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 101 - CREDITOR-PLACED INSURANCE (§§ 23-101-101 — 23-101-114) › Section 23-101-106 - Calculation and payment of premiums

(a)
Premiums for creditor-placed insurance coverage may be calculated based on:
(1)
An amount not exceeding the net debt even though the coverage may limit the insurer's liability to the net debt, actual cash value, or cost of repair; or
(2)
Other premium calculation methods that more closely reflect the exposure of each item insured and approximate the premium calculation method of the coverage required by the credit agreement.
(b)
(1)
An insurer shall not write creditor-placed insurance for which the premium rate differs from that determined by the schedules of the insurer on file with the Insurance Commissioner.
(2)
The premium or amount charged to the debtor for creditor-placed insurance shall not exceed the premiums charged by the insurer, computed at the time the charge to the debtor is determined.
(c)
A method of billing insurance charges to the debtor on closed-end credit transactions that creates a balloon payment at the end of the credit transaction or extends the credit transaction's maturity date is prohibited unless specifically disclosed at the time of the origination of the credit agreement and specifically agreed to by the debtor.
Acts 1997, No. 930, § 5.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 101 - CREDITOR-PLACED INSURANCE (§§ 23-101-101 — 23-101-114) › Section 23-101-107 - Evidence of coverage

(a)
Creditor-placed insurance shall be set forth in an individual policy or certificate of insurance.
(b)
A copy of the individual policy, certificate of insurance coverage, or other evidence of insurance coverage shall be mailed, first class mail, or delivered in person to the last known address of the debtor.
Acts 1997, No. 930, § 7.
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 101 - CREDITOR-PLACED INSURANCE (§§ 23-101-101 — 23-101-114) › Section 23-101-109 - Refund of unearned premiums

(a)
Within sixty (60) calendar days after the termination of creditor-placed insurance coverage and in accordance with the formulas approved by the Insurance Commissioner, an insurer shall refund any unearned premium or other identifiable charges.
(b)
(1)
Within sixty (60) calendar days after the termination date of creditor-placed insurance coverage, the insurer shall provide to the debtor a statement of refund disclosing the effective date, the termination date, the amount of premium being refunded, and the amount of premium charged for the coverage provided.
(2)
No statement shall be required in the event that the policy terminates pursuant to §
23-101-105(b)(4)
.
(c)
The entire amount of premiums, minimum premiums, and fees or charges of any kind shall be refunded if no coverage was provided.
Acts 1997, No. 930, § 9.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 101 - CREDITOR-PLACED INSURANCE (§§ 23-101-101 — 23-101-114) › Section 23-101-110 - Claims

(a)
In the event of a loss under the creditor-placed insurance policy, the insurer shall pay, at a minimum, the least of the following, the value of which shall be determined as of the date of loss:
(1)
The cost to repair the collateral less any applicable deductible;
(2)
The actual cash value of the collateral, less any applicable deductible;
(3)
The net debt, less any applicable deductible. The method of calculation of net debt payable pursuant to this subdivision (a)(3) shall be identical to the method of calculation of net debt for payment of premiums pursuant to §
23-101-106(a)
; or
(4)
If single interest insurance is provided, the amount by which the creditor's interest is impaired.
(b)
The net debt or actual cash value amounts in subsection (a) of this section may be reduced by the value of salvage if the insurer does not take possession of the insured property.
(c)
In the event of a loss, no subrogation shall run against the debtor from the insurer.
(d)
Whenever a claim is made on a creditor-placed insurance policy, the insurer shall furnish to the claimant a written statement of the loss explaining the settlement amount and the method of settlement.
(e)
(1)
A creditor or insurer may not abandon salvage to a towing or storage facility in lieu of payment of storage fees without the consent of the facility and the claimant.
(2)
(A)
After the filing of a claim as provided in the policy or certificate of insurance, the insurer shall be responsible for the payment of towing and storage charges for a covered loss occurrence from the time storage is reported to the insurer or lender to the time the claim is paid.
(B)
The insurer shall give written notice to the claimant when the claim is paid that the claimant may incur storage charges after the date the claim is paid.
Acts 1997, No. 930, § 10.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 101 - CREDITOR-PLACED INSURANCE (§§ 23-101-101 — 23-101-114) › Section 23-101-111 - Rights and obligations of the parties

