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 67 - RATES AND RATING ORGANIZATIONS (§§ 23-67-201 — 23-67-602) › Subchapter 6 - INTERSTATE INSURANCE PRODUCT REGULATION COMPACT (§§ 23-67-601 — 23-67-602) › Section 23-67-601 - Title

This subchapter shall be known and may be cited as the "Interstate Insurance Product Regulation Compact".
Added by Act 2013, No. 1330,§ 2, eff. 8/16/2013.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-101 - Uniform Insurers Liquidation Act

(1)
Section
23-68-102(2)
-(13), together with §§
23-68-101
,
23-68-104
,
23-68-105
,
23-68-113
, and
23-68-115
-
23-68-120
, constitute and may be referred to as the "Uniform Insurers Liquidation Act".
(2)
The Uniform Insurers Liquidation Act shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states that enact it. To the extent that its provisions when applicable conflict with other provisions of this chapter, the provisions of such act shall control.
Acts 1959, No. 148, § 658; A.S.A. 1947, § 66-4821.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-103 - Delinquency proceedings generally

(a)
The Pulaski County Circuit Court shall have original jurisdiction of delinquency proceedings under this chapter, and that court is authorized to make all necessary or proper orders to carry out the purposes of this chapter.
(b)
The venue of delinquency proceedings against a domestic, foreign, or alien insurer shall be in the Pulaski County Circuit Court.
(c)
Delinquency proceedings pursuant to this chapter shall constitute the sole and exclusive method of liquidating, rehabilitating, reorganizing, or conserving an insurer, and no court shall entertain a petition for the commencement of such proceedings unless the petition has been filed in the name of the state on the relation of the Insurance Commissioner.
(d)
An appeal shall lie to the Supreme Court from an order granting or refusing rehabilitation, liquidation, or conservation, and from every other order in delinquency proceedings having the character of a final order as to the particular portion of the proceedings embraced therein.
Acts 1959, No. 148, § 639; 1985, No. 804, § 19; A.S.A. 1947, § 66-4802; Acts 1997, No. 1000, § 7.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-104 - Commencement of delinquency proceedings

The Insurance Commissioner shall commence any such proceedings by application to the court for an order directing the insurer to show cause why the commissioner should not have the relief prayed for. On the return of such order to show cause, and after a full hearing, the court shall either deny the application or grant the application, together with such other relief as the nature of the case and the interests of the policyholders, creditors, stockholders, members, subscribers, or the public may require.
Acts 1959, No. 148, § 640; A.S.A. 1947, § 66-4803.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-105 - Injunctions - Commissioner as party to suits

(1)
Upon application by the Insurance Commissioner for such an order to show cause, or at any time thereafter, the court may without notice issue an injunction restraining the insurer, its officers, directors, stockholders, members, subscribers, agents, and all other persons from the transaction of its business or the waste or disposition of its property until the further order of the court.
(2)
The court may at any time during a proceeding under this chapter issue such other injunctions or orders as may be deemed necessary to prevent interference with the commissioner or the proceeding, or waste of the assets of the insurer, or the commencement or prosecution of any actions, or the obtaining of preferences, judgments, attachments or other liens, or the making of any levy against the insurer or against its assets or any part thereof.
(3)
Notwithstanding any other provision of law, no bond shall be required of the commissioner as a prerequisite for the issuance of any injunction or restraining order pursuant to this section.
(4)
No judgment or order rendered by any court of this state in any action pending by or against the delinquent insurer after the commencement of delinquency proceedings shall be binding upon the commissioner unless the commissioner shall have been made a party to such suit.
(5)
The commissioner shall not be required to plead any suit in which he or she may be a proper party plaintiff or defendant in any of the courts of this state until ninety (90) days after the date of his or her appointment as receiver.
Acts 1959, No. 148, § 641; 1985, No. 804, § 27; A.S.A. 1947, § 66-4804.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-107 - Grounds for liquidation

