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 72 - MUTUAL ASSESSMENT LIFE AND DISABILITY INSURERS (§§ 23-72-101 — 23-72-122) › Section 23-72-117 - Reinsurance

(a)
A mutual assessment insurer may reinsure in any authorized life insurer any single risk or part of any single risk which it may assume.
(b)
The insurer may reinsure all or substantially all of its insurance in force by reinsurance in bulk as provided for in §
23-72-119
.
Acts 1959, No. 148, § 572; A.S.A. 1947, § 66-4517.
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 23-72-118 - Conversion to level premium plan

(a)
A pro rata assessment insurer, by resolution of its board of directors approved by the Insurance Commissioner, may convert the whole or any part of its membership into a level or stipulated rate division. Thereafter, laws applicable to a level or stipulated rate insurer shall apply and govern the insurer or division so converted.
(b)
The insurer shall segregate the funds and income of the two (2) classes and not intermingle funds when the insurer is operating on a pro rata assessment basis and with a division on a level or stipulated rate assessment basis.
Acts 1959, No. 148, § 573; A.S.A. 1947, § 66-4518.
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 23-72-120 - Venue and service of process

(a)
Any action by a policy or certificate holder or beneficiary against an insurer or against its bond or bondspersons on any claim arising or accruing under any of its policies or certificates may be brought in any county in this state where the plaintiff, or any plaintiff in the action, may reside.
(b)
If the action is against the insurer, service of summons or process may be made on the secretary or president or managing agent of the insurer.
(c)
If the action is against the bond or bondspersons of the insurer, service of summons or process may be made by ordinary service as in other cases upon the several bondspersons sued.
(d)
In the action it shall not be necessary to notify or summon other policyholders or beneficiaries.
(e)
In the action against a foreign corporation, service of summons or process may be made upon the corporation by service of summons or process upon the registered agent pursuant to §§
23-63-301
-
23-63-304
or pursuant to methods specified in other laws or rules on and after January 1, 2003.
Acts 1959, No. 148, § 575; A.S.A. 1947, § 66-4520; Acts 2001, No. 1604, § 72.
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 23-72-121 - Insolvency

An insurer is insolvent when its reserves, its matured death claims, and its other due and unpaid obligations exceed its assets and death assessments or periodic payments called, to be called, or in process of collection.
Acts 1959, No. 148, § 576; 1967, No. 393, § 4; A.S.A. 1947, § 66-4521.
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 23-72-122 - Officers and members not individually liable

Officers and members of a domestic insurer shall not be individually liable for the payment of any disability or death benefit provided for in the bylaws and agreements of the insurer, but the benefit shall be payable out of the funds of the insurer and in the manner provided by its bylaws.
Acts 1959, No. 148, § 577; A.S.A. 1947, § 66-4522.
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 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-101 - Definition

As used in this chapter, unless the context otherwise requires, "farmer" means a farm tenant or any person who owns or cultivates or superintends the cultivation of a farm.
Acts 1959, No. 148, § 581; A.S.A. 1947, § 66-4603; Acts 1997, No. 774, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-102 - Scope

(a)
This chapter applies only to domestic farmers' mutual aid companies and associations.
(b)
Nothing in the insurance laws of this state shall be deemed to apply to or govern either directly or indirectly farmers' mutual aid companies or associations except as contained in or referred to in this chapter.
Acts 1959, No. 148, § 579; A.S.A. 1947, § 66-4601; Acts 1997, No. 774, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-103 - Associations existing as of January 1, 1960

Any company or association lawfully organized and existing and lawfully doing business and insuring property as a farmers' mutual aid association or company as of January 1, 1960, is not required to reorganize or comply with the provisions of this chapter applicable to organization of a farmers' mutual aid association or company.
Acts 1959, No. 148, § 580; A.S.A. 1947, § 66-4602; Acts 1997, No. 774, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-104 - Other provisions applicable

