Ark. Code Ann. § 23-86-303 — AR Code / Title 23 / Chapter 86 / Subchapter 3 / Section 23-86-303
Definitions
Status: in_force

As used in this subchapter: (1) "Affiliation period" means a period that, under the terms of the coverage offered by the health maintenance organization, must expire before the coverage becomes effective; (2) "Bona fide association" means, with respect to health insurance coverage offered in Arkansas, an association that: (A) Has been actively in existence for at least five (5) years; (B) Has been formed and maintained in good faith for purposes other than obtaining insurance; (C) Does not condition membership in the association on any health status-related factor relating to an individual, including an employee of an employer or a dependent of an employee; (D) Makes health insurance coverage offered through the association available to all members regardless of any health status-related factor relating to the members or individuals eligible for coverage through a member; (E) Does not make health insurance coverage offered through the association available other than in connection with a member of the association; and (F) Meets the additional requirements that may be imposed under Arkansas law; (3) "Church plan" has the meaning given the term under section 3(33) of the Employee Retirement Income Security Act of 1974 (ERISA); (4) "COBRA continuation provision" means any of the following: (A) Part 6 of Subtitle B of Title 1 of the Employee Retirement Income Security Act of 1974, other than section 609 of the act; (B) Section 4980B of the Internal Revenue Code of 1986, other than subsection (f)(1) of the section insofar as it relates to pediatric vaccines; (C) Title XXII of the Public Health Service Act; (5) "Commissioner" means the Insurance Commissioner; (6) "Creditable coverage" means, with respect to an individual, coverage of the individual under any of the following: (A) A group health plan; (B) Health insurance coverage; (C) Part A or Part B of Title XVIII of the Social Security Act; (D) Title XIX of the Social Security Act, other than coverage consisting solely of benefits under section 1928; (E) United States Code Title 10, Chapter 55; (F) A medical care program of the United States Indian Health Service or of a tribal organization; (G) A state health benefits risk pool; (H) A health plan offered under United States Code Title 5, Chapter 89; (I) A public health plan as defined in regulations; (J) A health benefit plan under section 5(e) of the Peace Corps Act, 22 U.S.C. § 2504(e) . The term does not include coverage consisting solely of coverage of excepted benefits as defined in § 23-86-310 ; (7) "Department" means the State Insurance Department unless the context requires otherwise; (8) "Eligible individual" means, with respect to a health insurance issuer that offers health insurance coverage to a small employer in connection with a group health plan in the small-group market, such an individual in relation to the employer as shall be determined: (A) In accordance with the terms of the group health plan; (B) As provided by the issuer under rules of the issuer that are uniformly applicable in Arkansas to small employers in the small-group market; and (C) In accordance with all applicable Arkansas law governing the issuer and the small-group market; (9) (A) "Employee" has the meaning given the term under section 3(6) of the Employee Retirement Income Security Act of 1974. (B) To the extent not in conflict with the Employee Retirement Income Security Act of 1974, the term "employee" also means a person who is employed by an employer for thirty (30) or more hours a week and includes an employee who is employed by a client of a professional employer organization for thirty (30) or more hours a week under a professional employer organization arrangement as governed under the Arkansas Professional Employer Organization Recognition and Licensing Act, § 23-92-401 et seq.; (10) "Employer" has the meaning given the term under section 3(5) of the Employee Retirement Income Security Act of 1974, except that the term shall include only employers of two (2) or more employees; (11) "Employer contribution rule" means a requirement relating to the minimum level or amount of employer contribution toward the premium for enrollment of participants and beneficiaries; (12) "Enrollment date" means, with respect to an individual covered under a group health plan or health insurance coverage, the date of coverage of the individual in the group health plan or, if earlier, the first day of the waiting period for the coverage; (13) "Federal governmental plan" means a governmental plan established or maintained for its employees by the United States Government or by any agency or instrumentality of the government; (14) "Governmental plan" has the meaning given the term under section 3(32) of the Employee Retirement Income Security Act of 1974 and any federal governmental plan; (15) "Group health insurance coverage" means, in connection with a group health plan, health insurance coverage offered in connection with the group health plan; (16) "Group health plan" means an employee welfare benefit plan to the extent that the plan provides medical care as defined in this section and including items and services paid for as medical care, to employees or their dependents as defined under the terms of the plan directly or through insurance, reimbursement, or otherwise; (17) "Group participation rule" means a requirement relating to the minimum number of participants or beneficiaries that must be enrolled in relation to a specified percentage or number of eligible individuals or employees of an employer; (18) "Health insurance coverage" means benefits consisting of medical care, provided directly, through insurance or reimbursement or otherwise and including items and services paid for as medical care, under any hospital or medical service policy or certificate, hospital or medical service plan contract, or health maintenance organization contract offered by a health insurance issuer; (19) "Health insurance issuer" means an insurance company, insurance service, or insurance organization including a health maintenance organization as defined in this section that is licensed to engage in the business of insurance in a state and that is subject to Arkansas law that regulates insurance. The term does not include a group health plan; (20) "Health maintenance organization" means: (A) A federally qualified health maintenance organization as defined in section 1301(a) of the Public Health Service Act, 42 U.S.C. § 300e(a) ; (B) An organization recognized under state law as a health maintenance organization; or (C) A similar organization regulated under state law for solvency in the same manner and to the same extent as a health maintenance organization; (21) "Health status-related factor" means any of the factors described in § 23-86-306(a)(1) ; (22) "Individual market" means the market for health insurance coverage offered to individuals other than in connection with a group health plan; (23) "Large employer" means, in connection with a group health plan with respect to a calendar year and a plan year, an employer who employed an average of at least fifty-one (51) employees on business days during the preceding calendar year and who employs at least two (2) employees on the first day of the plan year; (24) "Large-group market" means the health insurance market under which individuals obtain health insurance coverage directly or through any arrangement on behalf of themselves and their dependents through a group health plan maintained by a large employer; (25) "Late enrollee" means, with respect to coverage under a group health plan, a participant or beneficiary who enrolls under the group health plan other than during: (A) The first period in which the individual is eligible to enroll under the group health plan; or (B) A special enrollment period under § 23-86-304(f) ; (26) "Medical care" means amounts paid for or services provided for: (A) The diagnosis, cure, mitigation, treatment, or prevention of disease, or amounts paid for the purpose of affecting any structure or function of the body; (B) Amounts paid for transportation primarily for and essential to medical care referred to in subdivision (26)(A) of this section; and (C) Amounts paid for insurance covering medical care referred to in subdivisions (26)(A) and (B) of this section; (27) "Network plan" means health insurance coverage offered by a health insurance issuer under which the financing and delivery of medical care, including items and services paid for as medical care are provided, in whole or in part, through a defined set of providers under contract with the issuer; (28) "Nonfederal governmental plan" means a governmental plan that is not a federal governmental plan; (29) "Participant" has the meaning given the term under section 3(7) of the Employee Retirement Income Security Act of 1974; (30) "Placement", or being "placed", for adoption, in connection with any placement for adoption of a child with any person, means the assumption and retention by the person of a legal obligation for total or partial support of the child in anticipation of adoption of the child. The child's placement with the person terminates upon the termination of the legal obligation; (31) "Plan sponsor" has the meaning given the term under section 3(16)(B) of the Employee Retirement Income Security Act of 1974; (32) "Preexisting condition exclusion" means, with respect to coverage, a limitation or exclusion of benefits relating to a condition based on the fact that the condition was present before the date of enrollment for the coverage, whether or not any medical advice, diagnosis, care, or treatment was recommended or received before that date; (33) "Rules" means rules promulgated by the Insurance Commissioner unless the context requires otherwise; (34) "Small employer" means, in connection with a group health plan with respect to a calendar year and a plan year, an employer who employed an average of at least two (2) but not more than fifty (50) employees on business days during the preceding calendar year and who employs at least two (2) employees on the first day of the plan year; (35) "Small-group market" means the health insurance market under which individuals obtain health insurance coverage directly or through any arrangement on behalf of themselves and their dependents through a group health plan maintained by a small employer; (36) "State" means each of the several states, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands; (37) (A) "State law" includes all laws, decisions, rules, regulations, or other state action having the effect of law, of any state. (B) A law of the United States applicable only to the District of Columbia shall be treated as a state law rather than a law of the United States; and (38) "Waiting period" means, with respect to a group health plan and an individual who is a potential participant or beneficiary in the group health plan, the period that must pass with respect to the individual before the individual is eligible to be covered for benefits under the terms of the group health plan. Amended by Act 2019, No. 315,§ 2746, eff. 7/24/2019. Acts 1997, No. 997, § 1; 2003, No. 1750, § 8[7].

As used in this subchapter:

(1) "Affiliation period" means a period that, under the terms of the coverage offered by the health maintenance organization, must expire before the coverage becomes effective;

(2) "Bona fide association" means, with respect to health insurance coverage offered in Arkansas, an association that: (A) Has been actively in existence for at least five (5) years; (B) Has been formed and maintained in good faith for purposes other than obtaining insurance; (C) Does not condition membership in the association on any health status-related factor relating to an individual, including an employee of an employer or a dependent of an employee; (D) Makes health insurance coverage offered through the association available to all members regardless of any health status-related factor relating to the members or individuals eligible for coverage through a member; (E) Does not make health insurance coverage offered through the association available other than in connection with a member of the association; and (F) Meets the additional requirements that may be imposed under Arkansas law;

(A) Has been actively in existence for at least five (5) years;

(B) Has been formed and maintained in good faith for purposes other than obtaining insurance;

(C) Does not condition membership in the association on any health status-related factor relating to an individual, including an employee of an employer or a dependent of an employee;

(D) Makes health insurance coverage offered through the association available to all members regardless of any health status-related factor relating to the members or individuals eligible for coverage through a member;

(E) Does not make health insurance coverage offered through the association available other than in connection with a member of the association; and

(F) Meets the additional requirements that may be imposed under Arkansas law;

(3) "Church plan" has the meaning given the term under section 3(33) of the Employee Retirement Income Security Act of 1974 (ERISA);

(4) "COBRA continuation provision" means any of the following: (A) Part 6 of Subtitle B of Title 1 of the Employee Retirement Income Security Act of 1974, other than section 609 of the act; (B) Section 4980B of the Internal Revenue Code of 1986, other than subsection (f)(1) of the section insofar as it relates to pediatric vaccines; (C) Title XXII of the Public Health Service Act;

(A) Part 6 of Subtitle B of Title 1 of the Employee Retirement Income Security Act of 1974, other than section 609 of the act;

(B) Section 4980B of the Internal Revenue Code of 1986, other than subsection (f)(1) of the section insofar as it relates to pediatric vaccines;

(C) Title XXII of the Public Health Service Act;

(5) "Commissioner" means the Insurance Commissioner;

(6) "Creditable coverage" means, with respect to an individual, coverage of the individual under any of the following: (A) A group health plan; (B) Health insurance coverage; (C) Part A or Part B of Title XVIII of the Social Security Act; (D) Title XIX of the Social Security Act, other than coverage consisting solely of benefits under section 1928; (E) United States Code Title 10, Chapter 55; (F) A medical care program of the United States Indian Health Service or of a tribal organization; (G) A state health benefits risk pool; (H) A health plan offered under United States Code Title 5, Chapter 89; (I) A public health plan as defined in regulations; (J) A health benefit plan under section 5(e) of the Peace Corps Act, 22 U.S.C. § 2504(e) . The term does not include coverage consisting solely of coverage of excepted benefits as defined in § 23-86-310 ;

(A) A group health plan;

(B) Health insurance coverage;

(C) Part A or Part B of Title XVIII of the Social Security Act;

(D) Title XIX of the Social Security Act, other than coverage consisting solely of benefits under section 1928;

(E) United States Code Title 10, Chapter 55;

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

(G) A state health benefits risk pool;

(H) A health plan offered under United States Code Title 5, Chapter 89;

(I) A public health plan as defined in regulations;

(J) A health benefit plan under section 5(e) of the Peace Corps Act, 22 U.S.C. § 2504(e) . The term does not include coverage consisting solely of coverage of excepted benefits as defined in § 23-86-310 ;

(7) "Department" means the State Insurance Department unless the context requires otherwise;

(8) "Eligible individual" means, with respect to a health insurance issuer that offers health insurance coverage to a small employer in connection with a group health plan in the small-group market, such an individual in relation to the employer as shall be determined: (A) In accordance with the terms of the group health plan; (B) As provided by the issuer under rules of the issuer that are uniformly applicable in Arkansas to small employers in the small-group market; and (C) In accordance with all applicable Arkansas law governing the issuer and the small-group market;

(A) In accordance with the terms of the group health plan;

(B) As provided by the issuer under rules of the issuer that are uniformly applicable in Arkansas to small employers in the small-group market; and

(C) In accordance with all applicable Arkansas law governing the issuer and the small-group market;

(9) (A) "Employee" has the meaning given the term under section 3(6) of the Employee Retirement Income Security Act of 1974. (B) To the extent not in conflict with the Employee Retirement Income Security Act of 1974, the term "employee" also means a person who is employed by an employer for thirty (30) or more hours a week and includes an employee who is employed by a client of a professional employer organization for thirty (30) or more hours a week under a professional employer organization arrangement as governed under the Arkansas Professional Employer Organization Recognition and Licensing Act, § 23-92-401 et seq.;

(A) "Employee" has the meaning given the term under section 3(6) of the Employee Retirement Income Security Act of 1974.

(B) To the extent not in conflict with the Employee Retirement Income Security Act of 1974, the term "employee" also means a person who is employed by an employer for thirty (30) or more hours a week and includes an employee who is employed by a client of a professional employer organization for thirty (30) or more hours a week under a professional employer organization arrangement as governed under the Arkansas Professional Employer Organization Recognition and Licensing Act, § 23-92-401 et seq.;

(10) "Employer" has the meaning given the term under section 3(5) of the Employee Retirement Income Security Act of 1974, except that the term shall include only employers of two (2) or more employees;

(11) "Employer contribution rule" means a requirement relating to the minimum level or amount of employer contribution toward the premium for enrollment of participants and beneficiaries;

(12) "Enrollment date" means, with respect to an individual covered under a group health plan or health insurance coverage, the date of coverage of the individual in the group health plan or, if earlier, the first day of the waiting period for the coverage;

(13) "Federal governmental plan" means a governmental plan established or maintained for its employees by the United States Government or by any agency or instrumentality of the government;

(14) "Governmental plan" has the meaning given the term under section 3(32) of the Employee Retirement Income Security Act of 1974 and any federal governmental plan;

(15) "Group health insurance coverage" means, in connection with a group health plan, health insurance coverage offered in connection with the group health plan;

(16) "Group health plan" means an employee welfare benefit plan to the extent that the plan provides medical care as defined in this section and including items and services paid for as medical care, to employees or their dependents as defined under the terms of the plan directly or through insurance, reimbursement, or otherwise;

(17) "Group participation rule" means a requirement relating to the minimum number of participants or beneficiaries that must be enrolled in relation to a specified percentage or number of eligible individuals or employees of an employer;

(18) "Health insurance coverage" means benefits consisting of medical care, provided directly, through insurance or reimbursement or otherwise and including items and services paid for as medical care, under any hospital or medical service policy or certificate, hospital or medical service plan contract, or health maintenance organization contract offered by a health insurance issuer;

(19) "Health insurance issuer" means an insurance company, insurance service, or insurance organization including a health maintenance organization as defined in this section that is licensed to engage in the business of insurance in a state and that is subject to Arkansas law that regulates insurance. The term does not include a group health plan;

(20) "Health maintenance organization" means: (A) A federally qualified health maintenance organization as defined in section 1301(a) of the Public Health Service Act, 42 U.S.C. § 300e(a) ; (B) An organization recognized under state law as a health maintenance organization; or (C) A similar organization regulated under state law for solvency in the same manner and to the same extent as a health maintenance organization;

(A) A federally qualified health maintenance organization as defined in section 1301(a) of the Public Health Service Act, 42 U.S.C. § 300e(a) ;

(B) An organization recognized under state law as a health maintenance organization; or

(C) A similar organization regulated under state law for solvency in the same manner and to the same extent as a health maintenance organization;

(21) "Health status-related factor" means any of the factors described in § 23-86-306(a)(1) ;

(22) "Individual market" means the market for health insurance coverage offered to individuals other than in connection with a group health plan;

(23) "Large employer" means, in connection with a group health plan with respect to a calendar year and a plan year, an employer who employed an average of at least fifty-one (51) employees on business days during the preceding calendar year and who employs at least two (2) employees on the first day of the plan year;

(24) "Large-group market" means the health insurance market under which individuals obtain health insurance coverage directly or through any arrangement on behalf of themselves and their dependents through a group health plan maintained by a large employer;