The Insurance Commissioner may apply to the court for an order appointing him or her as receiver, if his or her appointment as receiver shall not be then in effect, and directing him or her to liquidate the business of a domestic insurer or of the United States branch of an alien insurer having trusteed assets in this state, regardless of whether or not there has been a prior order directing him or her to rehabilitate such insurer, upon any of the grounds specified in §
23-68-106
, or if the insurer:
(1)
Has ceased transacting business for a period of one (1) year; or
(2)
Is an insolvent insurer and has commenced voluntary liquidation or dissolution or attempts to commence or prosecute any action or proceeding to liquidate its business or affairs or to dissolve its corporate charter or to procure the appointment of a receiver, trustee, custodian, or sequestrator under any law except the Arkansas Insurance Code.
Acts 1959, No. 148, § 643; A.S.A. 1947, § 66-4806.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-108 - Grounds for conservation - Domestic, foreign, and alien insurers

(a)
The Insurance Commissioner may apply to the court for an order appointing him or her as receiver and directing him or her to conserve the assets of a domestic insurer upon any of the grounds specified in §
23-68-106
or §
23-68-107
.
(b)
The commissioner may apply to the court for an order appointing him or her as receiver or ancillary receiver and directing him or her to conserve the assets within this state of a foreign insurer upon any of the following grounds:
(1)
Upon any of the grounds specified in §
23-68-106
or §
23-68-107
; or
(2)
Upon the ground that its property has been sequestered in its domiciliary sovereignty or in any other sovereignty.
(c)
The commissioner may apply to the court for an order appointing him or her as receiver or ancillary receiver and directing him or her to conserve the assets within this state of any alien insurer upon any of the following grounds:
(1)
Upon any of the grounds specified in §
23-68-106
or §
23-68-107
;
(2)
Upon the ground that the insurer has failed to comply within the time designated by the commissioner with an order made by him or her to make good an impairment of its trusteed funds; or
(3)
Upon the ground that the property of the insurer has been sequestered in its domiciliary sovereignty or elsewhere.
Acts 1959, No. 148, §§ 644, 645; A.S.A. 1947, §§ 66-4807, 66-4808; Acts 1997, No. 1000, § 8.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-109 - Grounds for ancillary liquidation - Foreign insurers

The Insurance Commissioner may apply to the court for an order appointing him or her as ancillary receiver of and directing him or her to liquidate the business of a foreign insurer having assets, business, or claims in this state upon the appointment in the domiciliary state of the insurer of a receiver, liquidator, conservator, rehabilitator, or other officer by whatever name called for the purpose of liquidating the business of the insurer.
Acts 1959, No. 148, § 646; A.S.A. 1947, § 66-4809.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-110 - Order of rehabilitation

(a)
An order to rehabilitate a domestic insurer shall direct the Insurance Commissioner forthwith to take possession of the property of the insurer and to conduct the business thereof, and to take such steps toward removal of the causes and conditions which have made rehabilitation necessary as the court may direct.
(b)
If at any time the commissioner deems that further efforts to rehabilitate the insurer would be useless, he or she may apply to the court for an order of liquidation.
(c)
The commissioner, or any interested person upon due notice to the commissioner, at any time may apply to the court for an order terminating the rehabilitation proceedings and permitting the insurer to resume possession of its property and the conduct of its business, but no such order shall be made or entered except when, after a hearing, the court has determined that the purposes of the proceeding have been fully accomplished.
Acts 1959, No. 148, § 647; A.S.A. 1947, § 66-4810.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-111 - Order of liquidation - Domestic and alien insurers

(a)
(1)
An order to liquidate the business of a domestic insurer shall direct the Insurance Commissioner forthwith to take possession of the property of the insurer, to liquidate its business, to deal with the insurer's property and business in his or her own name as commissioner or in the name of the insurer, as the court may direct, and to give notice to all creditors who may have claims against the insurer to present the claims.
(2)
The commissioner may apply for and secure an order dissolving the corporate existence of a domestic insurer upon his or her application for an order of liquidation of the insurer or at any time after the order of liquidation has been granted.
(b)
An order to liquidate the business of a United States branch of an alien insurer having trusteed assets in this state shall be in the same terms as those prescribed for domestic insurers, save and except only that the assets of the business of such United States branch shall be the only assets included therein.
Acts 1959, No. 148, §§ 648, 649; A.S.A. 1947, §§ 66-4811, 66-4812.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-112 - Order of conservation or liquidation - Foreign and alien insurers

