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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-307 - Approval of proposed reorganization plan

(a)
The Insurance Commissioner shall issue an order approving or disapproving a proposed plan of reorganization within thirty (30) days after the close of the public hearing as required by §
23-69-306
.
(b)
The commissioner shall not approve a proposed plan of reorganization unless he or she finds that:
(1)
The plan of reorganization is fair and equitable to the policyholders;
(2)
The plan of reorganization does not deprive the policyholders of their property rights or due process of law; and
(3)
The reorganized stock insurer would meet the minimum requirements to be issued a certificate of authority by the commissioner to transact the business of insurance in this state, and the continued operations of the reorganized stock insurer would not be hazardous to future policyholders and the public.
(c)
If the commissioner approves a plan of reorganization, the commissioner shall also publish notification of the issuance of the order in a legal newspaper in Pulaski County and in the county of domicile of the mutual insurer if different from Pulaski County.
(d)
If the commissioner approves a plan of reorganization, the approval shall expire if the reorganization is not completed within one hundred eighty (180) days after the date of approval, unless extended by the commissioner for good cause, or within sixty (60) days if required by the Gramm-Leach-Bliley Act for depository corporation transactions.
(e)
If the commissioner disapproves a plan of reorganization, the commissioner shall issue an order setting forth specific findings for the disapproval.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-308 - Approval of reorganization plan by policyholders

(a)
(1)
Within forty-five (45) days after the date of the Insurance Commissioner's approval of a plan of reorganization under §
23-69-307
, unless extended by the commissioner for good cause, the mutual insurer shall hold a meeting of its policyholders at a reasonable time and place to vote upon the plan of reorganization.
(2)
The mutual insurer shall give notice at least thirty (30) days before the time fixed for the meeting, by first-class mail to the last-known address of each policyholder, that the plan of reorganization will be voted upon at a regular or special meeting of the policyholders. The notice shall include:
(A)
A brief description of the plan of reorganization and a statement that the commissioner has approved the plan of reorganization; and
(B)
A written proxy permitting the policyholder to vote for or against the plan of reorganization.
(3)
The entity to which any group insurance policy is issued, and not any person covered under the group insurance policy, shall be considered the policyholder for purposes of voting.
(4)
A plan of reorganization shall be approved only if not less than two-thirds (2/3) of the policyholders voting in person or by proxy at the meeting vote in favor of such plan of reorganization. Each policyholder shall be entitled to only one (1) vote, regardless of the number of policies owned by the policyholder. The commissioner shall supervise and direct the conduct of the vote on the plan of reorganization as necessary to ensure that the vote is fair and consistent with the requirements of this section.
(b)
If a mutual insurer complies substantially and in good faith with the notice requirements of this section, the mutual insurer's failure to give any policyholder any required notice does not impair the validity of any action taken under this section.
(c)
If the meeting of policyholders to vote upon the plan of reorganization is held coincident with the mutual insurer's annual meeting of the policyholders, only one (1) combined notice of meeting is required.
(d)
The form of any proxy shall be filed with and approved by the commissioner.
(e)
For purposes of voting, "policyholders" means the policyholders of the mutual insurer on the day the plan of reorganization is initially approved by the board of directors of the mutual insurer.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-309 - Issuance of certificate

(a)
The Insurance Commissioner shall issue a certificate of authority to a reorganized stock insurer when the mutual insurer files with the commissioner a:
(1)
Certificate stating that all of the conditions set forth in the plan of reorganization have been satisfied, so long as the board of directors of the mutual insurer has not abandoned the plan of reorganization under §
23-69-312
; and
(2)
Certificate from the mutual insurer setting forth the vote and certifying that the plan of reorganization was approved by not less than two-thirds (2/3) of the policyholders voting in person or by proxy on the plan of reorganization.
(b)
(1)
The reorganization shall be effective upon the issuance of a certificate of authority by the commissioner.
(2)
Upon issuance of the certificate of authority, the insurer's articles of incorporation shall be treated as amended in compliance with §
23-69-107
.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-310 - Appeal of final order