(a)
In order for the creditor to place insurance on the collateral pledged by the debtor and pass the cost of the insurance on to the debtor:
(1)
The creditor must have a security interest in the personal property;
(2)
The credit agreement must require the debtor to maintain insurance on the collateral to protect the creditor's interest;
(3)
The credit agreement must authorize the creditor to place the insurance if the debtor fails to provide evidence of the insurance; and
(4)
These requirements must be clearly disclosed to the debtor at the inception of the credit transaction.
(b)
(1)
The debtor shall always have the right to provide required insurance through existing policies of insurance owned or controlled by the debtor or of procuring and furnishing the required coverage through an insurer authorized to transact insurance within this state.
(2)
However, a creditor may establish maximum acceptable deductibles, insurer solidity standards, and other reasonable conditions with respect to the required insurance.
Acts 1997, No. 930, § 11.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 101 - CREDITOR-PLACED INSURANCE (§§ 23-101-101 — 23-101-114) › Section 23-101-112 - Remittance of premiums and payment of compensation

(a)
(1)
The entire amount of the premium due from a creditor shall be remitted to the insurer or its producer in accordance with the insurer's requirements.
(2)
No commissions may be paid to, or retained by, a person or entity not licensed and appointed in accordance with the Producer Licensing Model Act, §
23-64-501
et seq., nor to a depository institution or an affiliate of a depository institution unless appropriately licensed under §
23-64-101
et seq.
(3)
For purposes of this section, "person" includes any individual, corporation, association, partnership, or other legal entity.
(b)
The retention by the creditor of unearned premiums upon cancellation of the insurance without crediting to the debtor's account the amount of unearned insurance charges is prohibited.
(c)
Unless allowed by §
23-64-513
, rebates to the creditor of a portion of the premium charged to the debtor are prohibited as are other inducements provided to the creditor by an insurer or producer. The listing of the following activities as prohibited rebates or inducements is not intended to be restrictive, and the Insurance Commissioner may identify an activity as prohibited by rule or order:
(1)
Allowing insurers or producers to purchase certificates of deposit from the creditor or to maintain accounts with the creditor at less than the market interest rates and charges that the creditor applies to other customers for deposit accounts of similar amounts and duration;
(2)
Paying a commission to a person, including a creditor, who is not appropriately licensed as a producer in this state; and
(3)
Purchasing or offering to purchase certificates of deposit from, or maintaining or offering to maintain deposit accounts or investment accounts with, a creditor as part of a creditor-placed insurance solicitation.
(d)
Prohibited rebates or inducements do not include the providing of insurance tracking and other services incidental to the creditor-placed insurance program.
(e)
Nothing contained in this section shall prohibit or restrict an insurer or producer from maintaining a demand, premium deposit, or other account or accounts with a creditor for which the insurer or producer provides insurance if the accounts pay the market interest rate and charges that the creditor applies to other customers for deposit accounts of similar amounts and duration.
Amended by Act 2019, No. 315,§ 2810, eff. 7/24/2019.
Acts 1997, No. 930, § 12; 2001, No. 580, § 27; 2001, No. 1728, § 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 101 - CREDITOR-PLACED INSURANCE (§§ 23-101-101 — 23-101-114) › Section 23-101-114 - Rules

After notice and hearing, the Insurance Commissioner may promulgate reasonable rules to carry out and effectuate the provisions of this chapter.
Amended by Act 2019, No. 315,§ 2811, eff. 7/24/2019.
Acts 1997, No. 930, § 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 102 - ARKANSAS EARTHQUAKE AUTHORITY ACT (§§ 23-102-101 — 23-102-119) › Section 23-102-101 - Short title

This chapter shall be known and may be cited as the "Arkansas Earthquake Authority Act".
Acts 1999, No. 1343, § 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 102 - ARKANSAS EARTHQUAKE AUTHORITY ACT (§§ 23-102-101 — 23-102-119) › Section 23-102-102 - Legislative findings and intent