In addition to the provisions of this chapter, farmers' mutual aid companies or associations shall also be subject to the following chapters and provisions of the Arkansas Insurance Code to the extent so applicable:
(1)
Sections
23-60-101
-
23-60-108
and
23-60-110
, scope of Arkansas Insurance Code;
(2)
Section
23-61-101
et seq., §
23-61-201
et seq., and §
23-61-301
et seq., the Insurance Commissioner;
(3)
Section
23-65-101
et seq., unauthorized insurers;
(4)
Sections
23-66-201
-
23-66-213
,
23-66-301
-
23-66-306
,
23-66-308
-
23-66-311
,
23-66-313
,
23-66-314
, and
23-66-501
-
23-66-513
, trade practices and frauds;
(5)
Section
23-79-208
, suits against insurers - damages and attorney's fees, loss claims;
(6)
Sections
23-68-101
-
23-68-113
and
23-68-115
-
23-68-132
, rehabilitation and liquidation;
(7)
Provisions of §
23-63-601
et seq., assets and reserves and valuation of assets;
(8)
Sections
23-63-801
-
23-63-833
and
23-63-835
, investments;
(9)
Section
23-62-205
, reinsurance;
(10)
Section
23-69-134
, maintenance of home office and records;
(11)
Section
23-64-101
et seq., agents, brokers, solicitors, adjusters, and consultants. However, company or association officers and directors that also act as agents for their companies or associations shall not be required to license as agents, if the officers and directors do not receive commissions for policy sales;
(12)
Sections
23-61-701
-
23-61-705
, State Insurance Department Trust Fund fees;
(13)
Section
23-79-109
, filing and approval of forms;
(14)
Sections
23-88-101
, valued policy law and
23-88-102
, paying costs of volunteer fire department services; and
(15)
Section
23-63-201
et seq., authority to do business.
Amended by Act 2021, No. 367,§ 19, eff. 7/28/2021.
Amended by Act 2019, No. 521,§ 21, eff. 7/24/2019.
Acts 1959, No. 148, § 593; 1979, No. 942, § 18; A.S.A. 1947, § 66-4615; Acts 1991, No. 804, § 4; 1997, No. 774, § 1; 2001, No. 1566, § 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 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-106 - Articles of association

(a)
Articles of association of any farmers' mutual aid company or association shall specify:
(1)
The name of the association or company;
(2)
The purposes for which formed;
(3)
The location of its principal or home office, which office shall be in this state;
(4)
The names and addresses of the members of its first board of directors who shall manage the association until the first meeting of the members;
(5)
The names, addresses, and places of residence of the organizers; and
(6)
Provisions relating to amendment of the articles, as provided in §
23-73-111
.
(b)
The articles shall be executed in duplicate and filed with the Insurance Commissioner.
Acts 1959, No. 148, § 583; A.S.A. 1947, § 66-4605; Acts 1997, No. 774, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-107 - Adoption of similar name prohibited

No name shall be adopted by the company or association which is so similar to any name already in use by any existing company or association organized or doing business in Arkansas as to be confusing or misleading.
Acts 1959, No. 148, § 584; A.S.A. 1947, § 66-4606; Acts 1997, No. 774, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-110 - Legal existence

(a)
The legal existence of the association begins from the date of the Insurance Commissioner's certificate authorizing it to begin business.
(b)
Thereupon the board of directors named in its articles may:
(1)
Adopt bylaws which shall be filed with the commissioner within thirty (30) days after adoption;
(2)
Accept applications for insurance; and
(3)
Transact business of the association, except that it shall not insure any property or issue any policies until it has received a certificate of authority to transact insurance as provided for in this chapter.
Acts 1959, No. 148, § 587; A.S.A. 1947, § 66-4609; Acts 1997, No. 774, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-111 - Amendment of articles and bylaws

(a)
Articles of association may be amended as provided in the articles, and any such amendments shall promptly be filed with the Insurance Commissioner within thirty (30) days after its adoption.
(b)
Bylaws may be amended, as provided in the bylaws, and any such amendment shall be filed with the commissioner within thirty (30) days after its adoption.
Acts 1959, No. 148, § 588; A.S.A. 1947, § 66-4610; Acts 1997, No. 774, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-112 - Qualifications for certificate of authority

