reglab/statecodes huggingface dataset:
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 14 - DISCLOSURE OF MATERIAL TRANSACTIONS ACT (§§ 23-63-1401 — 23-63-1406) › Section 23-63-1402 - Report

(a)
Every insurer domiciled in this state shall file a report with the Insurance Commissioner disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements unless the acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements have been submitted to the commissioner for review, approval, or information purposes pursuant to other provisions of the Arkansas Insurance Code, laws, rules, or other requirements.
(b)
The report required in subsection (a) of this section is due within fifteen (15) days after the end of the calendar month in which any of the foregoing transactions occur.
(c)
One complete copy of the report, including any exhibits or other attachments, shall be filed with:
(1)
The insurance department of the insurer's state of domicile; and
(2)
The National Association of Insurance Commissioners.
(d)
All reports obtained by or disclosed to the commissioner pursuant to this subchapter, shall be given confidential treatment and shall not be subject to subpoena and shall not be made public by the commissioner, the National Association of Insurance Commissioners, or any other person, except to insurance departments of other states, without the prior written consent of the insurer to which it pertains unless the commissioner, after giving the insurer who would be affected notice and an opportunity to be heard, determines that the interest of policyholders, shareholders or the public will be served by publication, in which event the commissioner may publish all or any part in the manner the commissioner may deem appropriate.
Amended by Act 2019, No. 315,§ 2638, eff. 7/24/2019.
Acts 1995, No. 625, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 14 - DISCLOSURE OF MATERIAL TRANSACTIONS ACT (§§ 23-63-1401 — 23-63-1406) › Section 23-63-1403 - Acquisitions and dispositions of assets

(a)
Materiality.
No acquisitions or dispositions of assets need be reported pursuant to §
23-63-1402
if the acquisitions or dispositions are not material. For purposes of this subchapter, a material acquisition or the aggregate of any series of related acquisitions during any thirty-day period, or disposition, or the aggregate of any series of related dispositions during any thirty-day period, is one that is non-recurring and not in the ordinary course of business and involves more than five percent (5%) of the reporting insurer's total admitted assets as reported in its most recent statutory statement filed with the insurance department of the insurer's state of domicile.
(b)
Scope.
(1)
Asset acquisitions subject to this subchapter include every purchase, lease, exchange, merger, consolidation, succession, or other acquisition other than the construction or development of real property by or for the reporting insurer or the acquisition of materials for such a purpose.
(2)
Asset dispositions subject to this subchapter include every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment, whether for the benefit of creditors or otherwise, abandonment, destruction, or other disposition.
(c)
Information to be Reported.
(1)
The following information is required to be disclosed in any report of a material acquisition or disposition of assets:
(A)
Date of the transaction;
(B)
Manner of acquisition or disposition;
(C)
Description of the assets involved;
(D)
Nature and amount of the consideration given or received;
(E)
Purpose of, or reason for, the transaction;
(F)
Manner by which the amount of consideration was determined;
(G)
Gain or loss recognized or realized as a result of the transaction; and
(H)
Name(s) of the person(s) from whom the assets were acquired or to whom they were disposed.
(2)
Insurers are required to report material acquisitions and dispositions on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers which utilizes a pooling arrangement or one hundred percent (100%) reinsurance agreement that affects the solvency and integrity of the insurer's reserves and the insurer ceded substantially all of its direct and assumed business to the pool. An insurer is deemed to have ceded substantially all of its direct and assumed business to a pool if the insurer has less than one million dollars ($1,000,000) total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement and the net income of the business not subject to the pooling arrangement represents less than five percent (5%) of the insurer's capital and surplus.
Acts 1995, No. 625, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 14 - DISCLOSURE OF MATERIAL TRANSACTIONS ACT (§§ 23-63-1401 — 23-63-1406) › Section 23-63-1405 - Rules

The Insurance Commissioner may adopt reasonable rules for the implementation and administration of the provisions of this subchapter.
Amended by Act 2019, No. 315,§ 2639, eff. 7/24/2019.
Acts 1995, No. 625, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 14 - DISCLOSURE OF MATERIAL TRANSACTIONS ACT (§§ 23-63-1401 — 23-63-1406) › Section 23-63-1406 - Penalties and liabilities