(a)
The threat of or the actual occurrence of a major earthquake poses serious consequences for the State of Arkansas and its citizens. Of particular concern is the magnitude of damage to residential homeowner and farmowner dwellings and whether or not these structures are adequately insured.
(b)
The market for residential earthquake insurance within the State of Arkansas is currently characterized by the following:
(1)
Potential for unavailability of earthquake insurance coverage or inadequate coverage;
(2)
Potential lack of capacity and desire of insurers to write residential earthquake coverage due to pressure from rating agencies;
(3)
Low percentage of Arkansans with earthquake insurance;
(4)
Lack of awareness on the part of residential homeowners and farmowners regarding the consequences of a major earthquake; and
(5)
Lack of awareness on the part of residential homeowners and farmowners that earthquake is not a covered peril under a basic homeowner or farmowner policy unless affirmatively added by endorsement.
(c)
The General Assembly declares there is a compelling state interest in maintaining a viable and orderly private sector market for residential earthquake insurance in this state. To the extent that private sector insurers are unable to maintain a viable and orderly market for residential earthquake insurance in this state, state actions to maintain such a viable and orderly market are appropriate.
Acts 1999, No. 1343, § 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 102 - ARKANSAS EARTHQUAKE AUTHORITY ACT (§§ 23-102-101 — 23-102-119) › Section 23-102-103 - Definitions

As used in this chapter:
(1)
"Authority" means the Arkansas Earthquake Authority;
(2)
"Board" means the Board of the Arkansas Earthquake Authority;
(3)
"Commissioner" means the Insurance Commissioner;
(4)
"Event" means an earthquake and all subsequent earthquakes occurring within the following seventy-two-hour period;
(5)
"Insurer" means all property insurers as defined in §
23-62-104
and includes farmers' mutual aid associations and all casualty insurers as defined in §
23-62-105
;
(6)
"Net direct written premium" is the gross amount of premiums received from policies of insurance issued in this state less return premiums and dividends paid or credited to policyholders. "Net direct written premium" does not include premiums for indemnity reinsurance accepted from other licensed insurers, and there shall be no deductions for premiums for indemnity reinsurance ceded to other insurers; and
(7)
"Program" means the Market Assistance Program.
Acts 1999, No. 1343, § 3.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 102 - ARKANSAS EARTHQUAKE AUTHORITY ACT (§§ 23-102-101 — 23-102-119) › Section 23-102-104 - Establishment of Arkansas Earthquake Authority

(a)
There is created a nonprofit legal entity to be known as the "Arkansas Earthquake Authority". The authority shall operate subject to the supervision and control of the Board of the Arkansas Earthquake Authority. The authority is created as a political subdivision, instrumentality, and body politic of the State of Arkansas and, as such, is not a state agency.
(b)
The authority shall be exempt from all state, county, and local taxes, including insurance premium taxes, the Arkansas Procurement Law, §
19-11-201
et seq., and the Arkansas Administrative Procedure Act, §
25-15-201
et seq., except to the extent defined in this chapter.
Acts 1999, No. 1343, § 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 102 - ARKANSAS EARTHQUAKE AUTHORITY ACT (§§ 23-102-101 — 23-102-119) › Section 23-102-105 - Board

(a)
The Arkansas Earthquake Authority shall operate subject to the supervision and control of the Board of the Arkansas Earthquake Authority. There shall be a board of seven (7) members to be appointed by the Insurance Commissioner, which shall meet at least annually to review and prescribe operating rules. The commissioner shall apportion the number of positions into three (3) classes which shall consist of the following members:
(1)
Three (3) members shall be representatives of foreign insurance companies;
(2)
Two (2) members shall be representatives of domestic insurance companies;
(3)
One (1) member shall be a licensed insurance agent; and
(4)
One (1) member shall be a consumer.
(b)
The commissioner shall appoint members by class of one-year terms, two-year terms, and three-year terms. Thereafter, at each annual meeting, members appointed to succeed those whose terms expire shall be appointed to three-year terms.
(c)
The board shall elect one (1) of its members as chair.
(d)
Any vacancy in the board occurring for any reason other than the expiration of a term shall be filled for the unexpired term in the same manner as the original appointment.
(e)
Members of the board may be reimbursed from moneys of the authority for actual and necessary expenses incurred by them to attend board meetings but shall not otherwise be compensated for their services.
Acts 1999, No. 1343, § 5.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 102 - ARKANSAS EARTHQUAKE AUTHORITY ACT (§§ 23-102-101 — 23-102-119) › Section 23-102-106 - Immunity and limitations on liability