(a)
An order to conserve the assets of a foreign or alien insurer shall require the Insurance Commissioner forthwith to take possession of the property of the insurer within this state and to conserve it, subject to the further direction of the court.
(b)
An order to liquidate the assets in this state of a foreign insurer shall require the commissioner forthwith to take possession of the property of the insurer within this state and to liquidate it subject to the orders of the court and with due regard to the rights and powers of the domiciliary receiver, as provided in this chapter.
Acts 1959, No. 148, § 650; A.S.A. 1947, § 66-4813.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-114 - Disposition of funds held pursuant to section 23-68-113

(a)
(1)
The Liquidation Division of the State Insurance Department is authorized to deposit funds now held pursuant to the provisions of §
23-68-113
, and the Pulaski County Circuit Court, into one (1) or more accounts, in one (1) or more state or national banks, savings banks, savings and loan associations, or trust companies.
(2)
These funds may be combined to yield the highest rate of return on the deposits, or in any other way to facilitate the efficient operation of the division and the respective receiverships under the jurisdiction of the division.
(3)
These funds may be used for the purpose of operating the division and the respective receiverships that may, from time to time, fall under its jurisdiction, and for no other purpose.
(b)
The funds referred to in subsection (a) of this section shall come from the accounts now held by the division, composed of assets sequestered from domestic insurers, and shall in no way be commingled or combined with funds of the State of Arkansas.
Acts 1983, No. 750, §§ 1, 2; A.S.A. 1947, §§ 66-4814.1, 66-4814.2.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-115 - Conduct of delinquency proceedings against foreign insurers

(1)
Whenever under this chapter an ancillary receiver is to be appointed in delinquency proceedings for an insurer not domiciled in this state, the court shall appoint the Insurance Commissioner as ancillary receiver. The commissioner shall file a petition requesting the appointment on the grounds set forth in §
23-68-109
:
(a)
If he or she finds that there are sufficient assets of the insurer located in this state to justify the appointment of an ancillary receiver; or
(b)
If ten (10) or more persons resident in this state having claims against such insurer file a petition with the commissioner requesting the appointment of such ancillary receiver.
(2)
The domiciliary receiver for the purpose of liquidation of an insurer domiciled in a reciprocal state shall be vested by operation of law with the title to all of the property, contracts, and rights of action, and all of the books and records of the insurer located in this state; and he or she shall have the immediate right to recover balances due from local agents and to obtain possession of any books and records of the insurer found in this state. He or she shall also be entitled to recover the other assets of the insurer located in this state, except that upon the appointment of an ancillary receiver in this state, the ancillary receiver shall during the ancillary receivership proceedings have the sole right to recover such other assets. The ancillary receiver shall, as soon as practicable, liquidate from his or her respective securities those special deposit claims and secured claims which are proved and allowed in the ancillary proceedings in this state, and shall pay the necessary expenses of the proceedings. He or she shall promptly transfer all remaining assets to the domiciliary receiver. Subject to the foregoing provisions, the ancillary receiver and his or her deputies shall have the same powers and be subject to the same duties with respect to the administration of such assets as a receiver of an insurer domiciled in this state.
(3)
The domiciliary receiver of an insurer domiciled in a reciprocal state may sue in this state to recover any assets of such insurer to which he or she may be entitled under the laws of this state.
Acts 1959, No. 148, § 652; A.S.A. 1947, § 66-4815.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-116 - Claims of nonresidents against domestic insurers

