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 2 - AUTHORITY TO DO BUSINESS (§§ 23-63-201 — 23-63-218) › Section 23-63-215 - Certificate of authority - Period of suspension - Reinstatement

(a)
The suspension of an insurer's certificate of authority is indefinite unless:
(1)
A specific period is fixed by the Insurance Commissioner in the order of suspension; or
(2)
The commissioner shortens or rescinds the suspension.
(b)
(1)
Unless in the order of suspension the commissioner waives payment of any fees, licenses, and taxes during the suspension, the insurer shall file its annual statement and pay fees, licenses, and taxes during the suspension as required under the Arkansas Insurance Code as if the certificate of authority had continued in full force.
(2)
Upon reinstatement of a suspended insurer's certificate of authority, all fees, licenses, and taxes accumulated during the suspension are immediately due and payable.
(c)
(1)
If a suspension ends within the period a certificate of authority has not otherwise terminated, the certificate of authority shall automatically reinstate unless the commissioner finds that:
(A)
The causes of the suspension have not been removed; or
(B)
The insurer is not in compliance with the Arkansas Insurance Code.
(2)
If the commissioner finds that the certificate of authority does not automatically reinstate, the commissioner shall provide written notice and give the insurer thirty (30) days to remove the cause for suspension or otherwise comply with the Arkansas Insurance Code.
(3)
If the certificate of authority is not automatically reinstated, the certificate of authority shall be deemed to have expired upon the earliest of:
(A)
Thirty (30) days after the commissioner gives notice under subdivision (c)(2) of this section; or
(B)
The failure of the insurer to continue the certificate of authority during the suspension.
(d)
Upon reinstatement of the insurer's certificate of authority:
(1)
The authority of the insurer's agents in this state to represent the insurer is reinstated; and
(2)
The commissioner shall promptly notify the insurer and its agents in this state of the reinstatement.
Acts 1959, No. 148, § 59; A.S.A. 1947, § 66-2217; Acts 2005, No. 506, § 17; 2009, No. 726, § 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 3 - SERVICE OF PROCESS (§§ 23-63-301 — 23-63-304) › Section 23-63-301 - Registered office and registered agent for foreign or alien insurer and domestic reciprocal insurers

Each foreign insurer applying for a certificate of authority to transact business in Arkansas and every domestic reciprocal insurer must designate and continuously maintain in the state:
(1)
A registered office that may be the same as any of its places of business; and
(2)
A registered agent, who may be:
(A)
An individual who resides in this state and whose business office is identical with the registered office;
(B)
A state bank, domestic corporation, or not-for-profit corporation whose business office is identical with the registered office; or
(C)
A foreign corporation or foreign not-for-profit corporation authorized to transact business in this state whose business office is identical with the registered office.
(3)
(A)
On and after January 1, 2002, all foreign and alien insurers and all domestic reciprocal insurers holding a subsisting certificate of authority upon August 13, 2001, shall be subject to the provisions of this subchapter, and no later than January 1, 2003, shall file with the Insurance Commissioner the information required in this subchapter to designate an Arkansas-registered agent.
(B)
In the event no registered agent has yet been selected and appointed on the commissioner's list for any foreign or alien insurer or domestic reciprocal insurer licensed by the commissioner, service may be processed through the commissioner as agent or by other methods of service provided under Arkansas law to be effective until a new registered agent has been appointed on the records of the commissioner.
(4)
In this subchapter licensed foreign insurers shall be deemed to include licensed alien insurers.
Acts 1959, No. 148, § 60; A.S.A. 1947, § 66-2218; Acts 2001, No. 1604, § 30.
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 3 - SERVICE OF PROCESS (§§ 23-63-301 — 23-63-304) › Section 23-63-302 - Change of registered office or registered agent

