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 70 - RECIPROCAL INSURERS (§§ 23-70-101 — 23-70-124) › Section 23-70-108 - Power of attorney

(a)
The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers.
(b)
The power of attorney must set forth:
(1)
The powers of the attorney;
(2)
That the attorney is empowered to accept service of process on behalf of the insurer in actions against the insurer upon contracts exchanged;
(3)
The general services to be performed by the attorney;
(4)
The maximum amount to be deducted from advance premiums or deposits to be paid to the attorney and the general items of expense in addition to losses, to be paid by the insurer; and
(5)
Except as to nonassessable policies, a provision for a contingent several liability of each subscriber in a specified amount, which amount shall be not less than one (1) nor more than ten (10) times the premium or premium deposit stated in the policy.
(c)
The power of attorney may:
(1)
Provide for the right of substitution of the attorney and revocation of the power of attorney and rights thereunder;
(2)
Impose such restrictions upon the exercise of the power as are agreed upon by the subscribers;
(3)
Provide for the exercise of any right reserved to the subscribers directly or through their advisory committee; and
(4)
Contain other lawful provisions deemed advisable.
(d)
The terms of any power of attorney or agreement collateral thereto shall be reasonable and equitable.
Acts 1959, No. 148, § 519; A.S.A. 1947, § 66-4310.
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 23-70-109 - Modifications

(a)
Modifications of the terms of the subscribers' agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers' advisory committee.
(b)
No modification shall be effective retroactively, nor as to any insurance contract issued prior thereto.
Acts 1959, No. 148, § 520; A.S.A. 1947, § 66-4311.
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 23-70-110 - Attorney's bond required - Exception

(a)
(1)
Concurrently with the filing of the declaration provided for in §
23-70-106
, the attorney of a domestic reciprocal insurer shall file with the Insurance Commissioner a bond in favor of this state for the benefit of all persons damaged as a result of breach by the attorney of the conditions of his or her bond as set forth in subdivision (a)(2) of this section. The bond shall be executed by the attorney and by an authorized corporate surety and shall be subject to the commissioner's approval.
(2)
The bond shall be in the penal sum of twenty-five thousand dollars ($25,000), aggregate in form, conditioned that the attorney will faithfully account for all moneys and other property of the insurer coming into his or her hands and that he or she will not withdraw nor appropriate to his or her own use from the funds of the insurer any moneys or property to which he or she is not entitled under the power of attorney.
(3)
The bond shall provide that it is not subject to cancellation unless thirty (30) days' advance notice in writing of cancellation is given both the attorney and the commissioner.
(b)
In lieu of the bond required under subsection (a) of this section, the attorney may maintain on deposit through the office of the commissioner a like amount in cash or in value of securities eligible for deposit under §
23-63-903
and subject to the same conditions as the bond.
(c)
Action on the attorney's bond or to recover against any deposit made in lieu of the attorney's bond may be brought at any time by one (1) or more subscribers suffering loss through a violation of its conditions, or by a receiver or liquidator of the insurer. Amounts recovered on the bond shall be deposited in and become part of the insurer's funds. The total aggregate liability of the surety shall be limited to the amount of the penalty of the bond.
Acts 1959, No. 148, §§ 521-523; A.S.A. 1947, §§ 66-4312 -- 66-4314.
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 23-70-111 - Service of process - Judgment

(a)
Legal process shall be served upon a domestic reciprocal insurer by serving the insurer's attorney at his or her principal offices. Alternatively, service may be made by use of an Arkansas resident agent for service of process appointed on behalf of the insurer in accordance with §
23-63-301
et seq., on and after January 1, 2003.
(b)
Any judgment based upon legal process so served shall be binding upon each of the insurer's subscribers as their respective interests may appear, but in an amount not exceeding their respective contingent liabilities, if any, the same as though personal service of process was had upon each subscriber.
Acts 1959, No. 148, § 524; A.S.A. 1947, § 66-4315; Acts 2001, No. 1604, § 69.
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 23-70-112 - Contributions to insurer