(25) "Late enrollee" means, with respect to coverage under a group health plan, a participant or beneficiary who enrolls under the group health plan other than during: (A) The first period in which the individual is eligible to enroll under the group health plan; or (B) A special enrollment period under § 23-86-304(f) ;

(A) The first period in which the individual is eligible to enroll under the group health plan; or

(B) A special enrollment period under § 23-86-304(f) ;

(26) "Medical care" means amounts paid for or services provided for: (A) The diagnosis, cure, mitigation, treatment, or prevention of disease, or amounts paid for the purpose of affecting any structure or function of the body; (B) Amounts paid for transportation primarily for and essential to medical care referred to in subdivision (26)(A) of this section; and (C) Amounts paid for insurance covering medical care referred to in subdivisions (26)(A) and (B) of this section;

(A) The diagnosis, cure, mitigation, treatment, or prevention of disease, or amounts paid for the purpose of affecting any structure or function of the body;

(B) Amounts paid for transportation primarily for and essential to medical care referred to in subdivision (26)(A) of this section; and

(C) Amounts paid for insurance covering medical care referred to in subdivisions (26)(A) and (B) of this section;

(27) "Network plan" means health insurance coverage offered by a health insurance issuer under which the financing and delivery of medical care, including items and services paid for as medical care are provided, in whole or in part, through a defined set of providers under contract with the issuer;

(28) "Nonfederal governmental plan" means a governmental plan that is not a federal governmental plan;

(29) "Participant" has the meaning given the term under section 3(7) of the Employee Retirement Income Security Act of 1974;

(30) "Placement", or being "placed", for adoption, in connection with any placement for adoption of a child with any person, means the assumption and retention by the person of a legal obligation for total or partial support of the child in anticipation of adoption of the child. The child's placement with the person terminates upon the termination of the legal obligation;

(31) "Plan sponsor" has the meaning given the term under section 3(16)(B) of the Employee Retirement Income Security Act of 1974;

(32) "Preexisting condition exclusion" means, with respect to coverage, a limitation or exclusion of benefits relating to a condition based on the fact that the condition was present before the date of enrollment for the coverage, whether or not any medical advice, diagnosis, care, or treatment was recommended or received before that date;

(33) "Rules" means rules promulgated by the Insurance Commissioner unless the context requires otherwise;

(34) "Small employer" means, in connection with a group health plan with respect to a calendar year and a plan year, an employer who employed an average of at least two (2) but not more than fifty (50) employees on business days during the preceding calendar year and who employs at least two (2) employees on the first day of the plan year;

(35) "Small-group market" means the health insurance market under which individuals obtain health insurance coverage directly or through any arrangement on behalf of themselves and their dependents through a group health plan maintained by a small employer;

(36) "State" means each of the several states, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands;

(37) (A) "State law" includes all laws, decisions, rules, regulations, or other state action having the effect of law, of any state. (B) A law of the United States applicable only to the District of Columbia shall be treated as a state law rather than a law of the United States; and

(A) "State law" includes all laws, decisions, rules, regulations, or other state action having the effect of law, of any state.

(B) A law of the United States applicable only to the District of Columbia shall be treated as a state law rather than a law of the United States; and

(38) "Waiting period" means, with respect to a group health plan and an individual who is a potential participant or beneficiary in the group health plan, the period that must pass with respect to the individual before the individual is eligible to be covered for benefits under the terms of the group health plan.

Amended by Act 2019, No. 315,§ 2746, eff. 7/24/2019.

Acts 1997, No. 997, § 1; 2003, No. 1750, § 8[7].
Ark. Code Ann. § 23-96-110 — AR Code / Title 23 / Chapter 96 / Section 23-96-110
Powers and duties of association
Status: in_force

(a) In addition to the rights and powers elsewhere in this chapter, the Arkansas Life and Health Insurance Guaranty Association may: (1) Enter into such contracts as are necessary or proper to carry out this chapter; (2) Sue or be sued, including taking any legal actions necessary or proper to recover any unpaid assessments under § 23-96-115 and to settle claims or potential claims against it; (3) (A) Borrow money to effect the purposes of this chapter. (B) Any notes or other evidence of indebtedness of the Arkansas Life and Health Insurance Guaranty Association not in default shall be legal investments for domestic member insurers and may be carried as admitted assets; (4) Employ or retain such persons as are necessary or appropriate to handle the financial transactions of the Arkansas Life and Health Insurance Guaranty Association and to perform such other functions as become necessary or proper under this chapter; (5) Take such legal action as may be necessary or appropriate to avoid or recover payment of improper claims; (6) (A) Exercise, for the purpose of this chapter and to the extent approved by the Insurance Commissioner, the powers of a domestic life insurer, health insurer, or health maintenance organization. (B) The Arkansas Life and Health Insurance Guaranty Association shall not issue policies or contracts other than those issued to perform its obligations under this chapter; (7) Organize itself as a corporation or in other legal form permitted by the laws of this state; (8) Request information from a person seeking coverage from the Arkansas Life and Health Insurance Guaranty Association in order to aid the Arkansas Life and Health Insurance Guaranty Association in determining its obligations under this chapter with respect to the person, and the person shall promptly comply with the request; (9) Unless prohibited by law, according to the terms and conditions of the policy or contract, file for actuarially justified rate or premium increases for any policy or contract for which the Arkansas Life and Health Insurance Guaranty Association provides coverage under this chapter; and (10) Take other necessary or appropriate action to discharge its duties and obligations under this chapter or to exercise its powers under this chapter. (b) The Arkansas Life and Health Insurance Guaranty Association may render assistance and advice to the commissioner, upon his or her request, concerning rehabilitation, payment of claims, continuance of coverage, or the performance of other contractual obligations of any impaired insurer or insolvent insurer. (c) (1) (A) The Arkansas Life and Health Insurance Guaranty Association shall have standing to appear or intervene before any court or agency in this state with jurisdiction over an impaired insurer or insolvent insurer concerning which the Arkansas Life and Health Insurance Guaranty Association is or may become obligated under this chapter or with jurisdiction over any person or property against whom the Arkansas Life and Health Insurance Guaranty Association may have rights through subrogation or otherwise. (B) Provided, at its option, the Arkansas Life and Health Insurance Guaranty Association may appear solely for the purpose of receiving copies of all pleadings and notices and attending hearings without otherwise becoming a party to the proceeding. (C) Standing under this subdivision (c)(1) extends to all matters germane to the powers and duties of the Arkansas Life and Health Insurance Guaranty Association, including without limitation proposals for reinsuring, reissuing, modifying, or guaranteeing the policies or contracts of the impaired insurer or insolvent insurer and the determination of the policies or contracts and contractual obligations. (2) The Arkansas Life and Health Insurance Guaranty Association shall also have the right to appear or intervene before a court or agency in another state with jurisdiction over an impaired insurer or insolvent insurer for which the Arkansas Life and Health Insurance Guaranty Association is or may become obligated or with jurisdiction over any person or property against whom the Arkansas Life and Health Insurance Guaranty Association may have rights through subrogation or otherwise. (d) To further the purposes and administer the powers and duties of the Arkansas Life and Health Insurance Guaranty Association, the Arkansas Life and Health Insurance Guaranty Association may join an organization of one (1) or more other state associations of similar purposes. (e) (1) (A) Records shall be kept of all meetings of the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association to discuss the activities of the Arkansas Life and Health Insurance Guaranty Association in carrying out its powers and duties under §§ 23-96-111 - 23-96-114 and 23-96-120 . (B) The records of the Arkansas Life and Health Insurance Guaranty Association with respect to an impaired insurer or insolvent insurer shall not be disclosed before the termination of a liquidation, rehabilitation, or conservation proceeding involving the impaired insurer or insolvent insurer, upon the termination of the impairment or insolvency of the member insurer, or upon the order of a court of competent jurisdiction. (2) This subsection shall not limit the duty of the Arkansas Life and Health Insurance Guaranty Association to render a report of its activities under § 23-96-109(a)(4) . (f) (1) (A) (i) At any time within one hundred eighty (180) days of the date of the order of liquidation, the Arkansas Life and Health Insurance Guaranty Association may elect to succeed to the rights and obligations of the ceding member insurer that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, in each case under any one (1) or more reinsurance contracts entered into by the insolvent insurer and its reinsurers and selected by the Arkansas Life and Health Insurance Guaranty Association. (ii) Any such assumption shall be effective as of the date of the order of liquidation. (iii) The election shall be effected by the Arkansas Life and Health Insurance Guaranty Association or the National Organization of Life and Health Insurance Guaranty Associations on its behalf sending written notice, return receipt requested, to the affected reinsurers. (B) To facilitate the earliest practicable decision about whether to assume any of the contracts of reinsurance and in order to protect the financial position of the estate, the receiver and each reinsurer of the ceding member insurer shall make available upon request to the Arkansas Life and Health Insurance Guaranty Association or to the National Organization of Life and Health Insurance Guaranty Associations on its behalf as soon as possible after commencement of formal delinquency proceedings: (i) Copies of in-force contracts of reinsurance and all related files and records relevant to the determination of whether such contracts should be assumed; and (ii) Notices of any defaults under the reinsurance contracts or any known event or condition which with the passage of time could become a default under the reinsurance contracts. (C) This subdivision (f)(1)(C) applies to reinsurance contracts so assumed by the Arkansas Life and Health Insurance Guaranty Association, as follows: (i) (a) The Arkansas Life and Health Insurance Guaranty Association shall be responsible for all unpaid premiums due under the reinsurance contracts for periods both before and after the date of the order of liquidation and shall be responsible for the performance of all other obligations to be performed after the date of the order of liquidation, in each case which relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association. (b) The Arkansas Life and Health Insurance Guaranty Association may charge policies, contracts, or annuities covered in part by the Arkansas Life and Health Insurance Guaranty Association, through reasonable allocation methods, the costs for reinsurance in excess of the obligations of the Arkansas Life and Health Insurance Guaranty Association and shall provide notice and an accounting of these charges to the liquidator; (ii) (a) The Arkansas Life and Health Insurance Guaranty Association shall be entitled to any amounts payable by the reinsurer under the reinsurance contracts with respect to losses or events that occur in periods after the date of the order of liquidation and that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association. (b) Upon receipt of amounts under subdivision (f)(1)(C)(ii) (a) of this section, the Arkansas Life and Health Insurance Guaranty Association shall pay to the beneficiary under the policy, contract, or annuity on account of which the amounts were paid a portion of the amount equal to the lesser of: (1) The amount received by the Arkansas Life and Health Insurance Guaranty Association; and (2) The excess of the amount received by the Arkansas Life and Health Insurance Guaranty Association over the amount equal to the benefits paid by the Arkansas Life and Health Insurance Guaranty Association on account of the policy, contract, or annuity less the retention of the insurer applicable to the loss or event; (iii) (a) Within thirty (30) days following the Arkansas Life and Health Insurance Guaranty Association's election, the election date, the Arkansas Life and Health Insurance Guaranty Association and each reinsurer under contracts assumed by the Arkansas Life and Health Insurance Guaranty Association shall calculate the net balance due to or from the Arkansas Life and Health Insurance Guaranty Association under each reinsurance contract as of the election date with respect to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, which calculation shall give full credit to all items paid by either the member insurer or its receiver or the reinsurer prior to the election date. (b) The reinsurer shall pay the receiver any amounts due for losses or events before the date of the order of liquidation, subject to any set-off for premiums unpaid for periods before the date, and the Arkansas Life and Health Insurance Guaranty Association or reinsurer shall pay any remaining balance due the other, in each case within five (5) days of the completion of the aforementioned calculation. (c) Any disputes over the amounts due to either the Arkansas Life and Health Insurance Guaranty Association or the reinsurer shall be resolved by arbitration pursuant to the terms of the affected reinsurance contracts or, if the contract contains no arbitration clause, as otherwise provided by law. (d) If the receiver has received any amounts due the Arkansas Life and Health Insurance Guaranty Association pursuant to subdivision (f)(1)(C)(ii) of this section, the receiver shall remit the same to the Arkansas Life and Health Insurance Guaranty Association as promptly as practicable; and (iv) If the Arkansas Life and Health Insurance Guaranty Association or receiver, on the Arkansas Life and Health Insurance Guaranty Association's behalf, within sixty (60) days of the election date, pays the unpaid premiums due for periods both before and after the election date that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, the reinsurer shall not: (a) Terminate the reinsurance contracts for failure to pay premium insofar as the reinsurance contracts relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association; and (b) Set off any unpaid amounts due under other contracts, or unpaid amounts due from parties other than the Arkansas Life and Health Insurance Guaranty Association, against amounts due the Arkansas Life and Health Insurance Guaranty Association. (2) (A) During the period from the date of the order of liquidation until the election date or, if the election date does not occur, until one hundred eighty (180) days after the date of the order of liquidation: (i) Neither the Arkansas Life and Health Insurance Guaranty Association nor the reinsurer shall have any rights or obligations under reinsurance contracts that the Arkansas Life and Health Insurance Guaranty Association has the right to assume under subdivision (f)(1) of this section, whether for periods before or after the date of the order of liquidation; and (ii) The reinsurer, the receiver, and the Arkansas Life and Health Insurance Guaranty Association shall, to the extent practicable, provide each other data and records reasonably requested. (B) When the Arkansas Life and Health Insurance Guaranty Association has elected to assume a reinsurance contract, the parties' rights and obligations shall be governed by subdivision (f)(1) of this section. (3) If the Arkansas Life and Health Insurance Guaranty Association does not elect to assume a reinsurance contract by the election date pursuant to subdivision (f)(1) of this section, the Arkansas Life and Health Insurance Guaranty Association shall have no rights or obligations, in each case for periods both before and after the date of the order of liquidation, with respect to the reinsurance contract. (4) When policies, contracts, or annuities or covered obligations with respect thereto are transferred to an assuming insurer, reinsurance on the policies, contracts, or annuities may also be transferred by the Arkansas Life and Health Insurance Guaranty Association, in the case of contracts assumed under subdivision (f)(1) of this section, subject to the following: (A) Unless the reinsurer and the assuming insurer agree otherwise, the reinsurance contract transferred shall not cover any new policies of insurance, contracts, or annuities in addition to those transferred; (B) The obligations described in subdivision (f)(1) of this section shall no longer apply with respect to matters arising after the effective date of the transfer; and (C) Notice shall be given in writing, return receipt requested, by the transferring party to the affected reinsurer not less than thirty (30) days before the effective date of the transfer. (5) (A) This subsection shall supersede any state law or affected reinsurance agreement or agreements that provide for or require any payment of reinsurance proceeds, on account of losses or events that occur in periods after the coverage date, to the receiver, liquidator, or rehabilitator of the insolvent member insurer. (B) The receiver, rehabilitator, or liquidator shall remain entitled to any amounts payable by the reinsurer under the reinsurance agreement or agreements with respect to losses or events that occur in periods before the coverage date, subject to applicable setoff provisions. (6) Except as otherwise expressly provided under subdivision (f)(1)(C) of this section, this section does not: (A) Alter or modify the terms and conditions of the indemnity reinsurance agreements of the insolvent member insurer; (B) Abrogate or limit any rights of any reinsurer to claim that it is entitled to rescind a reinsurance agreement; (C) Give a policyholder, contract owner, enrollee, certificate holder, or beneficiary an independent cause of action against an indemnity reinsurer that is not otherwise stated in the indemnity reinsurance agreement; (D) Give a policyholder or beneficiary an independent cause of action against a reinsurer that is not otherwise stated in the reinsurance contract; (E) Limit or affect the Arkansas Life and Health Insurance Guaranty Association's rights as a creditor of the estate against the assets of the estate; or (F) Apply to reinsurance agreements covering property or casualty risks. (g) The Board of Directors of the Arkansas Life and Health Insurance Guaranty Association shall have discretion and may exercise reasonable business judgment to determine the means by which the Arkansas Life and Health Insurance Guaranty Association is to provide the benefits of this chapter in an economical and efficient manner and may provide additional or alternative coverages and benefits in appropriate situations. (h) If the Arkansas Life and Health Insurance Guaranty Association has arranged or offered to provide the benefits of this chapter to a covered person under a plan or arrangement that fulfills the Arkansas Life and Health Insurance Guaranty Association's obligations under this chapter, the person shall not be entitled to benefits from the Arkansas Life and Health Insurance Guaranty Association in addition to or other than those provided under the plan or arrangement. (i) (1) Venue in a suit against the Arkansas Life and Health Insurance Guaranty Association arising under this chapter shall be in Pulaski County. (2) The Arkansas Life and Health Insurance Guaranty Association shall not be required to give an appeal bond in an appeal that relates to a cause of action arising under this chapter. Amended by Act 2019, No. 520,§ 2, eff. 7/24/2019. Amended by Act 2013, No. 456,§ 4, eff. 8/16/2013. Acts 1989, No. 444, §§ 8, 14; 1997, No. 950, § 1; 2001, No. 1603, § 57; 2001, No. 1604, § 121.