(a)
A licensed foreign or alien insurer or a licensed domestic reciprocal insurer may change its registered office or registered agent by delivering to the Insurance Commissioner for filing a statement of change that sets forth:
(1)
Its name;
(2)
The street address of its current registered office;
(3)
If the current registered office is to be changed, the street address of its new registered office;
(4)
The name of its current registered agent;
(5)
If the current registered agent is to be changed, the name of its new registered agent with the new agent's written consent, either on the statement or attached to it, to the appointment; and
(6)
That after the change or changes are made, the street addresses of its registered office and the business office of its registered agent will be identical.
(b)
If a registered agent changes the street address of his or her business office, he or she may change the street address of the registered office of any foreign insurer holding a certificate of authority to transact business in Arkansas or any domestic reciprocal insurer for which he or she is the registered agent by notifying the insurer in writing of the change and signing, either manually or in facsimile, and delivering to the commissioner for filing a statement of change that complies with the requirements of subsection (a) of this section and recites that the insurer has been notified of the change.
Acts 1959, No. 148, § 61; 1983, No. 522, § 2; A.S.A. 1947, § 66-2219; Acts 1997, No. 1000, § 3; 2001, No. 1604, § 31.
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 3 - SERVICE OF PROCESS (§§ 23-63-301 — 23-63-304) › Section 23-63-303 - Resignation of registered agent

(a)
The registered agent of a licensed foreign insurer or a domestic reciprocal insurer may resign his or her agency appointment by signing and delivering to the Insurance Commissioner for filing the original and two (2) exact or conformed copies of a statement of resignation. The statement of resignation may include a statement that the registered office is also discontinued.
(b)
After filing the statement, the commissioner shall attach the filing receipt to one (1) copy and mail the copy and receipt to the registered office if not discontinued. The commissioner shall mail the other copy to the insurer at its principal office address shown in its most recent annual report.
(c)
The agency appointment is terminated, and the registered office discontinued if so provided, on the thirty-first day after the date on which the statement was filed.
Acts 2001, No. 1604, § 32.
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 3 - SERVICE OF PROCESS (§§ 23-63-301 — 23-63-304) › Section 23-63-304 - Service of process of foreign or alien insurers or domestic reciprocal insurers

(a)
The registered agent of a licensed foreign insurer or a licensed domestic reciprocal insurer is the insurer's agent for service of process, notice, or demand required or permitted by law to be served on the insurer.
(b)
A licensed foreign insurer or a licensed domestic reciprocal insurer may be served by registered or certified mail, return receipt requested, addressed to the president or the secretary at its principal office shown in its application for a certificate of authority or in its most recent annual statement if the insurer:
(1)
Has no registered agent or its registered agent cannot with reasonable diligence be served;
(2)
Has withdrawn from transacting business in this state under this subchapter; or
(3)
Has had its certificate of authority revoked under this subchapter.
(c)
When service is made under this section or upon the designated Arkansas-registered agent, service shall be perfected under the Arkansas Rules of Civil Procedure.
(d)
This section does not prescribe the only means or, necessarily, the required means of serving a licensed foreign insurer or a licensed domestic reciprocal insurer.
Acts 2001, No. 1604, § 32; 2005, No. 506, § 19.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-501 - Title

This subchapter may be cited as the "Insurance Holding Company Regulatory Act".
Acts 1971, No. 288, § 1; A.S.A. 1947, § 66-5001.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-502 - Legislative findings

(a)
(1)
It is found and declared that it may not be inconsistent with the public interest and the interest of policyholders and shareholders to permit insurers to:
(A)
Engage in activities which would enable them to make better use of management skills and facilities;
(B)
Diversify into new lines of business through acquisition or organization of subsidiaries;
(C)
Have free access to capital market which could provide funds for insurers to use in diversification programs;
(D)
Implement sound tax planning conclusions; and
(E)
Serve the changing needs of the public and adapt to changing conditions of the social, economic, and political environment so that insurers are able to compete effectively and to meet the growing public demand for institutions capable of providing a comprehensive range of financial services.
(2)
It is further found and declared that the public interest and the interests of policyholders and shareholders are or may be adversely affected when:
(A)
Control of an insurer is sought by persons who would utilize the control adversely to the interests of policyholders or shareholders;
(B)
Acquisition of control of an insurer would substantially lessen competition or create a monopoly in the insurance business in this state;
(C)
An insurer which is part of a holding company system is caused to enter into transactions or relationships with affiliated companies on terms which are not fair and reasonable; or
(D)
An insurer pays dividends to shareholders which jeopardize the financial condition of the insurer.
(3)
It is declared that the policies and purposes of this subchapter are to promote the public interest by:
(A)
Facilitating the achievement of the objectives enumerated in subsection (a) of this section;
(B)
Requiring disclosure of pertinent information relating to changes in control of an insurer;
(C)
Requiring disclosure by an insurer of material transactions and relationships between the insurer and its affiliates, including dividends to shareholders paid by the insurer; and
(D)
Providing standards governing material transactions between the insurer and its affiliates.
(4)
It is further declared that it is desirable to prevent unnecessary multiple and conflicting regulation of insurers.
(b)
Therefore, this state shall exercise regulatory authority over domestic insurers and, unless otherwise provided, not over nondomestic insurers, with respect to the matters contained herein.
Acts 1971, No. 288, § 2; A.S.A. 1947, § 66-5002.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-505 - Subsidiaries of insurer