(a)
If the Insurance Commissioner finds after a hearing conducted in accordance with §
23-61-301
et seq. that any insurer or person has violated any provision of this subchapter, the commissioner may order:
(1)
For each separate violation, a penalty in an amount of one thousand dollars ($1,000) or, if the commissioner has found willful misconduct or willful violation, five thousand dollars ($5,000); and
(2)
Revocation or suspension of the insurer's or person's license.
(b)
The decision, determination, or order of the commissioner pursuant to subsection (a) of this section shall be subject to judicial review pursuant to §
23-61-307
.
(c)
Nothing contained in this section shall affect the right of the commissioner to impose any other penalties provided for in the insurance laws.
Acts 1995, No. 625, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 15 - RISK-BASED CAPITAL REQUIREMENTS FOR HEALTH MAINTENANCE ORGANIZATIONS (§§ 23-63-1501 — 23-63-1513) › Section 23-63-1501 - Definitions

As used in this subchapter:
(1)
"Adjusted RBC report" means an RBC report that has been adjusted by the Insurance Commissioner in accordance with §
23-63-1502(d)
;
(2)
"Corrective order" means an order issued by the commissioner specifying corrective actions that the commissioner has determined are required;
(3)
"Domestic health organization" means:
(A)
A health maintenance organization domiciled in this state, as established under §
23-76-107
; or
(B)
A hospital and medical service corporation as defined in §
23-75-101
;
(4)
"Foreign health organization" means a health organization licensed to do business in this state but is not domiciled in this state;
(5)
(A)
"Health organization" means a health maintenance organization, hospital and medical service corporation, limited health service organization, dental or vision plan, hospital, or a medical and dental indemnity or service corporation.
(B)
"Health organization" does not include:
(i)
An organization that is licensed as either a life and health insurer; or
(ii)
A property and casualty insurer that is subject to the life or property and casualty RBC requirements;
(6)
"NAIC" means the National Association of Insurance Commissioners;
(7)
"RBC instructions" means the RBC report, including risk-based capital instructions adopted by the NAIC, as these RBC instructions may be amended by the NAIC according to the procedures adopted by the NAIC;
(8)
"RBC level" means a health organization's company action level RBC, regulatory action level RBC, authorized control level RBC, or mandatory control level RBC when:
(A)
"Authorized control level RBC" means the number determined under the risk-based capital formula according to the RBC instructions;
(B)
"Company action level RBC" means, with respect to a health organization, the product of two (2) and its authorized control level RBC;
(C)
"Mandatory control level RBC" means the product of seven-tenths (0.7) and the authorized control level RBC; and
(D)
"Regulatory action level RBC" means the product of one and five-tenths (1.5) and its authorized control level RBC;
(9)
"RBC plan" means a comprehensive financial plan containing the elements specified in §
23-63-1503(b)
. If the commissioner rejects the RBC plan and it is revised by the health organization with or without the commissioner's recommendation, the plan shall be called the "revised RBC plan";
(10)
"RBC report" means the report required in §
23-63-1502
; and
(11)
"Total adjusted capital" means the sum of:
(A)
A health organization's statutory capital and surplus, such as net worth, as determined according to the statutory accounting applicable to the annual financial statements required to be filed; and
(B)
Other items that the RBC instructions may provide.
Acts 1999, No. 580, § 1; 2011, No. 760, § 5.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 15 - RISK-BASED CAPITAL REQUIREMENTS FOR HEALTH MAINTENANCE ORGANIZATIONS (§§ 23-63-1501 — 23-63-1513) › Section 23-63-1502 - RBC reports

(a)
(1)
On or before each March 1, the "filing date", a domestic health organization shall prepare and submit to the Insurance Commissioner a report of its RBC levels as of the end of the calendar year just ended, in a form and containing the information required by the RBC instructions.
(2)
A domestic health organization shall file its RBC report:
(A)
With the NAIC according to the RBC instructions; and
(B)
With the insurance commissioner in a state in which the health organization is authorized to do business if the insurance commissioner has notified the health organization of its request in writing, in which case the health organization shall file its RBC report by the later of:
(i)
Fifteen (15) days from the receipt of notice to file its RBC report with that state; or
(ii)
The filing date.
(b)
A health organization's RBC is determined according to the formula stated in the RBC instructions. The formula shall take the following into account and may adjust for the covariance between, determined in each case by applying the factors in the way stated in the RBC instructions:
(1)
Asset risk;
(2)
Credit risk;
(3)
Underwriting risk; and
(4)
Other business risks and other relevant risks as are stated in the RBC instructions.
(c)
An excess of capital, including net worth, over the amount produced by the risk-based capital requirements contained in this subchapter and the formulas, schedules, and instructions referenced in this subchapter is desirable in the business of health insurance. Accordingly, health organizations should seek to maintain capital above the RBC levels required by this subchapter. Additional capital is useful in the insurance business and helps to secure a health organization against various risks inherent in or affecting the business of insurance and not accounted for or only partially measured by the risk-based capital requirements contained in this subchapter.
(d)
If a domestic health organization files an RBC report that in the judgment of the commissioner is inaccurate, then the commissioner shall adjust the RBC report to correct the inaccuracy and shall notify the health organization of the adjustment. The notice shall contain a statement of the reason for the adjustment. An RBC report as adjusted is referred to as an "adjusted RBC report".
Acts 1999, No. 580, § 2; 2011, No. 760, § 5.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 15 - RISK-BASED CAPITAL REQUIREMENTS FOR HEALTH MAINTENANCE ORGANIZATIONS (§§ 23-63-1501 — 23-63-1513) › Section 23-63-1506 - Mandatory control level event