(1)
In a delinquency proceeding begun in this state against a domestic insurer, claimants residing in reciprocal states may file claims either with the ancillary receivers, if any, in their respective states, or with the domiciliary receiver. All such claims must be filed on or before the last date fixed for the filing of claims in the domiciliary delinquency proceedings.
(2)
Controverted claims belonging to claimants residing in reciprocal states may either:
(a)
Be proved in this state; or
(b)
If ancillary proceedings have been commenced in such reciprocal states, may be proved in those proceedings. In the event a claimant elects to prove his or her claim in ancillary proceedings, if notice of the claim and opportunity to appear and be heard is afforded the domiciliary receiver of this state, as provided in §
23-68-117
with respect to ancillary proceedings in this state, the final allowance of such claim by the courts in the ancillary state shall be accepted in this state as conclusive as to its amount and shall also be accepted as conclusive as to its priority, if any, against special deposits or other security located within the ancillary state.
Acts 1959, No. 148, § 653; A.S.A. 1947, § 66-4816.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-117 - Claims against foreign insurers

(1)
In a delinquency proceeding in a reciprocal state against an insurer domiciled in that state, claimants against such insurer who reside within this state may file claims either with the ancillary receiver, if any, appointed in this state, or with the domiciliary receiver. All such claims must be filed on or before the last date fixed for the filing of claims in the domiciliary delinquency proceedings.
(2)
Controverted claims belonging to claimants residing in this state may either:
(a)
Be proved in the domiciliary state as provided by the law of that state; or
(b)
If ancillary proceedings have been commenced in this state, be proved in those proceedings.
In the event that any such claimant elects to prove his or her claim in this state, he or she shall file his or her claim with the ancillary receiver and shall give notice in writing to the receiver in the domiciliary state, either by registered mail or by personal service at least forty (40) days prior to the date set for hearing. The notice shall contain a concise statement of the amount of the claim, the facts on which the claim is based, and the priorities asserted, if any. If the domiciliary receiver within thirty (30) days after the giving of such notice shall give notice in writing to the ancillary receiver and to the claimant, either by registered mail or by personal service, of his or her intention to contest such claim, he or she shall be entitled to appear or to be represented in any proceeding in this state involving adjudication of the claim. The final allowance of the claim by the courts of this state shall be accepted as conclusive as to its amount and shall also be accepted as conclusive as to its priority, if any, against special deposits or other security located within this state.
Acts 1959, No. 148, § 654; A.S.A. 1947, § 66-4817.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-118 - Form of claim - Notice - Hearing

(1)
All claims against an insurer against which delinquency proceedings have been begun shall set forth in reasonable detail the amount of the claim, or the basis upon which such amount can be ascertained, the facts upon which the claim is based, and the priorities asserted, if any. All such claims shall be verified by the affidavit of the claimant, or someone authorized to act on his or her behalf and having knowledge of the facts, and shall be supported by such documents as may be material thereto.
(2)
All claims filed in this state shall be filed with the receiver, whether domiciliary or ancillary, in this state, on or before the last date for filing as specified in this chapter.
(3)
Within ten (10) days of the receipt of any claim, or within such further period as the court may, for good cause shown, fix, the receiver shall report the claim to the court, specifying in such report his or her recommendation with respect to the action to be taken thereon. Upon receipt of such report, the court shall fix a time for hearing the claim and shall direct that the claimant or the receiver, as the court shall specify, shall give such notice as the court shall determine to such persons as shall appear to the court to be interested therein. All such notices shall specify the time and place of the hearing and shall concisely state the amount and nature of the claim, the priorities asserted, if any, and the recommendation of the receiver with reference thereto.
(4)
At the hearing, all persons interested shall be entitled to appear, and the court shall enter an order allowing, allowing in part, or disallowing the claim. Any such order shall be deemed to be an appealable order.
Acts 1959, No. 148, § 655; A.S.A. 1947, § 66-4818.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-119 - Priority of certain claims

