reglab/statecodes huggingface dataset:
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 6 - FINANCIAL REPORTING STANDARDS (§§ 23-63-601 — 23-63-614) › Section 23-63-613 - Use of new and revised manuals - Rulemaking authority

(a)
(1)
The Insurance Commissioner is authorized to employ the standards and requirements set forth in publications recited in this subchapter and adopted and published by the National Association of Insurance Commissioners, including, but not limited to, those listed in this subchapter.
(2)
The publications identified in subdivision (a)(1) of this section are hereby adopted in their present form as of August 13, 2001.
(3)
The commissioner is authorized and empowered to promulgate rules for the purposes of adopting all or part of other financial standards publications of the National Association of Insurance Commissioners or publications by other authors if the commissioner determines that such an action is in the best interest of the public.
(4)
Upon mailing of written notice by the commissioner to all domestic reporting entities of the promulgation and publication by the National Association of Insurance Commissioners or other authors of amendments, revisions, or modifications to any publication previously adopted by the commissioner in this subchapter, such published amendments, revisions, or modifications shall become effective on the date designated by the commissioner in the written notice, which date shall not be earlier than eight (8) months after the date of mailing of the notice.
(b)
The commissioner is authorized and empowered to adopt financial standards regulations for the purpose of modifying, amending, or revising any publication promulgated by the National Association of Insurance Commissioners or other authors, or any published amendments, modifications, or revisions to any such publications if the commissioner determines that such an action is in the best interest of the public. In this event, the effective date of any modification, amendment, or revision shall be the effective date of the regulation.
Amended by Act 2019, No. 315,§ 2636, eff. 7/24/2019.
Acts 1959, No. 148, § 96; A.S.A. 1947, § 66-2515; Acts 1995, No. 1272, § 15; 2001, No. 1566, § 11.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 6 - FINANCIAL REPORTING STANDARDS (§§ 23-63-601 — 23-63-614) › Section 23-63-614 - Domestic title insurance and aviation title insurance reserves

(a)
In addition to an adequate reserve as to outstanding losses, a domestic title insurer shall maintain its own guaranty fund or unearned premium reserve of no less than ten percent (10%) of the total amount of the risk premium written in the calendar year for title insurance contracts, which shall be assigned originally to the reserve.
(b)
(1)
During each of the twenty (20) years after the year in which a title insurance contract was issued, the reserve applicable to the contract may be reduced by five percent (5%) of the original amount of the reserve.
(2)
This section does not apply to foreign or alien title or aviation title insurers licensed in this state.
Acts 2003, No. 1787, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 7 - LIMIT OF RISK (§ 23-63-701) › Section 23-63-701 - Limit of risk

(a)
No insurer shall retain any risk on any one (1) subject of insurance, whether located or to be performed in this state or elsewhere, in an amount exceeding ten percent (10%) of its surplus to policyholders. Provided, with the prior approval of the Insurance Commissioner, such a limitation shall not apply to a subject of insurance controlled by the insurer or owned by an affiliate of the insurer.
(b)
A "subject of insurance" for the purposes of this section as to insurance against fire and hazards other than windstorm, earthquake, or other catastrophic hazards includes all properties insured by the same insurer which are customarily considered by underwriters to be subject to loss or damage from the same fire or the same occurrence of the other hazard insured against.
(c)
Reinsurance ceded as authorized by §§
23-62-202
,
23-62-204
, and
23-62-205
shall be deducted in determining risk retained. As to surety risks, deduction shall also be made of the amount assumed by any established incorporated cosurety and the value of any security deposited, pledged, or held subject to the surety's consent and for the surety's protection.
(d)
As to alien insurers, this section shall relate only to risks and surplus to policyholders of the insurer's United States branch.
(e)
"Surplus to policyholders", for the purpose of this section, in addition to the insurer's capital and surplus, shall be deemed to include any voluntary reserves which are not required pursuant to law and shall be determined from the last sworn statement of the insurer on file with the commissioner, or by the last report of examination of the insurer, whichever is the more recent at the time of assumption of risk.
(f)
This section shall not apply to life insurance, disability insurance, title insurance, annuities, insurance of wet marine and foreign trade insurance risks, workers' compensation insurance, employers' liability coverages, nor to any policy or type of coverage as to which the maximum possible loss to the insurer is not readily ascertainable on issuance of the policy.
Acts 1959, No. 148, § 80; A.S.A. 1947, § 66-2409; Acts 1989, No. 772, § 3; 2009, No. 726, § 19.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-801 - Applicability