(a)
"Mandatory control level event" means any of the following events:
(1)
The filing of an RBC report that indicates the health organization's total adjusted capital is less than its mandatory control level RBC;
(2)
The notification by the Insurance Commissioner to the health organization of an adjusted RBC report that indicates the event in subdivision (a)(1) of this section, provided the health organization does not challenge the adjusted RBC report under §
23-63-1507
; or
(3)
If under §
23-63-1507
the health organization challenges an adjusted RBC report that indicates the event in subdivision (a)(1) of this section, notification by the commissioner to the health organization that the commissioner, after a hearing, has rejected the health organization's challenge.
(b)
In the event of a mandatory control level event, the commissioner shall take the actions as are necessary to place the health organization under regulatory control under the Uniform Insurers Liquidation Act, §§
23-68-101
,
23-68-102(2)
-(13),
23-68-104
,
23-68-105
,
23-68-113
, and
23-68-115
-
23-68-120
. In that event, the mandatory control level event is deemed sufficient grounds for the commissioner to take action under the Uniform Insurers Liquidation Act, §§
23-68-101
,
23-68-102(2)
-(13),
23-68-104
,
23-68-105
,
23-68-113
, and
23-68-115
-
23-68-120
, and the commissioner shall have the rights, powers, and duties with respect to the health organization as are set forth in the Uniform Insurers Liquidation Act, §§
23-68-101
,
23-68-102(2)
-(13),
23-68-104
,
23-68-105
,
23-68-113
, and
23-68-115
-
23-68-120
. Notwithstanding any other law, the commissioner may forego action for up to ninety (90) days after the mandatory control level event if the commissioner finds there is a reasonable expectation that the mandatory control level event may be eliminated not later than the ninety-day period.
Acts 1999, No. 580, § 6; 2011, No. 760, § 5.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 15 - RISK-BASED CAPITAL REQUIREMENTS FOR HEALTH MAINTENANCE ORGANIZATIONS (§§ 23-63-1501 — 23-63-1513) › Section 23-63-1507 - Hearings

On the occurrence of the following events the health organization shall have the right to a confidential departmental hearing, on a record, at which the health organization may challenge a determination or action by the Insurance Commissioner. The health organization shall notify the commissioner of its request for a hearing within five (5) days after the notification by the commissioner under subdivisions (1)-(4) of this section. On receipt of the health organization's request for a hearing, the commissioner shall set a date for the hearing which shall be no less than ten (10) nor more than thirty (30) days after the date of the health organization's request. The events include:
(1)
The notification to a health organization by the commissioner of an adjusted RBC report;
(2)
The notification to a health organization by the commissioner that:
(A)
The health organization's RBC plan or revised RBC plan is unsatisfactory; and
(B)
The notification constitutes a regulatory action level event with respect to the health organization;
(3)
The notification to a health organization by the commissioner that the health organization has failed to adhere to its RBC plan or revised RBC plan and that the failure has a substantial adverse effect on the ability of the health organization to eliminate the company action level event with respect to the health organization according to its RBC plan or revised RBC plan; or
(4)
The notification to a health organization by the commissioner of a corrective order with respect to the health organization.
Acts 1999, No. 580, § 7; 2011, No. 760, § 5.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 15 - RISK-BASED CAPITAL REQUIREMENTS FOR HEALTH MAINTENANCE ORGANIZATIONS (§§ 23-63-1501 — 23-63-1513) › Section 23-63-1509 - Supplemental provisions - Rules - Exemption