(1)
In a delinquency proceeding against an insurer domiciled in this state, claims owing to residents of ancillary states shall be preferred claims if like claims are preferred under the laws of this state. All such claims owing to residents or nonresidents shall be given equal priority of payment from general assets regardless of where such assets are located.
(2)
In a delinquency proceeding against an insurer domiciled in a reciprocal state, claims owing to residents of this state shall be preferred if like claims are preferred by the laws of that state.
(3)
The owners of special deposit claims against an insurer for which a receiver is appointed in this or any other state shall be given priority against their several special deposits in accordance with the provisions of the statutes governing the creation and maintenance of such deposits. If there is a deficiency in any such deposit so that the claims secured thereby are not fully discharged therefrom, the claimants may share in the general assets, but such sharing shall be deferred until general creditors, and also claimants against other special deposits who have received smaller percentages from their respective special deposits, have been paid percentages of their claims equal to the percentage paid from the special deposit.
(4)
The owner of a secured claim against an insurer for which a receiver has been appointed in this or any other state may surrender his or her security and file his or her claim as a general creditor, or the claim may be discharged by resort to the security, in which case the deficiency, if any, shall be treated as a claim against the general assets of the insurer on the same basis as claims of unsecured creditors. If the amount of the deficiency has been adjudicated in ancillary proceedings as provided in this chapter, or if it has been adjudicated by a court of competent jurisdiction in proceedings in which the domiciliary receiver has had notice and opportunity to be heard, such amounts shall be conclusive; otherwise, the amount shall be determined in the delinquency proceeding in the domiciliary state.
Acts 1959, No. 148, § 656; A.S.A. 1947, § 66-4819.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-120 - Attachment and garnishment of assets

During the pendency of delinquency proceedings in this or any reciprocal state, no action or proceeding in the nature of an attachment, garnishment, or execution shall be commenced or maintained in the courts of this state against the delinquent insurer or its assets. Any lien obtained by any such action or proceeding within four (4) months prior to the commencement of any such delinquency proceeding or at any time thereafter shall be void as against any rights arising in such delinquency proceeding.
Acts 1959, No. 148, § 657; A.S.A. 1947, § 66-4820.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-121 - Disposition of moneys collected

(a)
The moneys collected by the Insurance Commissioner in a proceeding under this chapter shall be from time to time deposited into one (1) or more state or national banks, savings banks, or trust companies, and in the case of the insolvency or voluntary or involuntary liquidation of any such depositary which is an institution organized and supervised under the laws of this state, such deposits shall be entitled to priority of payment on an equality with any other priority given by the banking laws of this state.
(b)
The commissioner may in his or her discretion deposit such moneys or any part thereof in a national bank or trust company as a trust fund.
Acts 1959, No. 148, § 659; A.S.A. 1947, § 66-4822.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-122 - Exemption from fees

The Insurance Commissioner shall not be required to pay any fee to any public officer in this state for filing, recording, issuing a transcript or certificate, or authenticating any paper or instrument pertaining to the exercise by the commissioner of any of the powers or duties conferred upon him or her under this chapter, whether or not the paper or instrument is executed by the commissioner or his or her deputies, employees, or attorneys of record and whether or not it is connected with the commencement of any action or proceeding by or against the commissioner, or with the subsequent conduct of the action or proceeding.
Acts 1959, No. 148, § 660; A.S.A. 1947, § 66-4823.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-123 - Borrowing on pledge of assets

(a)
For the purpose of facilitating the rehabilitation, liquidation, conservation, or dissolution of an insurer pursuant to this chapter, the Insurance Commissioner may, subject to the approval of the court, borrow money and execute, acknowledge, and deliver notes or other evidences of indebtedness therefor and secure the repayment of the same by the mortgage, pledge, assignment, transfer in trust, or hypothecation of any or all of the property, whether real, personal, or mixed, of the insurer, and the commissioner, subject to the approval of the court, shall have power to take any and all other action necessary and proper to consummate any loan and to provide for the repayment thereof.
(b)
The commissioner shall be under no obligation personally or in his or her official capacity to repay any loan made pursuant to this section.
Acts 1959, No. 148, § 661; A.S.A. 1947, § 66-4824.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-124 - Date of rights and liabilities upon liquidation

The rights and liabilities of the insurer and of its creditors, policyholders, stockholders, members, subscribers, and all other persons interested in its estate shall, unless otherwise directed by the court, be fixed as of the date on which the order directing the liquidation of the insurer is filed in the office of the clerk of the court which made the order, subject to the provisions of this chapter with respect to the rights of claimants holding contingent claims.
Acts 1959, No. 148, § 662; A.S.A. 1947, § 66-4825.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-125 - Voidable transfers and liens