Any person affected by a final order issued under this subchapter shall have the right to appeal the order to the Pulaski County Circuit Court. The appeal shall be in accordance with the Arkansas Administrative Procedure Act, §
25-15-201
et seq.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-311 - Continuation of corporate existence

Corporate existence of a mutual insurer reorganizing under this subchapter shall not terminate, but the reorganized stock insurer shall be deemed to be a continuation of the mutual insurer and to have been organized on the date the mutual insurer was originally organized.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-312 - Abandonment of reorganization plan

By not less than a two-thirds (2/3) vote of the members of its board of directors and with the approval of the Insurance Commissioner, a mutual insurer may abandon a plan of reorganization at any time before the issuance of the certificate of authority by the commissioner. Upon such abandonment, all rights and obligations arising out of the plan of reorganization shall terminate, and the mutual insurer shall continue to conduct its business as a domestic mutual insurer as though no plan of reorganization had ever been adopted.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-313 - Mergers and acquisitions

(a)
Subject to applicable requirements of this subchapter and the Insurance Holding Company Regulatory Act, §
23-63-501
et seq., a mutual insurance holding company may:
(1)
Merge or consolidate with, or acquire the assets of, a mutual insurance holding company licensed under this subchapter or any similar entity organized under laws of any other state;
(2)
Either alone or together with one (1) or more intermediate stock holding companies or other subsidiaries, directly or indirectly acquire the stock of a stock insurance company or a mutual insurance company that reorganizes under this subchapter or the law of its state of organization;
(3)
Together with one (1) or more of its stock insurance company subsidiaries, acquire the assets of a stock insurance company or a mutual insurance company; or
(4)
Acquire a stock insurance company through the merger of the stock insurance company with a stock insurance company subsidiary of the mutual insurance holding company.
(b)
(1)
A merger or acquisition under this section is subject to the applicable procedures prescribed by the laws applying to domestic insurance companies, except as otherwise provided in this subsection.
(2)
The commissioner may retain, at the expense of the mutual insurance company, any attorneys, actuaries, accountants, economists, and other experts not otherwise a part of the commissioner's staff as may be reasonably necessary to assist the commissioner in reviewing the proposed merger or acquisition.
(3)
The plan and agreement for merger shall be submitted to and approved by vote of two-thirds (2/3) of those members of any domestic mutual insurance holding company involved in the merger who vote either in person or by proxy thereon at a lawful meeting called for that purpose, after reasonable notice and in accordance with procedure approved by the commissioner.
(4)
No such merger shall be effectuated unless the plan and agreement have been filed with the commissioner and approved by him or her in advance. The commissioner shall give such approval unless he or she finds that such a plan or agreement:
(A)
Is inequitable to the policyholders of any domestic insurer involved in the merger or the members of any domestic mutual insurance holding company involved in the merger; or
(B)
Would substantially reduce the security of and service to be rendered to policyholders of a domestic insurer in this state.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-314 - Membership in mutual insurance holding company

A membership interest in a mutual insurance holding company does not constitute a security under the laws of this state.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-315 - Annual statements

A mutual insurance holding company shall:
(1)
File with the Insurance Commissioner by March 1 of each year an annual statement consisting of an income statement, balance sheet, and cash flows prepared in accordance with generally accepted accounting practices and a confidential statement disclosing any intention to pledge, borrow against, alienate, hypothecate, or in any way encumber the assets of the mutual insurance holding company; and
(2)
Have an annual audit by an independent certified public accountant in a form approved by the commissioner and shall file the audit on or before June 1 of each year for the year ending December 31 immediately preceding.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-316 - Power of Insurance Commissioner to order production of documents

The Insurance Commissioner shall have the power to order production of any records, books, or other information and papers in the possession of a mutual insurance holding company or its affiliates as are reasonably necessary to ascertain the financial condition of the reorganized stock insurer or to determine compliance with this subchapter.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-317 - Applicability of provisions