Except as to §
23-63-835
, the provisions of this subchapter shall apply to domestic insurers only.
Acts 1959, No. 148, § 97; A.S.A. 1947, § 66-2601; Acts 1993, No. 527, § 4.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-802 - Eligible investments

(a)
Insurers shall invest in, or lend their funds on the security of, and shall hold as invested assets only eligible investments as prescribed in this subchapter.
(b)
Any particular investment held by an insurer on January 1, 1960, and which was a legal investment at the time it was made, or which the insurer was legally entitled to possess immediately prior to January 1, 1960, shall be deemed to be an eligible investment.
(c)
Eligibility of an investment shall be determined as of the date of its making or acquisition, except as stated in subsection (b) of this section.
(d)
Any investment limitation based upon the amount of the insurer's assets or particular funds shall relate to such assets or funds as shown by the insurer's annual statement as of the December 31 next preceding the date of acquisition of the investment by the insurer, or as shown by a current financial statement filed with the Insurance Commissioner.
(e)
None of the requirements, restrictions, limitations, or prohibitions for investments made under this subchapter, or contained in any regulation promulgated pursuant thereto, shall be preempted by the provisions of section 106 of Title 1 of the Secondary Mortgage Market Enhancement Act of 1984. The provisions of this subchapter and any rules promulgated pursuant thereto that pertain to investments in the categories of securities specified in paragraphs (1) and (2) of subsection (a) of the Secondary Mortgage Market Enhancement Act shall remain in full force and effect notwithstanding the enactment of the Secondary Mortgage Market Enhancement Act.
Amended by Act 2019, No. 315,§ 2637, eff. 7/24/2019.
Acts 1959, No. 148, § 98; A.S.A. 1947, § 66-2602; Acts 1991, No. 1123, § 1; 1993, No. 527, § 5.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-803 - General qualifications

(a)
Without prior written approval of the Insurance Commissioner, no security or investment, other than real and personal property acquired under §
23-63-828
, concerning real estate, shall be eligible for acquisition unless it is interest-bearing, with the accrued interest being paid annually or more frequently than annually, or dividend or income-paying, or is held for income purposes, is not then in default in any respect, and the insurer is entitled to receive for its exclusive account and benefit the interest or income accruing thereon.
(b)
No provision of this subchapter shall prohibit the acquisition by an insurer of other or additional securities or property if received as a dividend or as a lawful distribution of assets, or under a lawful and bona fide agreement of bulk reinsurance, merger, or consolidation. Any investment so acquired which is not otherwise eligible under this subchapter shall be disposed of pursuant to §
23-63-830
if personal property or securities, or pursuant to §
23-63-829
if real property.
Acts 1959, No. 148, § 99; A.S.A. 1947, § 66-2603; Acts 1987, No. 456, § 10; 1993, No. 527, § 6.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-804 - Authorization of investment

(a)
An insurer shall not make any investment or loan, other than policy loans or annuity contract loans of a life insurer, unless the insurer is authorized or approved by the insurer's board of directors or by a committee authorized by the board and charged with the supervision or making of the investment or loan.
(b)
The minutes of the committee shall be recorded, and regular reports of the committee shall be submitted to the board of directors.
Acts 1959, No. 148, § 100; A.S.A. 1947, § 66-2604.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-806 - United States Government obligations