(a)
Any transfer of, or lien upon, the property of an insurer which is made or created within four (4) months prior to the granting of an order to show cause under this chapter with the intent of giving to any creditor a preference or of enabling him or her to obtain a greater percentage of his or her debt than any other creditor of the same class and which is accepted by the creditor having reasonable cause to believe that the preference will occur, shall be voidable.
(b)
Every director, officer, employee, stockholder, member, subscriber, and any other person acting on behalf of the insurer who shall be concerned in any act or deed and every person receiving thereby any property of the insurer or the benefit thereof shall be personally liable therefor and shall be bound to account to the Insurance Commissioner.
(c)
The commissioner as receiver in any proceeding under this chapter may avoid any transfer of or lien upon the property of an insurer which any creditor, stockholder, subscriber, or member of such insurer might have avoided and may recover the property so transferred unless such person was a bona fide holder for value prior to the date of the entering of an order to show cause under this chapter. The property or its value may be recovered from anyone who has received it except a bona fide holder for value as herein specified.
Acts 1959, No. 148, § 663; A.S.A. 1947, § 66-4826.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-127 - Offsets

(a)
In all cases of mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this chapter, the credits and debts shall be set off, and the balance only shall be allowed or paid, except as provided in subsection (b) of this section.
(b)
No offset shall be allowed in favor of any such person where:
(1)
The obligation of the insurer to the person would not at the date of the entry of any liquidation order or otherwise, as provided in §
23-68-124
, entitle him or her to share as a claimant in the assets of the insurer;
(2)
The obligation of the insurer to the person was purchased by or transferred to the person with a view of its being used as an offset; or
(3)
The obligation of the person is to pay an assessment levied against the members of a mutual insurer, or against the subscribers of a reciprocal insurer, or is to pay a balance upon the subscription to the capital stock of a stock insurer.
Acts 1959, No. 148, § 665; A.S.A. 1947, § 66-4828.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-129 - Time for filing claims

(a)
If, upon the entry of an order of liquidation under this chapter or at any time thereafter during liquidation proceedings, the insurer shall not be clearly solvent, the court shall, upon hearing after such notice as it deems proper, make and enter an order adjudging the insurer to be insolvent.
(b)
(1)
After the entry of the order of insolvency, regardless of any prior notice that may have been given to creditors, the Insurance Commissioner shall notify all persons who may have claims against the insurer to file the claims with him or her, at a place and within the time specified in the notice, or that the claims shall be forever barred.
(2)
The time specified in the notice shall be as fixed by the court for filing of claims and which shall be not less than six (6) months after the entry of the order of insolvency.
(3)
The notice shall be given in such manner and for such reasonable period of time as may be ordered by the court.
Acts 1959, No. 148, § 667; A.S.A. 1947, § 66-4830.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-130 - Report and petition for assessment

Within three (3) years after the date of the entry of an order of rehabilitation or liquidation of a domestic mutual insurer or a domestic reciprocal insurer, the Insurance Commissioner may make and file his or her report and petition to the court setting forth:
(1)
The reasonable value of the assets of the insurer;
(2)
The liabilities of the insurer to the extent thus far ascertained by the commissioner;
(3)
The aggregate amount of the assessment, if any, which the commissioner deems reasonably necessary to pay all claims, the costs and expenses of the collection of the assessments, and the costs and expenses of the delinquency proceedings in full; and
(4)
Any other information relative to the affairs or property of the insurer that the commissioner deems material.
Acts 1959, No. 148, § 668; A.S.A. 1947, § 66-4831.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-131 - Order and levy of assessment