(a)
The attorney or other parties may advance to a domestic reciprocal insurer, upon reasonable terms, such funds as it may require from time to time in its operations.
(b)
Sums so advanced shall not be treated as a liability of the insurer and, except upon liquidation of the insurer, shall not be withdrawn or repaid except out of the insurer's realized earned surplus in excess of its minimum required surplus.
(c)
No withdrawal or repayment shall be made without the advance approval of the Insurance Commissioner.
(d)
This section does not apply as to bank loans or to loans for which security is given.
Acts 1959, No. 148, § 525; A.S.A. 1947, § 66-4316.
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 23-70-113 - Annual statement

(a)
The annual statement of a reciprocal insurer shall be made and filed by its attorney.
(b)
The statement shall be supplemented by such information as may be required by the Insurance Commissioner relative to the affairs and transactions of the attorney insofar as they pertain to the reciprocal insurer.
Acts 1959, No. 148, § 526; A.S.A. 1947, § 66-4317.
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 23-70-114 - Method of determining financial condition

In determining the financial condition of a reciprocal insurer, the Insurance Commissioner shall apply the following rules:
(1)
He or she shall charge as liabilities the same reserves as are required of incorporated insurers issuing nonassessable policies on a reserve basis;
(2)
The surplus deposits of subscribers shall be allowed as assets, except that any premium deposits delinquent for ninety (90) days shall first be charged against the surplus deposit;
(3)
The surplus deposits of subscribers shall not be charged as a liability;
(4)
All premium deposits delinquent less than ninety (90) days shall be allowed as assets;
(5)
An assessment levied upon subscribers, and not collected, shall not be allowed as an asset;
(6)
The contingent liability of subscribers shall not be allowed as an asset; and
(7)
The computation of reserves shall be based upon premium deposits other than membership fees and without any deduction for expenses and the compensation of the attorney.
Acts 1959, No. 148, § 527; A.S.A. 1947, § 66-4318.
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 23-70-115 - Subscribers generally

(a)
Individuals, partnerships, and corporations of this state may make application, enter into agreement for, and hold policies or contracts in or with, and be a subscriber of, any domestic, foreign, or alien reciprocal insurer.
(b)
Any corporation organized under the laws of this state, in addition to the rights, powers, and franchises specified in its articles of incorporation, shall have full power and authority as a subscriber to exchange insurance contracts through a reciprocal insurer.
(c)
The right to exchange contracts is declared to be incidental to the purposes for which the corporations are organized and to be as fully granted as the rights and powers expressly conferred upon such corporations.
(d)
Government or governmental agencies, state or political subdivisions thereof, boards, associations, estates, trustees, or fiduciaries are authorized to exchange nonassessable reciprocal interinsurance contracts with each other and with individuals, partnerships, and corporations to the same extent that individuals, partnerships, and corporations are herein authorized to exchange reciprocal interinsurance contracts.
(e)
Any officer, representative, trustee, receiver, or legal representative of any such subscriber shall be recognized as acting for or on its behalf for the purpose of the contract but shall not be personally liable upon the contract by reason of acting in a representative capacity.
Acts 1959, No. 148, § 528; A.S.A. 1947, § 66-4319.
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 23-70-116 - Subscribers' advisory committee

(a)
The advisory committee of a domestic reciprocal insurer exercising the subscribers' rights shall be selected under such rules as the subscribers adopt.
(b)
Not less than two-thirds (2/3) of the committee shall be subscribers, other than the attorney or any person employed by, representing, or having a financial interest in the attorney.
(c)
The committee shall:
(1)
Supervise the finances of the insurer;
(2)
Supervise the insurer's operations to such extent as to assure conformity with the subscribers' agreement and power of attorney;
(3)
Procure the audit of the accounts and records of the insurer and of the attorney at the expense of the insurer; and
(4)
Have such additional powers and functions as may be conferred by the subscribers' agreement.
Acts 1959, No. 148, § 529; A.S.A. 1947, § 66-4320.
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 23-70-117 - Subscribers' liability

(a)
The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer shall be an individual, several, and proportionate liability and not a joint liability.
(b)
Except as to a nonassessable policy, each subscriber shall have a contingent assessment liability, in the amount provided for in the power of attorney or in the subscribers' agreement, for payment of actual losses and expenses incurred while his or her policy was in force. The contingent liability may be at the rate of not less than one (1) nor more than ten (10) times the premium or premium deposit stated in the policy, and the maximum aggregate thereof shall be computed in the manner set forth in §
23-70-119
.
(c)
Each assessable policy issued by the insurer shall contain a statement of the contingent liability.
(d)
(1)
No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for thirty (30) days.
(2)
Any judgment shall be binding upon each subscriber only in such proportion as his or her interests may appear and in an amount not exceeding his or her contingent liability, if any.
Acts 1959, No. 148, §§ 530, 531; A.S.A. 1947, §§ 66-4321, 66-4322.
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 23-70-118 - Assessments