There is no liability on the part of and no cause of action of any nature may arise against any participating insurer, the Arkansas Earthquake Authority's agents or employees, the Board of the Arkansas Earthquake Authority, or the Insurance Commissioner or his or her representatives for any act or omission in the performance of their powers and duties under this chapter.
Acts 1999, No. 1343, § 6.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 102 - ARKANSAS EARTHQUAKE AUTHORITY ACT (§§ 23-102-101 — 23-102-119) › Section 23-102-109 - Market Assistance Program

(a)
The Board of the Arkansas Earthquake Authority shall develop and implement a Market Assistance Program to assist insureds in procuring residential earthquake coverage in the voluntary market. This shall be accomplished by providing those seeking residential earthquake coverage with a list of insurers participating in the program.
(b)
Insurers may participate in the program only after approval by the board. The board shall establish criteria which must be met by each program applicant for approval, including, but not limited to, the following minimum requirements:
(1)
All applicants for earthquake coverage which have underlying homeowner, farmowner, or dwelling fire insurance coverage, or meet other criteria as determined by the board and approved by the Insurance Commissioner, shall be accepted;
(2)
Residential earthquake coverage must be offered as monoline coverage;
(3)
The insurer-applicant is in sound financial condition; and
(4)
The insurer-applicant has retained or contracted with appropriate skilled personnel to service insureds.
(c)
By rule, the commissioner may restructure the program criteria set forth in subsection (b) of this section or any other component of the program if the commissioner finds that the program is not substantially accomplishing its objective of assisting residential insureds in procuring earthquake coverage in the voluntary market and that the restructuring will be in the best interests of Arkansas citizens.
(d)
Program insurers shall give ninety (90) days' notice in writing to the board and the commissioner of their withdrawal from the program.
(e)
Notwithstanding any provision in §
23-64-514
regarding agent appointments, all licensed property and casualty agents shall be authorized to access and place coverage through a program insurer.
Amended by Act 2019, No. 315,§ 2812, eff. 7/24/2019.
Acts 1999, No. 1343, § 9; 2001, No. 580, § 28.
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 102 - ARKANSAS EARTHQUAKE AUTHORITY ACT (§§ 23-102-101 — 23-102-119) › Section 23-102-110 - Coverages accessible through Arkansas Earthquake Authority

(a)
As long as the Market Assistance Program has at least one (1) approved insurer, no residential earthquake coverage shall be issued by the Arkansas Earthquake Authority, except as provided in subsection (b) of this section.
(b)
If there are no approved insurers in the program or if after notice and hearing, the Board of the Arkansas Earthquake Authority or the Insurance Commissioner finds that the program rates substantially exceed rates that could be offered by the authority, and the board or commissioner finds after a hearing that it is in the best interests of Arkansas citizens to issue coverage directly through the authority, and with the concurrence of the House Committee on Insurance and Commerce and the Senate Committee on Insurance and Commerce, if the General Assembly is in session, or the concurrence of the House Committee on Insurance and Commerce and the Senate Committee on Insurance and Commerce, if the General Assembly is not in session, the board shall proceed to offer coverage through the authority to potential insureds.
Acts 1999, No. 1343, § 10.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 102 - ARKANSAS EARTHQUAKE AUTHORITY ACT (§§ 23-102-101 — 23-102-119) › Section 23-102-113 - Policy standards

(a)
The Arkansas Earthquake Authority shall offer a residential earthquake policy with dwelling coverage in amounts up to one hundred thousand dollars ($100,000).
(b)
Coverage for personal property and additional living expenses shall be provided as determined by the Board of the Arkansas Earthquake Authority in the plan of operation.
(c)
The applicable deductible for this coverage shall be determined by the board in the plan of operation.
Acts 1999, No. 1343, § 13.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 102 - ARKANSAS EARTHQUAKE AUTHORITY ACT (§§ 23-102-101 — 23-102-119) › Section 23-102-114 - Notice and declination