(a)
The provisions of this subchapter are supplemental to the other provisions of the laws of this state and shall not preclude or limit any other powers or duties of the Insurance Commissioner under those laws.
(b)
The commissioner may adopt reasonable rules necessary for the implementation of this subchapter.
(c)
The commissioner may exempt from the application of this subchapter:
(1)
A domestic health organization that:
(A)
Writes direct business only in this state;
(B)
Assumes no reinsurance in excess of five percent (5%) of direct premium written; and
(C)
Writes direct annual premiums for comprehensive medical business of two million dollars ($2,000,000) or less; or
(2)
A domestic health organization that is a limited benefit health maintenance organization.
Acts 1999, No. 580, § 9; 2011, No. 760, § 5.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 15 - RISK-BASED CAPITAL REQUIREMENTS FOR HEALTH MAINTENANCE ORGANIZATIONS (§§ 23-63-1501 — 23-63-1513) › Section 23-63-1510 - Foreign health organizations

(a)
(1)
On the written request of the Insurance Commissioner, a foreign health organization shall submit to the Insurance Commissioner an RBC report as of the end of the calendar year just ended that is the later of:
(A)
The date an RBC report would be required to be filed by a domestic health organization under this subchapter; or
(B)
Fifteen (15) days after the request is received by the foreign health organization.
(2)
At the written request of the Insurance Commissioner, a foreign health organization shall promptly submit to the commissioner a copy of any RBC plan that is filed with the insurance commissioner of any other state.
(b)
In the event of a company action level event, regulatory action level event, or authorized control level event with respect to a foreign health organization as determined under the RBC statute applicable in the state of domicile of the health organization or, if no RBC statute is in force in that state, under this subchapter, if the insurance commissioner of the state of domicile of the foreign health organization fails to require the foreign health organization to file an RBC plan in the way specified under that state's RBC statute or, if no RBC statute is in force in that state, under §
23-63-1503
the Insurance Commissioner may require the foreign health organization to file an RBC plan with the Insurance Commissioner. In this event, the failure of the foreign health organization to file an RBC plan with the Insurance Commissioner shall be grounds to order the health organization to cease and desist from writing new insurance business in this state.
(c)
In the event of a mandatory control level event with respect to a foreign health organization, if no domiciliary receiver has been appointed with respect to the foreign health organization under the rehabilitation and liquidation statutes applicable in the state of domicile of the foreign health organization, the Insurance Commissioner may make application under the Uniform Insurers Liquidation Act, §§
23-68-101
,
23-68-102(2)
-(13),
23-68-104
,
23-68-105
,
23-68-113
, and
23-68-115
-
23-68-120
, with respect to the liquidation of property of foreign health organizations found in this state, and the occurrence of the mandatory control level event is considered adequate grounds for the application.
Acts 1999, No. 580, § 10; 2011, No. 760, § 5.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 15 - RISK-BASED CAPITAL REQUIREMENTS FOR HEALTH MAINTENANCE ORGANIZATIONS (§§ 23-63-1501 — 23-63-1513) › Section 23-63-1511 - Immunity

There shall be no liability by and no cause of action shall arise against the Insurance Commissioner or the State Insurance Department or its employees or agents for any action taken by them in the performance of their powers and duties under this subchapter.
Acts 1999, No. 580, § 11; 2011, No. 760, § 5.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 15 - RISK-BASED CAPITAL REQUIREMENTS FOR HEALTH MAINTENANCE ORGANIZATIONS (§§ 23-63-1501 — 23-63-1513) › Section 23-63-1512 - Notices

A notice by the Insurance Commissioner to a health organization that may result in regulatory action under this subchapter is effective upon:
(1)
Dispatch if transmitted by certified mail; or
(2)
The health organization's receipt of notice in the case of any other transmission.
Acts 1999, No. 580, § 12; 2011, No. 760, § 5.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 15 - RISK-BASED CAPITAL REQUIREMENTS FOR HEALTH MAINTENANCE ORGANIZATIONS (§§ 23-63-1501 — 23-63-1513) › Section 23-63-1513 - Penalties and liabilities

(a)
If the Insurance Commissioner finds after a hearing conducted in accordance with §
23-61-301
et seq. that a health organization has violated this subchapter, the commissioner may order:
(1)
For each separate violation, a penalty of one thousand dollars ($1000) or, if the commissioner has found willful misconduct or willful violation, five thousand dollars ($5,000); and
(2)
Revocation or suspension of the health organization's license.
(b)
The decision, determination, or order of the commissioner under subsection (a) of this section shall be subject to judicial review pursuant to §
23-61-307
.
(c)
This section does not affect the right of the commissioner to impose any other penalties provided for in the insurance laws of this state.
Acts 2011, No. 760, § 5.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 16 - LICENSING AND REGULATION OF CAPTIVE INSURERS (§§ 23-63-1601 — 23-63-1624) › Section 23-63-1603 - Similar names

