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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 4 - CONTRACTUAL BENEFITS (§§ 23-74-401 — 23-74-405) › Section 23-74-402 - Beneficiaries

(a)
(1)
The owner of a benefit contract shall have the right at all times to change the beneficiary or beneficiaries in accordance with the laws or rules of the society unless the owner waives this right by specifically requesting in writing that the beneficiary designation be irrevocable.
(2)
Through its laws or rules, a society may limit the scope of beneficiary designations and shall provide that no revocable beneficiary shall have or obtain any vested interest in the proceeds of any certificate until the certificate has become due and payable in conformity with the provisions of the benefit contract.
(b)
A society may make provision for the payment of funeral benefits to the extent of such portion of any payment under a certificate as might reasonably appear to be due to any person equitably entitled thereto by reason of having incurred expense occasioned by the burial of the member.
(c)
If, at the death of any member, there is no lawful beneficiary to whom the insurance benefits are payable, the amount of such benefits, except to the extent that funeral benefits may be paid as provided in subsection (b) of this section, shall be payable to the personal representative of the deceased insured. However, if the owner of the certificate is other than the insured, the proceeds shall be payable to such an owner.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 4 - CONTRACTUAL BENEFITS (§§ 23-74-401 — 23-74-405) › Section 23-74-403 - Benefits not attachable

No money or other benefit, charity, relief, or aid to be paid, provided, or rendered by any society shall be liable to attachment, garnishment, or other process, or to be seized, taken, appropriated, or applied by any legal or equitable process or operation of law to pay any debt or liability of a member or beneficiary, or any other person who may have a right thereunder, either before or after payment by the society.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 4 - CONTRACTUAL BENEFITS (§§ 23-74-401 — 23-74-405) › Section 23-74-405 - Nonforfeiture benefits, cash surrender values, certificate loans, and other options

(a)
For certificates issued prior to January 1, 1991, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan, or other option granted shall comply with the provisions of law applicable immediately prior to January 1, 1990.
(b)
For certificates issued on or after January 1, 1991, for which reserves are computed on the Insurance Commissioner's 1941 standard ordinary mortality table, the commissioner's 1941 standard industrial table or the commissioner's 1958 standard ordinary mortality table, or the commissioner's 1980 standard mortality table, or any more recent table made applicable to life insurers, every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan, or other option granted shall not be less than the corresponding amount ascertained in accordance with the laws of this state applicable to life insurers issuing policies containing like benefits based upon such tables.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 5 - FINANCIAL (§§ 23-74-501 — 23-74-504) › Section 23-74-501 - Investments

A society shall invest its funds only in such investments as are authorized by the laws of this state for the investment of assets of life insurers and subject to the limitations thereon. Any foreign or alien society permitted or seeking to do business in this state which invests its funds in accordance with the laws of the state, district, territory, country, or province in which it is incorporated shall be held to meet the requirements of this section for the investment of funds.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 5 - FINANCIAL (§§ 23-74-501 — 23-74-504) › Section 23-74-502 - Funds

(a)
All assets shall be held, invested, and disbursed for the use and benefit of the society, and no member or beneficiary shall have or acquire individual rights therein or become entitled to any apportionment on the surrender of any part thereof, except as provided in the benefit contract.
(b)
A society may create, maintain, invest, disburse, and apply any special fund or funds necessary to carry out any purpose permitted by the laws of the society.
(c)
(1)
Pursuant to resolution of its supreme governing body, a society may establish and operate one (1) or more separate accounts and issue contracts on a variable basis, subject to the provisions of law regulating life insurers establishing such accounts and issuing such contracts as provided in §
23-81-401
et seq.
(2)
To the extent the society deems it necessary in order to comply with any applicable federal or state laws, or any rules issued thereunder, the society may:
(A)
Adopt special procedures for the conduct of the business and affairs of a separate account;
(B)
For persons having beneficial interests therein, provide special voting and other rights, including, without limitation, special rights and procedures relating to investment policy, investment advisory services, selection of certified public accountants, and selection of a committee to manage the business and affairs of the account; and
(C)
Issue contracts on a variable basis to which §
23-74-404(b) and (d)
shall not apply.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 5 - FINANCIAL (§§ 23-74-501 — 23-74-504) › Section 23-74-503 - Exemptions