(a)
Authorization.
Any domestic insurer, subject to this subchapter, either by itself or in cooperation with one (1) or more persons, may organize or acquire one (1) or more subsidiaries.
(b)
Qualification of Investment - When Determined.
Whether any investment pursuant to subsection (a) of this section meets the applicable requirements thereof is to be determined immediately after the investment is made, taking into account the then-outstanding principal balance on all previous investments in debt obligations and the value of all previous investments in equity securities as of the date they were made.
(c)
Cessation of Control.
If an insurer ceases to control a subsidiary, it shall dispose of any investment therein made pursuant to this section within three (3) years from the time of the cessation of control or within such further time as the Insurance Commissioner may prescribe unless, at any time after the investment shall have been made, the investment shall have met the requirements for investment under any other section of this subchapter and the insurer has notified the commissioner thereof.
Acts 1971, No. 288, § 4; A.S.A. 1947, § 66-5004.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-506 - Control of or merger with domestic insurer - Filing requirements - Definition

(a)
(1)
No person other than the issuer shall make a tender offer for or a request or invitation for tenders of, or enter into any agreement to exchange securities for, seek to acquire, or acquire, in the open market or otherwise, any voting security of a domestic insurer if, after the consummation thereof, the person would, directly or indirectly, or by conversion or by exercise of any right to acquire, be in control of the insurer.
(2)
No person shall enter into an agreement to merge with or otherwise acquire control of a domestic insurer or any person controlling a domestic insurer unless at the time the offer, request, or invitation is made or the agreement is entered into, or prior to the acquisition of the securities if no offer or agreement is involved:
(A)
The person has filed with the Insurance Commissioner and has sent to the insurer a statement containing the information required by this section and §§
23-63-507
-
23-63-513
; and
(B)
The offer, request, invitation, agreement, or acquisition has been approved by the commissioner in the manner prescribed in this section and §§
23-63-507
-
23-63-513
.
(b)
(1)
For purposes of this section, any person controlling a domestic insurer seeking to divest its controlling interest in the domestic insurer in any manner, shall file with the commissioner, with a copy to the insurer, confidential notice of its proposed divestiture at least thirty (30) days prior to the cessation of control.
(2)
The commissioner shall determine those instances in which the person seeking to divest or to acquire a controlling interest in an insurer will be required to file for and obtain approval of the transaction.
(c)
(1)
For the purposes of this section and §§
23-63-507
-
23-63-513
, a domestic insurer shall include any person controlling a domestic insurer unless the person, as determined by the commissioner, is either directly or through its affiliates primarily engaged in business other than the business of insurance. However, the person shall file a preacquisition notification with the commissioner containing the information set forth in §
23-63-527(b)
, sixty (60) days prior to the proposed effective date of the acquisition. Failure to file is subject to §
23-63-529(c)
.
(2)
As used in this section, "person" shall not include any securities broker holding, in the usual and customary brokers' function, less than twenty percent (20%) of the voting securities of an insurance company or of any person which controls an insurance company.
Amended by Act 2017, No. 386,§ 1, eff. 8/1/2017.
Acts 1971, No. 288, § 5; A.S.A. 1947, § 66-5005; Acts 1991, No. 723, § 21; 2001, No. 1604, § 33; 2005, No. 506, § 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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-507 - Control of or merger with domestic insurer - Exceptions