(a)
Existing Policyholders.
(1)
(A)
Insurers writing homeowner, farmowner, fire and allied lines, excluding commercial policies and crop hail, shall notify policyholders who do not maintain residential earthquake insurance or who maintain residential earthquake insurance at amounts less than one hundred percent (100%) of the insured value of the dwelling, of their potential eligibility for residential earthquake insurance through the Market Assistance Program or the Arkansas Earthquake Authority.
(B)
The notice shall be on a form adopted by the Board of the Arkansas Earthquake Authority and approved by the Insurance Commissioner, and insurers shall verify to the board compliance with this provision.
(C)
The notice shall be provided at such intervals and frequency to be determined by the board, but notice shall be given at a minimum of three (3) different times over a four-year interval.
(2)
This notice from insurers shall not be deemed to provide earthquake coverage to existing policyholders who do not maintain a policy of residential earthquake insurance, nor shall the notice be deemed to increase the amounts of earthquake insurance for those policyholders who maintain coverage at less than one hundred percent (100%) of the insured value of the dwelling.
(b)
New Policyholders.
(1)
Insurers writing homeowner, farmowner, and fire and allied lines, excluding commercial policies and crop hail, shall advise new applicants for these types of coverage of the availability of residential earthquake insurance through the program or the authority, if coverage is unavailable from the insurer.
(2)
At the time of application, if an applicant chooses not to purchase residential earthquake coverage through an insurer, including program participants or the authority, the applicant shall reject this coverage in writing on the application or any addendum thereto.
(3)
Insurers shall maintain the application and any addendum thereto containing the rejection as part of the insurers' files.
Amended by Act 2015, No. 1210,§ 8, eff. 7/22/2015.
Acts 1999, No. 1343, § 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 102 - ARKANSAS EARTHQUAKE AUTHORITY ACT (§§ 23-102-101 — 23-102-119) › Section 23-102-115 - Appeal

Any applicant for a policy, any persons insured under the Market Assistance Program or the Arkansas Earthquake Authority, and any agency or insurer affected by the program or authority may appeal to the Insurance Commissioner any ruling or decision of the Board of the Arkansas Earthquake Authority, and the commissioner may consider the appeal under a de novo standard of review.
Acts 1999, No. 1343, § 15.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 102 - ARKANSAS EARTHQUAKE AUTHORITY ACT (§§ 23-102-101 — 23-102-119) › Section 23-102-116 - Rules

The Insurance Commissioner is authorized to promulgate such reasonable rules as are necessary to carry out the provisions of this chapter.
Amended by Act 2019, No. 315,§ 2813, eff. 7/24/2019.
Acts 1999, No. 1343, § 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 102 - ARKANSAS EARTHQUAKE AUTHORITY ACT (§§ 23-102-101 — 23-102-119) › Section 23-102-117 - Federal or multistate catastrophic funds

In the event a federal or multistate catastrophic insurance or reinsurance program intended to serve purposes similar to the purposes of the Market Assistance Program or the Arkansas Earthquake Authority is created, the Board of the Arkansas Earthquake Authority shall promptly take appropriate actions to coordinate with the federal or multistate program to the extent consistent with this chapter and if such actions are in the best interest of Arkansas citizens. The board shall also make recommendations to the General Assembly for coordination with the federal or multistate program or for termination of the program or the authority, if it is in the best interest of Arkansas citizens, or take such other actions as the board finds appropriate.
Acts 1999, No. 1343, § 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 102 - ARKANSAS EARTHQUAKE AUTHORITY ACT (§§ 23-102-101 — 23-102-119) › Section 23-102-118 - Exemption from Arkansas Property and Casualty Insurance Guaranty Act

Notwithstanding any other provision of law to the contrary, neither the Arkansas Earthquake Authority nor its policyholders shall be subject to the provisions of or be eligible for the benefits provided by the Arkansas Property and Casualty Insurance Guaranty Act, §
23-90-101
et seq.
Acts 1999, No. 1343, § 18.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 102 - ARKANSAS EARTHQUAKE AUTHORITY ACT (§§ 23-102-101 — 23-102-119) › Section 23-102-119 - Termination of Arkansas Earthquake Authority