(a) In addition to the rights and powers elsewhere in this chapter, the Arkansas Life and Health Insurance Guaranty Association may: (1) Enter into such contracts as are necessary or proper to carry out this chapter; (2) Sue or be sued, including taking any legal actions necessary or proper to recover any unpaid assessments under § 23-96-115 and to settle claims or potential claims against it; (3) (A) Borrow money to effect the purposes of this chapter. (B) Any notes or other evidence of indebtedness of the Arkansas Life and Health Insurance Guaranty Association not in default shall be legal investments for domestic member insurers and may be carried as admitted assets; (4) Employ or retain such persons as are necessary or appropriate to handle the financial transactions of the Arkansas Life and Health Insurance Guaranty Association and to perform such other functions as become necessary or proper under this chapter; (5) Take such legal action as may be necessary or appropriate to avoid or recover payment of improper claims; (6) (A) Exercise, for the purpose of this chapter and to the extent approved by the Insurance Commissioner, the powers of a domestic life insurer, health insurer, or health maintenance organization. (B) The Arkansas Life and Health Insurance Guaranty Association shall not issue policies or contracts other than those issued to perform its obligations under this chapter; (7) Organize itself as a corporation or in other legal form permitted by the laws of this state; (8) Request information from a person seeking coverage from the Arkansas Life and Health Insurance Guaranty Association in order to aid the Arkansas Life and Health Insurance Guaranty Association in determining its obligations under this chapter with respect to the person, and the person shall promptly comply with the request; (9) Unless prohibited by law, according to the terms and conditions of the policy or contract, file for actuarially justified rate or premium increases for any policy or contract for which the Arkansas Life and Health Insurance Guaranty Association provides coverage under this chapter; and (10) Take other necessary or appropriate action to discharge its duties and obligations under this chapter or to exercise its powers under this chapter.

(1) Enter into such contracts as are necessary or proper to carry out this chapter;

(2) Sue or be sued, including taking any legal actions necessary or proper to recover any unpaid assessments under § 23-96-115 and to settle claims or potential claims against it;

(3) (A) Borrow money to effect the purposes of this chapter. (B) Any notes or other evidence of indebtedness of the Arkansas Life and Health Insurance Guaranty Association not in default shall be legal investments for domestic member insurers and may be carried as admitted assets;

(A) Borrow money to effect the purposes of this chapter.

(B) Any notes or other evidence of indebtedness of the Arkansas Life and Health Insurance Guaranty Association not in default shall be legal investments for domestic member insurers and may be carried as admitted assets;

(4) Employ or retain such persons as are necessary or appropriate to handle the financial transactions of the Arkansas Life and Health Insurance Guaranty Association and to perform such other functions as become necessary or proper under this chapter;

(5) Take such legal action as may be necessary or appropriate to avoid or recover payment of improper claims;

(6) (A) Exercise, for the purpose of this chapter and to the extent approved by the Insurance Commissioner, the powers of a domestic life insurer, health insurer, or health maintenance organization. (B) The Arkansas Life and Health Insurance Guaranty Association shall not issue policies or contracts other than those issued to perform its obligations under this chapter;

(A) Exercise, for the purpose of this chapter and to the extent approved by the Insurance Commissioner, the powers of a domestic life insurer, health insurer, or health maintenance organization.

(B) The Arkansas Life and Health Insurance Guaranty Association shall not issue policies or contracts other than those issued to perform its obligations under this chapter;

(7) Organize itself as a corporation or in other legal form permitted by the laws of this state;

(8) Request information from a person seeking coverage from the Arkansas Life and Health Insurance Guaranty Association in order to aid the Arkansas Life and Health Insurance Guaranty Association in determining its obligations under this chapter with respect to the person, and the person shall promptly comply with the request;

(9) Unless prohibited by law, according to the terms and conditions of the policy or contract, file for actuarially justified rate or premium increases for any policy or contract for which the Arkansas Life and Health Insurance Guaranty Association provides coverage under this chapter; and

(10) Take other necessary or appropriate action to discharge its duties and obligations under this chapter or to exercise its powers under this chapter.

(b) The Arkansas Life and Health Insurance Guaranty Association may render assistance and advice to the commissioner, upon his or her request, concerning rehabilitation, payment of claims, continuance of coverage, or the performance of other contractual obligations of any impaired insurer or insolvent insurer.

(c) (1) (A) The Arkansas Life and Health Insurance Guaranty Association shall have standing to appear or intervene before any court or agency in this state with jurisdiction over an impaired insurer or insolvent insurer concerning which the Arkansas Life and Health Insurance Guaranty Association is or may become obligated under this chapter or with jurisdiction over any person or property against whom the Arkansas Life and Health Insurance Guaranty Association may have rights through subrogation or otherwise. (B) Provided, at its option, the Arkansas Life and Health Insurance Guaranty Association may appear solely for the purpose of receiving copies of all pleadings and notices and attending hearings without otherwise becoming a party to the proceeding. (C) Standing under this subdivision (c)(1) extends to all matters germane to the powers and duties of the Arkansas Life and Health Insurance Guaranty Association, including without limitation proposals for reinsuring, reissuing, modifying, or guaranteeing the policies or contracts of the impaired insurer or insolvent insurer and the determination of the policies or contracts and contractual obligations. (2) The Arkansas Life and Health Insurance Guaranty Association shall also have the right to appear or intervene before a court or agency in another state with jurisdiction over an impaired insurer or insolvent insurer for which the Arkansas Life and Health Insurance Guaranty Association is or may become obligated or with jurisdiction over any person or property against whom the Arkansas Life and Health Insurance Guaranty Association may have rights through subrogation or otherwise.

(1) (A) The Arkansas Life and Health Insurance Guaranty Association shall have standing to appear or intervene before any court or agency in this state with jurisdiction over an impaired insurer or insolvent insurer concerning which the Arkansas Life and Health Insurance Guaranty Association is or may become obligated under this chapter or with jurisdiction over any person or property against whom the Arkansas Life and Health Insurance Guaranty Association may have rights through subrogation or otherwise. (B) Provided, at its option, the Arkansas Life and Health Insurance Guaranty Association may appear solely for the purpose of receiving copies of all pleadings and notices and attending hearings without otherwise becoming a party to the proceeding. (C) Standing under this subdivision (c)(1) extends to all matters germane to the powers and duties of the Arkansas Life and Health Insurance Guaranty Association, including without limitation proposals for reinsuring, reissuing, modifying, or guaranteeing the policies or contracts of the impaired insurer or insolvent insurer and the determination of the policies or contracts and contractual obligations.

(A) The Arkansas Life and Health Insurance Guaranty Association shall have standing to appear or intervene before any court or agency in this state with jurisdiction over an impaired insurer or insolvent insurer concerning which the Arkansas Life and Health Insurance Guaranty Association is or may become obligated under this chapter or with jurisdiction over any person or property against whom the Arkansas Life and Health Insurance Guaranty Association may have rights through subrogation or otherwise.

(B) Provided, at its option, the Arkansas Life and Health Insurance Guaranty Association may appear solely for the purpose of receiving copies of all pleadings and notices and attending hearings without otherwise becoming a party to the proceeding.

(C) Standing under this subdivision (c)(1) extends to all matters germane to the powers and duties of the Arkansas Life and Health Insurance Guaranty Association, including without limitation proposals for reinsuring, reissuing, modifying, or guaranteeing the policies or contracts of the impaired insurer or insolvent insurer and the determination of the policies or contracts and contractual obligations.

(2) The Arkansas Life and Health Insurance Guaranty Association shall also have the right to appear or intervene before a court or agency in another state with jurisdiction over an impaired insurer or insolvent insurer for which the Arkansas Life and Health Insurance Guaranty Association is or may become obligated or with jurisdiction over any person or property against whom the Arkansas Life and Health Insurance Guaranty Association may have rights through subrogation or otherwise.

(d) To further the purposes and administer the powers and duties of the Arkansas Life and Health Insurance Guaranty Association, the Arkansas Life and Health Insurance Guaranty Association may join an organization of one (1) or more other state associations of similar purposes.

(e) (1) (A) Records shall be kept of all meetings of the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association to discuss the activities of the Arkansas Life and Health Insurance Guaranty Association in carrying out its powers and duties under §§ 23-96-111 - 23-96-114 and 23-96-120 . (B) The records of the Arkansas Life and Health Insurance Guaranty Association with respect to an impaired insurer or insolvent insurer shall not be disclosed before the termination of a liquidation, rehabilitation, or conservation proceeding involving the impaired insurer or insolvent insurer, upon the termination of the impairment or insolvency of the member insurer, or upon the order of a court of competent jurisdiction. (2) This subsection shall not limit the duty of the Arkansas Life and Health Insurance Guaranty Association to render a report of its activities under § 23-96-109(a)(4) .

(1) (A) Records shall be kept of all meetings of the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association to discuss the activities of the Arkansas Life and Health Insurance Guaranty Association in carrying out its powers and duties under §§ 23-96-111 - 23-96-114 and 23-96-120 . (B) The records of the Arkansas Life and Health Insurance Guaranty Association with respect to an impaired insurer or insolvent insurer shall not be disclosed before the termination of a liquidation, rehabilitation, or conservation proceeding involving the impaired insurer or insolvent insurer, upon the termination of the impairment or insolvency of the member insurer, or upon the order of a court of competent jurisdiction.

(A) Records shall be kept of all meetings of the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association to discuss the activities of the Arkansas Life and Health Insurance Guaranty Association in carrying out its powers and duties under §§ 23-96-111 - 23-96-114 and 23-96-120 .

(B) The records of the Arkansas Life and Health Insurance Guaranty Association with respect to an impaired insurer or insolvent insurer shall not be disclosed before the termination of a liquidation, rehabilitation, or conservation proceeding involving the impaired insurer or insolvent insurer, upon the termination of the impairment or insolvency of the member insurer, or upon the order of a court of competent jurisdiction.

(2) This subsection shall not limit the duty of the Arkansas Life and Health Insurance Guaranty Association to render a report of its activities under § 23-96-109(a)(4) .

(f) (1) (A) (i) At any time within one hundred eighty (180) days of the date of the order of liquidation, the Arkansas Life and Health Insurance Guaranty Association may elect to succeed to the rights and obligations of the ceding member insurer that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, in each case under any one (1) or more reinsurance contracts entered into by the insolvent insurer and its reinsurers and selected by the Arkansas Life and Health Insurance Guaranty Association. (ii) Any such assumption shall be effective as of the date of the order of liquidation. (iii) The election shall be effected by the Arkansas Life and Health Insurance Guaranty Association or the National Organization of Life and Health Insurance Guaranty Associations on its behalf sending written notice, return receipt requested, to the affected reinsurers. (B) To facilitate the earliest practicable decision about whether to assume any of the contracts of reinsurance and in order to protect the financial position of the estate, the receiver and each reinsurer of the ceding member insurer shall make available upon request to the Arkansas Life and Health Insurance Guaranty Association or to the National Organization of Life and Health Insurance Guaranty Associations on its behalf as soon as possible after commencement of formal delinquency proceedings: (i) Copies of in-force contracts of reinsurance and all related files and records relevant to the determination of whether such contracts should be assumed; and (ii) Notices of any defaults under the reinsurance contracts or any known event or condition which with the passage of time could become a default under the reinsurance contracts. (C) This subdivision (f)(1)(C) applies to reinsurance contracts so assumed by the Arkansas Life and Health Insurance Guaranty Association, as follows: (i) (a) The Arkansas Life and Health Insurance Guaranty Association shall be responsible for all unpaid premiums due under the reinsurance contracts for periods both before and after the date of the order of liquidation and shall be responsible for the performance of all other obligations to be performed after the date of the order of liquidation, in each case which relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association. (b) The Arkansas Life and Health Insurance Guaranty Association may charge policies, contracts, or annuities covered in part by the Arkansas Life and Health Insurance Guaranty Association, through reasonable allocation methods, the costs for reinsurance in excess of the obligations of the Arkansas Life and Health Insurance Guaranty Association and shall provide notice and an accounting of these charges to the liquidator; (ii) (a) The Arkansas Life and Health Insurance Guaranty Association shall be entitled to any amounts payable by the reinsurer under the reinsurance contracts with respect to losses or events that occur in periods after the date of the order of liquidation and that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association. (b) Upon receipt of amounts under subdivision (f)(1)(C)(ii) (a) of this section, the Arkansas Life and Health Insurance Guaranty Association shall pay to the beneficiary under the policy, contract, or annuity on account of which the amounts were paid a portion of the amount equal to the lesser of: (1) The amount received by the Arkansas Life and Health Insurance Guaranty Association; and (2) The excess of the amount received by the Arkansas Life and Health Insurance Guaranty Association over the amount equal to the benefits paid by the Arkansas Life and Health Insurance Guaranty Association on account of the policy, contract, or annuity less the retention of the insurer applicable to the loss or event; (iii) (a) Within thirty (30) days following the Arkansas Life and Health Insurance Guaranty Association's election, the election date, the Arkansas Life and Health Insurance Guaranty Association and each reinsurer under contracts assumed by the Arkansas Life and Health Insurance Guaranty Association shall calculate the net balance due to or from the Arkansas Life and Health Insurance Guaranty Association under each reinsurance contract as of the election date with respect to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, which calculation shall give full credit to all items paid by either the member insurer or its receiver or the reinsurer prior to the election date. (b) The reinsurer shall pay the receiver any amounts due for losses or events before the date of the order of liquidation, subject to any set-off for premiums unpaid for periods before the date, and the Arkansas Life and Health Insurance Guaranty Association or reinsurer shall pay any remaining balance due the other, in each case within five (5) days of the completion of the aforementioned calculation. (c) Any disputes over the amounts due to either the Arkansas Life and Health Insurance Guaranty Association or the reinsurer shall be resolved by arbitration pursuant to the terms of the affected reinsurance contracts or, if the contract contains no arbitration clause, as otherwise provided by law. (d) If the receiver has received any amounts due the Arkansas Life and Health Insurance Guaranty Association pursuant to subdivision (f)(1)(C)(ii) of this section, the receiver shall remit the same to the Arkansas Life and Health Insurance Guaranty Association as promptly as practicable; and (iv) If the Arkansas Life and Health Insurance Guaranty Association or receiver, on the Arkansas Life and Health Insurance Guaranty Association's behalf, within sixty (60) days of the election date, pays the unpaid premiums due for periods both before and after the election date that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, the reinsurer shall not: (a) Terminate the reinsurance contracts for failure to pay premium insofar as the reinsurance contracts relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association; and (b) Set off any unpaid amounts due under other contracts, or unpaid amounts due from parties other than the Arkansas Life and Health Insurance Guaranty Association, against amounts due the Arkansas Life and Health Insurance Guaranty Association. (2) (A) During the period from the date of the order of liquidation until the election date or, if the election date does not occur, until one hundred eighty (180) days after the date of the order of liquidation: (i) Neither the Arkansas Life and Health Insurance Guaranty Association nor the reinsurer shall have any rights or obligations under reinsurance contracts that the Arkansas Life and Health Insurance Guaranty Association has the right to assume under subdivision (f)(1) of this section, whether for periods before or after the date of the order of liquidation; and (ii) The reinsurer, the receiver, and the Arkansas Life and Health Insurance Guaranty Association shall, to the extent practicable, provide each other data and records reasonably requested. (B) When the Arkansas Life and Health Insurance Guaranty Association has elected to assume a reinsurance contract, the parties' rights and obligations shall be governed by subdivision (f)(1) of this section. (3) If the Arkansas Life and Health Insurance Guaranty Association does not elect to assume a reinsurance contract by the election date pursuant to subdivision (f)(1) of this section, the Arkansas Life and Health Insurance Guaranty Association shall have no rights or obligations, in each case for periods both before and after the date of the order of liquidation, with respect to the reinsurance contract. (4) When policies, contracts, or annuities or covered obligations with respect thereto are transferred to an assuming insurer, reinsurance on the policies, contracts, or annuities may also be transferred by the Arkansas Life and Health Insurance Guaranty Association, in the case of contracts assumed under subdivision (f)(1) of this section, subject to the following: (A) Unless the reinsurer and the assuming insurer agree otherwise, the reinsurance contract transferred shall not cover any new policies of insurance, contracts, or annuities in addition to those transferred; (B) The obligations described in subdivision (f)(1) of this section shall no longer apply with respect to matters arising after the effective date of the transfer; and (C) Notice shall be given in writing, return receipt requested, by the transferring party to the affected reinsurer not less than thirty (30) days before the effective date of the transfer. (5) (A) This subsection shall supersede any state law or affected reinsurance agreement or agreements that provide for or require any payment of reinsurance proceeds, on account of losses or events that occur in periods after the coverage date, to the receiver, liquidator, or rehabilitator of the insolvent member insurer. (B) The receiver, rehabilitator, or liquidator shall remain entitled to any amounts payable by the reinsurer under the reinsurance agreement or agreements with respect to losses or events that occur in periods before the coverage date, subject to applicable setoff provisions. (6) Except as otherwise expressly provided under subdivision (f)(1)(C) of this section, this section does not: (A) Alter or modify the terms and conditions of the indemnity reinsurance agreements of the insolvent member insurer; (B) Abrogate or limit any rights of any reinsurer to claim that it is entitled to rescind a reinsurance agreement; (C) Give a policyholder, contract owner, enrollee, certificate holder, or beneficiary an independent cause of action against an indemnity reinsurer that is not otherwise stated in the indemnity reinsurance agreement; (D) Give a policyholder or beneficiary an independent cause of action against a reinsurer that is not otherwise stated in the reinsurance contract; (E) Limit or affect the Arkansas Life and Health Insurance Guaranty Association's rights as a creditor of the estate against the assets of the estate; or (F) Apply to reinsurance agreements covering property or casualty risks.