The provisions of §§
23-63-506
-
23-63-513
shall not apply to:
(1)
Any offers, requests, invitations, agreements, or acquisitions by the person referred to in §
23-63-506
of any voting security referred to in that section which, immediately prior to the consummation of the offer, request, invitation, agreement, or acquisition, was not issued and outstanding and the issuance of which will not have the effect of changing or influencing the control of a domestic insurer;
(2)
Any transaction which is subject to the provisions of §§
23-69-142
-
23-69-145
of the laws of this state, dealing with the merger or consolidation of two (2) or more insurers;
(3)
Any offer, request, invitation, agreement, or acquisition which the commissioner, by order, shall exempt therefrom as:
(A)
Not having been made or entered into for the purpose and not having the effect of changing or influencing the control of a domestic insurer; or
(B)
As otherwise not comprehended within the purposes of §§
23-63-506
-
23-63-513
.
Acts 1971, No. 288, § 5; 1985, No. 804, § 3; A.S.A. 1947, § 66-5005.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-509 - Control of or merger with domestic insurer - Alternative filing materials

If any offer, request, invitation, agreement, or acquisition referred to in §
23-63-506
is proposed to be made by means of a registration statement under the Securities Act of 1933 or in circumstances requiring the disclosure of similar information under the Securities Exchange Act of 1934 or under a state law requiring similar registration or disclosure, the person required to file the statement referred to in §
23-63-506
may utilize the documents in furnishing the information called for by that statement.
Acts 1971, No. 288, § 5; A.S.A. 1947, § 66-5005.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-511 - Control of or merger with domestic insurer - Mailings

(a)
All statements, amendments, or other materials filed pursuant to §
23-63-506
or §
23-63-508
and all notices of public hearings held pursuant to §
23-63-510
shall be mailed by the insurer to its shareholders within five (5) business days after the insurer has received the statements, amendments, other material, or notices.
(b)
The expenses of mailing shall be borne by the person making the filing.
(c)
As security for the payment of the expenses, the person shall file with the Insurance Commissioner an acceptable bond or other deposit in an amount to be determined by the commissioner.
Acts 1971, No. 288, § 5; A.S.A. 1947, § 66-5005.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-512 - Control of or merger with domestic insurer - Jurisdiction of courts - Service of process

(a)
The courts of this state are vested with jurisdiction over every person not resident, domiciled, or authorized to do business in this state who files a statement with the Insurance Commissioner under §§
23-63-506
-
23-63-513
and over all actions involving that person arising out of violations of §§
23-63-506
-
23-63-513
.
(b)
(1)
Each person shall be deemed to have performed acts equivalent to and constituting an appointment by the person of the commissioner to be his or her true and lawful attorney upon whom may be served all lawful process in any action, suit, or proceeding arising out of violations of §§
23-63-506
-
23-63-513
.
(2)
Copies of all lawful process shall be served on the commissioner and transmitted by registered or certified mail by the commissioner to the person at the person's last known address.
Acts 1971, No. 288, § 5; A.S.A. 1947, § 66-5005.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-513 - Control of or merger with domestic insurer - Violations

The following shall be violations of §§
23-63-506
-
23-63-513
:
(1)
The failure to file any statement, amendment, or other materials required to be filed pursuant to §
23-63-506
or §
23-63-508
; or
(2)
The effectuation or any attempt to effectuate an acquisition of control of, or merger with, a domestic insurer unless the Insurance Commissioner has given his or her approval thereto.
Acts 1971, No. 288, § 5; A.S.A. 1947, § 66-5005.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-518 - Rules

After compliance with §§
23-61-108
and
23-61-304
of the Arkansas Insurance Code, the Insurance Commissioner may issue such rules and orders as shall be necessary to carry out the provisions of this subchapter.
Amended by Act 2019, No. 315,§ 2631, eff. 7/24/2019.
Acts 1971, No. 288, § 10; A.S.A. 1947, § 66-5010.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-519 - Judicial review - Mandamus

(a)
(1)
Any person aggrieved by any act, determination, rule, regulation, order, or any other action of the Insurance Commissioner pursuant to this subchapter may appeal therefrom to the Pulaski County Circuit Court.
(2)
The court shall conduct its review without a jury and by trial de novo, except that, if all parties including the commissioner so stipulate, the review shall be confined to the record.
(3)
Portions of the record may be introduced by stipulation into evidence in a trial de novo as to those parties so stipulating.
(b)
The filing of an appeal pursuant to this section shall stay the application of any rule, regulation, order, or other action of the commissioner to the appealing party unless the court, after giving the party notice and an opportunity to be heard, determines that such a stay would be detrimental to the interests of policyholders, shareholders, creditors, or the public.
(c)
Any person aggrieved by any failure of the commissioner to act or make a determination required by this subchapter may petition the Pulaski County Circuit Court for a writ in the nature of a mandamus directing the commissioner to act or make the determination forthwith.
Acts 1971, No. 288, § 11; A.S.A. 1947, § 66-5011.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-520 - Voting of securities