An insurer may invest in bonds, notes, warrants, and other evidences of indebtedness which are direct obligations of the United States or for which the full faith and credit of the United States is pledged for the payment of principal and interest.
Acts 1959, No. 148, § 102; A.S.A. 1947, § 66-2606.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-807 - Loans guaranteed by United States

An insurer may invest in loans guaranteed as to principal and interest by the United States, or by any agency or instrumentality of the United States, to the extent of the guaranty.
Acts 1959, No. 148, § 103; A.S.A. 1947, § 66-2607.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-808 - Investments in public obligations

(a)
An insurer may invest in bonds or other evidences of indebtedness which are general obligations of, or are secured by pledge of specific revenue by, this state or any other state of the United States, or any of the counties or incorporated cities or towns, or duly organized school districts or other taxing districts of such states.
(b)
No security shall be eligible for investment if within five (5) years next preceding the date of the proposed investment, the obligor has defaulted in the payment of principal or interest on any of its tax-supported obligations.
Acts 1959, No. 148, § 104; A.S.A. 1947, § 66-2608.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-809 - Municipal or county utilities

An insurer may invest in bonds, notes, or evidences of indebtedness of any municipal or county utility within the United States or Canada, which are payable from revenues or earnings specifically pledged for the payment of the principal and interest on the obligations, and for the payment of which a lawful sinking fund or reserve fund has been established and is being maintained, but only if no default in payment of principal or interest on the obligations to be purchased has occurred within five (5) years of the investment.
Acts 1959, No. 148, § 105; A.S.A. 1947, § 66-2609.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-810 - Improvement district obligations

(a)
An insurer may invest in bonds, notes, or evidences of indebtedness issued by any local improvement district in this or any other state to finance local improvements authorized by law if the principal and interest of the obligations is payable from assessments on real property within the local improvement district.
(b)
No investment shall be made if the face value of all obligations, together with all similar obligations of the improvement district outstanding, exceeds fifty percent (50%) of the market value of the real property and improvements upon which the bonds or the assessments for the payment of principal and interest thereon are liens inferior only to the liens for general ad valorem property taxes.
(c)
No investment shall be made unless no default in payment of principal or interest on the obligations to be purchased has occurred within five (5) years of the date of investment therein, or, if the obligations were issued less than five (5) years prior to the date of investment, no default in payment of principal or interest has occurred on any of the obligations of the issuer within five (5) years of the investment.
Acts 1959, No. 148, § 106; A.S.A. 1947, § 66-2610.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-811 - Local industrial development bonds

An insurer may invest in the negotiable first-lien bonds issued by local industrial development corporations organized under the Arkansas Industrial Development Act, §
15-4-101
et seq.
Acts 1959, No. 148, § 107; A.S.A. 1947, § 66-2611.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-812 - Obligations or stock of certain federal agencies

An insurer may invest in the obligations, or stock where stated, of the following agencies of the United States Government, whether or not the obligations are guaranteed by the United States Government:
(1)
Commodity credit corporation;
(2)
Notes, bonds, debentures, or other similar obligations issued by the Federal Land Banks, Federal Intermediate Credit Banks, or Banks for Cooperatives, or any other obligations issued pursuant to the provisions of an act of Congress known as the Farm Credit Act of 1971 and acts amendatory thereto;
(3)
Federal home loan banks, and stock thereof;
(4)
Federal National Mortgage Association, and stock thereof, when acquired in connection with the sale of mortgage loans to the association; and
(5)
Any other similar agency of the United States Government and of similar financial quality.
Acts 1959, No. 148, § 108; 1975, No. 216, § 3; A.S.A. 1947, § 66-2612.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-813 - International banks

Any insurer may invest in obligations issued, assumed, or guaranteed by the International Bank for Reconstruction and Development, the Inter-American Development Bank, or the African Development Bank.
Acts 1959, No. 148, § 109; 1971, No. 719, § 1; 1985, No. 943, § 2; A.S.A. 1947, § 66-2613.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-814 - Corporate bonds and debentures