Nothing contained in this subchapter shall be construed to prohibit demutualization of a mutual insurance holding company under §
23-69-141
.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-318 - Payment of compensation

(a)
(1)
No director, officer, employee, or agent of the mutual insurer and no other person shall receive any fee, commission, or other valuable consideration whatsoever, other than his or her usual regular salary and compensation, for in any manner aiding, promoting, or assisting in a plan of reorganization, except as set forth in the plan of reorganization approved by the Insurance Commissioner.
(2)
Subdivision (a)(1) of this section shall not prohibit a management-incentive compensation program which is contained in the plan of reorganization and approved by the commissioner to be adopted upon reorganization to the reorganized stock insurer or prohibit such a program to be later adopted by the reorganized stock insurer.
(b)
Subdivision (a)(1) of this section shall not be deemed to prohibit the payment of reasonable fees and compensation to attorneys, accountants, actuaries, and investment bankers for services performed in the independent practice of their professions, even though any such person is also a member of the board of directors of the mutual insurer.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-319 - Hiring of experts

For purposes of determining whether a plan of reorganization meets the requirements of this subchapter or in connection with any other matters relating to development of a plan of reorganization, the Insurance Commissioner may engage the services of experts. All reasonable costs related to the review of a plan of reorganization or such other matters, including those costs attributable to the use of experts, shall be paid by the mutual insurer making the filing or initiating discussions with the commissioner about such matters.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-320 - Disclosure of confidential information

All information, documents, and copies obtained by or disclosed to the Insurance Commissioner or any other person in the course of preparing, filing, and processing an application to reorganize under §
23-69-305
, other than information or documents distributed to policyholders in connection with the meeting of policyholders under §
23-69-308
, or filed or submitted as evidence in connection with the public hearing under §
23-69-306
, shall be given confidential treatment, 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 and its affiliates who would be affected thereby notice and opportunity to be heard, determines that the interests of policyholders, shareholders, or the public will be served by the publication, in which event he or she may publish all or any part in such manner as he or she may deem appropriate.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-321 - Injunctive orders

Whenever it appears to the Insurance Commissioner that any person or any director, officer, employee, or agent of the person has committed or is about to commit a violation of this subchapter or of any rule or order of the commissioner, the commissioner may apply to the Pulaski County Circuit Court for an order enjoining such person, director, officer, employee, or agent from violating or continuing to violate this subchapter or any such rule or order and for such other equitable relief as the nature of the case and the interest of the insurer's policyholders, creditors, and shareholders or the public may require.
Amended by Act 2019, No. 315,§ 2691, eff. 7/24/2019.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-322 - Promulgation of rules

The Insurance Commissioner may adopt and promulgate rules and issue orders to carry out this subchapter.
Amended by Act 2019, No. 315,§ 2692, eff. 7/24/2019.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 3 - MUTUAL INSURANCE HOLDING COMPANY ACT (§§ 23-69-301 — 23-69-323) › Section 23-69-323 - Construction

This subchapter is intended to supplement the Arkansas Insurance Code. Further, this subchapter is not intended to and shall not be construed to conflict with existing sections of the Arkansas Insurance Code, including, but not limited to, §§
23-69-141
,
23-70-123
,
23-72-119
,
23-73-117
,
23-75-122
, or other applicable sections of the Arkansas Insurance Code.
Acts 2001, No. 1726, § 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 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 4 - RISK MANAGEMENT AND OWN RISK ASSESSMENT ACT (§§ 23-69-401 — 23-69-410) › Section 23-69-401 - Title

This subchapter shall be known and may be cited as the "Risk Management and Own Risk Assessment Act".
Added by Act 2015, No. 1223,§ 31, eff. 7/22/2015.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 4 - RISK MANAGEMENT AND OWN RISK ASSESSMENT ACT (§§ 23-69-401 — 23-69-410) › Section 23-69-402 - Findings and intent