Except as herein provided, societies shall be governed by this chapter and shall be exempt from all other provisions of the general insurance laws of this state unless they be expressly designated therein or unless it is specifically made applicable by this chapter.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 5 - FINANCIAL (§§ 23-74-501 — 23-74-504) › Section 23-74-504 - Taxation

Every society organized or licensed under this chapter is hereby declared to be a charitable and benevolent institution, and all of its funds shall be exempt from every state, county, district, municipal, and school tax other than taxes on real estate.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 6 - REGULATION (§§ 23-74-601 — 23-74-610) › Section 23-74-601 - Valuation

(a)
Standards of valuation for certificates issued prior to January 1, 1991, shall be those provided by the laws applicable immediately prior to January 1, 1990.
(b)
(1)
The minimum standards of valuation for certificates issued on or after January 1, 1991, shall be based on the following tables:
(A)
For certificates of life insurance - the Insurance Commissioner's 1941 standard ordinary mortality table, the commissioner's 1941 standard industrial mortality table, the commissioner's 1958 standard ordinary mortality table, the commissioner's 1980 standard ordinary mortality table, or any more recent table made applicable to life insurers; and
(B)
For annuity and pure endowment certificates, for total and permanent disability benefits, for accidental death benefits, and for noncancellable accident and health benefits - such tables as are authorized for use by life insurers in this state.
(2)
All of the above shall be under valuation methods and standards, including interest assumptions, in accordance with the laws of this state applicable to life insurers issuing policies containing like benefits.
(c)
In his or her discretion, the commissioner may:
(1)
Accept other standards for valuation if the commissioner finds that the reserves produced thereby will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard prescribed in this section; and
(2)
Vary the standards of mortality applicable to all benefit contracts on substandard lives or other extra-hazardous lives by any society authorized to do business in this state.
(d)
Any society, with the consent of the commissioner of the state of domicile of the society and under such conditions, if any, which the commissioner may impose, may establish and maintain reserves on its certificates in excess of the reserves required thereunder, but the contractual rights of any benefit member shall not be affected thereby.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 6 - REGULATION (§§ 23-74-601 — 23-74-610) › Section 23-74-602 - Reports

(a)
Reports shall be filed in accordance with the provisions of this section.
(b)
(1)
Every society transacting business in this state shall annually, on or before March 1, unless for cause shown such time has been extended by the Insurance Commissioner, file with the commissioner a true statement of its financial condition, transactions, and affairs for the preceding calendar year and pay any applicable fees for filing same.
(2)
The statement shall be in general form and context as approved by the National Association of Insurance Commissioners for fraternal benefit societies and as supplemented by additional information required by the commissioner.
(c)
(1)
As part of the annual statement required by this section, each society shall file with the commissioner, on or before March 1, a valuation of its certificates in force on the immediately preceding December 31, provided that the commissioner, in his or her discretion for cause shown, may extend the time for filing the valuation for not more than two (2) calendar months.
(2)
The valuation shall be done in accordance with the standards specified in §
23-74-601
.
(3)
The valuation and underlying data shall be certified by a qualified actuary or, at the expense of the society, verified by the actuary of the department of insurance of the state of domicile of the society.
(d)
A society neglecting to file the annual statement in the form and within the time provided by this section shall forfeit one hundred dollars ($100) for each day during which the neglect continues, and, upon notice by the commissioner to that effect, its authority to do business in this state shall cease while the default continues.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 6 - REGULATION (§§ 23-74-601 — 23-74-610) › Section 23-74-603 - Annual license

Societies which are now authorized to transact business in this state may continue such business until April 1, 1990. The authority of such societies and all societies hereafter licensed may thereafter be renewed annually, but in all cases to terminate on the succeeding April 1. However, a license so issued shall continue in full force and effect until the new license be issued or specifically refused. For each such license or renewal, the society shall pay the Insurance Commissioner one hundred dollars ($100). A duly certified copy or duplicate of the license shall be prima facie evidence that the licensee is a fraternal benefit society within the meaning of this chapter.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 6 - REGULATION (§§ 23-74-601 — 23-74-610) › Section 23-74-604 - Examination of societies - No adverse publications

(a)
(1)
The Insurance Commissioner, or any person he or she may appoint, may examine any domestic, foreign, or alien society transacting or applying for admission to transact business in this state in the same manner as authorized for examination of domestic, foreign, or alien insurers.
(2)
Requirements of notice and an opportunity to respond before findings are made public as provided in the laws regulating insurers shall also be applicable to the examination of societies.
(b)
The expense of each examination and of each valuation, including compensation and actual expense of examiners, shall be paid by the society examined, or whose certificates are valued, upon statements furnished by the commissioner.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 6 - REGULATION (§§ 23-74-601 — 23-74-610) › Section 23-74-605 - Foreign or alien society - Admission