A captive insurance company may not adopt a name that is the same as, deceptively similar to, or likely to be confused with or mistaken for, any other existing business name registered in this state.
Acts 2001, No. 1391, § 3.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 16 - LICENSING AND REGULATION OF CAPTIVE INSURERS (§§ 23-63-1601 — 23-63-1624) › Section 23-63-1608 - Examinations

(a)
(1)
At least one (1) time every five (5) years, or whenever the Insurance Commissioner determines it to be prudent, the commissioner or a person appointed by the commissioner shall visit each captive insurance company and thoroughly inspect and examine its affairs to ascertain its financial condition, its ability to fulfill its obligations, and whether or not it has complied with this subchapter.
(2)
The expenses and charges of the examination shall be paid to the state by the company or companies examined, according to the Arkansas Insurance Code.
(b)
(1)
All examination reports, preliminary examination reports or results, working papers, recorded information, and documents and copies of documents produced by, obtained by, or disclosed to the commissioner or any other person in the course of an examination made under this section, are confidential and are not subject to subpoena and may not be made public by the commissioner or an employee or agent of the commissioner without the written consent of the company, except to the extent provided in this subsection.
(2)
Nothing in this subsection prevents the commissioner from using this information in furtherance of the commissioner's regulatory authority under the Arkansas Insurance Code.
(3)
The commissioner may grant access to this information under §
23-61-107
or to public officers having jurisdiction over the regulation of insurance in any other state or country or to law enforcement officers of this state or any other state or agency of the United States Government at any time, so long as the officers receiving the information agree in writing to hold it in a manner consistent with this section.
(c)
(1)
(A)
This section applies to all business written by a captive insurance company.
(B)
The examination for a branch captive insurance company must be of branch business and branch operations only, as long as the branch captive insurance company:
(i)
Provides annually to the commissioner a certificate of compliance or its equivalent issued by or filed with the licensing authority of the jurisdiction in which the branch captive insurance company is formed; and
(ii)
Demonstrates to the commissioner's satisfaction that it is operating in sound financial condition in accordance with all applicable laws and regulations of that jurisdiction.
(2)
As a condition of licensure, the alien captive insurance company shall grant authority to the commissioner for examination of the affairs of the alien captive insurance company in the jurisdiction in which the alien captive insurance company is formed.
(d)
To the extent that §
23-61-201
et seq. does not contradict this section, §
23-61-201
et seq. applies to captive insurance companies licensed under this subchapter.
Amended by Act 2023, No. 469,§ 5, eff. 8/1/2023.
Acts 2001, No. 1391, § 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 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 16 - LICENSING AND REGULATION OF CAPTIVE INSURERS (§§ 23-63-1601 — 23-63-1624) › Section 23-63-1609 - Suspension and revocation

(a)
The license of a captive insurance company to conduct an insurance business in this state may be penalized, suspended, or revoked by the Insurance Commissioner for:
(1)
Insolvency or impairment of capital or surplus;
(2)
Failure to meet the requirements of §§
23-63-1604
and
23-63-1605
;
(3)
Refusal or failure to submit an annual report, as required by §
23-63-1607
, or any other report or statement required by law or by lawful order of the commissioner;
(4)
Failure to comply with its own charter, bylaws, or other organizational document;
(5)
Failure to submit to examination or any legal obligation relative to an examination, as required by §
23-63-1608
;
(6)
Refusal or failure to pay the cost of examination as required by §
23-63-1608
;
(7)
Use of methods that, although not specifically prohibited by law, render its operation detrimental or its condition unsound with respect to the public or to its policyholders; or
(8)
Failure to comply with the laws of this state.
(b)
If upon examination, hearing, or other evidence the commissioner finds that a captive insurance company has committed any of the acts specified in subsection (a) of this section, the commissioner may penalize, suspend, or revoke the license if the commissioner considers it in the best interest of the public and the policyholders of the captive insurance company.
Acts 2001, No. 1391, § 9.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 16 - LICENSING AND REGULATION OF CAPTIVE INSURERS (§§ 23-63-1601 — 23-63-1624) › Section 23-63-1610 - Investments