Upon termination of the Arkansas Earthquake Authority by the General Assembly or the Insurance Commissioner, its remaining funds shall be transferred to the State Insurance Department Trust Fund unless otherwise directed by the General Assembly.
Acts 1999, No. 1343, § 19.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 103 - TITLE INSURANCE (§§ 23-103-101 — 23-103-417) › Subchapter 4 - ARKANSAS TITLE INSURANCE ACT (§§ 23-103-401 — 23-103-417) › Section 23-103-401 - Title

This subchapter shall be known and may be cited as the "Arkansas Title Insurance Act".
Acts 2007, No. 684, § 6.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 103 - TITLE INSURANCE (§§ 23-103-101 — 23-103-417) › Subchapter 4 - ARKANSAS TITLE INSURANCE ACT (§§ 23-103-401 — 23-103-417) › Section 23-103-403 - Requirement for license

(a)
(1)
Except as provided in subdivision (a)(2) of this section and §
23-103-404
, only an appointed title insurance agency licensed under §
23-64-101
et seq. shall issue title insurance policies, reports, or otherwise transact title insurance business.
(2)
An appointed title insurance agency licensed under §
23-64-101
et seq. shall not issue closing protection or issue as an insurer a title insurance policy.
(b)
All title insurance policies and reports covering an insurable interest in title to real property located in this state shall be signed by a title insurance agent:
(1)
Properly appointed by a title insurer;
(2)
Affiliated with a title insurance agency; and
(3)
Licensed in this state under this subchapter.
Acts 2007, No. 684, § 6; 2009, No. 1190, § 2; 2011, No. 515, § 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 103 - TITLE INSURANCE (§§ 23-103-101 — 23-103-417) › Subchapter 4 - ARKANSAS TITLE INSURANCE ACT (§§ 23-103-401 — 23-103-417) › Section 23-103-404 - Authorized activities of title insurers

(a)
Subject to the exceptions and restrictions contained in this subchapter, a title insurer may:
(1)
Transact only title insurance business;
(2)
Reinsure title insurance policies; and
(3)
Unless prohibited by the Insurance Commissioner, perform or cause to be performed ancillary activities whether or not in contemplation of or in conjunction with the issuance of a title insurance report or title insurance policy including:
(A)
Underwriting title to and furnishing related information about personal property or real property; and
(B)
Procuring and furnishing information about relevant personal property.
(b)
Only a title insurer may issue closing protection or issue as an insurer a title insurance policy.
Acts 2007, No. 684, § 6; 2011, No. 515, § 3.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 103 - TITLE INSURANCE (§§ 23-103-101 — 23-103-417) › Subchapter 4 - ARKANSAS TITLE INSURANCE ACT (§§ 23-103-401 — 23-103-417) › Section 23-103-406 - Title insurance agents - Examination of records

The Insurance Commissioner or title insurer during normal business hours may examine, audit, and inspect any and all books, records, files, and escrow and operating accounts related to title insurance reports and policies maintained by a title insurance agency, its successor in interest, transferee, or receiver under this subchapter.
Acts 2007, No. 684, § 6; 2009, No. 1190, § 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 103 - TITLE INSURANCE (§§ 23-103-101 — 23-103-417) › Subchapter 4 - ARKANSAS TITLE INSURANCE ACT (§§ 23-103-401 — 23-103-417) › Section 23-103-407 - Agency contracts