(a)
The General Assembly finds that:
(1)
The Insurance Commissioner requires an insurer or insurance group to submit confidential and privileged information to the State Insurance Department to allow the commissioner to evaluate the financial condition and stability of the insurer or insurance group to protect the public;
(2)
An insurer or insurance group may be reluctant to provide this information to the commissioner due to the sensitive nature of the information that is specific to the insurer or insurance group's identification of risks material, including proprietary and trade secrets of the insurer or insurance group filing the report; and
(3)
The information required by the commissioner to evaluate the financial stability of an insurer or insurance group if disclosed to the public has the potential to cause harm to an insurer or insurance group.
(b)
It is the intent of the General Assembly to ensure that:
(1)
A method is established to clarify the requirements for an insurer or insurance group to maintain a risk management framework;
(2)
An insurer or insurance group is able to share its own risk and solvency assessment with the commissioner to enable the commissioner to assess the financial stability of an insurer or insurance group to meet policyholder obligations;
(3)
An insurer or insurance group's own risk assessment summary report remains confidential if filed with the commissioner, subject to the rules adopted by the commissioner, and shall not be published, made publically available, or subject to public disclosure; and
(4)
The commissioner may only share an insurer or insurance group's own risk assessment summary report as stated in this subchapter and as necessary to assist the commissioner in performing his or her duties.
Added by Act 2015, No. 1223,§ 31, eff. 7/22/2015.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 4 - RISK MANAGEMENT AND OWN RISK ASSESSMENT ACT (§§ 23-69-401 — 23-69-410) › Section 23-69-403 - Definitions

As used in this subchapter:
(1)
"Insurance group" means an insurer and the insurer's affiliates that are in an insurance holding company system, as defined in the Insurance Holding Company Regulatory Act, §
23-63-501
et seq.;
(2)
"Insurer" means the same as defined in §
23-62-402
, except "insurer" does not include an agency, authority, commission, or other instrumentality of the United States or any state or territory of the United States;
(3)
"Own risk and solvency assessment" means a confidential internal assessment, appropriate to the nature, scale, and complexity of an insurer or insurance group, conducted by that insurer or insurance group of the material and relevant risks associated with the insurer's or insurance group's current business plan and the sufficiency of capital resources to support those risks;
(4)
(A)
"Own Risk and Solvency Assessment Guidance Manual" means the guidance manual developed and adopted by the National Association of Insurance Commissioners.
(B)
A revision made by the National Association of Insurance Commissioners to the Own Risk and Solvency Assessment Guidance Manual shall be implemented on January 1 following the calendar year that the revision is adopted by the National Association of Insurance Commissioners; and
(5)
"Own risk and solvency assessment summary report" means a confidential and proprietary summary of an insurer's or insurance group's own risk and solvency assessment.
Added by Act 2015, No. 1223,§ 31, eff. 7/22/2015.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 4 - RISK MANAGEMENT AND OWN RISK ASSESSMENT ACT (§§ 23-69-401 — 23-69-410) › Section 23-69-404 - Risk management framework

(a)
An insurer shall establish and maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on the insurer's material and relevant risks.
(b)
An insurer may satisfy subsection (a) of this section if the insurance group that the insurer is a member of maintains a risk management framework that is applicable to the operations of the insurer.
Added by Act 2015, No. 1223,§ 31, eff. 7/22/2015.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 4 - RISK MANAGEMENT AND OWN RISK ASSESSMENT ACT (§§ 23-69-401 — 23-69-410) › Section 23-69-405 - Own risk and solvency assessment - Requirements

Except as provided in §
23-69-407
, an insurer or the insurance group that the insurer is a member of shall perform an own risk and solvency assessment:
(1)
According to the Own Risk and Solvency Assessment Guidance Manual or a comparable process; and
(2)
Annually, or at any time a significant change to the risk profile of the insurer or the insurance group of which the insurer is a member occurs.
Added by Act 2015, No. 1223,§ 31, eff. 7/22/2015.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 4 - RISK MANAGEMENT AND OWN RISK ASSESSMENT ACT (§§ 23-69-401 — 23-69-410) › Section 23-69-406 - Own risk and solvency assessment summary