To qualify for and hold a certificate of authority to insure property or issue policies, the company or association shall:
(1)
(A)
(i)
Have at least two hundred fifty (250) members who hold policies or certificates upon at least two hundred fifty (250) separate risks.
(ii)
An association or company whose membership falls below two hundred fifty (250) members shall notify the Insurance Commissioner immediately and shall have ninety (90) days from that date to bring its membership level back up to the requisite number of two hundred fifty (250) members.
(iii)
If an association or company fails to restore the membership level to two hundred fifty (250) members within the prescribed ninety-day period, the commissioner may:
(a)
Direct the association or company to follow a course of action that will protect the assets of the association and allow for continued protection of the members; or
(b)
Place the association or company into involuntary dissolution as contained in §
23-73-120
.
(B)
(i)
If immediate initial compliance with subdivision (1)(A) of this section would cause a domestic association or company to be ineligible for a continued certificate of authority to operate in this state on April 11, 2005, the commissioner may allow that domestic association or company to augment its membership in increments in order for it to achieve compliance with the minimum requirements by no later than December 31, 2006.
(ii)
For good cause shown in writing by an association or company, including planned action steps to achieve the minimum membership, the commissioner may grant one (1) or more extensions of the deadline set for compliance in subdivision (1)(B)(i) of this section for a period or periods not to exceed one (1) year;
(2)
(A)
Maintain contracts or treaties of reinsurance as necessary based on its risk and surplus level with insurance companies, excluding surplus lines insurers, licensed or otherwise registered to conduct that business in the State of Arkansas.
(B)
Indemnity reinsurance contracts or treaties shall be structured to provide protection to the company or association against a reduction of the surplus to an extent that the reduction:
(i)
Endangers the solvency of the company or association; or
(ii)
Hinders the company's or association's ability to pay claims made by policyholders; and
(3)
Fully comply with and qualify according to the other provisions of this chapter.
Acts 1959, No. 148, § 589; A.S.A. 1947, § 66-4611; Acts 1997, No. 774, § 1; 2005, No. 2004, § 2; 2007, No. 76, § 2.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-114 - Application - Sections 23-61-201 et seq. and 23-61-301 et seq. applicable

Section
23-61-201
et seq. and §
23-61-301
et seq. shall be applicable to farmers' mutual aid companies and associations.
Acts 1959, No. 148, § 591; A.S.A. 1947, § 66-4613; Acts 1997, No. 774, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-115 - Management and exclusive agency contracts

(a)
(1)
No farmers' mutual aid company or association shall make any contract whereby any person is granted or is to enjoy in fact the management of the company or association or to have the controlling or preemptive right to produce substantially all insurance business for the company or association, unless the contract is filed with and approved by the Insurance Commissioner.
(2)
The contract shall be deemed approved, unless disapproved by the commissioner within thirty (30) days after date of filing, subject to such reasonable extension of time as the commissioner may require by notice given within the thirty (30) days.
(3)
Any disapproval shall be delivered to the company or association in writing, stating the grounds therefor.
(b)
The commissioner shall disapprove any contract if the commissioner finds that it:
(1)
Subjects the company or association to excessive charges;
(2)
Is to extend for an unreasonable length of time;
(3)
Does not contain fair and adequate standards of performance;
(4)
Grants the management of the association, to the substantial exclusion of its board of directors, to any person, corporation, partnership, joint venture, limited partnership, or limited liability company;
(5)
Requires the association to guarantee the manager's obligation or performance to anyone other than the association;
(6)
Allows the manager to assign its rights under the agreement to a third party without the consent of the board of directors and the commissioner; or
(7)
Contains other inequitable provisions which impair the proper interests of the company or association.
(c)
The commissioner, in his or her discretion, may require submission of a contract for review at any time if he or she believes a review would be in the best interest of policyholders of the company or association.
(d)
(1)
No association shall indemnify or insure its manager's obligations to any other person or entity, unless by operation of law.
(2)
To the extent allowed by law, any indemnification by the association shall be limited to the extent of any insurance or reinsurance coverages applicable to the loss indemnified or insured.
(e)
The association shall disclose to the commissioner the name of any member of its board of directors that is also an officer, stockholder, agent, partner, limited partner, limited liability company member, joint venturer, or employee of the manager.
(f)
The acts of the manager may be examined as if it were the association.
(g)
The commissioner may adopt reasonable rules for the implementation and administration of the provisions of this section.
Amended by Act 2019, No. 315,§ 2694, eff. 7/24/2019.
Acts 1959, No. 148, § 593.1, as added by Acts 1983, No. 522, § 34; A.S.A. 1947, § 66-4616; Acts 1997, No. 774, § 1; 2001, No. 1811, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-116 - Fees

