AR Code § 23-63-205 (2020)
2020 Arkansas Code|Title 23 - Public Utilities and Regulated Industries|Subtitle 3 - Insurance|Chapter 63 - Insurance Companies Generally|Subchapter 2 - Authority To Do Business|§ 23-63-205. Certificate of authority — Eligibility — Capital funds

 (a)  (1) On and after January 1, 2006, to qualify for and maintain authority to transact any one (1) kind of insurance, as defined in §§ 23-62-101 — 23-62-108, or combination of kinds of insurance as shown in this subsection, an insurer applying for its original certificate of authority in Arkansas shall possess and maintain in cash and marketable securities unimpaired paid-in capital if the insurer is a domestic, foreign, or alien stock insurer or surplus if the insurer is a domestic, foreign, or alien mutual, or domestic mutual legal reserve life insurer, or foreign or alien reciprocal insurer, in an amount not less than is applicable under the schedule below, and shall possess when first so authorized such additional funds as surplus as are required under § 23-63-207:  (2)  (A) As to any combination of kinds of insurance, other than combinations of kinds of insurance specifically listed in this subsection, the insurer shall possess the sum of the minimum capital or surplus required by this subsection for the separate kinds of insurance it proposes to transact unless the Insurance Commissioner deems it sufficient for the applicant to possess and maintain the total amount of seven hundred fifty thousand dollars ($750,000) for the proposed combination of kinds of insurance.  (B) If Arkansas law does not specify the minimum capital or surplus for any kind of insurance, then the commissioner shall establish a minimum capital or surplus requirement of not less than five hundred thousand dollars ($500,000).    (3) The commissioner may require reinsurance on terms and in amounts as are reasonable under the circumstances for abstractor's professional liability insurance when written by title insurers.  (4) In his or her discretion, the commissioner may require the insurer to possess and maintain additional capital, if a stock insurer, and surplus, if a mutual or reciprocal insurer, in addition to that required by this section, based on the financial condition of the insurer or based on the types, volume, or nature of the business transacted by the insurer.    (b) An insurer holding a valid certificate of authority to transact insurance in this state immediately prior to January 1, 2006, may continue to be authorized to transact the same kinds of insurance as permitted by the certificate of authority by maintaining thereafter the same amount of paid-in capital stock, if the insurer is a stock insurer, or the amount of surplus, if the insurer is a mutual or reciprocal insurer, as required by the laws of this state for such an insurer immediately prior to January 1, 2006. However, the insurer shall not be granted authority to transact any other or additional kind of insurance, unless it then fully complies with the requirement as to capital and surplus, as applied to the kinds of insurance it then proposes to transact, as provided by this section with respect to insurers applying for original certificates of authority.  (c) Capital and surplus requirements shall be based upon all the kinds of insurance actually transacted or currently to be transacted by the insurer in all areas in which it operates, whether or not only a portion of the kinds are to be transacted in this state.  (d) As to surplus required for qualification to transact one (1) or more kinds of insurance and to be maintained, domestic mutual insurers, other than mutual life insurers, shall be governed by §§ 23-69-101 — 23-69-103, 23-69-105 — 23-69-141, 23-69-143, and 23-69-149 — 23-69-156, and domestic reciprocal insurers shall be governed by § 23-70-101 et seq.  (e) A life insurer may also grant annuities without additional capital or additional surplus.  (f) A casualty insurer may be authorized to transact accident and health insurance without additional capital or additional surplus.  (g)  (1) Except as provided in subdivision (g)(2) of this section:  (A) A title insurer shall not be approved to write any other kind of insurance other than title insurance; and  (B) A mortgage guaranty insurer shall not be approved to write any other kinds of insurance other than mortgage guaranty insurance.    (2) The provisions of this subsection shall not apply to an insurer authorized to write title or mortgage guaranty insurance along with other kinds of insurance as of January 1, 2006, but the insurer shall not be allowed to add additional kinds of insurance to its certificates of authority after January 1, 2006.      Minimum Capital or Kinds of Insurance Surplus Required Life . $750,000 Accident and Health 750,000 Life and Accident and Health 750,000 Property 500,000 Casualty 750,000 Surety 750,000 Marine 500,000 Title 250,000 Mortgage Guaranty 750,000 Property, Casualty, Surety, and Marine 750,000 Combination of other lines 750,000   Click to view table.