(a)
Assessments may be levied from time to time upon subscribers of a domestic reciprocal insurer, liable therefor under the terms of their policies, by the attorney upon approval in advance by the subscribers' advisory committee and the Insurance Commissioner or by the commissioner in liquidation of the insurer.
(b)
Each subscriber's share of a deficiency for which an assessment is made, but not exceeding in any event his or her aggregate contingent liability as computed in accordance with §
23-70-119
, shall be computed by applying to the premiums earned on the subscribers' policies during the period to be covered by the assessment the ratio of the total deficiency to the total premiums earned during the period upon all policies subject to the assessment.
(c)
In computing the earned premiums for the purposes of this section, the gross premiums received by the insurer for the policy shall be used as a base, solely deducting therefrom charges not recurring upon the renewal or extension of the policy.
(d)
No subscriber shall have an offset against any assessment for which he or she is liable on account of any claim for unearned premiums or losses payable.
(e)
Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for and shall pay his or her share of any assessment, as computed and limited in accordance with this chapter, if:
(1)
While his or her policy is in force or within one (1) year after its termination, he or she is notified by either the attorney or the commissioner of his or her intentions to levy the assessment; or
(2)
An order to show cause why a receiver, conservator, rehabilitator, or liquidator of the insurer should not be appointed is issued while his or her policy is in force or within one (1) year after its termination.
Acts 1959, No. 148, §§ 532, 533; A.S.A. 1947, §§ 66-4323, 66-4324.
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 23-70-119 - Aggregate liability

No one (1) policy or subscriber as to the policy shall be assessed or charged with an aggregate of contingent liability as to obligations incurred by a domestic reciprocal insurer in any one (1) calendar year in excess of the amount provided for in the power of attorney or in the subscribers' agreement, computed solely upon premium earned on the policy during that year.
Acts 1959, No. 148, § 534; A.S.A. 1947, § 66-4325.
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 23-70-120 - Nonassessable policies

(a)
If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum capital stock required of a domestic stock insurer authorized to transact like kinds of insurance, then, upon application of the attorney and as approved by the subscribers' advisory committee, the Insurance Commissioner shall issue his or her certificate authorizing the insurer to extinguish the contingent liability of subscribers under its policies then in force in this state and to omit provisions imposing contingent liability in all policies delivered or issued for delivery in this state for so long as all the surplus remains unimpaired.
(b)
Upon impairment of the surplus, the commissioner shall forthwith revoke the certificate. The revocation shall not render subject to contingent liability any policy then in force and for the remainder of the period for which the premium has theretofore been paid. However, after the revocation, no policy shall be issued or renewed without providing for contingent assessment liability of the subscriber.
Acts 1959, No. 148, § 535; A.S.A. 1947, § 66-4326.
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 23-70-121 - Distribution of savings

(a)
A reciprocal insurer may return to its subscribers from time to time any unused premiums, savings, or credits accruing to their accounts.
(b)
Any distribution shall not unfairly discriminate between classes of risks, or policies, or between subscribers, but the distribution may vary as to classes of subscribers based upon the experience of those subscribers.
Acts 1959, No. 148, § 536; A.S.A. 1947, § 66-4327.
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 23-70-122 - Subscribers' share in assets

Upon the liquidation of a domestic reciprocal insurer, its assets remaining after discharge of its indebtedness and policy obligations, the return of any contributions of the attorney or other persons to its surplus made as provided in §
23-70-112
, and the return of any unused premium, savings, or credits then standing on subscribers' accounts, shall be distributed to its subscribers who were subscribers within the twelve (12) months prior to the last termination of its certificate of authority, according to such reasonable formula as the Insurance Commissioner may approve.
Acts 1959, No. 148, § 537; A.S.A. 1947, § 66-4328.
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 23-70-123 - Merger or conversion