Farmers' mutual aid companies or associations shall pay no annual fees or other charges except as required under the State Insurance Department Trust Fund Act, §
23-61-701
et seq., and under §§
23-73-113
and
23-73-114
.
Acts 1959, No. 148, § 592; A.S.A. 1947, § 66-4614; Acts 1997, No. 774, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-117 - Conversion to mutual insurer

(a)
A farmers' mutual aid association as provided for by this chapter may be converted to a mutual insurer as defined in §
23-69-102
under any plan or procedure which may be approved by the order of the Insurance Commissioner after a hearing thereon.
(b)
The commissioner shall approve a plan or procedure if he or she finds that:
(1)
The plan would not be contrary to law and would not be contrary to the interest of insureds or the public; and
(2)
The plan has been approved by a vote of not less than two-thirds (2/3) of the members present or represented by proxy at the meeting, or such greater majority as may be otherwise provided in the association's bylaws. Voting shall be conducted by written ballot which shall be signed by the member, on a ballot form approved by the commissioner prior to voting.
(c)
Upon conversion, the association shall possess and thereafter maintain unimpaired surplus as regards policyholders of not less than seven hundred fifty thousand dollars ($750,000).
(d)
Upon conversion to a mutual insurer as provided for herein, the association shall be subject to and comply with all laws and rules applicable to mutual insurers.
(e)
Any association so converted shall be authorized to write only those lines for which it was authorized to write as a farmers' mutual aid association. However, the converted company may seek to have its certificate of authority amended to write additional lines.
(f)
The association shall have a period of time which shall be specified in the commissioner's order to complete the conversion.
(g)
Any association converted to a mutual insurer under the provisions of this section shall be designated as a "mutual insurer", and that designation shall appear immediately following its name on all policies, financial statements, and other documents where its name appears.
Amended by Act 2019, No. 315,§ 2695, eff. 7/24/2019.
Acts 1985, No. 489, § 1; A.S.A. 1947, § 66-4617; Acts 1997, No. 774, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-118 - Membership requirements

The total membership of the association shall be at all times not less than the number of members required by §
23-73-112
.
Acts 1997, No. 774, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-119 - Prohibited formation

No farmers' mutual aid association or company shall be formed or incorporated after July 1, 1997, other than as provided in §
23-73-122
.
Acts 1997, No. 774, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-120 - Dissolution

(a)
Voluntary.
(1)
An association or company may discontinue its operations and settle its affairs at any meeting of its members, due notice of the time, place, and purpose of which shall have been given to its members and the Insurance Commissioner, by a vote of two-thirds (2/3) of the members present or represented by proxy at the meeting.
(2)
Voting shall be conducted by written ballot which shall be signed by the member, on a ballot form approved by the commissioner, prior to voting.
(3)
(A)
After the members have voted to dissolve, the association or company shall file a plan of dissolution with the commissioner for approval.
(B)
The dissolution plan must include provisions that:
(i)
Allow current policyholders to obtain similar coverage with another licensed insurer or farmers' mutual aid association or company; and
(ii)
Designate a committee of policyholders to liquidate assets and pay debts or expenses.
(4)
After the commissioner has approved the dissolution plan, the designated committee shall liquidate any assets and pay the debts and expenses of the association or company.
(5)
Upon final settlement of all the affairs of the association by the committee, it shall make a final report and accounting of the proceedings of the dissolutions which shall be signed by its members and be filed with and approved by the commissioner.
(6)
If the commissioner approves the final report, the commissioner shall transmit to the committee a certificate of approval and thereupon the association shall be deemed dissolved and shall cease to exist. The commissioner shall certify the dissolution to the Secretary of State.
(7)
The committee shall have its necessary and reasonable expenses reimbursed in the dissolution of the association or company as approved by the commissioner.
(b)
Involuntary.
An association or company shall be statutorily dissolved in accordance with the provisions of §§
23-68-101
-
23-68-113
and
23-68-115
-
23-68-132
.
Acts 1997, No. 774, § 1; 2005, No. 2004, § 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 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-121 - Licensing of agents