(a)
No foreign or alien society shall transact business in this state without a license issued by the Insurance Commissioner. Any such society desiring admission to this state shall comply substantially with the requirements and limitations of this chapter applicable to domestic societies. Any such society may be licensed to transact business in this state:
(1)
Upon filing with the commissioner:
(A)
A duly certified copy of its articles of incorporation;
(B)
A copy of its bylaws, certified by its secretary or corresponding officer;
(C)
A power of attorney as prescribed in §
23-74-701
;
(D)
A statement of its business under oath of its president and secretary or corresponding officers in a form prescribed by the commissioner, duly verified by an examination made by the supervising insurance official of its home state or other state, territory, province, or country, satisfactory to the commissioner of this state;
(E)
Certification from the proper official of its home state, territory, province, or country that the society is legally incorporated and licensed to transact business therein;
(F)
Copies of its certificate forms; and
(G)
Such other information as the commissioner may deem necessary; and
(2)
Upon showing that its assets are invested in accordance with the provisions of this chapter.
(b)
Any foreign or alien society desiring admission to the state shall have the qualifications required of domestic societies organized under this chapter.
Acts 1989, No. 881, § 1; 2001, No. 1604, § 73.
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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 6 - REGULATION (§§ 23-74-601 — 23-74-610) › Section 23-74-607 - Suspension, revocation, or refusal of license of foreign or alien society

(a)
When the Insurance Commissioner upon investigation finds that a foreign or alien society transacting or applying to transact business in this state:
(1)
Has exceeded its powers;
(2)
Has failed to comply with any of the provisions of this chapter;
(3)
Is not fulfilling its contracts in good faith; or
(4)
Is conducting its business fraudulently or in a manner hazardous to its members or creditors or the public,
the commissioner shall notify the society of the deficiency or deficiencies and state in writing the reasons for his or her dissatisfaction. The commissioner shall at once issue a written notice to the society requiring that the deficiency or deficiencies which exist be corrected. After the notice, the society shall have a thirty-day period in which to comply with the commissioner's request for correction, and if the society fails to comply, the commissioner shall notify the society of such findings of noncompliance and require the society to show cause on a date named why its license should not be suspended, revoked, or refused. If on such a date the society does not present good and sufficient reason why its authority to do business in this state should not be suspended, revoked, or refused, the commissioner may suspend or refuse the license of the society to do business in this state until satisfactory evidence is furnished to the commissioner that the suspension or refusal should be withdrawn or the commissioner may revoke the authority of the society to do business in this state.
(b)
Nothing contained in this section shall be taken or construed as preventing any such society from continuing in good faith all contracts made in this state during the time the society was legally authorized to transact business as provided in this chapter.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 6 - REGULATION (§§ 23-74-601 — 23-74-610) › Section 23-74-608 - Injunction

No application or petition for injunction against any domestic, foreign, or alien society, or lodge thereof, shall be recognized in any court of this state unless made by the Attorney General upon request of the Insurance Commissioner.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 6 - REGULATION (§§ 23-74-601 — 23-74-610) › Section 23-74-609 - Licensing of agents

(a)
Agents of societies shall be licensed in accordance with the provisions of the laws regulating the licensing, revocation, suspension, or termination of license of resident and nonresident agents, provided that:
(1)
No examination shall be required to maintain or renew a license for agents of societies who held a license on December 31, 1989; and
(2)
No examination shall be required to obtain a license or to renew a license thereby obtained for agents of societies applying for license on or after January 1, 1990, and before July 1, 1991.
(b)
No examination or license shall be required of any regular salaried officer, employee, or member of a licensed society who devotes substantially all of his or her services to activities other than the solicitation of fraternal insurance contracts from the public, and who receives for the solicitation of such contracts no commission or other compensation directly dependent upon the amount of business obtained.
(c)
No examination or license shall be required of any agent or representative of a society who devotes, or intends to devote, less than fifty percent (50%) of his or her time to solicitation and procurement of insurance contracts for the society, except that any person who in the immediately preceding calendar year solicited and procured life insurance contracts on behalf of any society in an amount of insurance in excess of fifty thousand dollars ($50,000), or, in the case of any other kinds of insurance which the society writes, on the persons of more than twenty-five (25) individuals and who received or will receive a commission or other compensation therefor, is presumed to be devoting or intending to devote fifty percent (50%) of his or her time to the solicitation or procurement of insurance contracts for the society.
Acts 1989, No. 881, § 1; 1991, No. 337, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 6 - REGULATION (§§ 23-74-601 — 23-74-610) › Section 23-74-610 - Unfair methods of competition and unfair and deceptive acts and practices