(a)
(1)
(A)
Upon request, an insurer shall submit to the Insurance Commissioner no more than one (1) time a year beginning January 1, 2017, an own risk and solvency assessment summary report, or any combination of filings applicable to the insurer or the insurance group of which the insurer is a member, that together contain the information described in the Own Risk and Solvency Assessment Guidance Manual.
(B)
An insurer may submit a comparable report that provides the most recent and substantially similar information under subdivision (a)(1)(A) of this section to a commissioner in another state or to the supervisor or regulator of a foreign jurisdiction provided by the insurer or another member of an insurance group of which the insurer is a member.
(2)
Notwithstanding a request from the Insurance Commissioner, an insurer that is a member of an insurance group shall submit the reports required under subdivision (a)(1) of this section if the Insurance Commissioner is the lead state commissioner of the insurance group as determined by the procedures within the "Financial Analysis Handbook" adopted by the National Association of Insurance Commissioners.
(b)
A report described in subdivision (a)(1)(A) of this section shall include an attestation of the chief risk officer or other executive of the insurer or insurance group that is responsible for the oversight of the insurer's enterprise risk management process that to the best of his or her belief and knowledge:
(1)
The insurer applies the enterprise risk management process described in the insurer's own risk and solvency assessment summary report; and
(2)
A copy of the report has been provided to the insurer's board of directors or other governing body of the insurer.
(c)
A report under subdivision (a)(1) of this section shall be in English or translated to English before filing with the Insurance Commissioner.
Added by Act 2015, No. 1223,§ 31, eff. 7/22/2015.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 4 - RISK MANAGEMENT AND OWN RISK ASSESSMENT ACT (§§ 23-69-401 — 23-69-410) › Section 23-69-408 - Own risk and solvency assessment summary report - Content

(a)
(1)
An own risk and solvency assessment summary report shall be prepared pursuant to the Own Risk and Solvency Assessment Guidance Manual, subject to the requirements of subsection (b) of this section.
(2)
An insurer shall maintain any documentation and supporting information used to prepare an own risk and solvency assessment summary report and make the documents and information available upon request of the Insurance Commissioner or during an examination.
(b)
An own risk and solvency assessment summary report and any additional requests for information shall be reviewed under similar procedures currently in use during an analysis and examination of multistate or global insurers and insurance groups.
Added by Act 2015, No. 1223,§ 31, eff. 7/22/2015.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 4 - RISK MANAGEMENT AND OWN RISK ASSESSMENT ACT (§§ 23-69-401 — 23-69-410) › Section 23-69-410 - Sanctions

(a)
An insurer failing without just cause to timely file the own risk and solvency assessment summary report under this subchapter shall be required, after notice and hearing, to pay a penalty of one hundred dollars ($100) for each day's delay, to be recovered by the Insurance Commissioner, and the penalty so recovered shall be paid into the General Revenue Fund Account of the State Apportionment Fund.
(b)
The maximum penalty under this section is ten thousand dollars ($10,000).
(c)
The commissioner may reduce the penalty under this section if the insurer demonstrates to the commissioner that the imposition of the penalty would constitute a financial hardship to the insurer.
Added by Act 2015, No. 1223,§ 31, eff. 7/22/2015.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 5 - ARKANSAS INSURANCE BUSINESS TRANSFER ACT (§§ 23-69-501 — 23-69-512) › Section 23-69-501 - Title

This subchapter shall be known and may be cited as the "Arkansas Insurance Business Transfer Act".
Added by Act 2021, No. 1018,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 5 - ARKANSAS INSURANCE BUSINESS TRANSFER ACT (§§ 23-69-501 — 23-69-512) › Section 23-69-502 - Legislative findings - Purpose