(a)
An insurer may invest in bonds, debentures, notes, and other evidences of indebtedness issued, assumed, or guaranteed by any solvent institution existing under the laws of the United States or of Canada, or any state or province thereof, which are not in default as to principal or interest and which are secured by collateral worth at least fifty percent (50%) more than the par value of the entire issue of such obligations, but only if not more than one-third (1/3) of the total value of the required collateral consists of common stock.
(b)
An insurer may invest in secured and unsecured obligations of the institutions, other than obligations described in subsection (a) of this section, that are not in default as to principal or interest, if the obligations:
(1)
Are rated or expected to be rated by the Securities Valuation Office of the National Association of Insurance Commissioners, if not otherwise exempt under the Purposes and Procedures Manual of the Securities Valuation Office of the National Association of Insurance Commissioners; or
(2)
Bear interest at a fixed rate, with mandatory principal and interest due at specified times, and if the net earnings of the issuing, assuming, or guaranteeing institution available for its fixed charges for five (5) fiscal years next preceding the date of acquisition by the insurer have averaged per year not less than one and one-half (11/2) times its average annual fixed charges applicable to the period and if, during either of the last two (2) years of the period, the net earnings have been not less than one and one-half (11/2) times its fixed charges for the year.
Amended by Act 2015, No. 1223,§ 15, eff. 7/22/2015.
Acts 1959, No. 148, § 110; A.S.A. 1947, § 66-2614.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-815 - Preferred or guaranteed stock

(a)
An insurer may invest in preferred or guaranteed stocks or shares of any solvent institution existing under the laws of the United States or of Canada, or of any state or province thereof, if at the date of the acquisition of the investment by the insurer:
(1)
The net earnings of the institution available for its fixed charges during each of the last two (2) years have been, and during each of the last five (5) years have averaged, not less than one and one-half (11/2) times the sum of its average annual fixed charges, if any, its average annual maximum contingent interest, if any, and its average annual preferred dividend requirements; or
(2)
The securities are:
(A)
Rated "1" or "2" by the Securities Valuation Office of the National Association of Insurance Commissioners; or
(B)
Exempt under the Purposes and Procedures Manual of the Securities Valuation Office of the National Association of Insurance Commissioners.
(b)
For the purposes of this section, the computation shall refer to the fiscal years immediately preceding the date of acquisition of the investment by the insurer, and the term "preferred dividend requirement" shall be deemed to mean cumulative or noncumulative dividends, whether paid or not.
Amended by Act 2015, No. 1223,§ 16, eff. 7/22/2015.
Acts 1959, No. 148, § 111; A.S.A. 1947, § 66-2615; Acts 1993, No. 527, § 9.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-816 - Common stocks

An insurer may invest in nonassessable, except for taxes and wages, common stocks other than insurance stocks of solvent United States or Canadian corporations that qualify as a sound investment.
Acts 1959, No. 148, § 112; A.S.A. 1947, § 66-2616.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-817 - Insurance stocks

(a)
An insurer may invest in the stocks of other solvent insurers formed under the laws of this or another state if the stocks meet the applicable requirements of §
23-63-815
as to preferred or guaranteed stock or §
23-63-816
as to common stock, and, with the advance consent of the Insurance Commissioner, an insurer may invest in issued shares of its own capital stock, provided that these investments shall only be made from the insurer's earned surplus. Investments by an insurer in its own capital stock in accordance with the provisions of this section may be made by pro rata purchase from the insurer's shareholders or on a non-pro rata basis, at the election of the insurer.
(b)
With the commissioner's consent, an insurer may acquire and hold the controlling interest in the outstanding voting stock of another stock insurer formed under the laws of this or another state. All stocks under this subsection shall be subject to the limitation as to amount as provided in §
23-63-818
.
Acts 1959, No. 148, § 113; 1971, No. 293, § 1; A.S.A. 1947, § 66-2617.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-818 - Stocks of subsidiaries