Every society authorized to do business in this state shall be subject to the Trade Practices Act, §
23-66-201
et seq. However, nothing in the Trade Practices Act, §
23-66-201
et seq., shall be construed as applying to or affecting the right of any society to determine its eligibility requirements for membership, or be construed as applying to or affecting the offering of benefits exclusively to members or persons eligible for membership in the society by a subsidiary corporation or affiliated organization of the society.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 7 - MISCELLANEOUS (§§ 23-74-701 — 23-74-705) › Section 23-74-701 - Service of process - Registered agent

(a)
(1)
Every society authorized to do business in this state shall appoint in writing to the Insurance Commissioner an Arkansas resident as its registered agent to be its true and lawful attorney upon whom all lawful process in any action or proceeding against it shall be served, and shall agree in such a writing that any lawful process against it that is served on the attorney shall be of the same legal force and validity as if served upon the society, and that the authority shall continue in force so long as any liability remains outstanding in this state.
(2)
Copies of the registration, certified by the commissioner, shall be deemed sufficient evidence thereof and shall be admitted in evidence with the same force and effect as the original thereof might be admitted.
(b)
On or after January 1, 2003, service shall be made upon the registered agent listed with the commissioner in the manner provided in §§
23-63-301
-
23-63-304
, except that no service of legal process shall require a society to file its answer, pleading, or defense in less than thirty (30) calendar days after the date of service upon its registered agent in this state.
Acts 1989, No. 881, § 1; 2001, No. 1604, § 74.
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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 7 - MISCELLANEOUS (§§ 23-74-701 — 23-74-705) › Section 23-74-702 - Review

All decisions and findings of the Insurance Commissioner made under the provisions of this chapter shall be subject to review by proper proceedings in any court of competent jurisdiction in this state.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 7 - MISCELLANEOUS (§§ 23-74-701 — 23-74-705) › Section 23-74-703 - Penalties

Any person who:
(1)
Willfully makes a false or fraudulent statement:
(A)
In or relating to an application for membership or for the purpose of obtaining money from or a benefit in any society upon conviction shall be guilty of a Class A misdemeanor; or
(B)
In any verified report or declaration under oath required or authorized by this chapter or of any material fact or thing contained in a sworn statement concerning the death or disability of a member for that purpose of procuring payment of a benefit named in the certificate shall be guilty of a Class C misdemeanor;
(2)
Solicits membership for or in any manner assists in procuring membership in any society not licensed to do business in this state shall be guilty of a violation and upon conviction shall be fined not less than fifty dollars ($50.00) nor more than two hundred dollars ($200); or
(3)
Is guilty of a willful violation of or neglect or refusal to comply with this chapter for which a penalty is not otherwise prescribed shall be guilty of a violation and upon conviction shall be subject to a fine not exceeding one thousand dollars ($1,000).
Acts 1989, No. 881, § 1; 2005, No. 1994, § 356.
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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 7 - MISCELLANEOUS (§§ 23-74-701 — 23-74-705) › Section 23-74-704 - Exemption of certain societies