(a)
The General Assembly finds that:
(1)
There is not a basis or procedure for the transfer and novation of insurance policies from a transferring insurer to an assuming insurer by way of an insurance business transfer without the affirmative consent of policyholders or reinsureds; and
(2)
There is a need to provide a basis and procedures for the transfer and novation of insurance policies from a transferring insurer to an assuming insurer by way of an insurance business transfer without the affirmative consent of policyholders or reinsureds if the transfer and novation is conducted by a court order.
(b)
(1)
The purpose of this subchapter is to establish the requirements for notice and disclosure and standards and procedures for the approval of a transfer and novation by the Insurance Commissioner and the Pulaski County Circuit Court under an insurance business transfer plan.
(2)
However, it is not the purpose of this subchapter to limit or restrict other means of effecting a transfer or novation.
Added by Act 2021, No. 1018,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 5 - ARKANSAS INSURANCE BUSINESS TRANSFER ACT (§§ 23-69-501 — 23-69-512) › Section 23-69-504 - Venue

(a)
All court proceedings brought under this subchapter shall be filed in the Pulaski County Circuit Court.
(b)
The court may issue any order, process, or judgment that is necessary or appropriate to carry out this subchapter.
(c)
This subchapter does not preclude the court from, on its own motion, taking any action or making any determination necessary or appropriate to enforce or implement court orders or rules or to prevent an abuse of power.
Added by Act 2021, No. 1018,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 5 - ARKANSAS INSURANCE BUSINESS TRANSFER ACT (§§ 23-69-501 — 23-69-512) › Section 23-69-505 - Notice required

(a)
Except as otherwise ordered by the Pulaski County Circuit Court or the Insurance Commissioner, if notice is required to be given by the applicant under this subchapter, the applicant, within fifteen (15) days of the event triggering the requirement, shall cause transmittal of the notice:
(1)
By first class mail, postage prepaid, to the chief insurance regulator in each jurisdiction in which the applicant holds or has ever held a certificate of authority, and in which policies that are part of the subject business were issued or where policyholders currently reside;
(2)
By certified first class mail, postage prepaid, to the National Conference of Insurance Guaranty Funds, the National Organization of Life and Health Insurance Guaranty Associations, and all state insurance guaranty associations for the states in which the applicant holds or has ever held a certificate of authority, and in which policies that are part of the subject business were issued or where policyholders currently reside;
(3)
To reinsurers of the applicant under the notice requirements of the reinsurance agreements applicable to the policies that are part of the subject business, or if an agreement does not require notice, by an internationally recognized delivery service;
(4)
(A)
By United States mail, first class postage prepaid, to all policyholders holding policies that are part of the subject business, at their last known address as indicated by the records of the applicant or to the address to which premium notices or other policy documents are sent.
(B)
A notice of transfer shall be sent to the transferring insurer's agents or brokers of record on the subject business; and
(5)
By publication in a newspaper of general circulation in the state in which the applicant has its principal place of business and in such other publications that the commissioner requires.
(b)
If notice is given under subsection (a) of this section, an order under this subchapter shall be conclusive with respect to all intended recipients of the notice, whether or not they receive actual notice.
(c)
If the commissioner has been named receiver of the applicant, the commissioner shall provide the required notice under this subchapter.
Added by Act 2021, No. 1018,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 5 - ARKANSAS INSURANCE BUSINESS TRANSFER ACT (§§ 23-69-501 — 23-69-512) › Section 23-69-510 - Oversight of operations

Insurers subject to this subchapter consent to the jurisdiction of the Insurance Commissioner with regard to ongoing oversight of operations, management, and solvency relating to the transferred business, including the authority of the commissioner to conduct financial analysis and examinations.
Added by Act 2021, No. 1018,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 5 - ARKANSAS INSURANCE BUSINESS TRANSFER ACT (§§ 23-69-501 — 23-69-512) › Section 23-69-511 - Fees - Reimbursements