(a)
A domestic reciprocal insurer, upon affirmative vote of not less than two-thirds (2/3) of its subscribers who vote on the merger pursuant to due notice and the approval of the Insurance Commissioner of the terms therefor, may merge with another reciprocal insurer or be converted to a stock or mutual insurer.
(b)
The stock or mutual insurer shall be subject to the same capital or surplus requirements and shall have the same rights as a like domestic insurer transacting like kinds of insurance.
(c)
The commissioner shall not approve any plan for the merger or conversion which is inequitable to subscribers, or which, if for conversion to a stock insurer, does not give each subscriber preferential right to acquire stock of the proposed insurer proportionate to his or her interest in the reciprocal insurer as determined in accordance with §
23-70-122
and a reasonable length of time within which to exercise the right.
Acts 1959, No. 148, § 538; A.S.A. 1947, § 66-4329.
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 23-70-124 - Impaired reciprocals

(a)
If the assets of a reciprocal insurer are at any time insufficient to discharge its liabilities, other than any liability on account of funds contributed by the attorney or others, and to maintain the required surplus, its attorney shall immediately make up the deficiency or levy an assessment upon the subscribers for the amount needed to make up the deficiency, but subject to the limitation set forth in the power of attorney or policy.
(b)
If the attorney fails to make up the deficiency or to make the assessment within thirty (30) days after the Insurance Commissioner orders the attorney to do so or if the deficiency is not fully made up within sixty (60) days after the date the assessment was made, the insurer shall be deemed insolvent and shall be proceeded against as authorized by §§
23-68-101
-
23-68-113
and
23-68-115
-
23-68-132
.
(c)
If liquidation of the insurer is ordered, an assessment shall be levied upon the subscribers for such an amount, subject to limits as provided by this chapter, as the commissioner determines to be necessary to discharge all liabilities of the insurer, exclusive of any funds contributed by the attorney or other persons, but including the reasonable cost of the liquidation.
Acts 1959, No. 148, § 539; A.S.A. 1947, § 66-4330.
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 71 - STIPULATED PREMIUM INSURERS (§§ 23-71-101 — 23-71-116) › Section 23-71-101 - Definition

As used in the Arkansas Insurance Code, unless the context otherwise requires, a "stipulated premium plan insurer" is one issuing policies or certificates promising money or other benefits to a member or policyholder upon his or her disability or, upon his or her decease, to his or her legal representatives or beneficiaries designated by him or her, which money or benefit is derived from stipulated premiums collected in advance from those members or policyholders and from interest and other accumulations, and which insurer was not required, prior to January 1, 1960, to set aside a fixed policy reserve such as is required of legal reserve insurers.
Acts 1959, No. 148, § 541; 1967, No. 393, § 1; A.S.A. 1947, § 66-4402.
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 71 - STIPULATED PREMIUM INSURERS (§§ 23-71-101 — 23-71-116) › Section 23-71-102 - Scope

(a)
This chapter applies only to stipulated premium plan insurers.
(b)
No provisions of the Arkansas Insurance Code shall apply to stipulated premium plan insurers unless contained or referred to in this chapter.
Acts 1959, No. 148, § 540; A.S.A. 1947, § 66-4401.
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 71 - STIPULATED PREMIUM INSURERS (§§ 23-71-101 — 23-71-116) › Section 23-71-104 - Incorporation, reincorporation, or formation prohibited

No corporation or other entity shall be incorporated, reincorporated, or formed in this state as a stipulated premium plan insurer after January 1, 1960.
Acts 1959, No. 148, § 543; A.S.A. 1947, § 66-4404.
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 71 - STIPULATED PREMIUM INSURERS (§§ 23-71-101 — 23-71-116) › Section 23-71-105 - Reserves and nonforfeiture provisions required

(a)
Stipulated premium insurers shall be required to maintain reserves on all life insurance policies, annuity and endowment contracts, and disability insurance policies issued on and after January 1, 1968, in the following manner:
(1)
Reserves on all stipulated premium life insurance policies and annuity and endowment contracts shall be established and maintained in accordance with the provisions of the Standard Valuation Law for Life Insurance and Annuities, §
23-84-101
et seq.; and
(2)
Reserves on all stipulated premium accident and health insurance policies shall be established and maintained in accordance with the provisions of §
23-63-601
et seq. as to required insurance reserves.
(b)
Stipulated premium insurers shall be required to insert in all life insurance policies and annuity and endowment contracts issued on and after January 1, 1968, a provision for nonforfeiture law under the Standard Nonforfeiture Law for Life Insurance, §
23-81-201
et seq.
Acts 1959, No. 148, § 541; 1967, No. 393, § 1; A.S.A. 1947, § 66-4402; Acts 2001, No. 1566, § 14.
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 71 - STIPULATED PREMIUM INSURERS (§§ 23-71-101 — 23-71-116) › Section 23-71-106 - Use of "stipulated premium" prohibited - Exception