(a)
(1)
Except as provided in §
23-63-1614
, an association captive insurance company, a producer reinsurance captive insurance company, a sponsored captive insurance company, and an industrial insured group shall comply with the investment requirements contained in the Arkansas Insurance Code.
(2)
The Insurance Commissioner may approve the use of alternative reliable methods of valuation and rating.
(b)
(1)
A pure captive insurance company or industrial insured captive insurance company is not subject to any restrictions on allowable investments contained in the Arkansas Insurance Code.
(2)
The commissioner may prohibit or limit an investment that threatens the solvency or liquidity of the company.
(c)
(1)
Only a pure captive insurance company may make loans to its parent company or affiliates, with the prior written approval of the commissioner and evidenced by a note in a form approved by the commissioner.
(2)
Loans of minimum capital and surplus funds required by §
23-63-1604(a)
and §
23-63-1605(a)
are prohibited.
(d)
Notwithstanding the provisions of §
23-63-1620
, the assets of two (2) or more protected cells may be combined for purposes of investment, and the combination does not defeat the segregation of such assets for accounting or other purposes.
(e)
(1)
Sponsored captive insurance companies shall comply with the investment requirements contained in §
23-63-801
et seq., as applicable.
(2)
However, compliance with the investment requirements shall be waived for sponsored captive insurance companies to the extent that credit for reinsurance ceded to reinsurers is allowed under §
23-63-1611
or to the extent otherwise deemed reasonable and appropriate by the commissioner.
(f)
Unless the commissioner requires or finds another method of valuation that is not inconsistent with the valuation method promulgated by the National Association of Insurance Commissioners and is reasonable under the circumstances, the valuation procedures established by the National Association of Insurance Commissioners shall apply to sponsored captive insurance companies except to the extent the valuation procedures are inconsistent with approved accounting standards in use by the company.
(g)
Notwithstanding any other provision of this subchapter, the commissioner may approve the use of alternative reliable methods of valuation and rating.
Amended by Act 2019, No. 521,§ 10, eff. 7/24/2019.
Acts 2001, No. 1391, § 10.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 16 - LICENSING AND REGULATION OF CAPTIVE INSURERS (§§ 23-63-1601 — 23-63-1624) › Section 23-63-1611 - Reinsurance

(a)
A captive insurance company may provide reinsurance under the Arkansas Insurance Code, on risks ceded by any other insurer.
(b)
A captive insurance company may take credit for reserves on risks or portions of risks ceded to reinsurers that are:
(1)
Complying with §
23-62-305(a)
-(d); or
(2)
Not complying with §
23-62-305(a)
-(d) upon approval of the captive insurance company's business plan by the Insurance Commissioner.
Amended by Act 2013, No. 461,§ 1, eff. 3/21/2013.
Acts 2001, No. 1391, § 11.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 16 - LICENSING AND REGULATION OF CAPTIVE INSURERS (§§ 23-63-1601 — 23-63-1624) › Section 23-63-1612 - Rating organizations

A captive insurance company may not be required to join a rating organization.
Acts 2001, No. 1391, § 12.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 16 - LICENSING AND REGULATION OF CAPTIVE INSURERS (§§ 23-63-1601 — 23-63-1624) › Section 23-63-1613 - Pools, plans, associations, and guaranty or insolvency funds

(a)
A captive insurance company, including a captive insurance company organized as a reciprocal insurer under this subchapter, shall not join or contribute financially to a plan, pool, association, or guaranty or insolvency fund in this state.
(b)
A captive insurance company, its insured, its parent, any affiliated company, any member organization of its association or, in the case of a captive insurance company organized as a reciprocal insurer, a subscriber of the company shall not receive a benefit from a plan, pool, association, or guaranty or insolvency fund for claims arising out of the operations of the captive insurance company.
Acts 2001, No. 1391, § 13.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 16 - LICENSING AND REGULATION OF CAPTIVE INSURERS (§§ 23-63-1601 — 23-63-1624) › Section 23-63-1615 - Rules

(a)
The Insurance Commissioner may promulgate rules relating to captive insurance companies as are necessary to carry out this subchapter.
(b)
(1)
The commissioner may promulgate rules establishing standards to ensure that a parent or affiliated company is able to exercise control of the risk management function of any controlled unaffiliated business to be insured by the pure captive insurance company or participant in a sponsored captive insurance company.
(2)
Prior to these rules' being promulgated, the commissioner may grant, by temporary order, authority to a pure captive insurance company to insure risks.
Amended by Act 2019, No. 315,§ 2642, eff. 7/24/2019.
Amended by Act 2019, No. 521,§ 11, eff. 7/24/2019.
Acts 2001, No. 1391, § 15.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 16 - LICENSING AND REGULATION OF CAPTIVE INSURERS (§§ 23-63-1601 — 23-63-1624) › Section 23-63-1617 - Reorganizations, receiverships, and injunctions