(a)
When Prohibited.
(1)
No security which is the subject of any agreement or arrangement regarding acquisition, or which is acquired or to be acquired, in contravention of the provisions of this subchapter or of any rule or order issued by the Insurance Commissioner pursuant to this subchapter may be voted at any shareholders' meeting, or may be counted for quorum purposes, and any action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though the securities were not issued and outstanding.
(2)
However, no action taken at any meeting shall be invalidated by the voting of the securities unless the action would materially affect control of the insurer or unless the courts of this state have so ordered.
(3)
If an insurer or the commissioner has reason to believe that any security of the insurer has been or is about to be acquired in contravention of the provisions of this subchapter or of any rule or order issued by the commissioner pursuant to it, the insurer or the commissioner may apply to the Pulaski County Circuit Court to enjoin any offer, request, invitation, agreement, or acquisition made in contravention of §§
23-63-506
-
23-63-513
or any rule or order issued by the commissioner pursuant to it to enjoin the voting of any security so acquired, to void any vote of a security already cast at any meeting of shareholders, and for such other equitable relief as the nature of the case and the interests of the insurer's policyholders, creditors, and shareholders, or the public may require.
(b)
Sequestration of Voting Securities.
In any case in which a person has acquired or is proposing to acquire any voting securities in violation of this subchapter or any rule, regulation, or order issued by the commissioner pursuant to it, the Pulaski County Circuit Court may, on such notice as the court deems appropriate and upon the application of the insurer or the commissioner, seize or sequester any voting securities of the insurer owned directly or indirectly by the person and issue such orders with respect thereto as may be appropriate to effectuate the provisions of this subchapter. Notwithstanding any other provisions of law, for the purposes of this subchapter, the situs of the ownership of the securities of domestic insurers shall be deemed to be in this state.
Amended by Act 2019, No. 315,§ 2632, eff. 7/24/2019.
Acts 1971, No. 288, § 12; A.S.A. 1947, § 66-5012.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-521 - Injunctions

Whenever it appears to the Insurance Commissioner that any insurer or any director, officer, employee, or agent of an insurer has committed or is about to commit a violation of this subchapter or of any rule or order issued by the commissioner pursuant to it, the commissioner may apply to the Pulaski County Circuit Court for an order enjoining the insurer or the director, officer, employee, or agent of the insurer from violating or continuing to violate this subchapter or any rule or order, and for such other relief as the nature of the case and the interests of the insurer's policyholders, creditors, and shareholders or the public may require.
Amended by Act 2019, No. 315,§ 2633, eff. 7/24/2019.
Acts 1971, No. 288, § 12; A.S.A. 1947, § 66-5012.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-524 - Revocation, suspension, or nonrenewal of insurer's license

(a)
Whenever it appears to the Insurance Commissioner that any person has committed a violation of this subchapter which makes the continued operation of an insurer contrary to the interests of policyholders or the public, the commissioner may, after giving notice and an opportunity to be heard, determine to suspend, revoke, or refuse to renew the insurer's license or authority to do business in this state for such period as the commissioner finds is required for the protection of policyholders or the public.
(b)
Any determination shall be accompanied by specific findings of fact and conclusions of law.
Acts 1971, No. 288, § 15; A.S.A. 1947, § 66-5015.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-525 - Acquisitions involving insurers not otherwise covered - Definitions

The following definitions shall apply for the purposes of §§
23-63-525
-
23-63-530
only:
(1)
"Acquisition" means any agreement, arrangement, or activity the consummation of which results in a person acquiring directly or indirectly the control of another person, and includes, but is not limited to, the acquisition of voting securities, the acquisition of assets, bulk reinsurance, and mergers; and
(2)
An "involved insurer" includes an insurer which either acquires or is acquired, is affiliated with an acquirer or acquired, or is the result of a merger.
Acts 1991, No. 723, § 29.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-527 - Acquisitions involving insurers not otherwise covered - Preacquisition notification, waiting period