(a)
At the time of filing its application with the Insurance Commissioner for review and approval of an insurance business transfer plan, an applicant shall pay a nonrefundable fee to the State Insurance Department in the amount of ten thousand dollars ($10,000).
(b)
In the commissioner's discretion, the department may participate in the proceedings undertaken under this subchapter, and the applicant shall reimburse the department for any compensation and benefits paid to the personnel of the department for time spent engaged in the proceedings, including without limitation examiners, actuaries, attorneys, managers, and paraprofessionals.
(c)
The commissioner may retain independent attorneys, appraisers, actuaries, certified public accountants, or other professionals and specialists to assist department personnel in connection with the review required by this subchapter, and the cost shall be borne by the applicant.
(d)
The applicant shall pay the expenses of the department and its authorized consultants incurred in fulfilling their obligations under this subchapter, including the actual expenses of the department or the expenses and compensation of any consultants retained by the department.
(e)
Failure to pay any of the requisite fees or reimbursements within thirty (30) days of demand shall be grounds for the commissioner to request that the Pulaski County Circuit Court dismiss the petition for approval of the insurance business transfer plan before the filing of an implementation order by the court or, if after the filing of an implementation order, the commissioner may suspend or revoke the assuming insurer's certificate of authority to transact insurance business in this state.
Added by Act 2021, No. 1018,§ 1, eff. 7/28/2021.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 69 - DOMESTIC STOCK AND MUTUAL INSURERS (§§ 23-69-101 — 23-69-512) › Subchapter 5 - ARKANSAS INSURANCE BUSINESS TRANSFER ACT (§§ 23-69-501 — 23-69-512) › Section 23-69-512 - Rules

The Insurance Commissioner shall promulgate rules to implement this subchapter.
Added by Act 2021, No. 1018,§ 1, eff. 7/28/2021.
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 70 - RECIPROCAL INSURERS (§§ 23-70-101 — 23-70-124) › Section 23-70-101 - Definitions

As used in this chapter, unless the context otherwise requires:
(1)
"Attorney" refers to the attorney in fact of a reciprocal insurer. The attorney may be an individual, firm, or corporation. The attorney of a foreign or alien reciprocal insurer, which insurer is duly authorized to transact insurance in this state, shall not, by virtue of discharge of its duties as the attorney with respect to the insurer's transactions in this state, be thereby deemed to be doing business in this state within the meaning of any laws of this state applying to foreign firms or corporations;
(2)
"Reciprocal" insurance is that resulting from an interexchange among persons, known as "subscribers", of reciprocal agreements of indemnity, the interexchange being effectuated through an "attorney in fact" common to all the persons; and
(3)
"Reciprocal insurer" means an unincorporated aggregation of subscribers operating individually and collectively through an attorney in fact to provide reciprocal insurance among themselves.
Acts 1959, No. 148, §§ 510, 511, 515; A.S.A. 1947, §§ 66-4301, 66-4302, 66-4306.
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 70 - RECIPROCAL INSURERS (§§ 23-70-101 — 23-70-124) › Section 23-70-102 - Scope

(a)
All authorized reciprocal insurers shall be governed by those sections of this chapter not expressly made applicable to domestic reciprocals.
(b)
Existing authorized reciprocal insurers shall comply with the provisions of this chapter after January 1, 1960.
Acts 1959, No. 148, § 512; A.S.A. 1947, § 66-4303.
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 70 - RECIPROCAL INSURERS (§§ 23-70-101 — 23-70-124) › Section 23-70-103 - Insuring powers

(a)
A reciprocal insurer, upon qualifying therefor as provided for by the Arkansas Insurance Code, may transact any kinds of insurance defined by the Arkansas Insurance Code, other than life or title insurances.
(b)
Such an insurer may purchase reinsurance, and may grant reinsurance as to any kind of insurance it is authorized to transact.
Acts 1959, No. 148, § 513; A.S.A. 1947, § 66-4304.
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 70 - RECIPROCAL INSURERS (§§ 23-70-101 — 23-70-124) › Section 23-70-104 - Name used in suits