(a)
With the Insurance Commissioner's written approval, a domestic insurer may invest in the stock of its wholly owned subsidiary insurance corporation or in the stock of its wholly owned subsidiary business corporation formed or acquired for and necessary and incidental to:
(1)
The convenient operation of the domestic insurer's insurance business; or
(2)
The administration of any of the domestic insurer's lawful investments.
(b)
Unless a greater investment has been approved in writing by the commissioner:
(1)
All of the domestic insurer's investments under this section together with its investments in insurance stocks under §
23-63-817(b)
shall not at any time exceed:
(A)
The domestic insurer's surplus if a life insurer; or
(B)
The domestic insurer's policyholders' surplus if other than a life insurer; and
(2)
(A)
A domestic insurer subject to this subchapter shall limit its investments in common stock, preferred stock, debt obligations, and other securities of its noninsurance subsidiaries to the lesser of:
(i)
Ten percent (10%) of the domestic insurer's assets; or
(ii)
Fifty percent (50%) of the domestic insurer's surplus.
(B)
This subdivision (b)(2) does not apply to the amount of an investment held on July 31, 2007, by a domestic insurer licensed in Arkansas.
(c)
With the prior written approval of the commissioner, a domestic insurer may invest any amount in the securities of one (1) or more of the domestic insurer's subsidiaries if after the investment the domestic insurer's policyholders' surplus is:
(1)
Reasonable in relation to the domestic insurer's outstanding liabilities; and
(2)
Adequate for the domestic insurer's financial needs.
(d)
An investment that exceeds the scope of an approval granted under this section requires the additional prior written approval of the commissioner.
Acts 1959, No. 148, § 114; A.S.A. 1947, § 66-2618; Acts 2007, No. 496, § 11; 2009, No. 726, § 20.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-819 - Equipment trust certificates

An insurer may invest in equipment trust obligations or certificates adequately secured and evidencing an interest in transportation equipment, wholly or in part within the United States, which obligations or certificates carry the right to receive determined portions of rental, purchase, or other fixed obligatory payments to be made for the use or purchase of transportation equipment.
Acts 1959, No. 148, § 115; A.S.A. 1947, § 66-2619.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-820 - Investment trust securities

An insurer may invest in the securities of any management-type investment company or investment trust registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as from time to time amended, if the investment company or trust has been organized for not less than two (2) years and has assets not less than fifty million dollars ($50,000,000) at the date of investment by the insurer.
Acts 1959, No. 148, § 116; 1983, No. 522, § 8; A.S.A. 1947, § 66-2620.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-821 - Policy loans

(a)
A life insurer may lend to its policyholder upon pledge of the policy as collateral security any sum not exceeding the cash surrender value of the policy or may lend against pledge or assignment of any of its supplementary contracts or its other contracts or obligations, so long as the loan is adequately secured by the pledge or assignment.
(b)
Loans so made are eligible investments of the insurer.
Acts 1959, No. 148, § 117; A.S.A. 1947, § 66-2621.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-822 - Collateral loans

(a)
An insurer may lend and invest its funds upon the pledge of securities eligible for investment under this subchapter.
(b)
As at date made, no loan shall exceed in amount ninety percent (90%) of the market value of such collateral pledged.
(c)
The amount so loaned shall be included pro rata in determining the maximum percentage of funds permitted under this subchapter to be invested in the respective categories of securities so pledged.
Acts 1959, No. 148, § 118; A.S.A. 1947, § 66-2622; Acts 1993, No. 527, § 10.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-823 - Savings and loan associations

To the extent that an account does not exceed an amount equal to the sum of all reserve accounts, except specific or valuation reserves, undivided profits, surplus, and capital stock, but not including the proceeds of capital notes, debentures, or similar obligations, an insurer may invest in share or savings accounts of savings or building and loan associations.
Acts 1959, No. 148, § 119; 1979, No. 367, § 1; A.S.A. 1947, § 66-2623.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-827 - Chattel mortgages