No insurer shall use the term "stipulated premium" in its insurance applications or contracts, or print or use that term in its policies or literature, unless lawfully authorized to transact insurance in this state on the stipulated premium plan.
Acts 1959, No. 148, § 542; A.S.A. 1947, § 66-4403.
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 71 - STIPULATED PREMIUM INSURERS (§§ 23-71-101 — 23-71-116) › Section 23-71-107 - Articles of incorporation and capital stock

The articles of incorporation and paid-up capital stock of a stipulated premium plan insurer shall be the same as required of it under laws in force immediately prior to January 1, 1960.
Acts 1959, No. 148, § 543; A.S.A. 1947, § 66-4404.
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 71 - STIPULATED PREMIUM INSURERS (§§ 23-71-101 — 23-71-116) › Section 23-71-108 - New insurers

No insurer shall transact insurance on the stipulated premium plan in this state unless it lawfully had authority to transact the insurance on January 1, 1960.
Acts 1959, No. 148, § 544; A.S.A. 1947, § 66-4405.
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 71 - STIPULATED PREMIUM INSURERS (§§ 23-71-101 — 23-71-116) › Section 23-71-109 - Insuring powers

On the stipulated premium plan, an insurer may insure the lives of individuals and may provide for indemnity against death or disability of the insured occasioned by sickness or accident.
Acts 1959, No. 148, § 545; A.S.A. 1947, § 66-4406.
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 71 - STIPULATED PREMIUM INSURERS (§§ 23-71-101 — 23-71-116) › Section 23-71-111 - Policies - Liability

(a)
Every policy issued by a stipulated premium plan insurer in this state shall specify the sum of money which it promises to pay upon each contingency insured against and the time of payment after satisfactory proof of the happening of the contingency.
(b)
Unless the contract has been voided by fraud or breach of its conditions and warranties, the insurer shall be obligated to the insured for payment at the times specified of the amount due under the policy.
Acts 1959, No. 148, § 548; A.S.A. 1947, § 66-4409.
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 71 - STIPULATED PREMIUM INSURERS (§§ 23-71-101 — 23-71-116) › Section 23-71-112 - Benefits not subject to attachment

The money or other benefit, charity, relief, or aid to be paid, provided, or rendered by an insurer authorized to do business under this chapter shall not be liable to attachment or other process and shall not be seized, taken, appropriated, or applied by any legal or equitable process, by operation of law, to pay any debt or liability of a policy or certificate holder or of any beneficiary named in the policy or certificate.
Acts 1959, No. 148, § 549; A.S.A. 1947, § 66-4410.
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 71 - STIPULATED PREMIUM INSURERS (§§ 23-71-101 — 23-71-116) › Section 23-71-113 - Insolvency

(a)
From and after January 1, 1968, the capital of a stipulated premium plan insurer shall be deemed to be impaired and the insurer shall be deemed to be insolvent when the insurer is not possessed of assets equal to all liabilities including the reserves set forth in §
23-71-105(a)
together with its total issued and outstanding capital stock.
(b)
(1)
If the Insurance Commissioner finds a stipulated premium plan insurer to be insolvent, the commissioner shall notify the insurer of the insolvency, stating the amount thereof and allowing the insurer a reasonable period of not less than sixty (60) days in which to cure the insolvency.
(2)
If the insurer fails to cure the insolvency within the period so allowed by the commissioner, then the commissioner shall immediately revoke its certificate of authority and institute proceedings for the liquidation of the insurer under §§
23-68-101
-
23-68-113
and
23-68-115
-
23-68-132
.
Acts 1959, No. 148, §§ 550, 551; 1967, No. 393, § 3; A.S.A. 1947, §§ 66-4411, 66-4412.
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 71 - STIPULATED PREMIUM INSURERS (§§ 23-71-101 — 23-71-116) › Section 23-71-114 - Personal liability