(1) (A) (i) At any time within one hundred eighty (180) days of the date of the order of liquidation, the Arkansas Life and Health Insurance Guaranty Association may elect to succeed to the rights and obligations of the ceding member insurer that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, in each case under any one (1) or more reinsurance contracts entered into by the insolvent insurer and its reinsurers and selected by the Arkansas Life and Health Insurance Guaranty Association. (ii) Any such assumption shall be effective as of the date of the order of liquidation. (iii) The election shall be effected by the Arkansas Life and Health Insurance Guaranty Association or the National Organization of Life and Health Insurance Guaranty Associations on its behalf sending written notice, return receipt requested, to the affected reinsurers. (B) To facilitate the earliest practicable decision about whether to assume any of the contracts of reinsurance and in order to protect the financial position of the estate, the receiver and each reinsurer of the ceding member insurer shall make available upon request to the Arkansas Life and Health Insurance Guaranty Association or to the National Organization of Life and Health Insurance Guaranty Associations on its behalf as soon as possible after commencement of formal delinquency proceedings: (i) Copies of in-force contracts of reinsurance and all related files and records relevant to the determination of whether such contracts should be assumed; and (ii) Notices of any defaults under the reinsurance contracts or any known event or condition which with the passage of time could become a default under the reinsurance contracts. (C) This subdivision (f)(1)(C) applies to reinsurance contracts so assumed by the Arkansas Life and Health Insurance Guaranty Association, as follows: (i) (a) The Arkansas Life and Health Insurance Guaranty Association shall be responsible for all unpaid premiums due under the reinsurance contracts for periods both before and after the date of the order of liquidation and shall be responsible for the performance of all other obligations to be performed after the date of the order of liquidation, in each case which relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association. (b) The Arkansas Life and Health Insurance Guaranty Association may charge policies, contracts, or annuities covered in part by the Arkansas Life and Health Insurance Guaranty Association, through reasonable allocation methods, the costs for reinsurance in excess of the obligations of the Arkansas Life and Health Insurance Guaranty Association and shall provide notice and an accounting of these charges to the liquidator; (ii) (a) The Arkansas Life and Health Insurance Guaranty Association shall be entitled to any amounts payable by the reinsurer under the reinsurance contracts with respect to losses or events that occur in periods after the date of the order of liquidation and that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association. (b) Upon receipt of amounts under subdivision (f)(1)(C)(ii) (a) of this section, the Arkansas Life and Health Insurance Guaranty Association shall pay to the beneficiary under the policy, contract, or annuity on account of which the amounts were paid a portion of the amount equal to the lesser of: (1) The amount received by the Arkansas Life and Health Insurance Guaranty Association; and (2) The excess of the amount received by the Arkansas Life and Health Insurance Guaranty Association over the amount equal to the benefits paid by the Arkansas Life and Health Insurance Guaranty Association on account of the policy, contract, or annuity less the retention of the insurer applicable to the loss or event; (iii) (a) Within thirty (30) days following the Arkansas Life and Health Insurance Guaranty Association's election, the election date, the Arkansas Life and Health Insurance Guaranty Association and each reinsurer under contracts assumed by the Arkansas Life and Health Insurance Guaranty Association shall calculate the net balance due to or from the Arkansas Life and Health Insurance Guaranty Association under each reinsurance contract as of the election date with respect to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, which calculation shall give full credit to all items paid by either the member insurer or its receiver or the reinsurer prior to the election date. (b) The reinsurer shall pay the receiver any amounts due for losses or events before the date of the order of liquidation, subject to any set-off for premiums unpaid for periods before the date, and the Arkansas Life and Health Insurance Guaranty Association or reinsurer shall pay any remaining balance due the other, in each case within five (5) days of the completion of the aforementioned calculation. (c) Any disputes over the amounts due to either the Arkansas Life and Health Insurance Guaranty Association or the reinsurer shall be resolved by arbitration pursuant to the terms of the affected reinsurance contracts or, if the contract contains no arbitration clause, as otherwise provided by law. (d) If the receiver has received any amounts due the Arkansas Life and Health Insurance Guaranty Association pursuant to subdivision (f)(1)(C)(ii) of this section, the receiver shall remit the same to the Arkansas Life and Health Insurance Guaranty Association as promptly as practicable; and (iv) If the Arkansas Life and Health Insurance Guaranty Association or receiver, on the Arkansas Life and Health Insurance Guaranty Association's behalf, within sixty (60) days of the election date, pays the unpaid premiums due for periods both before and after the election date that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, the reinsurer shall not: (a) Terminate the reinsurance contracts for failure to pay premium insofar as the reinsurance contracts relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association; and (b) Set off any unpaid amounts due under other contracts, or unpaid amounts due from parties other than the Arkansas Life and Health Insurance Guaranty Association, against amounts due the Arkansas Life and Health Insurance Guaranty Association.

(A) (i) At any time within one hundred eighty (180) days of the date of the order of liquidation, the Arkansas Life and Health Insurance Guaranty Association may elect to succeed to the rights and obligations of the ceding member insurer that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, in each case under any one (1) or more reinsurance contracts entered into by the insolvent insurer and its reinsurers and selected by the Arkansas Life and Health Insurance Guaranty Association. (ii) Any such assumption shall be effective as of the date of the order of liquidation. (iii) The election shall be effected by the Arkansas Life and Health Insurance Guaranty Association or the National Organization of Life and Health Insurance Guaranty Associations on its behalf sending written notice, return receipt requested, to the affected reinsurers.

(i) At any time within one hundred eighty (180) days of the date of the order of liquidation, the Arkansas Life and Health Insurance Guaranty Association may elect to succeed to the rights and obligations of the ceding member insurer that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, in each case under any one (1) or more reinsurance contracts entered into by the insolvent insurer and its reinsurers and selected by the Arkansas Life and Health Insurance Guaranty Association.

(ii) Any such assumption shall be effective as of the date of the order of liquidation.

(iii) The election shall be effected by the Arkansas Life and Health Insurance Guaranty Association or the National Organization of Life and Health Insurance Guaranty Associations on its behalf sending written notice, return receipt requested, to the affected reinsurers.

(B) To facilitate the earliest practicable decision about whether to assume any of the contracts of reinsurance and in order to protect the financial position of the estate, the receiver and each reinsurer of the ceding member insurer shall make available upon request to the Arkansas Life and Health Insurance Guaranty Association or to the National Organization of Life and Health Insurance Guaranty Associations on its behalf as soon as possible after commencement of formal delinquency proceedings: (i) Copies of in-force contracts of reinsurance and all related files and records relevant to the determination of whether such contracts should be assumed; and (ii) Notices of any defaults under the reinsurance contracts or any known event or condition which with the passage of time could become a default under the reinsurance contracts.

(i) Copies of in-force contracts of reinsurance and all related files and records relevant to the determination of whether such contracts should be assumed; and

(ii) Notices of any defaults under the reinsurance contracts or any known event or condition which with the passage of time could become a default under the reinsurance contracts.

(C) This subdivision (f)(1)(C) applies to reinsurance contracts so assumed by the Arkansas Life and Health Insurance Guaranty Association, as follows: (i) (a) The Arkansas Life and Health Insurance Guaranty Association shall be responsible for all unpaid premiums due under the reinsurance contracts for periods both before and after the date of the order of liquidation and shall be responsible for the performance of all other obligations to be performed after the date of the order of liquidation, in each case which relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association. (b) The Arkansas Life and Health Insurance Guaranty Association may charge policies, contracts, or annuities covered in part by the Arkansas Life and Health Insurance Guaranty Association, through reasonable allocation methods, the costs for reinsurance in excess of the obligations of the Arkansas Life and Health Insurance Guaranty Association and shall provide notice and an accounting of these charges to the liquidator; (ii) (a) The Arkansas Life and Health Insurance Guaranty Association shall be entitled to any amounts payable by the reinsurer under the reinsurance contracts with respect to losses or events that occur in periods after the date of the order of liquidation and that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association. (b) Upon receipt of amounts under subdivision (f)(1)(C)(ii) (a) of this section, the Arkansas Life and Health Insurance Guaranty Association shall pay to the beneficiary under the policy, contract, or annuity on account of which the amounts were paid a portion of the amount equal to the lesser of: (1) The amount received by the Arkansas Life and Health Insurance Guaranty Association; and (2) The excess of the amount received by the Arkansas Life and Health Insurance Guaranty Association over the amount equal to the benefits paid by the Arkansas Life and Health Insurance Guaranty Association on account of the policy, contract, or annuity less the retention of the insurer applicable to the loss or event; (iii) (a) Within thirty (30) days following the Arkansas Life and Health Insurance Guaranty Association's election, the election date, the Arkansas Life and Health Insurance Guaranty Association and each reinsurer under contracts assumed by the Arkansas Life and Health Insurance Guaranty Association shall calculate the net balance due to or from the Arkansas Life and Health Insurance Guaranty Association under each reinsurance contract as of the election date with respect to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, which calculation shall give full credit to all items paid by either the member insurer or its receiver or the reinsurer prior to the election date. (b) The reinsurer shall pay the receiver any amounts due for losses or events before the date of the order of liquidation, subject to any set-off for premiums unpaid for periods before the date, and the Arkansas Life and Health Insurance Guaranty Association or reinsurer shall pay any remaining balance due the other, in each case within five (5) days of the completion of the aforementioned calculation. (c) Any disputes over the amounts due to either the Arkansas Life and Health Insurance Guaranty Association or the reinsurer shall be resolved by arbitration pursuant to the terms of the affected reinsurance contracts or, if the contract contains no arbitration clause, as otherwise provided by law. (d) If the receiver has received any amounts due the Arkansas Life and Health Insurance Guaranty Association pursuant to subdivision (f)(1)(C)(ii) of this section, the receiver shall remit the same to the Arkansas Life and Health Insurance Guaranty Association as promptly as practicable; and (iv) If the Arkansas Life and Health Insurance Guaranty Association or receiver, on the Arkansas Life and Health Insurance Guaranty Association's behalf, within sixty (60) days of the election date, pays the unpaid premiums due for periods both before and after the election date that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, the reinsurer shall not: (a) Terminate the reinsurance contracts for failure to pay premium insofar as the reinsurance contracts relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association; and (b) Set off any unpaid amounts due under other contracts, or unpaid amounts due from parties other than the Arkansas Life and Health Insurance Guaranty Association, against amounts due the Arkansas Life and Health Insurance Guaranty Association.

(i) (a) The Arkansas Life and Health Insurance Guaranty Association shall be responsible for all unpaid premiums due under the reinsurance contracts for periods both before and after the date of the order of liquidation and shall be responsible for the performance of all other obligations to be performed after the date of the order of liquidation, in each case which relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association. (b) The Arkansas Life and Health Insurance Guaranty Association may charge policies, contracts, or annuities covered in part by the Arkansas Life and Health Insurance Guaranty Association, through reasonable allocation methods, the costs for reinsurance in excess of the obligations of the Arkansas Life and Health Insurance Guaranty Association and shall provide notice and an accounting of these charges to the liquidator;

(a) The Arkansas Life and Health Insurance Guaranty Association shall be responsible for all unpaid premiums due under the reinsurance contracts for periods both before and after the date of the order of liquidation and shall be responsible for the performance of all other obligations to be performed after the date of the order of liquidation, in each case which relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association.

(b) The Arkansas Life and Health Insurance Guaranty Association may charge policies, contracts, or annuities covered in part by the Arkansas Life and Health Insurance Guaranty Association, through reasonable allocation methods, the costs for reinsurance in excess of the obligations of the Arkansas Life and Health Insurance Guaranty Association and shall provide notice and an accounting of these charges to the liquidator;

(ii) (a) The Arkansas Life and Health Insurance Guaranty Association shall be entitled to any amounts payable by the reinsurer under the reinsurance contracts with respect to losses or events that occur in periods after the date of the order of liquidation and that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association. (b) Upon receipt of amounts under subdivision (f)(1)(C)(ii) (a) of this section, the Arkansas Life and Health Insurance Guaranty Association shall pay to the beneficiary under the policy, contract, or annuity on account of which the amounts were paid a portion of the amount equal to the lesser of: (1) The amount received by the Arkansas Life and Health Insurance Guaranty Association; and (2) The excess of the amount received by the Arkansas Life and Health Insurance Guaranty Association over the amount equal to the benefits paid by the Arkansas Life and Health Insurance Guaranty Association on account of the policy, contract, or annuity less the retention of the insurer applicable to the loss or event;

(a) The Arkansas Life and Health Insurance Guaranty Association shall be entitled to any amounts payable by the reinsurer under the reinsurance contracts with respect to losses or events that occur in periods after the date of the order of liquidation and that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association.

(b) Upon receipt of amounts under subdivision (f)(1)(C)(ii) (a) of this section, the Arkansas Life and Health Insurance Guaranty Association shall pay to the beneficiary under the policy, contract, or annuity on account of which the amounts were paid a portion of the amount equal to the lesser of: (1) The amount received by the Arkansas Life and Health Insurance Guaranty Association; and (2) The excess of the amount received by the Arkansas Life and Health Insurance Guaranty Association over the amount equal to the benefits paid by the Arkansas Life and Health Insurance Guaranty Association on account of the policy, contract, or annuity less the retention of the insurer applicable to the loss or event;

(1) The amount received by the Arkansas Life and Health Insurance Guaranty Association; and

(2) The excess of the amount received by the Arkansas Life and Health Insurance Guaranty Association over the amount equal to the benefits paid by the Arkansas Life and Health Insurance Guaranty Association on account of the policy, contract, or annuity less the retention of the insurer applicable to the loss or event;

(iii) (a) Within thirty (30) days following the Arkansas Life and Health Insurance Guaranty Association's election, the election date, the Arkansas Life and Health Insurance Guaranty Association and each reinsurer under contracts assumed by the Arkansas Life and Health Insurance Guaranty Association shall calculate the net balance due to or from the Arkansas Life and Health Insurance Guaranty Association under each reinsurance contract as of the election date with respect to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, which calculation shall give full credit to all items paid by either the member insurer or its receiver or the reinsurer prior to the election date. (b) The reinsurer shall pay the receiver any amounts due for losses or events before the date of the order of liquidation, subject to any set-off for premiums unpaid for periods before the date, and the Arkansas Life and Health Insurance Guaranty Association or reinsurer shall pay any remaining balance due the other, in each case within five (5) days of the completion of the aforementioned calculation. (c) Any disputes over the amounts due to either the Arkansas Life and Health Insurance Guaranty Association or the reinsurer shall be resolved by arbitration pursuant to the terms of the affected reinsurance contracts or, if the contract contains no arbitration clause, as otherwise provided by law. (d) If the receiver has received any amounts due the Arkansas Life and Health Insurance Guaranty Association pursuant to subdivision (f)(1)(C)(ii) of this section, the receiver shall remit the same to the Arkansas Life and Health Insurance Guaranty Association as promptly as practicable; and

(a) Within thirty (30) days following the Arkansas Life and Health Insurance Guaranty Association's election, the election date, the Arkansas Life and Health Insurance Guaranty Association and each reinsurer under contracts assumed by the Arkansas Life and Health Insurance Guaranty Association shall calculate the net balance due to or from the Arkansas Life and Health Insurance Guaranty Association under each reinsurance contract as of the election date with respect to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, which calculation shall give full credit to all items paid by either the member insurer or its receiver or the reinsurer prior to the election date.

(b) The reinsurer shall pay the receiver any amounts due for losses or events before the date of the order of liquidation, subject to any set-off for premiums unpaid for periods before the date, and the Arkansas Life and Health Insurance Guaranty Association or reinsurer shall pay any remaining balance due the other, in each case within five (5) days of the completion of the aforementioned calculation.