(a)
(1)
Upon the filing and reading of the report and petition provided for in §
23-68-130
, the court, ex parte, may order the Insurance Commissioner to assess all members or subscribers of the insurer who may be subject to the assessment, in such an aggregate amount as the court finds reasonably necessary to pay all valid claims as may be timely filed and proved in the delinquency proceedings, together with the costs and expenses of levying and collecting assessments and the costs and expenses of the delinquency proceedings in full.
(2)
Any order shall require the commissioner to assess each member or subscriber for his or her proportion of the aggregate assessment, according to such reasonable classification of such members or subscribers and formula as may be made by the commissioner and approved by the court.
(b)
The court may order additional assessments upon the filing and reading of any amendment or supplement to the report and petition referred to in subsection (a) of this section if the amendment or supplement is filed within three (3) years after the date of the entry of the order of rehabilitation or liquidation.
(c)
After the entry of the order to levy and assess members or subscribers of an insurer referred to in subsection (a) of this section, the commissioner shall levy and assess members or subscribers in accordance with the order.
(d)
The total of all assessments against any member or subscriber with respect to any policy, whether levied pursuant to this chapter or pursuant to any other provision of the Arkansas Insurance Code, shall be for no greater amount than that specified in the policy or policies of the member or subscriber and as limited under the Arkansas Insurance Code, except as to any policy which was issued at a rate of premium below the minimum rate lawfully permitted for the risk insured, in which event the assessment against the policyholder shall be upon the basis of the minimum rate for such risk.
(e)
No assessment shall be levied against any member or subscriber with respect to any nonassessable policy issued in accordance with §§
23-69-125
and
23-70-120
.
Acts 1959, No. 148, § 669; A.S.A. 1947, § 66-4832.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-132 - Assessment prima facie correct - Procedures to collect assessment

(a)
Any assessment of a subscriber or member of an insurer made by the Insurance Commissioner pursuant to an order of the court fixing the aggregate amount of the assessment against all members or subscribers and approving the classification and formula made by the commissioner under §
23-68-131(a)
shall be prima facie correct.
(b)
Each member or subscriber shall be notified of the amount of assessment to be paid by him or her by written notice mailed to the address of the member or subscriber last of record with the insurer. Failure of the member or subscriber to receive the notice so mailed, within the time specified therein or at all, shall be no defense in any proceeding to collect the assessment.
(c)
If any member or subscriber fails to pay the assessment within the period specified in the notice, which period shall not be less than twenty (20) days after mailing, the commissioner may obtain an order in the delinquency proceedings requiring the member or subscriber to show cause at a time and place fixed by the court why judgment should not be entered against the member or subscriber for the amount of the assessment together with all costs, and a copy of the order and a copy of the petition therefor shall be served upon the member or subscriber within the time and in the manner designated in the order.
(d)
If the subscriber or member after due service of a copy of the order and petition referred to in subsection (c) of this section is made upon him or her:
(1)
Fails to appear at the time and place specified in the order, judgment shall be entered against him or her as prayed for in the petition; or
(2)
Appears in the manner and form required by law in response to the order, the court shall hear and determine the matter and enter a judgment in accordance with its decision.
(e)
The commissioner may collect the assessment through any other lawful means.
Acts 1959, No. 148, § 670; A.S.A. 1947, § 66-4833.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-133 - Reinsurer's liability