(a)
An acquisition covered by §
23-63-526
may be subject to an order pursuant to §
23-63-529
unless the acquiring person files a preacquisition notification and the waiting period has expired. The acquired person may file a preacquisition notification. The Insurance Commissioner shall give confidential treatment to information submitted under this section in the same manner as provided in §
23-63-517
.
(b)
The preacquisition notification shall be in such form and contain such information as prescribed by the National Association of Insurance Commissioners relating to those markets which, under §
23-63-526(b)(5)
, cause the acquisition not to be exempted from the provisions of §§
23-63-525
-
23-63-528
. The commissioner may require such additional material and information as he or she deems necessary to determine whether the proposed acquisition, if consummated, would violate the competitive standards of §
23-63-528
. The required information may include an opinion of an economist as to the competitive impact of the acquisition in this state accompanied by a summary of the education and experience of such a person indicating his or her ability to render an informed opinion.
(c)
The waiting period required shall begin on the date of receipt by the commissioner of a preacquisition notification and shall end on the earlier of the thirtieth day after the date of the receipt or termination of the waiting period by the commissioner. Prior to the end of the waiting period, the commissioner on a one-time basis may require the submission of additional needed information relevant to the proposed acquisition, in which event the waiting period shall end on the earlier of the thirtieth day after receipt of the additional information by the commissioner or termination of the waiting period by the commissioner.
Acts 1991, No. 723, § 29.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-529 - Acquisitions involving insurers not otherwise covered - Orders and penalties

(a)
(1)
If an acquisition violates the standards of §§
23-63-525
-
23-63-528
, the Insurance Commissioner may enter an order:
(A)
Requiring an involved insurer to cease and desist from doing business in this state with respect to the line or lines of insurance involved in the violation; or
(B)
Denying the application of an acquired or acquiring insurer for a license to do business in this state.
(2)
Such an order shall not be entered unless there is a hearing, and notice of the hearing is issued prior to the end of the waiting period and not less than ten (10) days prior to the hearing, and the hearing is concluded and the order is issued no later than sixty (60) days after the end of the waiting period. Every order shall be accompanied by a written decision of the commissioner setting forth his or her findings of fact and conclusions of law.
(3)
An order entered under this subsection shall not become final earlier than thirty (30) days after it is issued during which time the involved insurer may submit a plan to remedy the anticompetitive impact of the acquisition within a reasonable time. Based upon such a plan or other information, the commissioner shall specify the conditions, if any, under the time period during which the aspects of the acquisition causing a violation of the standards of §§
23-63-525
-
23-63-528
would be remedied and the order vacated and modified.
(4)
An order pursuant to this subsection shall not apply if the acquisition is not consummated.
(b)
Any person who violates a cease and desist order of the commissioner under subsection (a) of this section and while such an order is in effect may after notice and hearing and upon order of the commissioner be subject at the discretion of the commissioner to any one (1) or more of the following:
(1)
A monetary penalty of not more than ten thousand dollars ($10,000) for every day of violation; and
(2)
Suspension or revocation of the person's license.
(c)
Any insurer or other person who fails to make any filing required by §§
23-63-525
-
23-63-528
and who fails to demonstrate a good faith effort to comply with any such filing requirement shall be subject to a fine of not more than fifty thousand dollars ($50,000).
Acts 1991, No. 723, § 29.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-530 - Acquisitions involving insurers not otherwise covered - Inapplicable provisions

Sections
23-63-520
and
23-63-523
do not apply to acquisitions covered under §
23-63-526
.
Acts 1991, No. 723, § 29.
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 5 - INSURANCE HOLDING COMPANY REGULATORY ACT (§§ 23-63-501 — 23-63-532) › Section 23-63-531 - Supervisory colleges