(a)
(1)
A person acting in the capacity of a title insurance agency shall not place business with a title insurer, and a title insurer shall not accept business from a title insurance agency unless a written contract exists between the title insurer and title insurance agency.
(2)
The written contract shall establish the responsibilities of the title insurer and title insurance agency and specify the division of the responsibilities if both share responsibility for a particular function.
(3)
The written contract shall also contain:
(A)
The types of risks that may be undertaken;
(B)
The maximum authority or limits of liability;
(C)
The territorial limitations;
(D)
All terms of compensation for the title insurance agency;
(E)
Policies and funds remittance;
(F)
Termination provisions;
(G)
(i)
The date by which all funds and policies due under the contract shall be accounted for to the title insurer.
(ii)
The date shall be no later than sixty (60) days after:
(a)
Issuance of the policy;
(b)
The satisfaction of all requirements and conditions of any report; or
(c)
The time specified in the contract if less than sixty (60) days; and
(H)
The time in which the title insurance agency has to report and forward to the title insurer all claims filed in writing with the title insurance agency by policyholders or other claimants.
(b)
The contract shall not be assigned in whole or in part by the title insurance agency unless as part of a sale of a title insurance agency or its assets and approved in writing by the title insurer.
(c)
(1)
The title insurer may terminate the contract upon written notice to the title insurance agency under any of the following circumstances:
(A)
Fraud, insolvency, appointment of a receiver or conservator, bankruptcy, cancellation of the title insurance agency's license or permit to do business, or the commencement of legal proceedings by the state of the domicile of the title insurance agency, which if successful would lead to the cancellation of the title insurance agency's permit or license to do business;
(B)
Material breach of any provision of the contract between the title insurer and the title insurance agency; or
(C)
In accordance with any other termination provision of the contract.
(2)
Upon the effective date as set forth in the notice of termination from a title insurer unless otherwise agreed to in writing by the title insurer, the title insurance agency shall immediately discontinue all title insurance business on behalf of that title insurer.
(3)
This subsection does not relieve the title insurance agency or the title insurer of any other contractual obligation.
Acts 2007, No. 684, § 6; 2009, No. 1190, § 5.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 103 - TITLE INSURANCE (§§ 23-103-101 — 23-103-417) › Subchapter 4 - ARKANSAS TITLE INSURANCE ACT (§§ 23-103-401 — 23-103-417) › Section 23-103-408 - Minimum search requirements

(a)
A title insurance report or title insurance policy shall not be issued unless the title insurance agency or title insurance agent has caused to be made a search of the title from the evidence prepared from a title plant or files of the county where the property is located or from the records of the clerk or the ex officio recorder of land records of the county that maintains records relating to real estate and any interest in the county.
(b)
The search shall include a review of all matters affecting the title to the property or interest to be insured for a continuous period of not less than the immediately preceding thirty (30) years.
(c)
A title insurance policy shall not be issued until the title insurer or title insurance agent has caused to be made a determination of insurability of title in accordance with the title insurer's underwriting practices.
(d)
In conducting a search for the issuance of a title insurance policy, the title insurance agency and title insurance agent are acting only as agents of the title insurer and owe no duty to the insured.
(e)
(1)
A cause of action for negligence does not exist by an insured under a title insurance policy against the title insurance agency or title insurance agent issuing the title insurance policy or against a title insurer for lack of reasonable care in searching and disclosing the state of title to the property.
(2)
The exclusive remedy of the insured for defects in title to the property that are not identified by the title search is to file a claim against the title insurance policy subject to the terms and conditions of the title insurance policy.
Amended by Act 2017, No. 1005,§ 1, eff. 8/1/2017.
Acts 2007, No. 684, § 6; 2009, No. 1190, § 6.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 103 - TITLE INSURANCE (§§ 23-103-101 — 23-103-417) › Subchapter 4 - ARKANSAS TITLE INSURANCE ACT (§§ 23-103-401 — 23-103-417) › Section 23-103-409 - Title insurance agent - Restrictions

A title insurance agent shall not:
(1)
Bind reinsurance on behalf of the title insurer;
(2)
Permit any of its directors, officers, controlling shareholders, or employees to serve on the title insurer's board of directors if the title insurance agent wrote five percent (5%) or more of the direct premiums of the title insurer written in the previous calendar year as shown on the title insurer's most recent annual statement filed with the Insurance Commissioner, unless the title insurer and the title insurance agent are under common control or ownership;
(3)
Jointly employ an individual who is employed with the title insurer unless the title insurer and the title insurance agent are under common control or ownership; or
(4)
Issue a title insurance report or title insurance policy insuring the interest of an insured in real property in this state unless the title insurance agent is licensed under this subchapter and the title insurance report or title insurance policy is signed by a title insurance agent licensed under this subchapter.
Acts 2007, No. 684, § 6.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 103 - TITLE INSURANCE (§§ 23-103-101 — 23-103-417) › Subchapter 4 - ARKANSAS TITLE INSURANCE ACT (§§ 23-103-401 — 23-103-417) › Section 23-103-410 - Title insurance inventory maintenance