Agents shall be licensed and issued a limited line license in accordance with §
23-64-101
et seq.
Acts 1997, No. 774, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-122 - Merger

(a)
Two (2) or more farmers' mutual aid associations or companies may merge as provided in this section. To effect a merger, it shall be necessary:
(1)
That the board of directors of each of the associations shall propose a plan of merger and pass a resolution to the effect that the merger is advisable and containing the proposed name of the association, as merged, its principal office, and the names of its first board of directors and officers;
(2)
That an annual or special meeting of the policyholders of each of the associations shall be held, a notice of which meeting shall be mailed to each of the policyholders thereof at least thirty (30) days prior to the holding thereof, and which notice shall embody the resolution adopted by the board of directors, as provided in subdivision (a)(1) of this section;
(3)
That a majority of the policyholders of each of the associations present or represented at these meetings shall, by resolution, approve and ratify the action of the directors, as provided for in subdivision (a)(1) of this section; and
(4)
That the plan of merger, proceeding, and resolutions be filed with and approved by the Insurance Commissioner.
(b)
When full copies of these proceedings have been filed with the commissioner, which copies shall be certified by the president and secretary of the respective associations and duly verified by these officers, and approved of by him or her, the merger of these companies shall be deemed to be complete, and the company so continuing the business shall be deemed to have fully assumed all of the obligations, liabilities, and risks and to be the owner of all the assets of the associations so merging.
(c)
If this merger is made under any new name, the filings of these proceedings and the approval of same by the commissioner shall be sufficient to constitute the merged company an association, with all the powers and privileges, and subject to all the limitations, of a farmers' mutual aid association or company under the laws of the state.
Acts 1997, No. 774, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 73 - FARMERS' MUTUAL AID ASSOCIATIONS (§§ 23-73-101 — 23-73-123) › Section 23-73-123 - Indemnification

(a)
A company or association may indemnify a person made or threatened to be made a party to a proceeding by reason of the former or present official capacity of the person against judgments, penalties, fines, including, without limitation, excise taxes assessed against the person with respect to an employee benefit plan, settlements, and reasonable expenses, including attorney's fees and disbursements, incurred by the person in connection with the proceeding if, with respect to the acts or omissions of the person complained of in the proceeding, the person:
(1)
Has not been indemnified by another organization or employee benefit plan for the same judgments, penalties, fines, including, without limitation, excise taxes assessed against the person with respect to an employee benefit plan, settlements, and reasonable expenses, including attorney's fees and disbursements incurred by the person in connection with the proceeding with respect to the same acts or omissions;
(2)
Acted in good faith;
(3)
Received no improper personal benefit;
(4)
In the case of a criminal proceeding, had no reasonable cause to believe the conduct was unlawful; and
(5)
(A)
Reasonably believed that the conduct was in the best interests of the company or association, or reasonably believed that the conduct was not opposed to the best interests of the company or association.
(B)
If the person's acts or omissions complained of in the proceeding relate to the conduct as a director, officer, trustee, employee, or agent of an employee benefit plan, the conduct is not considered to be opposed to the best interests of the company or association if the person reasonably believed that the conduct was in the best interests of the participants or beneficiaries of the employee benefit plan.
(b)
Insurance.
A company or association may purchase and maintain insurance on behalf of a person who is or was a director, officer, employee, or agent of the corporation or who, while a director, officer, employee, or agent of the association, is or was serving at the request of the company or association as a director, officer, partner, trustee, employee, or agent of another organization or employee benefit plan against any liability asserted against and incurred by the person in or arising from that capacity, whether or not the company or association would have been required to indemnify the person against the liability under the provisions of this section.
(c)
Indemnification of Other Persons.
Nothing in this section shall be construed to limit the power of the company or association to indemnify other persons by contract or otherwise.
Acts 1997, No. 774, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 1 - STRUCTURE AND PURPOSE (§§ 23-74-101 — 23-74-106) › Section 23-74-101 - Fraternal benefit society defined