(a)
Nothing contained in this chapter shall be so construed as to affect or apply to:
(1)
Grand or subordinate lodges of societies, orders, or associations now doing business in this state which provide benefits exclusively through local or subordinate lodges;
(2)
Orders, societies, or associations which admit to membership only persons engaged in one (1) or more crafts or hazardous occupations, in the same or similar lines of business, insuring only their own members and their families, and the ladies' societies or ladies' auxiliaries to such orders, societies, or associations;
(3)
Domestic societies which limit their memberships to employees of a particular city or town, designated firm, business house, or corporation which provide for a death benefit of not more than four hundred dollars ($400) or disability benefits of not more than three hundred fifty dollars ($350) to any person in any one (1) year, or both; or
(4)
Domestic societies or associations of a purely religious, charitable, or benevolent description, which provide for a death benefit of not more than four hundred dollars ($400) or for disability benefits of not more than three hundred fifty dollars ($350) to any person in any one (1) year, or both.
(b)
Any such society or association described in subdivision (a)(3) or subdivision (a)(4) of this section which provides for death or disability benefits for which benefit certificates are issued, and any such society or association included in subdivision (a)(4) of this section which has more than one thousand (1,000) members, shall not be exempted from the provisions of this chapter but shall comply with all requirements thereof.
(c)
No society which, by the provisions of this section, is exempt from the requirements of this chapter, except any society described in subdivision (a)(2) of this section, shall give or allow or promise to give or allow to any person any compensation for procuring new members.
(d)
Every society which provides for benefits in case of death or disability resulting solely from accident, and which does not obligate itself to pay natural death or sick benefits, shall have all of the privileges and be subject to all the applicable provisions and regulations of this chapter, except that the provisions thereof relating to medical examination, valuations of benefit certificates, and incontestability shall not apply to such a society.
(e)
The Insurance Commissioner may require from any society or association, by examination or otherwise, such information as will enable the commissioner to determine whether the society or association is exempt from the provisions of this chapter.
(f)
Societies exempted under the provisions of this section shall be exempt from all other provisions of the general insurance laws of this state.
Acts 1989, No. 881, § 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 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 7 - MISCELLANEOUS (§§ 23-74-701 — 23-74-705) › Section 23-74-705 - Applicability of other code provisions

In addition to the provisions contained in this chapter, the following provisions of this code shall also apply to fraternal benefit societies to the extent as applicable:
(1)
Sections
23-60-101
-
23-60-108
and
23-60-110
, general provisions;
(2)
Section
23-61-101
et seq., §
23-61-201
et seq., and §
23-61-301
et seq., the State Insurance Department;
(3)
Section
23-61-401
, license and miscellaneous fees;
(4)
Section
23-65-101
et seq., the Unauthorized Insurers Process Act, §
23-65-201
et seq., and the Surplus Lines Insurance Law, §
23-65-301
et seq., unauthorized insurers and surplus lines;
(5)
Sections
23-66-501
-
23-66-513
, fraudulent insurance acts;
(6)
Sections
23-68-101
-
23-68-113
and
23-68-115
-
23-68-132
, rehabilitation and liquidation; and
(7)
Section
23-79-208
, damages and attorney's fees on loss claims.
Amended by Act 2021, No. 367,§ 20, eff. 7/28/2021.
Acts 1989, No. 881, § 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 75 - HOSPITAL AND MEDICAL SERVICE CORPORATIONS (§§ 23-75-101 — 23-75-122) › Section 23-75-101 - Definition

(a)
As used in this chapter, "hospital service corporations", "medical service corporations", and "hospital and medical service corporations" are corporations organized under the laws of this state for the purpose of establishing, maintaining, and operating nonprofit hospital service or medical service plans, or combination of plans, whereby hospital, medical, and related services may be provided by hospitals, physicians, or others with which the corporations have contracted for the purposes, to such of the public as become subscribers to the corporations under contracts which entitle each subscriber to certain hospital or medical services or benefits, or both.
(b)
This section shall not be deemed to prohibit issuance, by corporations so authorized as of immediately prior to January 1, 1960, of contracts providing for the payment of cash indemnities for hospital, medical, or related services instead of providing for hospital or medical benefits on a service basis or from issuing contracts providing for a combination of indemnity and service benefits.
Acts 1959, No. 148, § 672; 1963, No. 54, § 1; A.S.A. 1947, § 66-4902.
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 75 - HOSPITAL AND MEDICAL SERVICE CORPORATIONS (§§ 23-75-101 — 23-75-122) › Section 23-75-102 - Applicability of other laws