(c) Any disputes over the amounts due to either the Arkansas Life and Health Insurance Guaranty Association or the reinsurer shall be resolved by arbitration pursuant to the terms of the affected reinsurance contracts or, if the contract contains no arbitration clause, as otherwise provided by law.

(d) If the receiver has received any amounts due the Arkansas Life and Health Insurance Guaranty Association pursuant to subdivision (f)(1)(C)(ii) of this section, the receiver shall remit the same to the Arkansas Life and Health Insurance Guaranty Association as promptly as practicable; and

(iv) If the Arkansas Life and Health Insurance Guaranty Association or receiver, on the Arkansas Life and Health Insurance Guaranty Association's behalf, within sixty (60) days of the election date, pays the unpaid premiums due for periods both before and after the election date that relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association, the reinsurer shall not: (a) Terminate the reinsurance contracts for failure to pay premium insofar as the reinsurance contracts relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association; and (b) Set off any unpaid amounts due under other contracts, or unpaid amounts due from parties other than the Arkansas Life and Health Insurance Guaranty Association, against amounts due the Arkansas Life and Health Insurance Guaranty Association.

(a) Terminate the reinsurance contracts for failure to pay premium insofar as the reinsurance contracts relate to policies, contracts, or annuities covered, in whole or in part, by the Arkansas Life and Health Insurance Guaranty Association; and

(b) Set off any unpaid amounts due under other contracts, or unpaid amounts due from parties other than the Arkansas Life and Health Insurance Guaranty Association, against amounts due the Arkansas Life and Health Insurance Guaranty Association.

(2) (A) During the period from the date of the order of liquidation until the election date or, if the election date does not occur, until one hundred eighty (180) days after the date of the order of liquidation: (i) Neither the Arkansas Life and Health Insurance Guaranty Association nor the reinsurer shall have any rights or obligations under reinsurance contracts that the Arkansas Life and Health Insurance Guaranty Association has the right to assume under subdivision (f)(1) of this section, whether for periods before or after the date of the order of liquidation; and (ii) The reinsurer, the receiver, and the Arkansas Life and Health Insurance Guaranty Association shall, to the extent practicable, provide each other data and records reasonably requested. (B) When the Arkansas Life and Health Insurance Guaranty Association has elected to assume a reinsurance contract, the parties' rights and obligations shall be governed by subdivision (f)(1) of this section.

(A) During the period from the date of the order of liquidation until the election date or, if the election date does not occur, until one hundred eighty (180) days after the date of the order of liquidation: (i) Neither the Arkansas Life and Health Insurance Guaranty Association nor the reinsurer shall have any rights or obligations under reinsurance contracts that the Arkansas Life and Health Insurance Guaranty Association has the right to assume under subdivision (f)(1) of this section, whether for periods before or after the date of the order of liquidation; and (ii) The reinsurer, the receiver, and the Arkansas Life and Health Insurance Guaranty Association shall, to the extent practicable, provide each other data and records reasonably requested.

(i) Neither the Arkansas Life and Health Insurance Guaranty Association nor the reinsurer shall have any rights or obligations under reinsurance contracts that the Arkansas Life and Health Insurance Guaranty Association has the right to assume under subdivision (f)(1) of this section, whether for periods before or after the date of the order of liquidation; and

(ii) The reinsurer, the receiver, and the Arkansas Life and Health Insurance Guaranty Association shall, to the extent practicable, provide each other data and records reasonably requested.

(B) When the Arkansas Life and Health Insurance Guaranty Association has elected to assume a reinsurance contract, the parties' rights and obligations shall be governed by subdivision (f)(1) of this section.

(3) If the Arkansas Life and Health Insurance Guaranty Association does not elect to assume a reinsurance contract by the election date pursuant to subdivision (f)(1) of this section, the Arkansas Life and Health Insurance Guaranty Association shall have no rights or obligations, in each case for periods both before and after the date of the order of liquidation, with respect to the reinsurance contract.

(4) When policies, contracts, or annuities or covered obligations with respect thereto are transferred to an assuming insurer, reinsurance on the policies, contracts, or annuities may also be transferred by the Arkansas Life and Health Insurance Guaranty Association, in the case of contracts assumed under subdivision (f)(1) of this section, subject to the following: (A) Unless the reinsurer and the assuming insurer agree otherwise, the reinsurance contract transferred shall not cover any new policies of insurance, contracts, or annuities in addition to those transferred; (B) The obligations described in subdivision (f)(1) of this section shall no longer apply with respect to matters arising after the effective date of the transfer; and (C) Notice shall be given in writing, return receipt requested, by the transferring party to the affected reinsurer not less than thirty (30) days before the effective date of the transfer.

(A) Unless the reinsurer and the assuming insurer agree otherwise, the reinsurance contract transferred shall not cover any new policies of insurance, contracts, or annuities in addition to those transferred;

(B) The obligations described in subdivision (f)(1) of this section shall no longer apply with respect to matters arising after the effective date of the transfer; and

(C) Notice shall be given in writing, return receipt requested, by the transferring party to the affected reinsurer not less than thirty (30) days before the effective date of the transfer.

(5) (A) This subsection shall supersede any state law or affected reinsurance agreement or agreements that provide for or require any payment of reinsurance proceeds, on account of losses or events that occur in periods after the coverage date, to the receiver, liquidator, or rehabilitator of the insolvent member insurer. (B) The receiver, rehabilitator, or liquidator shall remain entitled to any amounts payable by the reinsurer under the reinsurance agreement or agreements with respect to losses or events that occur in periods before the coverage date, subject to applicable setoff provisions.

(A) This subsection shall supersede any state law or affected reinsurance agreement or agreements that provide for or require any payment of reinsurance proceeds, on account of losses or events that occur in periods after the coverage date, to the receiver, liquidator, or rehabilitator of the insolvent member insurer.

(B) The receiver, rehabilitator, or liquidator shall remain entitled to any amounts payable by the reinsurer under the reinsurance agreement or agreements with respect to losses or events that occur in periods before the coverage date, subject to applicable setoff provisions.

(6) Except as otherwise expressly provided under subdivision (f)(1)(C) of this section, this section does not: (A) Alter or modify the terms and conditions of the indemnity reinsurance agreements of the insolvent member insurer; (B) Abrogate or limit any rights of any reinsurer to claim that it is entitled to rescind a reinsurance agreement; (C) Give a policyholder, contract owner, enrollee, certificate holder, or beneficiary an independent cause of action against an indemnity reinsurer that is not otherwise stated in the indemnity reinsurance agreement; (D) Give a policyholder or beneficiary an independent cause of action against a reinsurer that is not otherwise stated in the reinsurance contract; (E) Limit or affect the Arkansas Life and Health Insurance Guaranty Association's rights as a creditor of the estate against the assets of the estate; or (F) Apply to reinsurance agreements covering property or casualty risks.

(A) Alter or modify the terms and conditions of the indemnity reinsurance agreements of the insolvent member insurer;

(B) Abrogate or limit any rights of any reinsurer to claim that it is entitled to rescind a reinsurance agreement;

(C) Give a policyholder, contract owner, enrollee, certificate holder, or beneficiary an independent cause of action against an indemnity reinsurer that is not otherwise stated in the indemnity reinsurance agreement;

(D) Give a policyholder or beneficiary an independent cause of action against a reinsurer that is not otherwise stated in the reinsurance contract;

(E) Limit or affect the Arkansas Life and Health Insurance Guaranty Association's rights as a creditor of the estate against the assets of the estate; or

(F) Apply to reinsurance agreements covering property or casualty risks.

(g) The Board of Directors of the Arkansas Life and Health Insurance Guaranty Association shall have discretion and may exercise reasonable business judgment to determine the means by which the Arkansas Life and Health Insurance Guaranty Association is to provide the benefits of this chapter in an economical and efficient manner and may provide additional or alternative coverages and benefits in appropriate situations.

(h) If the Arkansas Life and Health Insurance Guaranty Association has arranged or offered to provide the benefits of this chapter to a covered person under a plan or arrangement that fulfills the Arkansas Life and Health Insurance Guaranty Association's obligations under this chapter, the person shall not be entitled to benefits from the Arkansas Life and Health Insurance Guaranty Association in addition to or other than those provided under the plan or arrangement.

(i) (1) Venue in a suit against the Arkansas Life and Health Insurance Guaranty Association arising under this chapter shall be in Pulaski County. (2) The Arkansas Life and Health Insurance Guaranty Association shall not be required to give an appeal bond in an appeal that relates to a cause of action arising under this chapter.

(1) Venue in a suit against the Arkansas Life and Health Insurance Guaranty Association arising under this chapter shall be in Pulaski County.

(2) The Arkansas Life and Health Insurance Guaranty Association shall not be required to give an appeal bond in an appeal that relates to a cause of action arising under this chapter.

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

Amended by Act 2013, No. 456,§ 4, eff. 8/16/2013.

Acts 1989, No. 444, §§ 8, 14; 1997, No. 950, § 1; 2001, No. 1603, § 57; 2001, No. 1604, § 121.
Ark. Code Ann. § 23-84-104 — AR Code / Title 23 / Chapter 84 / Section 23-84-104
Minimum standard for valuation - Annuity and pure endowment contracts
Status: in_force

(a) Except as provided in § 23-84-105 , the minimum standard for the valuation of all individual annuity and pure endowment contracts issued on or after the operative date of this section and for all annuities and pure endowments purchased on or after the operative date under group annuity and pure endowment contracts shall be the Insurance Commissioner's reserve valuation methods defined in §§ 23-84-106 and 23-84-107 and the following tables and interest rates: (1) For individual single premium immediate annuity contracts excluding any disability and accidental death benefits in the contracts, the 1971 Individual Annuity Mortality Table or any individual annuity mortality table adopted after 1980 by the National Association of Insurance Commissioners and approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the contracts, or any modification of these tables approved by the commissioner, and seven and one-half percent (7.5%) interest; (2) For individual annuity and pure endowment contracts other than single premium immediate annuity contracts, excluding any disability and accidental death benefits in the contracts, the 1971 Individual Annuity Mortality Table or any individual annuity mortality table adopted after 1980 by the National Association of Insurance Commissioners that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the contracts, or any modification of these tables approved by the commissioner, and five and one-half percent (5.5%) interest for single premium deferred annuity and pure endowment contracts and four and one-half percent (4.5%) interest for all other individual annuity and pure endowment contracts; and (3) For all annuities and pure endowments under group annuity and pure endowment contracts, excluding any disability and accidental death benefits purchased under the contracts, the 1971 Group Annuity Mortality Table or any group annuity mortality table adopted after 1980 by the National Association of Insurance Commissioners that is approved by rules promulgated by the commissioner for use in determining the minimum standard of valuation for the annuities and pure endowments, or any modification of these tables approved by the commissioner, and seven and one-half percent (7.5%) interest. (b) After March 18, 1977, any insurer may file with the commissioner a written notice of its election to comply with the provisions of this section after a specified date before January 1, 1979, which shall be the operative date of this section for the insurer. However, an insurer may elect a different operative date for individual annuity and pure endowment contracts from that elected for group annuity and pure endowment contracts. If an insurer makes no election, the operative date of this section for the insurer shall be January 1, 1979. Amended by Act 2019, No. 315,§ 2735, eff. 7/24/2019. Acts 1959, No. 148, § 92; 1961, No. 466, § 1; 1965, No. 439, § 1; 1977, No. 551, § 2; 1981, No. 535, § 1; A.S.A. 1947, § 66-2511.

(a) Except as provided in § 23-84-105 , the minimum standard for the valuation of all individual annuity and pure endowment contracts issued on or after the operative date of this section and for all annuities and pure endowments purchased on or after the operative date under group annuity and pure endowment contracts shall be the Insurance Commissioner's reserve valuation methods defined in §§ 23-84-106 and 23-84-107 and the following tables and interest rates: (1) For individual single premium immediate annuity contracts excluding any disability and accidental death benefits in the contracts, the 1971 Individual Annuity Mortality Table or any individual annuity mortality table adopted after 1980 by the National Association of Insurance Commissioners and approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the contracts, or any modification of these tables approved by the commissioner, and seven and one-half percent (7.5%) interest; (2) For individual annuity and pure endowment contracts other than single premium immediate annuity contracts, excluding any disability and accidental death benefits in the contracts, the 1971 Individual Annuity Mortality Table or any individual annuity mortality table adopted after 1980 by the National Association of Insurance Commissioners that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the contracts, or any modification of these tables approved by the commissioner, and five and one-half percent (5.5%) interest for single premium deferred annuity and pure endowment contracts and four and one-half percent (4.5%) interest for all other individual annuity and pure endowment contracts; and (3) For all annuities and pure endowments under group annuity and pure endowment contracts, excluding any disability and accidental death benefits purchased under the contracts, the 1971 Group Annuity Mortality Table or any group annuity mortality table adopted after 1980 by the National Association of Insurance Commissioners that is approved by rules promulgated by the commissioner for use in determining the minimum standard of valuation for the annuities and pure endowments, or any modification of these tables approved by the commissioner, and seven and one-half percent (7.5%) interest.

(1) For individual single premium immediate annuity contracts excluding any disability and accidental death benefits in the contracts, the 1971 Individual Annuity Mortality Table or any individual annuity mortality table adopted after 1980 by the National Association of Insurance Commissioners and approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the contracts, or any modification of these tables approved by the commissioner, and seven and one-half percent (7.5%) interest;

(2) For individual annuity and pure endowment contracts other than single premium immediate annuity contracts, excluding any disability and accidental death benefits in the contracts, the 1971 Individual Annuity Mortality Table or any individual annuity mortality table adopted after 1980 by the National Association of Insurance Commissioners that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the contracts, or any modification of these tables approved by the commissioner, and five and one-half percent (5.5%) interest for single premium deferred annuity and pure endowment contracts and four and one-half percent (4.5%) interest for all other individual annuity and pure endowment contracts; and

(3) For all annuities and pure endowments under group annuity and pure endowment contracts, excluding any disability and accidental death benefits purchased under the contracts, the 1971 Group Annuity Mortality Table or any group annuity mortality table adopted after 1980 by the National Association of Insurance Commissioners that is approved by rules promulgated by the commissioner for use in determining the minimum standard of valuation for the annuities and pure endowments, or any modification of these tables approved by the commissioner, and seven and one-half percent (7.5%) interest.

(b) After March 18, 1977, any insurer may file with the commissioner a written notice of its election to comply with the provisions of this section after a specified date before January 1, 1979, which shall be the operative date of this section for the insurer. However, an insurer may elect a different operative date for individual annuity and pure endowment contracts from that elected for group annuity and pure endowment contracts. If an insurer makes no election, the operative date of this section for the insurer shall be January 1, 1979.

Amended by Act 2019, No. 315,§ 2735, eff. 7/24/2019.

Acts 1959, No. 148, § 92; 1961, No. 466, § 1; 1965, No. 439, § 1; 1977, No. 551, § 2; 1981, No. 535, § 1; A.S.A. 1947, § 66-2511.
Ark. Code Ann. § 23-81-213 — AR Code / Title 23 / Chapter 81 / Subchapter 2 / Section 23-81-213
Effective dates
Status: in_force

(a) After January 1, 1960, any insurer may file with the Insurance Commissioner a written notice of its election to comply after a specified date before January 1, 1961. After the filing of the notice and then upon the specified date, which shall be the operative date for the insurer, this subsection shall become operative with respect to the policies thereafter issued by such an insurer. If an insurer makes no election, the operative date of this subsection for the insurer shall be January 1, 1961. (b) After March 16, 1961, any insurer may file with the commissioner a written notice of its election to comply after a specified date before January 1, 1966. After the filing of the notice and then upon the specified date, which shall be the operative date for the insurer, this subsection shall become operative with respect to the policies thereafter issued by the insurer. If an insurer makes no election, the operative date of this subsection for the insurer shall be January 1, 1966. (c) After January 1, 1960, any insurer may file with the commissioner a written notice of its election to comply after a specified date before January 1, 1969. After the filing of the notice and then upon the specified date, which shall be the operative date for the insurer, this subsection shall become operative with respect to the policies thereafter issued by such an insurer. If an insurer makes no election, the operative date of this subsection for the insurer shall be January 1, 1969. (d) After January 1, 1982, any insurer may file with the commissioner a written notice of its election to comply after a specified date before January 1, 1989. After the filing of the notice and then upon the specified date, which shall be the operative date for the insurer, this subsection shall become operative with respect to the policies thereafter issued by the insurer. If an insurer makes no election, the operative date of this subsection for the insurer shall be January 1, 1989. (e) After January 1, 1982, any insurer may file with the commissioner a written notice of its election to comply after a specified date before January 1, 1985. After the filing of the notice and then upon the specified date, which shall be the operative date for the insurer, this subsection shall become operative with respect to the policies thereafter issued by the insurer. If any insurer makes no election, the operative date of this subsection shall be January 1, 1985. Acts 1959, No. 148, § 336; 1961, No. 466, §§ 5, 7; 1965, No. 439, § 2; 1977, No. 550, § 2; 1981, No. 535, § 2; A.S.A. 1947, § 66-3327.