Except as provided in this subchapter, the terms and conditions in the Arkansas Insurance Code pertaining to insurance reorganizations, receiverships, and injunctions apply to captive insurance companies formed or licensed under this subchapter.
Acts 2001, No. 1391, § 17.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 16 - LICENSING AND REGULATION OF CAPTIVE INSURERS (§§ 23-63-1601 — 23-63-1624) › Section 23-63-1618 - Availability of funds

In the case of a producer reinsurance captive insurance company or a sponsored captive insurance company:
(1)
The assets of the protected cell may not be used to pay any expenses or claims other than those attributable to the protected cell; and
(2)
Its capital and surplus must be available to pay any expenses of or claims against the captive insurance company at all times.
Acts 2001, No. 1391, § 18.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 16 - LICENSING AND REGULATION OF CAPTIVE INSURERS (§§ 23-63-1601 — 23-63-1624) › Section 23-63-1619 - [Repealed]

Repealed by Act 2019, No. 521,§ 13, eff. 7/24/2019.
Amended by Act 2017, No. 370,§ 7, eff. 8/1/2017.
Amended by Act 2017, No. 370,§ 6, eff. 8/1/2017.
Amended by Act 2017, No. 370,§ 5, eff. 8/1/2017.
Acts 2001, No. 1391, § 19; 2009, No. 408, § 12.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 16 - LICENSING AND REGULATION OF CAPTIVE INSURERS (§§ 23-63-1601 — 23-63-1624) › Section 23-63-1621 - Participants

(a)
An association, corporation, limited liability company, partnership, trust, or other business entity may be a participant in a sponsored captive insurance company formed or licensed under this subchapter.
(b)
A sponsor may be a participant in a sponsored captive insurance company.
(c)
A participant need not be a shareholder of the sponsored captive insurance company or an affiliate of the company.
(d)
A participant shall not insure any risks other than its own, its affiliated entities, or of controlled unaffiliated entities.
Amended by Act 2019, No. 521,§ 15, eff. 7/24/2019.
Acts 2001, No. 1391, § 21.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 16 - LICENSING AND REGULATION OF CAPTIVE INSURERS (§§ 23-63-1601 — 23-63-1624) › Section 23-63-1622 - Producer reinsurance protected cell requirements

A producer reinsurance captive insurance company formed or licensed under this subchapter may establish and maintain one (1) or more protected cells to insure risks, subject to the following conditions:
(1)
Each protected cell must be accounted for separately on the books and records of the producer reinsurance captive insurance company to reflect the financial condition, results of operations of the protected cell, net income or loss, dividends or other distributions, and other factors as may be required by the commissioner;
(2)
The assets of a protected cell must not be chargeable with liabilities arising out of any other insurance business the producer reinsurance captive insurance company may conduct;
(3)
No sale, exchange, or other transfer of assets may be made by the producer reinsurance captive insurance company between or among any of its protected cells without the consent of the protected cells;
(4)
A producer reinsurance captive insurance company shall file annually the financial reports the Insurance Commissioner requires, which shall include, but are not limited to, accounting statements detailing the financial experience of each protected cell; and
(5)
A producer reinsurance captive insurance company shall notify the commissioner in writing within ten (10) business days of a protected cell that is insolvent or unable to meet its claim or expense obligations.
Acts 2001, No. 1391, § 22.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 16 - LICENSING AND REGULATION OF CAPTIVE INSURERS (§§ 23-63-1601 — 23-63-1624) › Section 23-63-1623 - Certificate of authority

A licensed captive insurance company that meets the necessary requirements of the Arkansas Insurance Code imposed upon an insurer may be considered for issuance of a certificate of authority to act as an insurer in this state.
Acts 2001, No. 1391, § 23.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 16 - LICENSING AND REGULATION OF CAPTIVE INSURERS (§§ 23-63-1601 — 23-63-1624) › Section 23-63-1624 - Dormant captive insurance company - Definition