(a)
(1)
The Insurance Commissioner may participate in a supervisory college for a domestic insurer registered under §
23-63-514
that is part of an insurance holding company system with international operations to determine compliance by the insurer with this section.
(2)
The commissioner may participate in a supervisory college for a domestic insurer that includes without limitation:
(A)
Initiating the establishment of a supervisory college;
(B)
Clarifying the membership and participation of other supervisors in the supervisory college;
(C)
Clarifying the functions of the supervisory college, the role of other regulators, and establishing a group-wide supervisor;
(D)
Coordinating the ongoing activities of the supervisory college, including planning meetings, supervisory activities, and procedures to share information; and
(E)
Establishing a crisis management plan.
(b)
(1)
(A)
A domestic insurer subject to this section is liable for and shall pay any reasonable expenses, including reasonable travel expenses, of the commissioner's participation in a supervisory college under subsection (c) of this section.
(B)
The commissioner may establish a regular assessment to the domestic insurer for the expenses described in subdivision (b)(1)(A) of this section.
(2)
For purposes of this section, a supervisory college may be convened as either a temporary or permanent forum for communication and cooperation between the regulators charged with the supervision of the domestic insurer or its affiliates.
(c)
(1)
In order to assess the business strategy, financial, legal, and regulatory position, risk exposure, risk management, and governance processes, and as part of the examination of individual insurers according to §
23-63-516
, the commissioner may participate in a supervisory college with other regulators that are charged with supervision of the insurer or its affiliates, including other state, federal, and international regulatory agencies.
(2)
The commissioner may enter into agreements according to §
23-63-517(c)
providing the basis for cooperation among the commissioner, the other regulatory agencies, and the activities of the supervisory college.
(3)
This section does not delegate to the supervisory college any authority of the commissioner to regulate or supervise the domestic insurer or its affiliates within the commissioner's jurisdiction.
Added by Act 2015, No. 1223,§ 14, 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 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 6 - FINANCIAL REPORTING STANDARDS (§§ 23-63-601 — 23-63-614) › Section 23-63-601 - Definition

In any determination of the financial condition, including whether an asset is allowable, of a domestic insurer, domestic title insurer, or other domestic regulated entities reporting to the Insurance Commissioner, including health maintenance organizations, hospital or medical service corporations, farmers' mutual aid associations or companies, and other licensees, all hereinafter called "reporting entities" for purposes of this subchapter, the definition of an "asset" contained in the National Association of Insurance Commissioners' publication as it existed on January 1, 2001, entitled the "Accounting Practices and Procedures Manual", with certain additions, will be used in the determination. Additions shall include, but may not be limited to, the following:
(1)
(A)
Electronic data processing equipment, licenses, and operating system software, excluding any amount paid to officers and employees of the reporting entity, necessary for installation and use of a data processing or accounting system, or both, to be used in connection with the business of the insurer or reporting entity.
(B)
Commencing on and after January 1, 2001, assets allowed under this section, as well as nonoperating system software, shall be accounted for in accordance with the National Association of Insurance Commissioners' publication as it existed on January 1, 2001, entitled the "Accounting Practices and Procedures Manual"; and
(2)
Other assets as specified by the commissioner in a rule.
Amended by Act 2019, No. 315,§ 2634, eff. 7/24/2019.
Acts 1959, No. 148, § 82; 1961, No. 466, § 9; 1973, No. 195, § 1; 1975, No. 729, § 7; 1981, No. 809, § 2; A.S.A. 1947, § 66-2501; Acts 2001, No. 1566, § 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 6 - FINANCIAL REPORTING STANDARDS (§§ 23-63-601 — 23-63-614) › Section 23-63-602 - Assets as deductions from liabilities

Assets may be allowed as deductions from corresponding liabilities, and liabilities may be charged as deductions from assets. Deductions from assets may be charged as liabilities in accordance with the National Association of Insurance Commissioners' publication as it existed on January 1, 2001, entitled the "Accounting Practices and Procedures Manual".
Acts 1959, No. 148, § 83; A.S.A. 1947, § 66-2502; Acts 2001, No. 1566, § 4.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 6 - FINANCIAL REPORTING STANDARDS (§§ 23-63-601 — 23-63-614) › Section 23-63-603 - Assets not allowed

Assets not allowed shall be those so referenced or described as nonadmitted in the National Association of Insurance Commissioners' publication as it existed on January 1, 2001, entitled the "Accounting Practices and Procedures Manual", unless otherwise specified in this subchapter.
Acts 1959, No. 148, § 84; A.S.A. 1947, § 66-2503; Acts 2001, No. 1566, § 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 6 - FINANCIAL REPORTING STANDARDS (§§ 23-63-601 — 23-63-614) › Section 23-63-604 - Liabilities - In general

