insured presently has by providing either better coverage or an overall program of insurance more suitable for the needs of the insured, his or her family, or a business; and (4) Abuses occur when insurance producers: (A) Sell or solicit unsuitable insurance products; (B) Fail to provide reasonable or professional service to an insured or a prospective insured; or (C) Fail to exercise good faith and professional discretion in an insurance sales presentation or transaction.

(1) It is the public policy of this state that life and accident and health insurance producers shall provide reasonable and professional service to each insured or prospective insured;

(2) Each producer is charged with the responsibility of exercising discretion and good faith in the sales presentation or transaction;

(3) It is within the general welfare of the people that each life and accident and health insurance producer, when professionally advisable, shall improve upon or change the type of insurance that any insured or prospective insured presently has by providing either better coverage or an overall program of insurance more suitable for the needs of the insured, his or her family, or a business; and

(4) Abuses occur when insurance producers: (A) Sell or solicit unsuitable insurance products; (B) Fail to provide reasonable or professional service to an insured or a prospective insured; or (C) Fail to exercise good faith and professional discretion in an insurance sales presentation or transaction.

(A) Sell or solicit unsuitable insurance products;

(B) Fail to provide reasonable or professional service to an insured or a prospective insured; or

(C) Fail to exercise good faith and professional discretion in an insurance sales presentation or transaction.

(b) If an insurance producer attempts to sell a new individual life insurance policy or individual annuity contract or asks or urges a person to apply for a particular kind of life insurance or annuity from a particular company, it is unlawful for the insurance producer to encourage, induce, or solicit an insured to permit an existing individual life insurance policy or an existing individual annuity contract that has developed or may develop a cash surrender value to lapse or to otherwise forfeit or surrender the existing policy or contract unless the insurance producer: (1) (A) Furnishes the policyholder a written and dated memorandum comparing the provisions of the existing policy or contract with the provisions of the proposed policy or contract. (B) The written memorandum shall be signed by the producer and by the insured to acknowledge receipt of the written memorandum; and (2) (A) Files a duplicate of the memorandum with the company represented by the producer. (B) The company and the producer shall retain the duplicate memorandum for five (5) years.

(1) (A) Furnishes the policyholder a written and dated memorandum comparing the provisions of the existing policy or contract with the provisions of the proposed policy or contract. (B) The written memorandum shall be signed by the producer and by the insured to acknowledge receipt of the written memorandum; and

(A) Furnishes the policyholder a written and dated memorandum comparing the provisions of the existing policy or contract with the provisions of the proposed policy or contract.

(B) The written memorandum shall be signed by the producer and by the insured to acknowledge receipt of the written memorandum; and

(2) (A) Files a duplicate of the memorandum with the company represented by the producer. (B) The company and the producer shall retain the duplicate memorandum for five (5) years.

(A) Files a duplicate of the memorandum with the company represented by the producer.

(B) The company and the producer shall retain the duplicate memorandum for five (5) years.

(c) The Insurance Commissioner may: (1) Prescribe the form of the written memorandum required by subsection (b) of this section; and (2) Promulgate reasonable rules after notice and hearing to implement this section.

(1) Prescribe the form of the written memorandum required by subsection (b) of this section; and

(2) Promulgate reasonable rules after notice and hearing to implement this section.

(d) A violation of this section is: (1) A Class A misdemeanor; and (2) Punishable by disciplinary action under the Arkansas Insurance Code.

(1) A Class A misdemeanor; and

(2) Punishable by disciplinary action under the Arkansas Insurance Code.

Acts 1968 (1st Ex. Sess.), No. 12, §§ 1-4; A.S.A. 1947, §§ 66-3029 -- 66-3032; Acts 1987, No. 456, § 14; 2001, No. 1603, § 27; 2005, No. 1994, § 205; 2009, No. 539, § 1.
Ark. Code Ann. § 23-18-527 — AR Code / Title 23 / Chapter 18 / Subchapter 5 / Section 23-18-527
Cooperation of state agencies
Status: in_force

All state agencies and departments entitled to service under § 23-18-513(a) and (b) are directed to cooperate with and render assistance to the Arkansas Public Service Commission in discharging its responsibilities under this subchapter. Acts 1973, No. 164, § 17; 1977, No. 866, § 1; A.S.A. 1947, § 73-276.16.

All state agencies and departments entitled to service under § 23-18-513(a) and (b) are directed to cooperate with and render assistance to the Arkansas Public Service Commission in discharging its responsibilities under this subchapter.

Acts 1973, No. 164, § 17; 1977, No. 866, § 1; A.S.A. 1947, § 73-276.16.