No officer, director, stockholder, or employee shall, as such, be personally liable for the losses or liability of any stipulated premium plan insurer.
Acts 1959, No. 148, § 552; A.S.A. 1947, § 66-4413.
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 71 - STIPULATED PREMIUM INSURERS (§§ 23-71-101 — 23-71-116) › Section 23-71-115 - Merger, consolidation, or adoption of plan of exchange

(a)
A stipulated premium plan insurer may merge or consolidate into another stipulated premium plan insurer or into a stock insurer authorized to transact insurance in this state, or it may adopt a plan of exchange of the outstanding stock of its stockholders in accordance with the procedures prescribed by §§
23-69-142
-
23-69-148
.
(b)
A mutual assessment insurer may merge into a stipulated premium plan insurer under §
23-72-119
.
Acts 1959, No. 148, § 553; 1985, No. 804, § 12; A.S.A. 1947, § 66-4414.
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 71 - STIPULATED PREMIUM INSURERS (§§ 23-71-101 — 23-71-116) › Section 23-71-116 - Conversion to legal reserve insurer

A stipulated premium plan insurer may be converted to a legal reserve stock life and accident and health insurer subject to the following conditions:
(1)
The insurer's articles of incorporation shall be amended to provide for transaction of insurance on a legal reserve basis;
(2)
When first so converted, the insurer shall have paid-in capital stock of at least twenty-five thousand dollars ($25,000) and surplus funds of at least twelve thousand five hundred dollars ($12,500). At the end of the fifth calendar year next succeeding the calendar year in which the insurer was converted, its paid-in capital stock shall be not less than thirty-seven thousand five hundred dollars ($37,500). At the end of the tenth and subsequent calendar years next succeeding the calendar year in which the insurer was so converted, its paid-up capital stock shall be not less than fifty thousand dollars ($50,000);
(3)
The insurer shall write no new business on the stipulated premium plan following the date of conversion;
(4)
Stipulated premium plan business in force on the date of conversion may continue in force on the same plan. However, the insurer shall maintain separate accounts of its stipulated premium plan business and its legal reserve business;
(5)
The maximum single risk retained by the insurer after conversion shall not exceed five percent (5%) of the insurer's paid-in capital stock until the paid-in capital stock amounts to one hundred thousand dollars ($100,000) or more; and
(6)
After conversion the insurer shall otherwise have the same powers and obligations as like legal reserve insurers under the Arkansas Insurance Code.
Acts 1959, No. 148, § 554; A.S.A. 1947, § 66-4415; Acts 2001, No. 1603, § 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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-101 - Definitions

As used in this chapter, unless the context otherwise requires:
(1)
"Level or stipulated rate assessment" insurers are those incorporated mutual insurers granting insurance benefits on the assessment plan and which collected from their membership a level or stipulated monthly, quarterly, semiannual, or annual assessment or premium, which assessment or premium is not made contingent upon the happening of a certain event, but is based upon stated periodical rates and charges estimated to be sufficient for the payment of all claims and expenses; and
(2)
"Pro rata assessment" insurers are incorporated mutual insurers which operate on the plan of calling assessments to pay benefits promised when the contingency insured against arises and which place their membership in groups or circles for the purpose of assessment and collection of dues.
Acts 1959, No. 148, §§ 558, 559; A.S.A. 1947, §§ 66-4503, 66-4504.
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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-102 - Scope

(a)
This chapter applies only to domestic and foreign mutual insurers transacting life and disability insurance on the mutual assessment plan.
(b)
No provision of the Arkansas Insurance Code shall apply to such insurers unless contained or referred to in this chapter.
Acts 1959, No. 148, § 556; A.S.A. 1947, § 66-4501.
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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-104 - Minimum requirements for new insurers