The corporations described in §
23-75-101
are subject to the following chapters and provisions of this code, to the extent applicable and not in conflict with the express provisions of this chapter:
(1)
Sections
23-60-101
-
23-60-108
and
23-60-110
, referring to scope of code;
(2)
Section
23-61-101
et seq., §
23-61-201
et seq., and §
23-61-301
et seq., referring to the Insurance Commissioner;
(3)
Sections
23-63-102
-
23-63-104
,
23-63-201
-
23-63-216
, and
23-63-301
-
23-63-304
, referring to registration of registered agents for service of process;
(4)
Section
23-63-901
et seq., referring to administration of deposits;
(5)
Section
23-63-1501
et seq., referring to risk-based capital;
(6)
Section
23-64-101
et seq., referring to insurance producers, agents, brokers, and adjusters;
(7)
The Trade Practices Act, §
23-66-201
et seq., §§
23-66-301
-
23-66-306
,
23-66-308
-
23-66-311
,
23-66-313
,
23-66-314
, and
23-66-501
-
23-66-513
, referring to trade practices and frauds;
(8)
Section
23-63-601
et seq. and §§
23-84-101
-
23-84-111
, referring to assets and liabilities;
(9)
Section
23-68-101
et seq., referring to rehabilitation and liquidation;
(10)
Section
23-69-142
, referring to mergers and acquisitions;
(11)
Sections
23-85-101
-
23-85-131
, referring to accident and health insurance policies;
(12)
Sections
23-86-101
-
23-86-104
,
23-86-106
,
23-86-108
, and
23-86-109
, referring to group and blanket accident and health insurance;
(13)
Sections
23-79-101
-
23-79-107
,
23-79-109
-
23-79-128
,
23-79-131
-
23-79-134
, and
23-79-202
-
23-79-210
, referring to insurance contracts;
(14)
Section
23-69-134
, referring to home office and records; penalty for unlawful removal of records; and
(15)
Section
23-69-156
, referring to extinguishment of unused corporate charters.
Amended by Act 2021, No. 367,§ 21, eff. 7/28/2021.
Acts 1959, No. 148, § 690; 1971, No. 127, § 2; 1977, No. 789, § 8; 1981, No. 809, §§ 18-20; 1983, No. 522, §§ 37, 38; A.S.A. 1947, § 66-4920; Acts 2001, No. 580, § 21; 2001, No. 1454, § 2; 2001, No. 1604, § 75; 2011, No. 760, § 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 75 - HOSPITAL AND MEDICAL SERVICE CORPORATIONS (§§ 23-75-101 — 23-75-122) › Section 23-75-103 - Provisions exclusive

Hospital service corporations, medical service corporations, and hospital and medical service corporations incorporated in this state shall be governed by this chapter and shall be exempt from all other provisions of this code, except as expressly provided in this chapter. No insurance law hereafter enacted shall be deemed to apply to the corporations unless they are specifically referred to therein.
Acts 1959, No. 148, § 671; A.S.A. 1947, § 66-4901.
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 75 - HOSPITAL AND MEDICAL SERVICE CORPORATIONS (§§ 23-75-101 — 23-75-122) › Section 23-75-104 - Not applicable to employer plan

(a)
This chapter shall not apply to any employer operating or maintaining a hospital service plan or medical service plan, participation in which is limited to his or her employees and the employees of a parent company or subsidiary company of the employer.
(b)
As used in this section, the term "employees" shall include members of the families of employees.
Acts 1959, No. 148, § 689; 1963, No. 54, § 6; A.S.A. 1947, § 66-4919.
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 75 - HOSPITAL AND MEDICAL SERVICE CORPORATIONS (§§ 23-75-101 — 23-75-122) › Section 23-75-105 - Relationship of physician, patient, and hospital unaffected

(a)
Nothing in this chapter shall be deemed to alter the relationship of physician and patient.
(b)
The corporation shall not in any way influence the subscriber in his or her free choice of hospital or physician, other than to limit its benefits to participating hospitals and physicians.
(c)
Nothing in this chapter shall be deemed to abridge the right of any physician or hospital to decline patients in accordance with the standards and practices of the physician or hospital, and no such corporation shall be deemed to be engaged in the corporate practice of medicine.
Acts 1959, No. 148, § 684; A.S.A. 1947, § 66-4914.
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 75 - HOSPITAL AND MEDICAL SERVICE CORPORATIONS (§§ 23-75-101 — 23-75-122) › Section 23-75-106 - Incorporation - Amendments to articles or bylaws