(a) After January 1, 1960, any insurer may file with the Insurance Commissioner a written notice of its election to comply after a specified date before January 1, 1961. After the filing of the notice and then upon the specified date, which shall be the operative date for the insurer, this subsection shall become operative with respect to the policies thereafter issued by such an insurer. If an insurer makes no election, the operative date of this subsection for the insurer shall be January 1, 1961.

(b) After March 16, 1961, any insurer may file with the commissioner a written notice of its election to comply after a specified date before January 1, 1966. After the filing of the notice and then upon the specified date, which shall be the operative date for the insurer, this subsection shall become operative with respect to the policies thereafter issued by the insurer. If an insurer makes no election, the operative date of this subsection for the insurer shall be January 1, 1966.

(c) After January 1, 1960, any insurer may file with the commissioner a written notice of its election to comply after a specified date before January 1, 1969. After the filing of the notice and then upon the specified date, which shall be the operative date for the insurer, this subsection shall become operative with respect to the policies thereafter issued by such an insurer. If an insurer makes no election, the operative date of this subsection for the insurer shall be January 1, 1969.

(d) After January 1, 1982, any insurer may file with the commissioner a written notice of its election to comply after a specified date before January 1, 1989. After the filing of the notice and then upon the specified date, which shall be the operative date for the insurer, this subsection shall become operative with respect to the policies thereafter issued by the insurer. If an insurer makes no election, the operative date of this subsection for the insurer shall be January 1, 1989.

(e) After January 1, 1982, any insurer may file with the commissioner a written notice of its election to comply after a specified date before January 1, 1985. After the filing of the notice and then upon the specified date, which shall be the operative date for the insurer, this subsection shall become operative with respect to the policies thereafter issued by the insurer. If any insurer makes no election, the operative date of this subsection shall be January 1, 1985.

Acts 1959, No. 148, § 336; 1961, No. 466, §§ 5, 7; 1965, No. 439, § 2; 1977, No. 550, § 2; 1981, No. 535, § 2; A.S.A. 1947, § 66-3327.
Ark. Code Ann. § 23-92-409 — AR Code / Title 23 / Chapter 92 / Subchapter 4 / Section 23-92-409
Relationships defined
Status: in_force

(a) (1) Except as specifically provided in this subchapter, the coemployment relationship between the client and the professional employer organization and between each coemployer and each covered employee shall be governed by the professional employer agreement. (2) Neither this subchapter nor any professional employer agreement shall: (A) Diminish, abolish, or remove rights of covered employees as to clients or obligations of clients as to a covered employee that existed before the effective date of a professional employer agreement; (B) Terminate an employment relationship existing before the effective date of a professional employer agreement; or (C) Create any new or additional enforcement right of a covered employee against a professional employer organization not specifically allocated to the professional employer organization in the professional employer agreement or under this subchapter. (b) Except as specifically provided in this subchapter or in the professional employer agreement, in each coemployment relationship: (1) The client is entitled to exercise all rights and is obligated to perform all duties and responsibilities otherwise applicable to an employer in an employment relationship; and (2) (A) The professional employer organization shall be entitled to exercise only the rights and obligated to perform only the duties and responsibilities specifically required by this subchapter or by the professional employer agreement. (B) The rights, duties, and obligations of the professional employer organization as coemployer with respect to any covered employee is limited to those rights during and obligations arising under the professional employer agreement and this subchapter during the term of coemployment by the professional employer organization of the covered employee. (c) Each professional employer agreement shall include, at a minimum, the following: (1) (A) The professional employer organization shall reserve a right of direction and control over the covered employees. (B) However, the client may retain the right to exercise direction and control over covered employees as is necessary to: (i) Conduct the client's business; (ii) Discharge any fiduciary responsibility that it may have; or (iii) Comply with any applicable licensing requirements; (2) The professional employer organization shall: (A) Pay wages and salaries to covered employees; (B) Withhold, collect, report, and remit payroll-related and employment taxes; and (C) To the extent the professional employer organization has assumed responsibility in the professional employer agreement, make payments for employee benefits for covered employees; (3) The professional employer organization shall retain the authority to hire, terminate, and discipline the covered employees unless otherwise agreed; (4) (A) The responsibility to obtain workers' compensation coverage for covered employees from a carrier licensed to do business in Arkansas and otherwise in compliance with all applicable requirements shall be specifically allocated to either the client or the professional employer organization. (B) (i) If the responsibility under subdivision (c)(4)(A) of this section is allocated to the professional employer organization under a professional employer agreement, the professional employer agreement shall require the professional employer organization to maintain records regarding the premium and loss experience related to workers' compensation insurance provided to covered employees under the professional employer agreement. (ii) The professional employer agreement shall also provide that, if requested by the client at or after the termination of the professional employer agreement, the professional employer organization shall provide the records maintained under subdivision (c)(4)(B)(i) of this section to the client. (C) If the professional employer organization or any of its controlling persons cannot provide the information requested under subdivision (c)(4)(B)(ii) of this section, any insurance carrier that provided the coverage for the covered employees shall provide it upon request of the client or the Insurance Commissioner; and (5) (A) Upon request, during the period the client is a party to a professional employer organization arrangement and for a period of ninety (90) days after termination of a professional employer organization arrangement, a client or former client is entitled to receive records of the professional employer organization regarding payroll, workers' compensation coverage, losses and claims, and employee benefits provided under the professional employer organization arrangement. (B) (i) The professional employer organization may charge a reasonable fee for the cost of reproducing the information under subdivision (c)(5)(A) of this section. (ii) This section does not require the disclosure of information to a client or former client concerning another client or former client of the professional employer organization. (C) Either the professional employer organization or the controlling person, to the extent the controlling person has access to the information, shall furnish the information requested within thirty (30) days of receiving the request. (d) With respect to each professional employer agreement entered into by a professional employer organization, each professional employer organization shall provide written notice to each covered employee affected by the professional employer agreement of the general nature of the coemployment relationship between and among the professional employer organization, the client, and any covered employee. (e) (1) A professional employer organization shall provide to a client within fifteen (15) days of receipt of a written request a record of wages by workers' compensation class code and claims loss runs for the lesser of the prior thirty-six (36) calendar months or the period of time the professional employer agreement between the client and professional employer organization has been effective. (2) If a professional employer organization fails to provide the information in subdivision (e)(1) of this section and if the commissioner requests no later than ninety (90) days after the termination of the policy covering the client, the insurer providing the coverage shall provide to the client within thirty (30) days the information or as much information as the insurer possesses or should possess if the insurer has complied with applicable law. (f) (1) Either a client or a professional employer organization may sponsor retirement and welfare benefit plans for its covered employees. (2) If limited to the employees of the professional employer organization, a welfare benefit plan offered to the covered employees of a single professional employer organization shall not be considered a multiple employer welfare arrangement or trust within the meaning of applicable law. (3) For purposes of § 23-86-201 et seq., with respect to a health benefit plan sponsored by a professional employer organization: (A) A professional employer organization shall be considered the employer of all of its covered employees; and (B) All covered employees of one (1) or more clients participating in a health benefit plan sponsored by a single professional employer organization shall be considered employees of the professional employer organization. (4) If a professional employer organization offers to its covered employees any health benefit plan that is not fully insured by an authorized insurer, the plan shall: (A) Utilize a third-party administrator licensed to do business in this state; (B) Hold all plan assets, including participant contributions, in a trust account; and (C) Provide sound reserves for the plan as determined using generally accepted actuarial standards. (g) Except to the extent otherwise provided in a professional employer agreement: (1) A professional employer organization shall not be liable for the acts, errors, or omissions of a client or of any covered employee when the covered employee is acting under the direction and control of a client; (2) A client shall not be liable for the acts, errors, or omissions of a professional employer organization or of any covered employee of the client and a professional employer organization when the covered employee is acting under the direction and control of the professional employer organization; (3) This subsection does not limit any contractual liability or obligation specifically provided in a professional employer agreement or the liabilities and obligations of any professional employer organization or client as defined elsewhere in this subchapter; and (4) A covered employee is not, solely as the result of being a covered employee of a professional employer organization, an employee of the professional employer organization for purposes of general liability, insurance, fidelity bonds, surety bonds, or employer's liability not covered by workers' compensation carried by the professional employer organization unless the covered employees are included by specific reference in the professional employer agreement and applicable prearranged employment contract, insurance contract, or bond. (h) Except as provided under § 23-92-411 , the sale of professional employer services provided by professional employer organizations licensed under this subchapter shall not constitute the sale of insurance for purposes of Arkansas insurance law. (i) Covered employees whose services are subject to sales tax shall be deemed the employees of the client for purposes of collecting and levying sales tax on the services performed by the covered employee. (j) A licensed professional employer organization shall be deemed an employer of the covered employees and shall perform the following employer responsibilities in conformity with all applicable federal and state laws, rules, and regulations to: (1) Pay wages and collect, report, and pay employment taxes from its own accounts; (2) Pay unemployment taxes as required by the Division of Workforce Services Law, § 11-10-101 et seq.; (3) (A) Ensure that all covered employees are covered by workers' compensation insurance provided in conformance with the laws of this state. (B) Workers' compensation coverage may be provided through a policy or plan maintained by either the professional employer organization or the client. (C) However, for purposes of risks insured under the Arkansas Workers' Compensation Insurance Plan, § 23-67-301 et seq., the commissioner is authorized to promulgate rules as he or she deems necessary to assure that workers' compensation coverage is available to employees providing services for a client; (4) Be entitled and to entitle the client, together as joint employers, to the exclusive remedy under § 11-9-105 , under both the workers' compensation and employer's liability provisions of a workers' compensation policy or plan that either party has secured within the meaning of § 11-9-105 ; and (5) (A) Not be vicariously liable for the liabilities of the client, whether contractual or otherwise. (B) However, the client shall not be vicariously liable for the liabilities of the professional employer organization, whether contractual or otherwise. (C) This section shall limit any direct contractual liability or any joint liability between the client and the professional employer organization. Amended by Act 2019, No. 315,§ 2776, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 610, eff. 7/1/2019. Acts 2003, No. 1750, § 1.

(a) (1) Except as specifically provided in this subchapter, the coemployment relationship between the client and the professional employer organization and between each coemployer and each covered employee shall be governed by the professional employer agreement. (2) Neither this subchapter nor any professional employer agreement shall: (A) Diminish, abolish, or remove rights of covered employees as to clients or obligations of clients as to a covered employee that existed before the effective date of a professional employer agreement; (B) Terminate an employment relationship existing before the effective date of a professional employer agreement; or (C) Create any new or additional enforcement right of a covered employee against a professional employer organization not specifically allocated to the professional employer organization in the professional employer agreement or under this subchapter.

(1) Except as specifically provided in this subchapter, the coemployment relationship between the client and the professional employer organization and between each coemployer and each covered employee shall be governed by the professional employer agreement.

(2) Neither this subchapter nor any professional employer agreement shall: (A) Diminish, abolish, or remove rights of covered employees as to clients or obligations of clients as to a covered employee that existed before the effective date of a professional employer agreement; (B) Terminate an employment relationship existing before the effective date of a professional employer agreement; or (C) Create any new or additional enforcement right of a covered employee against a professional employer organization not specifically allocated to the professional employer organization in the professional employer agreement or under this subchapter.

(A) Diminish, abolish, or remove rights of covered employees as to clients or obligations of clients as to a covered employee that existed before the effective date of a professional employer agreement;

(B) Terminate an employment relationship existing before the effective date of a professional employer agreement; or

(C) Create any new or additional enforcement right of a covered employee against a professional employer organization not specifically allocated to the professional employer organization in the professional employer agreement or under this subchapter.

(b) Except as specifically provided in this subchapter or in the professional employer agreement, in each coemployment relationship: (1) The client is entitled to exercise all rights and is obligated to perform all duties and responsibilities otherwise applicable to an employer in an employment relationship; and (2) (A) The professional employer organization shall be entitled to exercise only the rights and obligated to perform only the duties and responsibilities specifically required by this subchapter or by the professional employer agreement. (B) The rights, duties, and obligations of the professional employer organization as coemployer with respect to any covered employee is limited to those rights during and obligations arising under the professional employer agreement and this subchapter during the term of coemployment by the professional employer organization of the covered employee.

(1) The client is entitled to exercise all rights and is obligated to perform all duties and responsibilities otherwise applicable to an employer in an employment relationship; and

(2) (A) The professional employer organization shall be entitled to exercise only the rights and obligated to perform only the duties and responsibilities specifically required by this subchapter or by the professional employer agreement. (B) The rights, duties, and obligations of the professional employer organization as coemployer with respect to any covered employee is limited to those rights during and obligations arising under the professional employer agreement and this subchapter during the term of coemployment by the professional employer organization of the covered employee.

(A) The professional employer organization shall be entitled to exercise only the rights and obligated to perform only the duties and responsibilities specifically required by this subchapter or by the professional employer agreement.

(B) The rights, duties, and obligations of the professional employer organization as coemployer with respect to any covered employee is limited to those rights during and obligations arising under the professional employer agreement and this subchapter during the term of coemployment by the professional employer organization of the covered employee.

(c) Each professional employer agreement shall include, at a minimum, the following: (1) (A) The professional employer organization shall reserve a right of direction and control over the covered employees. (B) However, the client may retain the right to exercise direction and control over covered employees as is necessary to: (i) Conduct the client's business; (ii) Discharge any fiduciary responsibility that it may have; or (iii) Comply with any applicable licensing requirements; (2) The professional employer organization shall: (A) Pay wages and salaries to covered employees; (B) Withhold, collect, report, and remit payroll-related and employment taxes; and (C) To the extent the professional employer organization has assumed responsibility in the professional employer agreement, make payments for employee benefits for covered employees; (3) The professional employer organization shall retain the authority to hire, terminate, and discipline the covered employees unless otherwise agreed; (4) (A) The responsibility to obtain workers' compensation coverage for covered employees from a carrier licensed to do business in Arkansas and otherwise in compliance with all applicable requirements shall be specifically allocated to either the client or the professional employer organization. (B) (i) If the responsibility under subdivision (c)(4)(A) of this section is allocated to the professional employer organization under a professional employer agreement, the professional employer agreement shall require the professional employer organization to maintain records regarding the premium and loss experience related to workers' compensation insurance provided to covered employees under the professional employer agreement. (ii) The professional employer agreement shall also provide that, if requested by the client at or after the termination of the professional employer agreement, the professional employer organization shall provide the records maintained under subdivision (c)(4)(B)(i) of this section to the client. (C) If the professional employer organization or any of its controlling persons cannot provide the information requested under subdivision (c)(4)(B)(ii) of this section, any insurance carrier that provided the coverage for the covered employees shall provide it upon request of the client or the Insurance Commissioner; and (5) (A) Upon request, during the period the client is a party to a professional employer organization arrangement and for a period of ninety (90) days after termination of a professional employer organization arrangement, a client or former client is entitled to receive records of the professional employer organization regarding payroll, workers' compensation coverage, losses and claims, and employee benefits provided under the professional employer organization arrangement. (B) (i) The professional employer organization may charge a reasonable fee for the cost of reproducing the information under subdivision (c)(5)(A) of this section. (ii) This section does not require the disclosure of information to a client or former client concerning another client or former client of the professional employer organization. (C) Either the professional employer organization or the controlling person, to the extent the controlling person has access to the information, shall furnish the information requested within thirty (30) days of receiving the request.

(1) (A) The professional employer organization shall reserve a right of direction and control over the covered employees. (B) However, the client may retain the right to exercise direction and control over covered employees as is necessary to: (i) Conduct the client's business; (ii) Discharge any fiduciary responsibility that it may have; or (iii) Comply with any applicable licensing requirements;

(A) The professional employer organization shall reserve a right of direction and control over the covered employees.