A reciprocal insurer shall:
(1)
Have and use a business name. The name shall include the word "reciprocal", "interinsurer", "interinsurance", "exchange", "underwriters", or "underwriting"; and
(2)
Sue and be sued in its own name.
Acts 1959, No. 148, § 514; A.S.A. 1947, § 66-4305.
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 70 - RECIPROCAL INSURERS (§§ 23-70-101 — 23-70-124) › Section 23-70-105 - Surplus funds required

(a)
A domestic reciprocal insurer formed pursuant to this chapter, if it has otherwise complied with the applicable provisions of the Arkansas Insurance Code, may be authorized to transact insurance if it has and maintains surplus funds as follows:
(1)
To transact property insurance, surplus funds of not less than the amount required of a foreign reciprocal insurer under §
23-63-205
;
(2)
To transact casualty insurance, surplus funds of not less than the amount required of a foreign reciprocal insurer under §
23-63-205
; and
(3)
The surplus funds required in this subsection shall be deposited or adjusted by the July 1 following the filing of the annual statement.
(b)
In addition to surplus required to be maintained under subsection (a) of this section, the insurer shall have, when first so authorized, expendable surplus in an amount as required of a like foreign reciprocal insurer under §
23-63-207
.
(c)
A domestic reciprocal insurer may be authorized to transact additional kinds of insurance if it has otherwise complied with the provisions of the Arkansas Insurance Code therefor and possesses and so maintains surplus funds in an amount equal to the minium capital stock required of a stock insurer for authority to transact a like combination of kinds of insurance.
Acts 1959, No. 148, § 516; A.S.A. 1947, § 66-4307; Acts 2001, No. 1555, § 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 70 - RECIPROCAL INSURERS (§§ 23-70-101 — 23-70-124) › Section 23-70-106 - Organization

(a)
Twenty-five (25) or more persons may organize a domestic reciprocal insurer and make application to the Insurance Commissioner for a certificate of authority to transact insurance.
(b)
The proposed attorney shall fulfill the requirements of and shall execute and file with the commissioner when applying for a certificate of authority a declaration setting forth:
(1)
The name of the insurer;
(2)
The location of the insurer's principal office, which shall be the same as that of the attorney and shall be maintained within this state;
(3)
The kinds of insurance proposed to be transacted;
(4)
The names and addresses of the original subscribers;
(5)
The designation and appointment of the proposed attorney, and a copy of the power of attorney;
(6)
The names and addresses of the officers and directors of the attorney, if a corporation, or its members, if a firm;
(7)
The powers of the subscribers' advisory committee, and the names and terms of office of the members thereof;
(8)
That all moneys paid to the insurer shall be held in the name of the insurer and for the purposes specified in the subscribers' agreement, after deducting therefrom any sum payable to the attorney;
(9)
A copy of the subscribers' agreement;
(10)
A statement that each of the original subscribers has in good faith applied for insurance of a kind proposed to be transacted and that the insurer has received from each such subscriber the full premium deposit required for the policy applied for, for a term of not less than six (6) months, at an adequate rate theretofore filed with and approved by the commissioner;
(11)
A statement of the financial condition of the insurer, a schedule of its assets, and a statement that the surplus as required by §
23-70-105
is on hand; and
(12)
A copy of each policy, endorsement, and application form it then proposes to issue or use.
(c)
The declaration shall be acknowledged by the attorney in the manner required for the acknowledgement of deeds.
Amended by Act 2023, No. 469,§ 8, eff. 8/1/2023.
Acts 1959, No. 148, § 517; A.S.A. 1947, § 66-4308.
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 70 - RECIPROCAL INSURERS (§§ 23-70-101 — 23-70-124) › Section 23-70-107 - Certificate of authority

(a)
The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer.
(b)
The Insurance Commissioner may refuse, suspend, or revoke the certificate of authority, in addition to other grounds therefor, for failure of the attorney to comply with any provision of the Arkansas Insurance Code.
Acts 1959, No. 148, § 518; A.S.A. 1947, § 66-4309.