In any determination of the financial condition of a reporting entity, liabilities shall include definitions and amounts specified in the National Association of Insurance Commissioners' publication as it existed on January 1, 2001, entitled the "Accounting Practices and Procedures Manual".
Acts 1959, No. 148, § 85; A.S.A. 1947, § 66-2504; Acts 2001, No. 1566, § 6.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 6 - FINANCIAL REPORTING STANDARDS (§§ 23-63-601 — 23-63-614) › Section 23-63-610 - Assets - Conflict of treatment between this subchapter and section 23-63-801 et seq

In the event of a conflict as to treatment of assets between this subchapter and §
23-63-801
et seq., this subchapter shall govern.
Acts 1959, No. 148, § 91; A.S.A. 1947, § 66-2510; Acts 2001, No. 1566, § 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 6 - FINANCIAL REPORTING STANDARDS (§§ 23-63-601 — 23-63-614) › Section 23-63-611 - Asset valuation

Assets of reporting entities shall be valued in accordance with the following:
(1)
Bonds and securities shall be valued in accordance with the methods specified in the National Association of Insurance Commissioners' publication as it existed on January 1, 2001, entitled the "Valuation of Securities Manual", prepared by the Securities Valuation Office;
(2)
Shares of stock shall be valued in accordance with the methods specified in the National Association of Insurance Commissioners' publication as it existed on January 1, 2001, entitled the "Accounting Practices and Procedures Manual"; and
(3)
Other assets shall be valued as specified by the Insurance Commissioner in a rule, according to §
23-63-601(2)
, which method of valuation is not inconsistent with the National Association of Insurance Commissioners' publication as it existed on January 1, 2023, entitled the "Valuation of Securities Manual", prepared by the Capital Markets and Investment Analysis Office.
Amended by Act 2023, No. 469,§ 4, eff. 8/1/2023.
Amended by Act 2019, No. 315,§ 2635, eff. 7/24/2019.
Acts 1959, No. 148, §§ 93, 94; A.S.A. 1947, §§ 66-2512, 66-2513; Acts 1995, No. 1272, § 13; 2001, No. 1566, § 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 6 - FINANCIAL REPORTING STANDARDS (§§ 23-63-601 — 23-63-614) › Section 23-63-612 - Purpose - Compliance date

(a)
It is the intention of this act to allow the Insurance Commissioner to adopt rules to modernize and harmonize the financial accounting laws of this state governing assets and liabilities of domestic reporting entities as defined. This act requires domestic health maintenance organizations, domestic title insurers, and other types of domestic licensees to modernize financial accounting methods in order to comply with laws and rules of the state applicable to domestic insurance companies and reporting entities. The provisions of this act are designed to allow domestic licensees to compete in the financial and insurance markets with changing federal and state laws, particularly those dealing with the treatment of assets, liabilities, and financial accounting.
(b)
The provisions of this act are intended to and shall govern the financial reports for the year 2001 of domestic reporting entities and shall govern the annual report for the year 2001 of domestic reporting entities due at the State Insurance Department on and after March 1, 2002, and supported by quarterly reports of 2001 for the first three (3) quarters. The provisions of this act shall govern as to all quarterly and annual financial reports due in subsequent reporting periods.
(c)
This act shall govern:
(1)
Domestic stock and mutual insurers;
(2)
Domestic reciprocal and stipulated premium plan insurers;
(3)
Domestic mutual assessment life and disability insurers;
(4)
Domestic farmers' mutual aid associations or companies;
(5)
Domestic title insurers;
(6)
Domestic health maintenance organizations;
(7)
Domestic hospital or medical service organizations;
(8)
Domestic licensed casualty insurers transacting business as a risk retention group; or
(9)
Other domestic reporting entities as used in this act.
(d)
Provided, however, if the immediate application of this act would have the effect of reducing any domestic reporting entity's statutory surplus, whether due to the nonadmission or reduction in admissible value of any then-existing asset or an increase in its then-existing liabilities or other changes, the domestic reporting entity may continue to reflect such assets and liabilities on its statutory financial statements as they could have been reflected but for the enactment of this act until the annual statement filing for the year ending December 31, 2004.
Acts 1959, No. 148, § 95; A.S.A. 1947, § 66-2514; Acts 1995, No. 1272, § 14; 2001, No. 1566, § 10.