(B) However, the client may retain the right to exercise direction and control over covered employees as is necessary to: (i) Conduct the client's business; (ii) Discharge any fiduciary responsibility that it may have; or (iii) Comply with any applicable licensing requirements;

(i) Conduct the client's business;

(ii) Discharge any fiduciary responsibility that it may have; or

(iii) Comply with any applicable licensing requirements;

(2) The professional employer organization shall: (A) Pay wages and salaries to covered employees; (B) Withhold, collect, report, and remit payroll-related and employment taxes; and (C) To the extent the professional employer organization has assumed responsibility in the professional employer agreement, make payments for employee benefits for covered employees;

(A) Pay wages and salaries to covered employees;

(B) Withhold, collect, report, and remit payroll-related and employment taxes; and

(C) To the extent the professional employer organization has assumed responsibility in the professional employer agreement, make payments for employee benefits for covered employees;

(3) The professional employer organization shall retain the authority to hire, terminate, and discipline the covered employees unless otherwise agreed;

(4) (A) The responsibility to obtain workers' compensation coverage for covered employees from a carrier licensed to do business in Arkansas and otherwise in compliance with all applicable requirements shall be specifically allocated to either the client or the professional employer organization. (B) (i) If the responsibility under subdivision (c)(4)(A) of this section is allocated to the professional employer organization under a professional employer agreement, the professional employer agreement shall require the professional employer organization to maintain records regarding the premium and loss experience related to workers' compensation insurance provided to covered employees under the professional employer agreement. (ii) The professional employer agreement shall also provide that, if requested by the client at or after the termination of the professional employer agreement, the professional employer organization shall provide the records maintained under subdivision (c)(4)(B)(i) of this section to the client. (C) If the professional employer organization or any of its controlling persons cannot provide the information requested under subdivision (c)(4)(B)(ii) of this section, any insurance carrier that provided the coverage for the covered employees shall provide it upon request of the client or the Insurance Commissioner; and

(A) The responsibility to obtain workers' compensation coverage for covered employees from a carrier licensed to do business in Arkansas and otherwise in compliance with all applicable requirements shall be specifically allocated to either the client or the professional employer organization.

(B) (i) If the responsibility under subdivision (c)(4)(A) of this section is allocated to the professional employer organization under a professional employer agreement, the professional employer agreement shall require the professional employer organization to maintain records regarding the premium and loss experience related to workers' compensation insurance provided to covered employees under the professional employer agreement. (ii) The professional employer agreement shall also provide that, if requested by the client at or after the termination of the professional employer agreement, the professional employer organization shall provide the records maintained under subdivision (c)(4)(B)(i) of this section to the client.

(i) If the responsibility under subdivision (c)(4)(A) of this section is allocated to the professional employer organization under a professional employer agreement, the professional employer agreement shall require the professional employer organization to maintain records regarding the premium and loss experience related to workers' compensation insurance provided to covered employees under the professional employer agreement.

(ii) The professional employer agreement shall also provide that, if requested by the client at or after the termination of the professional employer agreement, the professional employer organization shall provide the records maintained under subdivision (c)(4)(B)(i) of this section to the client.

(C) If the professional employer organization or any of its controlling persons cannot provide the information requested under subdivision (c)(4)(B)(ii) of this section, any insurance carrier that provided the coverage for the covered employees shall provide it upon request of the client or the Insurance Commissioner; and

(5) (A) Upon request, during the period the client is a party to a professional employer organization arrangement and for a period of ninety (90) days after termination of a professional employer organization arrangement, a client or former client is entitled to receive records of the professional employer organization regarding payroll, workers' compensation coverage, losses and claims, and employee benefits provided under the professional employer organization arrangement. (B) (i) The professional employer organization may charge a reasonable fee for the cost of reproducing the information under subdivision (c)(5)(A) of this section. (ii) This section does not require the disclosure of information to a client or former client concerning another client or former client of the professional employer organization. (C) Either the professional employer organization or the controlling person, to the extent the controlling person has access to the information, shall furnish the information requested within thirty (30) days of receiving the request.

(A) Upon request, during the period the client is a party to a professional employer organization arrangement and for a period of ninety (90) days after termination of a professional employer organization arrangement, a client or former client is entitled to receive records of the professional employer organization regarding payroll, workers' compensation coverage, losses and claims, and employee benefits provided under the professional employer organization arrangement.

(B) (i) The professional employer organization may charge a reasonable fee for the cost of reproducing the information under subdivision (c)(5)(A) of this section. (ii) This section does not require the disclosure of information to a client or former client concerning another client or former client of the professional employer organization.

(i) The professional employer organization may charge a reasonable fee for the cost of reproducing the information under subdivision (c)(5)(A) of this section.

(ii) This section does not require the disclosure of information to a client or former client concerning another client or former client of the professional employer organization.

(C) Either the professional employer organization or the controlling person, to the extent the controlling person has access to the information, shall furnish the information requested within thirty (30) days of receiving the request.

(d) With respect to each professional employer agreement entered into by a professional employer organization, each professional employer organization shall provide written notice to each covered employee affected by the professional employer agreement of the general nature of the coemployment relationship between and among the professional employer organization, the client, and any covered employee.

(e) (1) A professional employer organization shall provide to a client within fifteen (15) days of receipt of a written request a record of wages by workers' compensation class code and claims loss runs for the lesser of the prior thirty-six (36) calendar months or the period of time the professional employer agreement between the client and professional employer organization has been effective. (2) If a professional employer organization fails to provide the information in subdivision (e)(1) of this section and if the commissioner requests no later than ninety (90) days after the termination of the policy covering the client, the insurer providing the coverage shall provide to the client within thirty (30) days the information or as much information as the insurer possesses or should possess if the insurer has complied with applicable law.

(1) A professional employer organization shall provide to a client within fifteen (15) days of receipt of a written request a record of wages by workers' compensation class code and claims loss runs for the lesser of the prior thirty-six (36) calendar months or the period of time the professional employer agreement between the client and professional employer organization has been effective.

(2) If a professional employer organization fails to provide the information in subdivision (e)(1) of this section and if the commissioner requests no later than ninety (90) days after the termination of the policy covering the client, the insurer providing the coverage shall provide to the client within thirty (30) days the information or as much information as the insurer possesses or should possess if the insurer has complied with applicable law.

(f) (1) Either a client or a professional employer organization may sponsor retirement and welfare benefit plans for its covered employees. (2) If limited to the employees of the professional employer organization, a welfare benefit plan offered to the covered employees of a single professional employer organization shall not be considered a multiple employer welfare arrangement or trust within the meaning of applicable law. (3) For purposes of § 23-86-201 et seq., with respect to a health benefit plan sponsored by a professional employer organization: (A) A professional employer organization shall be considered the employer of all of its covered employees; and (B) All covered employees of one (1) or more clients participating in a health benefit plan sponsored by a single professional employer organization shall be considered employees of the professional employer organization. (4) If a professional employer organization offers to its covered employees any health benefit plan that is not fully insured by an authorized insurer, the plan shall: (A) Utilize a third-party administrator licensed to do business in this state; (B) Hold all plan assets, including participant contributions, in a trust account; and (C) Provide sound reserves for the plan as determined using generally accepted actuarial standards.

(1) Either a client or a professional employer organization may sponsor retirement and welfare benefit plans for its covered employees.

(2) If limited to the employees of the professional employer organization, a welfare benefit plan offered to the covered employees of a single professional employer organization shall not be considered a multiple employer welfare arrangement or trust within the meaning of applicable law.

(3) For purposes of § 23-86-201 et seq., with respect to a health benefit plan sponsored by a professional employer organization: (A) A professional employer organization shall be considered the employer of all of its covered employees; and (B) All covered employees of one (1) or more clients participating in a health benefit plan sponsored by a single professional employer organization shall be considered employees of the professional employer organization.

(A) A professional employer organization shall be considered the employer of all of its covered employees; and

(B) All covered employees of one (1) or more clients participating in a health benefit plan sponsored by a single professional employer organization shall be considered employees of the professional employer organization.

(4) If a professional employer organization offers to its covered employees any health benefit plan that is not fully insured by an authorized insurer, the plan shall: (A) Utilize a third-party administrator licensed to do business in this state; (B) Hold all plan assets, including participant contributions, in a trust account; and (C) Provide sound reserves for the plan as determined using generally accepted actuarial standards.

(A) Utilize a third-party administrator licensed to do business in this state;

(B) Hold all plan assets, including participant contributions, in a trust account; and

(C) Provide sound reserves for the plan as determined using generally accepted actuarial standards.

(g) Except to the extent otherwise provided in a professional employer agreement: (1) A professional employer organization shall not be liable for the acts, errors, or omissions of a client or of any covered employee when the covered employee is acting under the direction and control of a client; (2) A client shall not be liable for the acts, errors, or omissions of a professional employer organization or of any covered employee of the client and a professional employer organization when the covered employee is acting under the direction and control of the professional employer organization; (3) This subsection does not limit any contractual liability or obligation specifically provided in a professional employer agreement or the liabilities and obligations of any professional employer organization or client as defined elsewhere in this subchapter; and (4) A covered employee is not, solely as the result of being a covered employee of a professional employer organization, an employee of the professional employer organization for purposes of general liability, insurance, fidelity bonds, surety bonds, or employer's liability not covered by workers' compensation carried by the professional employer organization unless the covered employees are included by specific reference in the professional employer agreement and applicable prearranged employment contract, insurance contract, or bond.

(1) A professional employer organization shall not be liable for the acts, errors, or omissions of a client or of any covered employee when the covered employee is acting under the direction and control of a client;

(2) A client shall not be liable for the acts, errors, or omissions of a professional employer organization or of any covered employee of the client and a professional employer organization when the covered employee is acting under the direction and control of the professional employer organization;

(3) This subsection does not limit any contractual liability or obligation specifically provided in a professional employer agreement or the liabilities and obligations of any professional employer organization or client as defined elsewhere in this subchapter; and

(4) A covered employee is not, solely as the result of being a covered employee of a professional employer organization, an employee of the professional employer organization for purposes of general liability, insurance, fidelity bonds, surety bonds, or employer's liability not covered by workers' compensation carried by the professional employer organization unless the covered employees are included by specific reference in the professional employer agreement and applicable prearranged employment contract, insurance contract, or bond.

(h) Except as provided under § 23-92-411 , the sale of professional employer services provided by professional employer organizations licensed under this subchapter shall not constitute the sale of insurance for purposes of Arkansas insurance law.

(i) Covered employees whose services are subject to sales tax shall be deemed the employees of the client for purposes of collecting and levying sales tax on the services performed by the covered employee.

(j) A licensed professional employer organization shall be deemed an employer of the covered employees and shall perform the following employer responsibilities in conformity with all applicable federal and state laws, rules, and regulations to: (1) Pay wages and collect, report, and pay employment taxes from its own accounts; (2) Pay unemployment taxes as required by the Division of Workforce Services Law, § 11-10-101 et seq.; (3) (A) Ensure that all covered employees are covered by workers' compensation insurance provided in conformance with the laws of this state. (B) Workers' compensation coverage may be provided through a policy or plan maintained by either the professional employer organization or the client. (C) However, for purposes of risks insured under the Arkansas Workers' Compensation Insurance Plan, § 23-67-301 et seq., the commissioner is authorized to promulgate rules as he or she deems necessary to assure that workers' compensation coverage is available to employees providing services for a client; (4) Be entitled and to entitle the client, together as joint employers, to the exclusive remedy under § 11-9-105 , under both the workers' compensation and employer's liability provisions of a workers' compensation policy or plan that either party has secured within the meaning of § 11-9-105 ; and (5) (A) Not be vicariously liable for the liabilities of the client, whether contractual or otherwise. (B) However, the client shall not be vicariously liable for the liabilities of the professional employer organization, whether contractual or otherwise. (C) This section shall limit any direct contractual liability or any joint liability between the client and the professional employer organization.

(1) Pay wages and collect, report, and pay employment taxes from its own accounts;

(2) Pay unemployment taxes as required by the Division of Workforce Services Law, § 11-10-101 et seq.;

(3) (A) Ensure that all covered employees are covered by workers' compensation insurance provided in conformance with the laws of this state. (B) Workers' compensation coverage may be provided through a policy or plan maintained by either the professional employer organization or the client. (C) However, for purposes of risks insured under the Arkansas Workers' Compensation Insurance Plan, § 23-67-301 et seq., the commissioner is authorized to promulgate rules as he or she deems necessary to assure that workers' compensation coverage is available to employees providing services for a client;

(A) Ensure that all covered employees are covered by workers' compensation insurance provided in conformance with the laws of this state.

(B) Workers' compensation coverage may be provided through a policy or plan maintained by either the professional employer organization or the client.

(C) However, for purposes of risks insured under the Arkansas Workers' Compensation Insurance Plan, § 23-67-301 et seq., the commissioner is authorized to promulgate rules as he or she deems necessary to assure that workers' compensation coverage is available to employees providing services for a client;

(4) Be entitled and to entitle the client, together as joint employers, to the exclusive remedy under § 11-9-105 , under both the workers' compensation and employer's liability provisions of a workers' compensation policy or plan that either party has secured within the meaning of § 11-9-105 ; and

(5) (A) Not be vicariously liable for the liabilities of the client, whether contractual or otherwise. (B) However, the client shall not be vicariously liable for the liabilities of the professional employer organization, whether contractual or otherwise. (C) This section shall limit any direct contractual liability or any joint liability between the client and the professional employer organization.

(A) Not be vicariously liable for the liabilities of the client, whether contractual or otherwise.

(B) However, the client shall not be vicariously liable for the liabilities of the professional employer organization, whether contractual or otherwise.

(C) This section shall limit any direct contractual liability or any joint liability between the client and the professional employer organization.

Amended by Act 2019, No. 315,§ 2776, eff. 7/24/2019.

Amended by Act 2019, No. 910,§ 610, eff. 7/1/2019.

Acts 2003, No. 1750, § 1.
Ark. Code Ann. § 23-3-107 — AR Code / Title 23 / Chapter 3 / Subchapter 1 / Section 23-3-107
Stocks, bonds, notes, etc. - Liability of state
Status: in_force

No provision of this act and no deed or act done or performed under or in connection therewith shall be construed to obligate the State of Arkansas to pay or guarantee, in any manner whatsoever, any stock, bond, note, or other evidence of indebtedness authorized, issued, or executed under the provisions of this act. Acts 1935, No. 324, § 59; Pope's Dig., § 2119; Acts 1973, No. 410, § 1; 1981, No. 709, § 1; A.S.A. 1947, § 73-255.

No provision of this act and no deed or act done or performed under or in connection therewith shall be construed to obligate the State of Arkansas to pay or guarantee, in any manner whatsoever, any stock, bond, note, or other evidence of indebtedness authorized, issued, or executed under the provisions of this act.

Acts 1935, No. 324, § 59; Pope's Dig., § 2119; Acts 1973, No. 410, § 1; 1981, No. 709, § 1; A.S.A. 1947, § 73-255.
Ark. Code Ann. § 23-42-209 — AR Code / Title 23 / Chapter 42 / Subchapter 2 / Section 23-42-209
Injunction, mandamus, or other ancillary relief
Status: in_force

(a) (1) (A) Whenever it appears to the Securities Commissioner, upon sufficient grounds or evidence satisfactory to the commissioner, that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this chapter, except the provisions of § 23-42-509 , or any rule or order under this chapter, including any order issued under § 23-42-509 , the commissioner may summarily order the person to cease and desist from the act or practice. (B) Upon the entry of the order, the commissioner shall promptly notify the person that the order has been entered, of the reasons therefor, and of his or her right to a hearing on the order. (2) (A) A hearing shall be held on the written request of the person aggrieved by the order 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 a hearing is not requested and none is ordered by the commissioner, the order will remain in effect until it is modified or vacated by the commissioner. (C) After notice and an opportunity for a hearing, the commissioner may: (i) Affirm, modify, or vacate the cease and desist order under subdivision (a)(1)(A) of this section; and (ii) For a violation of this chapter other than a violation of § 23-42-509 , by order, levy a fine not to exceed: (a) Ten thousand dollars ($10,000) for each violation or an amount equal to the total amount of money received in connection with each violation; or (b) If a victim of a violation is sixty-five (65) years of age or older: (1) Twenty thousand dollars ($20,000) for each violation; or (2) Two (2) times the amount of money received in connection with each violation. (b) (1) The commissioner may apply to the Pulaski County Circuit Court to temporarily or permanently enjoin an act or practice that violates this chapter and to enforce compliance with this chapter or any rule or order under this chapter: (A) After an order is issued under subdivision (a)(1) or subdivision (a)(2) of this section; or (B) Without issuing an order under subdivision (a)(1) or subdivision (a)(2) of this section. (2) Upon a proper showing, a permanent or temporary injunction, restraining order, or writ of mandamus shall be granted. (3) The court shall not require the commissioner to post a bond. (4) The commissioner may also obtain upon proper showing any other ancillary relief in the public interest, including without limitation: (A) The appointment of a receiver, temporary receiver, or conservator; (B) A declaratory judgment; (C) An accounting; (D) Disgorgement of profits; (E) Restitution; or (F) The assessment of a fine in an amount of not more than the total amount of money received in connection with a violation of this chapter. (c) This chapter does not prohibit or restrict the informal disposition of a proceeding or allegations which 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 section. Amended by Act 2017, No. 668,§ 12, eff. 8/1/2017. Acts 1959, No. 254, § 20; 1963, No. 479, § 3; 1979, No. 754, § 6; A.S.A. 1947, § 67-1254; Acts 1995, No. 845, § 10; 1997, No. 173, § 9; 2009, No. 462, § 7; 2009, No. 534, § 2; 2011, No. 339, § 4.