(a)
Any corporation shall hereafter be organized under the laws of this state relating to private corporations not for pecuniary profit, insofar as the laws are not inconsistent with this chapter.
(b)
(1)
Upon adoption of an amendment to its articles of incorporation or bylaws, the corporation shall make in duplicate under its corporate seal a certificate setting forth the amendment and the date and manner of its adoption.
(2)
The certificate shall be:
(A)
Executed by the corporation's president or vice president and secretary or assistant secretary; and
(B)
Acknowledged before an officer authorized by law to take acknowledgments of deeds.
(3)
The corporation shall deliver to the Insurance Commissioner:
(A)
A duplicate original of the certificate; and
(B)
(i)
The filing fee that is:
(a)
Specified in §
23-61-401
; or
(b)
Established by rule of the commissioner.
(ii)
The filing fee is not refundable.
(4)
If the commissioner finds that the certificate and the amendment comply with the law, the commissioner shall:
(A)
Endorse his or her approval upon each of the duplicate originals;
(B)
Place one (1) set on file in his or her office; and
(C)
Return the remaining set to the corporation for its corporate records.
(5)
The amendment shall be effective when the commissioner has endorsed his or her approval on the certificate.
(6)
If the commissioner finds that the proposed amendment or certificate does not comply with the law, the commissioner shall:
(A)
Not approve the certificate;
(B)
Return the duplicate certificate to the corporation with his or her written statement of reasons for not approving the certificate; and
(C)
Retain the filing fee.
Acts 1959, No. 148, § 673; A.S.A. 1947, § 66-4903; Acts 2009, No. 726, § 36.
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 75 - HOSPITAL AND MEDICAL SERVICE CORPORATIONS (§§ 23-75-101 — 23-75-122) › Section 23-75-107 - Certificate of authority - Application

(a)
The corporation may issue contracts to its subscribers only when the Insurance Commissioner has, by certificate of authority, authorized it to do so.
(b)
Application for the certificate of authority shall be made on forms supplied or approved by the commissioner containing such information as he or she shall deem necessary.
(c)
Each application for the certificate of authority shall be accompanied by the fee prescribed by §
23-61-401
and copies of the following documents:
(1)
Articles of incorporation;
(2)
Bylaws;
(3)
Proposed contracts between the applicant and participating hospitals and physicians, showing the terms under which service is to be furnished to subscribers;
(4)
Proposed contracts to be issued to subscribers;
(5)
A table of rates to be charged to subscribers;
(6)
Financial statement of the corporation, including the amounts of contributions paid or agreed to be paid to the corporation for working capital and the names of each contributor and the terms of each contribution; and
(7)
A statement of the area in which the corporation proposes to operate.
Acts 1959, No. 148, § 674; A.S.A. 1947, § 66-4904.
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 75 - HOSPITAL AND MEDICAL SERVICE CORPORATIONS (§§ 23-75-101 — 23-75-122) › Section 23-75-108 - Certificate of authority - Requirements for issuance

(a)
The Insurance Commissioner shall issue an initial certificate of authority authorizing the applicant to issue contracts to its subscribers when it is shown to the satisfaction of the commissioner that:
(1)
The applicant is established as a bona fide nonprofit hospital service corporation or medical service corporation or combination of the two;
(2)
The contracts, if any, between the applicant and the participating hospitals or physicians obligate each hospital or physician executing the contracts to render service to which each subscriber may be entitled under the terms of the contracts to be issued to the subscribers;
(3)
The amounts provided as working capital of the corporation are repayable, without interest, out of operating expenses;
(4)
The amount of money actually available for working capital is sufficient to carry on the plan for a period of six (6) months from the date of issuance of the certificate of authority; and
(5)
The applicant has secured contracts of participation from sufficient hospitals or physicians, or both, to provide ample protection for its subscribers within the area proposed to be served by the applicant.
(b)
The certificate of authority shall expire or terminate and be subject to annual continuation, as provided in §
23-63-211
for insurers in general.
(c)
The certificate of authority shall be subject to suspension or revocation as provided in §§
23-63-212
-
23-63-215
.
(d)
An applicant under this section may provide reinsurance coverage only in the specific areas of coverage set out in the applicant's certificate of authority.
Acts 1959, No. 148, § 675; A.S.A. 1947, § 66-4905; Acts 2003, No. 1078, § 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 75 - HOSPITAL AND MEDICAL SERVICE CORPORATIONS (§§ 23-75-101 — 23-75-122) › Section 23-75-109 - Deposit for protection of subscribers