Any incorporated society, order, or supreme lodge, without capital stock, including one exempted under §
23-74-704(a)(2)
, whether incorporated or not, conducted solely for the benefit of its members and their beneficiaries and not for profit, operated on a lodge system with ritualistic form of work, having a representative form of government, and which provides benefits in accordance with this chapter, is hereby declared to be a fraternal benefit society.
Acts 1989, No. 881, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 1 - STRUCTURE AND PURPOSE (§§ 23-74-101 — 23-74-106) › Section 23-74-102 - Lodge system

(a)
A society is operating on the lodge system if it has a supreme governing body and subordinate lodges into which members are elected, initiated, or admitted in accordance with its laws, rules, and rituals. Subordinate lodges shall be required by the laws of the society to hold regular meetings at least one (1) time in each month in furtherance of the purposes of the society.
(b)
At its option, a society may organize and operate lodges for children under the minimum age for adult membership. Membership and initiation in local lodges shall not be required of such children, nor shall they have a voice or vote in the management of the society.
Acts 1989, No. 881, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 1 - STRUCTURE AND PURPOSE (§§ 23-74-101 — 23-74-106) › Section 23-74-103 - Representative form of government

A society has a representative form of government when:
(1)
It has a supreme governing body constituted in one (1) of the following ways:
(A)
Assembly.
(i)
(a)
The supreme governing body is an assembly composed of delegates elected directly by the members or at intermediate assemblies or conventions of members or their representatives, together with other delegates as may be prescribed in the society's laws.
(b)
A society may provide for election of delegates by mail.
(c)
The elected delegates shall constitute a majority in number and shall not have fewer than two-thirds (2/3) of the votes and not fewer than the number of votes required to amend the society's laws.
(ii)
(a)
The assembly shall be elected and shall meet at least one (1) time every four (4) years and shall elect a board of directors to conduct the business of the society between meetings of the assembly.
(b)
Vacancies on the board of directors between elections may be filled in the manner prescribed by the society's laws; or
(B)
Direct Election.
(i)
The supreme governing body is a board composed of persons elected by the members, either directly or by their representatives in intermediate assemblies, and any other persons prescribed in the society's laws.
(ii)
A society may provide for election of the board by mail.
(iii)
Each term of a board member may not exceed four (4) years.
(iv)
Vacancies on the board between elections may be filled in the manner prescribed by the society's laws.
(v)
A person filling the unexpired term of an elected board member shall be considered to be an elected member.
(vi)
The board shall meet at least quarterly to conduct the business of the society;
(2)
The officers of the society are elected either by the supreme governing body or by the board of directors;
(3)
Only benefit members are eligible for election to the supreme governing body, the board of directors, or any intermediate assembly; and
(4)
Each voting member shall have one (1) vote. No vote may be cast by proxy.
Acts 1989, No. 881, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 1 - STRUCTURE AND PURPOSE (§§ 23-74-101 — 23-74-106) › Section 23-74-104 - Definitions

As used in this chapter:
(1)
"Benefit contract" means the agreement for provision of benefits authorized by §
23-74-401
, as that agreement is described in §
23-74-404(a)
;
(2)
"Benefit member" means an adult member who is designated by the laws or rules of the society to be a benefit member under a benefit contract;
(3)
"Certificate" means the document issued as written evidence of the benefit contract;
(4)
"Laws" means the society's articles of incorporation, constitution, and bylaws, however designated;
(5)
"Lodge" means subordinate member units of the society, known as camps, courts, councils, branches, or by any other designations;
(6)
"Premiums" means premiums, rates, dues, or other required contributions by whatever name known, which are payable under the certificate;
(7)
"Rules" means all rules, regulations, or resolutions:
(A)
Adopted by the supreme governing body or board of directors; and
(B)
Which are intended to have general application to members of the society; and
(8)
"Society" means fraternal benefit society, unless otherwise indicated.
Acts 1989, No. 881, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 1 - STRUCTURE AND PURPOSE (§§ 23-74-101 — 23-74-106) › Section 23-74-105 - Purposes and powers