(a)
The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of the delinquency proceedings, regardless of any provision in the reinsurance contract or other agreement.
(b)
All reinsurance contracts to which an insurer domiciled in this state is a party that do not contain the provisions required with respect to the obligation of reinsurers in the event of insolvency of the reinsured in order to obtain credit for reinsurance or other applicable statutes, shall be construed to contain the following provisions:
(1)
(A)
In the event of insolvency and the appointment of a receiver, the reinsurance obligation shall be payable to the receiver upon demand, with reasonable provision for verification, on the basis of claims allowed pursuant to this subchapter, without diminution because of the insolvency or because the receiver has failed to pay all or a portion of any claims.
(B)
Payments by the reinsurer as set forth above shall be made directly to the ceding insurer or to its receiver; and
(2)
(A)
The receiver of a reinsured company shall give written notice of the pendency of a claim against the reinsured company indicating the policy or bond reinsured within a reasonable time after the claim is filed.
(B)
The receiver of a reinsured company may arrange for the giving of notice of the pendency of claims on reinsured policies by guaranty funds or by other persons responsible for the adjustment and settlement of the reinsured company's claims.
(C)
Failure to give notice shall not excuse the obligation of the reinsurer unless it is substantially prejudiced thereby.
(D)
The reinsurer may interpose, at its own expense, in the proceeding where the claim is to be adjudicated, any defense or defenses which it may deem available to the reinsured company or its receiver.
(c)
(1)
Payments by the reinsurer as set forth shall be made directly to the ceding insurer or its receiver, except where the contract of insurance or reinsurance specifically provides for another payee in the event of insolvency of the ceding insurer in accordance with any applicable requirements of statutes, rules, or orders of the domiciliary state of the ceding insurer.
(2)
The receiver shall be entitled to recover from any person who unsuccessfully makes a claim directly against the reinsurer the receiver's attorneys' fees and expenses incurred in preventing any collection by the person.
(d)
This section shall become effective on and after January 1, 1998, and shall apply to all contracts entered into, renewed, extended, or amended on or after that date, and to obligations arising from any business written or transaction occurring covered by reinsurance after January 1, 1998, pursuant to any contract, including those in existence prior to the effective date.
Acts 1997, No. 1000, § 26.
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 68 - REHABILITATION AND LIQUIDATION OF INSURANCE COMPANIES (§§ 23-68-101 — 23-68-135) › Section 23-68-134 - Priority of distribution of claims - Legislative intent

It is the intent of the General Assembly that §
23-68-126
as amended by this act apply to pending and future claims in existing delinquency proceedings as well as to claims in delinquency proceedings arising after July 2, 1997; that, in light of the ruling of the United States Supreme Court in United States Department of the Treasury v. Fabe, 508 U.S. 491 (1993), the General Assembly considers this act to be curative, remedial, and not affecting substantive rights in the distribution of assets in delinquency proceedings; that this act is necessary to cure any potential defect in the present priority of distribution scheme that may result from the Fabe decision and to preserve the original intent of the General Assembly with regard to the priorities of payment in delinquency proceedings.
Acts 1997, No. 1000, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-69-101 — 23-69-156) › Section 23-69-101 - Scope

Sections
23-69-101
-
23-69-103
,
23-69-105
-
23-69-141
,
23-69-143
, and
23-69-149
-
23-69-156
shall apply only to domestic stock insurers and domestic mutual insurers transacting, or proposing to transact, insurance on the legal reserve plan.
Acts 1959, No. 148, § 453; A.S.A. 1947, § 66-4201.
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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-69-101 — 23-69-156) › Section 23-69-102 - Definitions

As used in §§
23-69-101
-
23-69-103
,
23-69-105
-
23-69-141
,
23-69-143
, and
23-69-149
-
23-69-156
, unless the context otherwise requires:
(1)
A "stock" insurer is an incorporated insurer with capital divided into shares and owned by its stockholders; and
(2)
A "mutual" insurer is an incorporated insurer without permanent capital stock and the governing body of which is elected as provided in §§
23-69-101
-
23-69-103
,
23-69-105
-
23-69-141
,
23-69-143
, and
23-69-149
-
23-69-156
.
Acts 1959, No. 148, §§ 454, 455; A.S.A. 1947, §§ 66-4202, 66-4203.
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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-69-101 — 23-69-156) › Section 23-69-103 - Inapplicability of general corporation statutes

The statutes of this state relating to the powers and procedures of corporations other than insurance corporations shall not apply to domestic stock insurers and domestic mutual insurers, except as stated in §
23-69-128
.
Acts 1959, No. 148, § 456; A.S.A. 1947, § 66-4204.
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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 1 - GENERAL PROVISIONS (§§ 23-69-101 — 23-69-156) › Section 23-69-104 - Powers of company not enlarged

Nothing in §§
23-69-101
-
23-69-103
,
23-69-105
-
23-69-141
,
23-69-143
, and
23-69-149
-
23-69-156
shall be construed to authorize any company to engage in any kind of insurance business not authorized by its articles of incorporation nor to authorize any foreign or alien company to engage in any kind of insurance business in this state not covered by its certificate of authority to do business in this state.
Acts 1971, No. 301, § 2; A.S.A. 1947, § 66-4245.1.