(a)
In connection with a mortgage loan on the security of real estate designed and used primarily for residential purposes only, which mortgage loan was acquired pursuant to §
23-63-826
, an insurer may lend or invest an amount not exceeding twenty percent (20%) of the amount loaned on or invested in the real estate mortgage on the security of a chattel mortgage to be amortized by regular periodic payments within a term of not more than five (5) years and representing a first and prior lien, except for taxes not then delinquent, on personal property constituting durable equipment owned by the mortgagor and kept and used in the mortgaged premises.
(b)
For the purposes of this section, the term "durable equipment" shall include only mechanical refrigerators, air conditioning equipment, mechanical laundering machines, heating and cooking stoves and ranges, and, in addition, in the case of apartment houses and hotels, room furniture and furnishings.
(c)
(1)
Prior to the acquisition of a chattel mortgage pursuant to this section, items of property to be included therein shall be separately appraised by a qualified appraiser and the fair market value thereof determined.
(2)
No chattel mortgage loan shall exceed in amount the same ratio of loan to the value of the property as is applicable to the companion loan on the real property.
(d)
This section shall not prohibit an insurer from taking liens on personal property as additional security for any investment otherwise eligible under this subchapter.
Acts 1959, No. 148, § 123; A.S.A. 1947, § 66-2627; Acts 1993, No. 527, § 13.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-828 - Real estate

An insurer may invest in real estate only if used for the purposes or acquired in the manner and within the limits as follows:
(1)
The land and the buildings thereon in which it has its principal office and such other real estate as shall be requisite for its convenient accommodation in the transaction of its business. Except with the consent of the Insurance Commissioner, all the investments shall not aggregate more than ten percent (10%) of the insurer's assets;
(2)
Real estate acquired in satisfaction of loans, mortgages, liens, judgments, decrees, or debts previously owing to the insurer in the course of business;
(3)
Real estate acquired in part payment of the consideration on the sale of other real estate owned by it, if the transaction shall have effected a net reduction in the insurer's investment in real estate;
(4)
Real estate acquired by gift or devise, or through merger, consolidation, or bulk reinsurance of another insurer under this code;
(5)
The seller's interest in real property subject to an agreement of purchase or sale, but the sum invested in any parcel of real estate shall not exceed two-thirds (2/3) of the market value of the parcel;
(6)
Real estate, or any interest therein acquired or held by purchase, lease, or otherwise, as an investment for the production of income, or acquired to be improved or developed for investment purposes pursuant to an existing program therefor. The insurer may hold, improve, develop, maintain, manage, lease, sell, and convey real estate acquired by it under this provision. An insurer shall not have invested at any one (1) time an amount exceeding ten percent (10%) of its assets in real estate under this subdivision (6), except with the commissioner's consent;
(7)
Additional real estate, and equipment incidental to real estate, if necessary or convenient for the purpose of enhancing the sale or other value of real estate previously acquired or held by the insurer under subdivision (2), subdivision (3), subdivision (4), or subdivision (6) of this section. The real estate and equipment shall be included, together with the real estate for the enhancement of which it was acquired, for the purpose of applicable investment limits, and shall be subject to disposal at the same time and under the same conditions as apply to enhanced real estate under §
23-63-819
;
(8)
Investments made under this section may be effected by acquisition or by agreement to acquire, in the form of a guaranty, credit draw arrangement, or other like form; and
(9)
Except with the commissioner's consent, all real estate owned by the insurer under this section, except as to the seller's interest specified in subdivision (5) of this section, shall not at any one (1) time exceed twenty percent (20%) of the insurer's assets.
Acts 1959, No. 148, § 124; 1983, No. 800, § 2; A.S.A. 1947, § 66-2628.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-829 - Time limit for disposal of real estate