(a)
A fraternal benefit society shall operate for the benefit of members and their beneficiaries by:
(1)
Providing benefits as specified in §
23-74-401
; and
(2)
Operating for one (1) or more social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic, or religious purposes for the benefit of its members, which may also be extended to others. These purposes may be carried out directly by the society or indirectly through subsidiary corporations or affiliated organizations.
(b)
Every society shall have the power to adopt laws and rules for the government of the society, the admission of its members, and the management of its affairs. It shall have the power to change, alter, add to, or amend such laws and rules and shall have such other powers as are necessary and incidental to carrying into effect the objects and purposes of the society.
Acts 1989, No. 881, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 2 - MEMBERSHIP (§§ 23-74-201 — 23-74-204) › Section 23-74-201 - Qualifications for membership

(a)
A fraternal benefit society shall specify in its laws or rules:
(1)
Eligibility standards for each and every class of membership, provided that if benefits are provided on the lives of children, the minimum age for adult membership shall be set at not less than fifteen (15) years of age and not greater than twenty-one (21) years of age;
(2)
The process for admission to membership for each membership class; and
(3)
The rights and privileges of each membership class, provided that only benefit members shall have the right to vote on the management of the insurance affairs of the society.
(b)
A society may also admit social members who shall have no voice or vote in the management of the insurance affairs of the society.
(c)
Membership rights in the society are personal to the member and are not assignable.
Acts 1989, No. 881, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 2 - MEMBERSHIP (§§ 23-74-201 — 23-74-204) › Section 23-74-202 - Location of office, meetings, communications to members, grievance procedures

(a)
(1)
The principal office of any domestic society shall be located in this state.
(2)
(A)
The meetings of its supreme governing body may be held in any state, district, province, or territory wherein the society has at least five (5) subordinate lodges.
(B)
All business transacted at the meetings shall be as valid in all respects as if the meetings were held in this state.
(C)
The minutes of the proceedings of the supreme governing body and of the board of directors shall be in the English language.
(b)
(1)
(A)
A society may provide in its laws for an official publication in which any notice, report, or statement required by law to be given to members, including notice of election, may be published. The required reports, notices, and statements shall be printed conspicuously in the publication.
(B)
If the records of a society show that two (2) or more members have the same mailing address, an official publication mailed to one (1) member is deemed to be mailed to all members at the address unless a member requests a separate copy.
(2)
Not later than June 1 of each year, a synopsis of the society's annual statement providing an explanation of the facts concerning the condition of the society thereby disclosed shall be printed and mailed to each benefit member of the society or, in lieu thereof, the synopsis may be published in the society's official publication.
(c)
A society may provide in its laws or rules for grievance or complaint procedures for members.
Acts 1989, No. 881, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 2 - MEMBERSHIP (§§ 23-74-201 — 23-74-204) › Section 23-74-204 - Waiver

The laws of the society may provide that no subordinate body, nor any of its subordinate officers or members, shall have the power or authority to waive any of the provisions of the laws of the society. Such a provision shall be binding on the society and every member and beneficiary of a member.
Acts 1989, No. 881, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 3 - GOVERNANCE (§§ 23-74-301 — 23-74-306) › Section 23-74-302 - Amendments to laws

(a)
(1)
A domestic society may amend its laws in accordance with the provisions thereof by action of its supreme governing body at any regular or special meeting thereof, or, if its laws so provide, by referendum.
(2)
The referendum may be held in accordance with the provisions of its laws and by the vote of delegates or representatives of voting members or by the vote of local lodges.
(3)
A society may provide for voting by mail.
(4)
No amendment submitted for adoption by referendum shall be adopted unless, within six (6) months from the date of the submission thereof, a majority of the members voting shall have signified their consent to the amendment by one (1) of the methods specified in this section.
(b)
(1)
No amendment to the laws of any domestic society shall take effect unless approved by the Insurance Commissioner who shall approve the amendment if the commissioner finds that it has been duly adopted and is not inconsistent with any requirement of the laws of this state or with the character, objects, and purposes of the society.
(2)
Unless the commissioner disapproves any such amendment within sixty (60) days after the filing of the amendment, the amendment shall be considered approved.
(3)
(A)
The approval or disapproval of the commissioner shall be in writing and mailed to the secretary or corresponding officer of the society at its principal office.
(B)
In case the commissioner disapproves the amendment, the reasons therefor shall be stated in the written notice.
(c)
(1)
Within ninety (90) days from the approval thereof by the commissioner, all such amendments, or a synopsis thereof, shall be furnished to all members of the society either by mail or by publication in full in the official publication of the society.
(2)
The affidavit of any officer of the society or of anyone authorized by it to mail any amendments or synopsis thereof, stating facts which show that any amendments or synopsis thereof have been duly addressed and mailed, shall be prima facie evidence that the amendments or synopsis thereof have been furnished the addressee.
(d)
Every foreign or alien society authorized to do business in this state shall file with the commissioner a duly certified copy of all amendments of, or additions to, its laws within ninety (90) days after the enactment of the amendments of, or additions to, its laws.
(e)
Printed copies of the laws as amended, certified by the secretary or corresponding officer of the society, shall be prima facie evidence of the legal adoption thereof.
Acts 1989, No. 881, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 3 - GOVERNANCE (§§ 23-74-301 — 23-74-306) › Section 23-74-303 - Institutions