(a)
No insurer shall transact mutual assessment life or disability insurance in this state unless it lawfully had authority to transact the insurance on January 1, 1960, and provided further that from and after January 1, 1968, the insurer shall be required to:
(1)
Maintain reserves on all life insurance policies, annuity and endowment contracts, and disability insurance policies issued on or after January 1, 1968, in the following manner:
(A)
Reserves on all life insurance policies and annuity and endowment contracts shall be established and maintained in accordance with the provisions of the Standard Valuation Law for Life Insurance and Annuities, §
23-84-101
et seq.; and
(B)
Reserves on all accident and health insurance policies shall be established and maintained in accordance with the provisions of §
23-63-601
et seq.; and
(2)
Insert in all life insurance policies and annuity and endowment contracts issued on and after January 1, 1968, a provision for nonforfeiture benefits in accordance with the Standard Nonforfeiture Law for Life Insurance, §
23-81-201
et seq.
(b)
No insurer shall continue to be authorized to transact mutual assessment life or disability insurance in this state unless it is otherwise entitled to such authority and has:
(1)
At least two thousand (2,000) members regularly paying their assessments; and
(2)
Surplus funds of at least ten thousand dollars ($10,000).
(c)
No domestic insurer shall hereafter be organized to transact life or disability insurance on the mutual assessment plan.
Acts 1959, No. 148, § 557; 1967, No. 393, § 2; A.S.A. 1947, § 66-4502; Acts 2001, No. 1566, § 16.
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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-105 - Bond

(a)
Every mutual assessment life and disability insurer shall have and maintain in force and on file with the Insurance Commissioner a bond in favor of the State of Arkansas in the sum of twenty thousand dollars ($20,000), for the use of the policyholders of the insurer and their beneficiaries, with good and sufficient surety approved by the commissioner, and conditioned for the prompt payment of all assessments to parties or beneficiaries entitled thereto.
(b)
The makers of the bond shall continue to be liable thereon for any violation of the conditions thereof or for any loss accruing to the policyholders of the insurer or their beneficiaries.
(c)
The bond shall be renewable every two (2) years on March 1.
(d)
If at any time it appears that the bond has for any cause become insufficient, the commissioner may require the insurer to replace the bond on reasonable notice.
Acts 1959, No. 148, § 560; A.S.A. 1947, § 66-4505.
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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-106 - Refusal, suspension, or revocation of certificate of authority

The Insurance Commissioner shall refuse to continue or shall suspend or revoke the certificate of authority of any such insurer for any of the following causes:
(1)
If, during the preceding calendar year, the insurer scaled and reduced its accrued beneficial claims by reason of insufficient yield of assessment or revenues;
(2)
If the insurer has exceeded its powers;
(3)
If the insurer has surplus of less than ten thousand dollars ($10,000) or has fewer than two thousand (2,000) members regularly paying their assessments; or
(4)
For other causes specified in §§
23-63-212
and
23-63-213
.
Acts 1959, No. 148, § 561; A.S.A. 1947, § 66-4506.
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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-107 - Pro rata or level assessment plans

(a)
Except as provided in §
23-72-118
, a mutual assessment insurer may transact insurance on either the pro rata assessment plan only or on the level or stipulated rate plan only.
(b)
Each plan shall be governed by the provisions of this chapter made specifically applicable thereto and by those provisions applicable to both plans.
Acts 1959, No. 148, § 562; A.S.A. 1947, § 66-4507.
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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-108 - Insuring powers

(a)
Mutual assessment insurers are prohibited from transacting any insurance except the granting of indemnity against or providing benefits upon death, disability, or accident.
(b)
No mutual assessment insurer shall transact property, casualty, surety, or industrial insurance.
(c)
For the purposes of this chapter, an "industrial insurer" is an insurer which issues policies granting life, health, and accident indemnities, basing the benefits promised on the payment by the policyholder of a stipulated weekly premium.
Acts 1959, No. 148, § 563; A.S.A. 1947, § 66-4508.
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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-109 - Bylaws generally

(a)
The insurer shall have bylaws which are not in conflict with the law of this state, to regulate and govern its affairs. Bylaws of both foreign and domestic insurers shall be subject to the applicable requirements of §
23-69-119
.
(b)
The bylaws shall provide for periodic meetings of the members and how special meetings may be called. At all meetings each member shall be entitled to one (1) vote only on each question coming to a vote. The member may vote in person or by written proxy, and the proxy may be given in the application for membership. No proxy shall be irrevocable.
(c)
The bylaws may provide for issuance of graded membership certificates and for the grading of rates and assessments according to the ages of members.
(d)
If disability benefits are promised in membership certificates, adequate provisions shall be made in the bylaws for assessments to pay disability claims and expenses incident thereto, and the assessments shall not be used for the payment of claims other than disability.
(e)
Every member of the insurer is bound by the insurer's bylaws as in existence at the time of joining or as thereafter amended.
Acts 1959, No. 148, § 564; A.S.A. 1947, § 66-4509.
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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-110 - Filing and amendment of bylaws