(a)
Except as stated in subsection (c) of this section, the insurer shall dispose of real estate acquired under §
23-63-828(1)
within five (5) years after it has ceased to be necessary for the convenient accommodation of the insurer in the transaction of its business.
(b)
Except as stated in subsection (c) of this section, the insurer shall dispose of real estate acquired under §
23-63-828(2)
-(4) within five (5) years after the date of acquisition.
(c)
Upon proof satisfactory to the Insurance Commissioner that the interests of the insurer will suffer materially by the forced sale thereof, the commissioner may by order grant a reasonable extension of the period as specified in the order. Within that specified period of time, the insurer shall dispose of any particular parcel of real estate, unless the insurer elects to hold the real estate as an investment for income purposes under §
23-63-828(6)
, in which event, the real estate shall be deemed to have been acquired at a cost equal to its book value at the time of the election and to be held under, and subject to, the provisions of §
23-63-828(6)
after that time.
Acts 1959, No. 148, § 125; A.S.A. 1947, § 66-2629.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-830 - Time limit for disposal of other ineligible property and securities

(a)
Any personal property or securities lawfully acquired by an insurer which it could not otherwise have invested in or loaned its funds upon at the time of the acquisition shall be disposed of within three (3) years from the date of acquisition, unless within that period the security has attained the status of eligibility.
(b)
However, any security or personal property acquired under any agreement of bulk reinsurance, merger, or consolidation may be retained for a longer period if so provided in the plan for reinsurance, merger, or consolidation as approved by the Insurance Commissioner under the Arkansas Insurance Code.
(c)
Upon application by the insurer and proof that forced sale of any property or security would materially injure the interests of the insurer, the commissioner may extend the disposal period for an additional reasonable time.
Acts 1959, No. 148, § 126; A.S.A. 1947, § 66-2630.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-831 - Failure to dispose of real estate, property, or securities

(a)
Any real estate, personal property, or securities lawfully acquired and held by an insurer after expiration of the period for disposal thereof, or any extension of the period granted by the Insurance Commissioner as provided in §
23-63-829
or §
23-63-830
, or any investments otherwise lawful which are in excess of the aggregate amount the insurer is authorized to invest in that category of investments under this subchapter shall not be allowed as an asset of the insurer.
(b)
The insurer shall forthwith dispose of any ineligible investment unlawfully acquired by it, and the commissioner shall suspend or revoke the insurer's certificate of authority if the insurer fails to dispose of the investment within such reasonable time as the commissioner may, by order, specify.
Acts 1959, No. 148, § 127; A.S.A. 1947, § 66-2631; Acts 1993, No. 527, § 14.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-832 - Special investments by title insurer

(a)
(1)
In addition to other investments eligible under this subchapter, a title insurer may invest and have invested an amount not exceeding fifty percent (50%) of its paid-in capital stock in its abstract plant and equipment and, with the Insurance Commissioner's consent, in stocks of abstract companies.
(2)
If the insurer transacts kinds of insurance in addition to title insurance, for the purposes of this section, its paid-in capital stock shall be prorated between title insurance and other insurances upon the basis of the reserves maintained by the insurer for the various kinds of insurance. However, the capital so assigned to title insurance shall in no event be less than one hundred thousand dollars ($100,000).
(b)
Investments authorized by this section shall not be credited against the insurer's required unearned premium or guaranty fund reserve provided under §
23-63-614
.
Acts 1959, No. 148, § 128; A.S.A. 1947, § 66-2632; Acts 1993, No. 527, § 15; 2007, No. 496, § 12.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-833 - Prohibited investments

In addition to investments excluded pursuant to other provisions of the Arkansas Insurance Code, an insurer shall not directly or indirectly invest in or lend its funds upon the security of:
(1)
Issued shares of its own capital stock, except for the purpose of mutualization under §
23-69-140
or with the advance consent of the Insurance Commissioner under §
23-63-817
;
(2)
Except with the advance consent of the commissioner, securities issued by any corporation or enterprise the controlling interest of which is held, or will be held after the acquisition by the insurer, directly or indirectly by the insurer or any combination of the insurer and the insurer's directors, officers, parent corporation, subsidiaries, or controlling stockholders. Investments in subsidiaries under §
23-63-818
shall not be subject to this provision; or
(3)
Any note or other evidence of indebtedness of any director, officer, employee, or controlling stockholder of the insurer, except as to policy loans authorized under §
23-63-821
.
Acts 1959, No. 148, § 130; 1971, No. 293, § 2; A.S.A. 1947, § 66-2634.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-834 - Cancellation of treasury stock