A society may create, maintain, and operate, or may establish organizations to operate, not-for-profit institutions to further the purposes permitted by §
23-74-105(a)(2)
. Such institutions may furnish services free or at a reasonable charge. Any real or personal property owned, held, or leased by the society for this purpose shall be reported in every annual statement, but shall not be allowed as an admitted society asset. No society shall own or operate funeral homes or undertaking establishments.
Acts 1989, No. 881, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 3 - GOVERNANCE (§§ 23-74-301 — 23-74-306) › Section 23-74-304 - Reinsurance

(a)
By a reinsurance agreement, a domestic society may cede any individual risk or risks in whole or in part to an insurer, other than another fraternal benefit society, having the power to make the reinsurance and authorized to do business in this state, or if not so authorized, one which is approved by the Insurance Commissioner, but no such society may reinsure substantially all of its insurance in force without the written permission of the commissioner. It may take credit for the reserves on the ceded risks to the extent reinsured, but no credit shall be allowed as an admitted asset or as a deduction from liability to a ceding society for reinsurance made, ceded, renewed, or otherwise becoming effective after January 1, 1990, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contract or contracts reinsured without diminution because of the insolvency of the ceding society.
(b)
Notwithstanding the limitation in subsection (a) of this section, a society may reinsure the risks of another society in a consolidation or merger approved by the commissioner under §
23-74-305
.
Acts 1989, No. 881, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 3 - GOVERNANCE (§§ 23-74-301 — 23-74-306) › Section 23-74-306 - Conversion of fraternal benefit society into mutual life insurance company

Any domestic fraternal benefit society may be converted and licensed as a mutual life insurance company by compliance with all the requirements of §§
23-63-205
and
23-63-207
and other provisions of this code applicable to domestic mutual life legal reserve insurers. A plan of conversion shall be prepared in writing by the board of directors setting forth in full the terms and conditions of conversion. The affirmative vote of two-thirds (2/3) of all members of the supreme governing body at a regular or special meeting shall be necessary for the approval of such a plan. No such conversion shall take effect unless and until approved by the Insurance Commissioner, who may give such approval if the commissioner finds that the proposed change is in conformity with the requirements of law and not prejudicial to the certificate holders of the society.
Acts 1989, No. 881, § 1.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 74 - FRATERNAL BENEFIT SOCIETIES (§§ 23-74-101 — 23-74-705) › Subchapter 4 - CONTRACTUAL BENEFITS (§§ 23-74-401 — 23-74-405) › Section 23-74-401 - Benefits

(a)
A society may provide the following contractual benefits in any form:
(1)
Death benefits;
(2)
Endowment benefits;
(3)
Annuity benefits;
(4)
Temporary or permanent disability benefits;
(5)
Hospital, medical, or nursing benefits;
(6)
Monument or tombstone benefits to the memory of deceased members; and
(7)
Such other benefits as authorized for life insurers and which are not inconsistent with this chapter.
(b)
A society shall specify in its rules those persons who may be issued, or covered by, the contractual benefits in subsection (a) of this section, consistent with providing benefits to members and their dependents. A society may provide benefits on the lives of children under the minimum age for adult membership upon application of an adult person.
Acts 1989, No. 881, § 1.