(a)
The insurer shall promptly file a copy of its bylaws, duly certified by its president and secretary, with the Insurance Commissioner.
(b)
No amendment of bylaws shall be valid and binding upon the insurer's members until a certified copy of the amendment has been on file with the commissioner for a period of at least ten (10) days.
(c)
No amendment of an insurer's bylaws affecting rates shall be effective unless and until approved by the commissioner as being reasonable or necessary.
Acts 1959, No. 148, § 565; A.S.A. 1947, § 66-4510.
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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-111 - Special provisions of pro rata assessment plan

In addition to the requirements under §
23-72-109
, the bylaws of a pro rata assessment plan insurer:
(1)
Shall clearly provide the plan of calling assessments. They may provide for assessment of each group or circle for payment of its own claims, for the assessing of groups or circles in rotation, or for assessing any group or circle, or the entire membership, for the payment of any matured claim; and
(2)
May provide for the collection of assessments in advance to be used for the payment of claims and expenses.
Acts 1959, No. 148, § 566; A.S.A. 1947, § 66-4511.
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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-112 - Additional assessments or adjustments of rates or benefits

An insurer has power to provide in its bylaws for the calling of extra, increased, or additional assessments or for adjustment of rates and benefits when the assessments and contributions from its members prove to be inadequate to meet all claims and expenses.
Acts 1959, No. 148, § 567; A.S.A. 1947, § 66-4512.
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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-113 - Benefits and payment - Level or stipulated plan insurers

(a)
A level or stipulated rate plan insurer shall specify in its policy or membership certificate the contingencies insured against, the sum of money it promises to pay or the benefits it agrees to provide, and the number of days after satisfactory proof of loss is filed within which the payment will be made or the benefit will be provided.
(b)
Upon the occurrence of a contingency insured against, unless the contract has been voided by fraud or by breach of its conditions, the insurer shall be obligated to the beneficiary for payment of or providing benefits at the time and in the amount or value specified in the policy or certificate.
(c)
If the insurer fails to make the payment after final judgment has been obtained upon the claim, the Insurance Commissioner shall notify the insurer not to issue any new policy or certificates until the indebtedness is fully paid. No officer or agent of the insurer shall issue any policy or certificate while the notice is in force. In addition, the insurer's certificate of authority shall be subject to suspension or revocation under §
23-63-213
.
Acts 1959, No. 148, § 568; A.S.A. 1947, § 66-4513.
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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-114 - Benefits not subject to attachment

No money or other benefits to be paid, provided, or rendered by any insurer, not to exceed one thousand dollars ($1,000), shall be liable to attachment, garnishment, or other process, or be seized, taken, appropriated, or applied by any legal or equitable process or operation of law to pay any debt or liability of any member or beneficiary, or any other person who may have a right thereunder, either before or after payment.
Acts 1959, No. 148, § 569; A.S.A. 1947, § 66-4514.
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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-115 - Notice to members of scaled and reduced claims

(a)
Each insurer shall, on or before March 1 as to the preceding calendar year, give written notice thereof by mail to those of its members whose status and conditions of certificate or policy are similar, if the insurer has scaled and reduced its beneficial claims for the preceding year.
(b)
The notice shall contain the names and addresses of the deceased members, the accrued or face value of the certificate, and the amount received by the beneficiary and shall only include all those scaled or reduced claims by reason of insufficient yield of assessments or revenue apportioned to the settlement of such claims.
(c)
The notice shall have printed thereon as a heading in bold face type of not less than eighteen (18) points the words: "NOTICE AND WARNING".
Acts 1959, No. 148, § 570; A.S.A. 1947, § 66-4515.
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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-116 - Pro rata plan insurer - Reclassification and rearrangement of members

A pro rata assessment plan insurer has power at any time to reclassify, transfer, or rearrange its members, to merge or unite circles or groups; and to unite into one (1) group or circle two (2) or more groups or circles, the membership of which has decreased below the maximum. The insurer shall not start a new group or circle so long as any other group or circle is not up to maximum. All groups and circles shall be kept up to the maximum.
Acts 1959, No. 148, § 571; A.S.A. 1947, § 66-4516.