(a) (1) (A) Whenever it appears to the Securities Commissioner, upon sufficient grounds or evidence satisfactory to the commissioner, that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this chapter, except the provisions of § 23-42-509 , or any rule or order under this chapter, including any order issued under § 23-42-509 , the commissioner may summarily order the person to cease and desist from the act or practice. (B) Upon the entry of the order, the commissioner shall promptly notify the person that the order has been entered, of the reasons therefor, and of his or her right to a hearing on the order. (2) (A) A hearing shall be held on the written request of the person aggrieved by the order 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 a hearing is not requested and none is ordered by the commissioner, the order will remain in effect until it is modified or vacated by the commissioner. (C) After notice and an opportunity for a hearing, the commissioner may: (i) Affirm, modify, or vacate the cease and desist order under subdivision (a)(1)(A) of this section; and (ii) For a violation of this chapter other than a violation of § 23-42-509 , by order, levy a fine not to exceed: (a) Ten thousand dollars ($10,000) for each violation or an amount equal to the total amount of money received in connection with each violation; or (b) If a victim of a violation is sixty-five (65) years of age or older: (1) Twenty thousand dollars ($20,000) for each violation; or (2) Two (2) times the amount of money received in connection with each violation.

(1) (A) Whenever it appears to the Securities Commissioner, upon sufficient grounds or evidence satisfactory to the commissioner, that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this chapter, except the provisions of § 23-42-509 , or any rule or order under this chapter, including any order issued under § 23-42-509 , the commissioner may summarily order the person to cease and desist from the act or practice. (B) Upon the entry of the order, the commissioner shall promptly notify the person that the order has been entered, of the reasons therefor, and of his or her right to a hearing on the order.

(A) Whenever it appears to the Securities Commissioner, upon sufficient grounds or evidence satisfactory to the commissioner, that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of this chapter, except the provisions of § 23-42-509 , or any rule or order under this chapter, including any order issued under § 23-42-509 , the commissioner may summarily order the person to cease and desist from the act or practice.

(B) Upon the entry of the order, the commissioner shall promptly notify the person that the order has been entered, of the reasons therefor, and of his or her right to a hearing on the order.

(2) (A) A hearing shall be held on the written request of the person aggrieved by the order 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 a hearing is not requested and none is ordered by the commissioner, the order will remain in effect until it is modified or vacated by the commissioner. (C) After notice and an opportunity for a hearing, the commissioner may: (i) Affirm, modify, or vacate the cease and desist order under subdivision (a)(1)(A) of this section; and (ii) For a violation of this chapter other than a violation of § 23-42-509 , by order, levy a fine not to exceed: (a) Ten thousand dollars ($10,000) for each violation or an amount equal to the total amount of money received in connection with each violation; or (b) If a victim of a violation is sixty-five (65) years of age or older: (1) Twenty thousand dollars ($20,000) for each violation; or (2) Two (2) times the amount of money received in connection with each violation.

(A) A hearing shall be held on the written request of the person aggrieved by the order 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 a hearing is not requested and none is ordered by the commissioner, the order will remain in effect until it is modified or vacated by the commissioner.

(C) After notice and an opportunity for a hearing, the commissioner may: (i) Affirm, modify, or vacate the cease and desist order under subdivision (a)(1)(A) of this section; and (ii) For a violation of this chapter other than a violation of § 23-42-509 , by order, levy a fine not to exceed: (a) Ten thousand dollars ($10,000) for each violation or an amount equal to the total amount of money received in connection with each violation; or (b) If a victim of a violation is sixty-five (65) years of age or older: (1) Twenty thousand dollars ($20,000) for each violation; or (2) Two (2) times the amount of money received in connection with each violation.

(i) Affirm, modify, or vacate the cease and desist order under subdivision (a)(1)(A) of this section; and

(ii) For a violation of this chapter other than a violation of § 23-42-509 , by order, levy a fine not to exceed: (a) Ten thousand dollars ($10,000) for each violation or an amount equal to the total amount of money received in connection with each violation; or (b) If a victim of a violation is sixty-five (65) years of age or older: (1) Twenty thousand dollars ($20,000) for each violation; or (2) Two (2) times the amount of money received in connection with each violation.

(a) Ten thousand dollars ($10,000) for each violation or an amount equal to the total amount of money received in connection with each violation; or

(b) If a victim of a violation is sixty-five (65) years of age or older: (1) Twenty thousand dollars ($20,000) for each violation; or (2) Two (2) times the amount of money received in connection with each violation.

(1) Twenty thousand dollars ($20,000) for each violation; or

(2) Two (2) times the amount of money received in connection with each violation.

(b) (1) The commissioner may apply to the Pulaski County Circuit Court to temporarily or permanently enjoin an act or practice that violates this chapter and to enforce compliance with this chapter or any rule or order under this chapter: (A) After an order is issued under subdivision (a)(1) or subdivision (a)(2) of this section; or (B) Without issuing an order under subdivision (a)(1) or subdivision (a)(2) of this section. (2) Upon a proper showing, a permanent or temporary injunction, restraining order, or writ of mandamus shall be granted. (3) The court shall not require the commissioner to post a bond. (4) The commissioner may also obtain upon proper showing any other ancillary relief in the public interest, including without limitation: (A) The appointment of a receiver, temporary receiver, or conservator; (B) A declaratory judgment; (C) An accounting; (D) Disgorgement of profits; (E) Restitution; or (F) The assessment of a fine in an amount of not more than the total amount of money received in connection with a violation of this chapter.

(1) The commissioner may apply to the Pulaski County Circuit Court to temporarily or permanently enjoin an act or practice that violates this chapter and to enforce compliance with this chapter or any rule or order under this chapter: (A) After an order is issued under subdivision (a)(1) or subdivision (a)(2) of this section; or (B) Without issuing an order under subdivision (a)(1) or subdivision (a)(2) of this section.

(A) After an order is issued under subdivision (a)(1) or subdivision (a)(2) of this section; or

(B) Without issuing an order under subdivision (a)(1) or subdivision (a)(2) of this section.

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

(3) The court shall not require the commissioner to post a bond.

(4) The commissioner may also obtain upon proper showing any other ancillary relief in the public interest, including without limitation: (A) The appointment of a receiver, temporary receiver, or conservator; (B) A declaratory judgment; (C) An accounting; (D) Disgorgement of profits; (E) Restitution; or (F) The assessment of a fine in an amount of not more than the total amount of money received in connection with a violation of this chapter.

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

(B) A declaratory judgment;

(C) An accounting;

(D) Disgorgement of profits;

(E) Restitution; or

(F) The assessment of a fine in an amount of not more than the total amount of money received in connection with a violation of this chapter.

(c) This chapter does not prohibit or restrict the informal disposition of a proceeding or allegations which 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 section.

Amended by Act 2017, No. 668,§ 12, eff. 8/1/2017.

Acts 1959, No. 254, § 20; 1963, No. 479, § 3; 1979, No. 754, § 6; A.S.A. 1947, § 67-1254; Acts 1995, No. 845, § 10; 1997, No. 173, § 9; 2009, No. 462, § 7; 2009, No. 534, § 2; 2011, No. 339, § 4.
Ark. Code Ann. § 23-99-704 — AR Code / Title 23 / Chapter 99 / Subchapter 7 / Section 23-99-704
Quality assessment and improvement systems
Status: in_force

(a) Each health carrier and network shall: (1) Make arrangements for measuring and improving the quality of healthcare services; (2) Maintain quality assessment and improvement programs and records measuring the outcomes of healthcare services; and (3) Submit to the Secretary of the Department of Health in the time, manner, and form prescribed the following information: (A) A written description of any quality assessment and quality improvement systems; and (B) Findings of relevant quality data as determined by the secretary. (b) In consultation with the Insurance Commissioner, the secretary may promulgate rules in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq., to carry out the provisions of this subchapter to enable the state to be properly informed of quality issues within the state and to adequately respond to any quality concerns found through the outcome data. (c) The provisions of § 16-46-105 and § 20-9-501 et seq. shall apply to all records maintained pursuant to this subchapter. Amended by Act 2019, No. 315,§ 2806, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 5113, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 5112, eff. 7/1/2019. Acts 1999, No. 1200, § 4.

(a) Each health carrier and network shall: (1) Make arrangements for measuring and improving the quality of healthcare services; (2) Maintain quality assessment and improvement programs and records measuring the outcomes of healthcare services; and (3) Submit to the Secretary of the Department of Health in the time, manner, and form prescribed the following information: (A) A written description of any quality assessment and quality improvement systems; and (B) Findings of relevant quality data as determined by the secretary.

(1) Make arrangements for measuring and improving the quality of healthcare services;

(2) Maintain quality assessment and improvement programs and records measuring the outcomes of healthcare services; and

(3) Submit to the Secretary of the Department of Health in the time, manner, and form prescribed the following information: (A) A written description of any quality assessment and quality improvement systems; and (B) Findings of relevant quality data as determined by the secretary.

(A) A written description of any quality assessment and quality improvement systems; and

(B) Findings of relevant quality data as determined by the secretary.

(b) In consultation with the Insurance Commissioner, the secretary may promulgate rules in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq., to carry out the provisions of this subchapter to enable the state to be properly informed of quality issues within the state and to adequately respond to any quality concerns found through the outcome data.

(c) The provisions of § 16-46-105 and § 20-9-501 et seq. shall apply to all records maintained pursuant to this subchapter.

Amended by Act 2019, No. 315,§ 2806, eff. 7/24/2019.

Amended by Act 2019, No. 910,§ 5113, eff. 7/1/2019.

Amended by Act 2019, No. 910,§ 5112, eff. 7/1/2019.

Acts 1999, No. 1200, § 4.
Ark. Code Ann. § 23-42-305 — AR Code / Title 23 / Chapter 42 / Subchapter 3 / Section 23-42-305
Corporate surety bonds - Alternatives
Status: in_force

(a) (1) The Securities Commissioner shall require registered broker-dealers, investment advisers, and an agent for the issuer to maintain a bond in such form and amount as he or she may by rule prescribe. (2) However, this subsection does not apply to any registered investment adviser that maintains its principal place of business in a state other than Arkansas that: (A) Is registered or licensed as such in the state in which it maintains its principal place of business; and (B) Is in compliance with the applicable bonding requirements of the state in which it maintains its principal place of business. (b) The following apply to those bonds required to be posted with the commissioner under subsection (a) of this section: (1) The total liability of the surety to all persons, cumulative or otherwise, shall not exceed the amounts specified in the bond; (2) Every bond shall provide that a suit shall not be maintained to enforce any liability on the bond unless brought within five (5) years after the sale or other act upon which it is based; and (3) Every bond shall provide for suit on the bond by any person who has a cause of action under this chapter. Acts 1959, No. 254, § 4; 1961, No. 248, § 2; 1973, No. 47, § 4; 1977, No. 493, § 2; 1979, No. 6, §§ 2, 3; 1983, No. 836, § 7; A.S.A. 1947, §§ 67-1238, 67-1238.1; Acts 1991, No. 298, § 1; 1995, No. 845, §§ 15, 16; 1997, No. 173, § 15; 2009, No. 534, § 7.

(a) (1) The Securities Commissioner shall require registered broker-dealers, investment advisers, and an agent for the issuer to maintain a bond in such form and amount as he or she may by rule prescribe. (2) However, this subsection does not apply to any registered investment adviser that maintains its principal place of business in a state other than Arkansas that: (A) Is registered or licensed as such in the state in which it maintains its principal place of business; and (B) Is in compliance with the applicable bonding requirements of the state in which it maintains its principal place of business.

(1) The Securities Commissioner shall require registered broker-dealers, investment advisers, and an agent for the issuer to maintain a bond in such form and amount as he or she may by rule prescribe.

(2) However, this subsection does not apply to any registered investment adviser that maintains its principal place of business in a state other than Arkansas that: (A) Is registered or licensed as such in the state in which it maintains its principal place of business; and (B) Is in compliance with the applicable bonding requirements of the state in which it maintains its principal place of business.

(A) Is registered or licensed as such in the state in which it maintains its principal place of business; and

(B) Is in compliance with the applicable bonding requirements of the state in which it maintains its principal place of business.

(b) The following apply to those bonds required to be posted with the commissioner under subsection (a) of this section: (1) The total liability of the surety to all persons, cumulative or otherwise, shall not exceed the amounts specified in the bond; (2) Every bond shall provide that a suit shall not be maintained to enforce any liability on the bond unless brought within five (5) years after the sale or other act upon which it is based; and (3) Every bond shall provide for suit on the bond by any person who has a cause of action under this chapter.

(1) The total liability of the surety to all persons, cumulative or otherwise, shall not exceed the amounts specified in the bond;

(2) Every bond shall provide that a suit shall not be maintained to enforce any liability on the bond unless brought within five (5) years after the sale or other act upon which it is based; and

(3) Every bond shall provide for suit on the bond by any person who has a cause of action under this chapter.

Acts 1959, No. 254, § 4; 1961, No. 248, § 2; 1973, No. 47, § 4; 1977, No. 493, § 2; 1979, No. 6, §§ 2, 3; 1983, No. 836, § 7; A.S.A. 1947, §§ 67-1238, 67-1238.1; Acts 1991, No. 298, § 1; 1995, No. 845, §§ 15, 16; 1997, No. 173, § 15; 2009, No. 534, § 7.
Ark. Code Ann. § 23-63-212 — AR Code / Title 23 / Chapter 63 / Subchapter 2 / Section 23-63-212
Certificate of authority - Mandatory suspension or revocation
Status: in_force

(a) The Insurance Commissioner shall suspend or revoke an insurer's certificate of authority: (1) If the action is required by any provision of the Arkansas Insurance Code; (2) If the insurer no longer meets the requirements for the authority originally granted, on account of deficiency of assets or otherwise; or (3) If the insurer's authority to transact insurance is suspended or revoked by its state of domicile, or state of entry into the United States if an alien insurer. (b) (1) Except in cases of insolvency or impairment of required capital or surplus, or suspension or revocation by another state as referred to in subdivision (a)(3) of this section, the commissioner shall give the insurer at least ten (10) days' written notice in advance of any suspension or revocation under this section. (2) If the insurer requests a hearing thereon within the ten (10) days, the request shall automatically stay the commissioner's proposed action until his or her order is made on the hearing. Acts 1959, No. 148, § 56; A.S.A. 1947, § 66-2214.

(a) The Insurance Commissioner shall suspend or revoke an insurer's certificate of authority: (1) If the action is required by any provision of the Arkansas Insurance Code; (2) If the insurer no longer meets the requirements for the authority originally granted, on account of deficiency of assets or otherwise; or (3) If the insurer's authority to transact insurance is suspended or revoked by its state of domicile, or state of entry into the United States if an alien insurer.

(1) If the action is required by any provision of the Arkansas Insurance Code;

(2) If the insurer no longer meets the requirements for the authority originally granted, on account of deficiency of assets or otherwise; or

(3) If the insurer's authority to transact insurance is suspended or revoked by its state of domicile, or state of entry into the United States if an alien insurer.

(b) (1) Except in cases of insolvency or impairment of required capital or surplus, or suspension or revocation by another state as referred to in subdivision (a)(3) of this section, the commissioner shall give the insurer at least ten (10) days' written notice in advance of any suspension or revocation under this section. (2) If the insurer requests a hearing thereon within the ten (10) days, the request shall automatically stay the commissioner's proposed action until his or her order is made on the hearing.

(1) Except in cases of insolvency or impairment of required capital or surplus, or suspension or revocation by another state as referred to in subdivision (a)(3) of this section, the commissioner shall give the insurer at least ten (10) days' written notice in advance of any suspension or revocation under this section.

(2) If the insurer requests a hearing thereon within the ten (10) days, the request shall automatically stay the commissioner's proposed action until his or her order is made on the hearing.

Acts 1959, No. 148, § 56; A.S.A. 1947, § 66-2214.
Ark. Code Ann. § 23-67-509 — AR Code / Title 23 / Chapter 67 / Subchapter 5 / Section 23-67-509
Provisions cumulative
Status: in_force

This subchapter supplements existing law. Only those laws and parts of laws in direct conflict with this subchapter are repealed. Acts 2005, No. 1697, § 19.

This subchapter supplements existing law. Only those laws and parts of laws in direct conflict with this subchapter are repealed.

Acts 2005, No. 1697, § 19.