(a)
(1)
Corporations governed by this chapter shall at all times have on deposit through the Insurance Commissioner sums as follows:
(A)
If newly formed under this chapter, the sum of fifteen thousand dollars ($15,000); or
(B)
If formed under prior law, the sum as was required under the prior law.
(2)
(A)
Every such corporation shall deposit through the commissioner, not later than each February 1, an amount equal to two percent (2%) of the gross subscriptions collected during the preceding calendar year until the deposit of the corporation reaches a total of fifty thousand dollars ($50,000).
(B)
All deposits shall be held in trust for the benefit and protection of the subscribers and participating hospitals and physicians of the corporation making the deposit.
(b)
(1)
The deposit prescribed by this section shall be subject to withdrawal in whole or in part on the order of and as directed by the commissioner but, with his or her approval, may be invested in bonds of the United States, of any state, of any political subdivision of any state, or state warrants, which shall be assigned to the commissioner and held as provided for original deposits.
(2)
(A)
With the approval of the commissioner, the securities may be exchanged for similar securities or cash of equal amount.
(B)
Interest on securities so deposited shall be payable to the corporation depositing them.
(c)
An unsettled final judgment, arising from transactions under its certificate of authority against such a corporation shall be a lien on the deposit prescribed by this section, subject to execution after thirty (30) days from the entry of final judgment. If the deposit is reduced thereby, it shall be replenished within ninety (90) days.
(d)
Upon the liquidation or dissolution of the corporation and the satisfaction of all its liabilities, any balance remaining in the deposit in the hands of the commissioner and any other assets of the insurer shall be distributed to the holders of certificates of participation in good standing at the time proceedings for the liquidation or dissolution of the corporation were commenced, prorated according to the gross amount of subscriptions which have been paid on the certificates up to the time the proceedings were commenced.
Acts 1959, No. 148, § 676; A.S.A. 1947, § 66-4906.
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 75 - HOSPITAL AND MEDICAL SERVICE CORPORATIONS (§§ 23-75-101 — 23-75-122) › Section 23-75-110 - Contracting authority - Filing of contract

(a)
A corporation holding a certificate of authority under this chapter may enter into contracts with:
(1)
Licensed hospitals;
(2)
Physicians and surgeons licensed to practice in this state;
(3)
Licensed nursing homes;
(4)
Visiting nurse associations; and
(5)
Any hospital maintained and operated by the state or any political subdivision thereof or operated by any corporation, association, or individual.
(b)
The contracts by any corporation holding a certificate of authority under this chapter with licensed hospitals, with physicians and surgeons duly licensed to practice in this state, with licensed nursing homes, with visiting nurse associations, and with any hospital maintained and operated by the state or any political subdivision thereof or with any corporation, association, or individual shall be filed with the Insurance Commissioner.
Acts 1959, No. 148, § 677; 1963, No. 54, § 2; 1975, No. 642, § 1. A.S.A. 1947, § 66-4907.
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 75 - HOSPITAL AND MEDICAL SERVICE CORPORATIONS (§§ 23-75-101 — 23-75-122) › Section 23-75-112 - Directors

The directors of a corporation shall at all times include representatives of:
(1)
Administrators or trustees of hospitals which have contracted with the corporation to render hospital service to subscribers, if the corporation is a hospital service corporation or a hospital and medical service corporation;
(2)
Physicians and surgeons licensed to practice in this state who have contracted with the corporation to render medical service to subscribers, if the corporation is a medical service corporation or a hospital and medical service corporation; and
(3)
The general public, exclusive of hospital representatives and physicians.
Acts 1959, No. 148, § 679; A.S.A. 1947, § 66-4909.
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 75 - HOSPITAL AND MEDICAL SERVICE CORPORATIONS (§§ 23-75-101 — 23-75-122) › Section 23-75-113 - Expenses and investments

(a)
The operating and administrative expenses of any corporation, including, but not limited to, all costs in connection with the solicitation of subscribers to such a corporation and capital expenditures, shall not exceed:
(1)
Thirty percent (30%) of paid subscriptions during the first year of operation;
(2)
Twenty-five percent (25%) of paid subscriptions during the second year of operation; and
(3)
Twenty percent (20%) of paid subscriptions in any year thereafter.
(b)
Every corporation heretofore incorporated shall maintain unearned subscription charges and other reserves upon the same basis as that required of domestic insurance companies transacting accident and health insurance.
(c)
The reserves required under this section constitute a liability of the corporation in a determination of its financial condition.
(d)
The funds for any corporation shall be invested as provided for insurers under §§
23-63-801
-
23-63-833
and
23-63-835
.
Acts 1959, No. 148, § 680; 1963, No. 54, § 3; 1975, No. 642, § 3; A.S.A. 1947, § 66-4910; Acts 2001, No. 1603, § 33.