(a)
By resolution of its board of directors, any legal reserve life insurance company may cancel at any time all or any part of its treasury shares.
(b)
(1)
In such an event, a statement of cancellation shall be filed as provided in this section.
(2)
Any statement of cancellation shall be executed and filed in accordance with the provisions of §
23-69-107(c)
, shall be verified by one (1) of the officers signing the statement, and shall set forth:
(A)
The name of the insurance company;
(B)
The number of treasury shares cancelled by resolution duly adopted by the board of directors, itemized by classes and series, and the date of its adoption;
(C)
The aggregate number of issued shares, itemized by classes and series, after giving effect to the cancellation;
(D)
The amount, expressed in dollars, of the paid-up capital of the insurance company, after giving effect to the cancellation; and
(E)
A copy of the resolution effecting the cancellation.
(3)
When a statement of cancellation is filed in accordance with §
23-69-107(c)
, the paid-up capital of the insurance company shall be deemed to be reduced by that part of the paid-up capital which was, at the time of the cancellation, represented by the shares so cancelled, and the shares so cancelled shall be restored to the status of authorized but unissued shares.
(c)
Nothing contained in this section shall be construed to forbid a cancellation of shares or a reduction of stated capital in any other manner permitted by §
23-69-107
.
Acts 1971, No. 293, § 3; A.S.A. 1947, § 66-2634.1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-835 - Investments of foreign insurers

(a)
The investments of a foreign or alien insurer shall be as permitted by the laws of its domicile but shall be of a quality substantially as high as those required under this subchapter for similar funds of like domestic insurers.
(b)
For the purposes of this section, the domicile of an alien insurer shall be as provided in §
23-63-104
.
Acts 1959, No. 148, § 131; A.S.A. 1947, § 66-2635; Acts 1993, No. 527, § 16.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-836 - Certificates of deposit

An insurer may invest in certificates of deposit or similar depository instruments issued by any bank, bank and trust company, savings bank, national bank association, savings and loan association incorporated under the laws of a state, or federal savings and loan association incorporated under the laws of the United States.
Acts 1959, No. 148, § 131.1, as added by Acts 1983, No. 522, § 5; A.S.A. 1947, § 66-2636.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-837 - Property and facilities for fossil or synthetic fuel production

(a)
An insurer may invest in property and facilities, and any interests and rights in properties and facilities, for the development and production of fossil or synthetic fuel or other minerals, including, but not limited to, investments relating to:
(1)
The exploration for and development and production of those fuels and minerals; and
(2)
Ownership and control of the property, facilities, interests, and rights.
(b)
Investment in property and facilities, and any interests and rights in the properties and facilities for the development and production of fossil or synthetic fuel or other minerals under this section shall not exceed two percent (2%) of the insurer's assets.
Acts 1959, No. 148, § 131.2, as added by Acts 1983, No. 522, § 6; A.S.A. 1947, § 66-2637.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 8 - INVESTMENTS (§§ 23-63-801 — 23-63-842) › Section 23-63-839 - Negotiable bills of exchange or time drafts

An insurer may invest in negotiable bills of exchange or time drafts issued and unconditionally guaranteed by any bank, bank and trust company, national bank association, or domestic branch or agency of a foreign bank subject to reserve requirements under section 7 of the International Banking Act of 1978, as amended, provided that:
(1)
The underlying transaction involves a trade financing and has a maturity no longer than six (6) months sight to run exclusive of days of grace;
(2)
The insurer invests not more than twenty-five percent (25%) of its assets in bankers acceptances; and
(3)
The insurer invests not more than ten percent (10%) of its assets in any one (1) bankers acceptance in any one (1) financial institution.
Acts 1989, No. 772, § 4.