(a)
As used in this section, "dormant captive insurance company" means a pure captive insurance company, sponsored captive insurance company, or industrial insured captive insurance company that has:
(1)
Ceased transacting the business of insurance, including the issuance of insurance policies; and
(2)
No remaining liabilities associated with insurance business transactions, or insurance policies issued before the filing of its application for a certificate of dormancy under this section.
(b)
(1)
A captive insurance company domiciled in this state that meets the criteria of subsection (a) of this section may apply to the Insurance Commissioner for a certificate of dormancy.
(2)
The certificate of dormancy is subject to renewal every five (5) years and shall be forfeited if not renewed within that time.
(c)
A dormant captive insurance company that has been issued a certificate of dormancy shall:
(1)
Possess and thereafter maintain unimpaired, paid-in capital and surplus of not less than twenty-five thousand dollars ($25,000);
(2)
Before March 15 of each year, submit to the commissioner a report of its financial condition, verified by oath of two (2) of its executive officers, in a form as may be prescribed by the commissioner; and
(3)
Pay a license renewal fee as provided in the rules promulgated by the commissioner under Section 18 of Rule and Regulation 73 of the State Insurance Department.
(d)
A dormant captive insurance company is not subject to or liable for the payment of any tax under §
23-63-1614
.
(e)
A dormant captive insurance company shall apply to the commissioner for approval to surrender its certificate of dormancy and resume conducting the business of insurance before issuing any insurance policies.
(f)
A certificate of dormancy shall be revoked if a dormant captive insurance company no longer meets the criteria of subsection (a) of this section.
(g)
The commissioner may establish guidelines and procedures as necessary to carry out this section.
Added by Act 2017, No. 370,§ 10, eff. 8/1/2017.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 17 - PROTECTED CELL COMPANY ACT (§§ 23-63-1701 — 23-63-1709) › Section 23-63-1701 - Short title

This subchapter may be cited as the "Protected Cell Company Act".
Acts 2001, No. 1428, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 17 - PROTECTED CELL COMPANY ACT (§§ 23-63-1701 — 23-63-1709) › Section 23-63-1702 - Purpose

This subchapter provides:
(1)
A basis for the creation of protected cells by a domestic insurer as one means of accessing alternative sources of capital and achieving the benefits of insurance securitization;
(2)
Funds to investors in fully funded insurance securitization transactions that are available to pay the insurer's insurance obligations or to repay the investors, or both; and
(3)
A means to achieve more efficiencies in conducting insurance securitizations.
Acts 2001, No. 1428, § 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 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 17 - PROTECTED CELL COMPANY ACT (§§ 23-63-1701 — 23-63-1709) › Section 23-63-1706 - Reach of creditors and other claimants

(a)
(1)
(A)
Protected cell assets shall be available only to the creditors of the protected cell company that are creditors to that protected cell.
(B)
Those creditors shall be entitled to have recourse to the protected cell assets attributable to that protected cell and shall be absolutely protected from the creditors of the protected cell company that are not creditors in respect to that protected cell.
(C)
Creditors of a protected cell shall not be entitled to have recourse against the protected cell assets of other protected cells or the assets of the protected cell company's general account.
(2)
Protected cell assets shall be available only to creditors of a protected cell company after all protected cell liabilities have been extinguished or as provided for in the plan of operation relating to that protected cell.
(b)
When an obligation of a protected cell company to a person arises from a transaction, or is otherwise imposed, in respect to a protected cell, that obligation of the protected cell company:
(1)
Shall extend only to the protected cell assets attributable to that protected cell, and, with respect to that obligation, the person shall be entitled to have recourse only to the protected cell assets attributable to that protected cell; and
(2)
Shall not extend to the protected cell assets of any other protected cell or the assets of the protected cell company's general account, and, with respect to that obligation, that person shall not be entitled to have recourse to the protected cell assets of any other protected cell or the assets of the protected cell company's general account.
(c)
When an obligation of a protected cell company relates solely to the general account, the obligation of the protected cell company shall extend only to, and that creditor shall be entitled, with respect to that obligation, to have recourse only to the assets of the protected cell company's general account.
(d)
(1)
The activities, assets, and obligations relating to a protected cell are not subject to the laws of this state governing life and health and property and casualty guaranty or insolvency funds.
(2)
A protected cell or a protected cell company shall not be assessed by or otherwise be required to contribute to any guaranty fund or guaranty association in this state with respect to the activities, assets, or obligations of a protected cell.
(3)
This subsection shall not affect the activities or obligations of an insurer's general account.
(e)
The establishment of one (1) or more protected cells alone shall not be deemed to be a fraudulent conveyance, an intent by the protected cell company to defraud creditors, or the carrying out of business by the protected cell company for any other fraudulent purpose.
Acts 2001, No. 1428, § 6.