(a)
The title insurer and the title insurance agency shall each maintain an inventory of all numbered policy forms or policy numbers assigned to the title insurance agency by the title insurer.
(b)
If title insurance policies are generated electronically by the title insurer, the title insurer shall maintain the inventory of policy numbers assigned to the title insurance agency.
Acts 2007, No. 684, § 6; 2009, No. 1190, § 7.
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 103 - TITLE INSURANCE (§§ 23-103-101 — 23-103-417) › Subchapter 4 - ARKANSAS TITLE INSURANCE ACT (§§ 23-103-401 — 23-103-417) › Section 23-103-411 - Title insurer - Audit

(a)
(1)
At least one (1) time each year, a title insurer shall conduct an on-site audit of the escrow and closing practices related to the issuance of title insurance policies, escrow accounts, security arrangements, files, underwriting and claims practices, and policy inventory of the title insurance agencies that the title insurer has authorized to issue title insurance reports or title insurance policies on its behalf.
(2)
If the title insurance agency fails to maintain separate escrow or trust accounts for each title insurer it represents, the title insurer shall verify that the funds related to closings in which the title insurer's policies are issued are reasonably ascertainable from the books of account and records of the title insurance agency.
(b)
(1)
The Insurance Commissioner may promulgate rules setting forth the standards of audit and the form of audit required.
(2)
The commissioner may also require the title insurer to provide a copy of its audit reports to the commissioner.
(3)
Any audits shall remain confidential unless introduced as evidence at a hearing or court proceeding involving the title insurance agency or agent.
Acts 2007, No. 684, § 6; 2009, No. 1190, § 8; 2011, No. 515, § 5.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 103 - TITLE INSURANCE (§§ 23-103-101 — 23-103-417) › Subchapter 4 - ARKANSAS TITLE INSURANCE ACT (§§ 23-103-401 — 23-103-417) › Section 23-103-412 - Title insurer - Restrictions

A title insurer shall not:
(1)
Appoint any director, officer, controlling shareholder, or employee of a title insurance agency to serve on the title insurer's board of directors if the title insurance agency wrote five percent (5%) or more of the direct premiums of the title insurer written during the previous calendar year as shown on the title insurer's most recent annual statement on file with the Insurance Commissioner, unless the title insurer and the title insurance agency are under common control or ownership; or
(2)
Jointly employ an individual who is employed with the title insurance agency unless the title insurer and the title insurance agency are under common control or ownership.
Acts 2007, No. 684, § 6; 2009, No. 1190, § 9.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 103 - TITLE INSURANCE (§§ 23-103-101 — 23-103-417) › Subchapter 4 - ARKANSAS TITLE INSURANCE ACT (§§ 23-103-401 — 23-103-417) › Section 23-103-413 - Policyholder rights and disclosure

(a)
(1)
When a title insurance report includes an offer to issue an owner's title insurance policy covering the resale of owner-occupied residential property, the title insurance report shall be furnished to the purchaser or mortgagor or to the representative of the purchaser-mortgagor as soon as reasonably possible before closing.
(2)
The title insurance report furnished to the purchaser-mortgagor shall incorporate the following statement on the first page in bold type:
"Please read the exceptions and the terms shown or referred to herein carefully. The exceptions are meant to provide you with notice of matters that are not covered under the terms of the title insurance policy and should be carefully considered.
This report is a written representation as to the condition of title for purposes of providing title insurance and lists all liens, defects, and encumbrances filed of record within the last thirty (30) years that have not been released of record or that are not statutorily expired.
No title insurance agent or any other person other than a licensed Arkansas attorney may provide legal advice concerning the status of title to the property described in the title commitment."
(b)
(1)
When an owner's title insurance policy has not been requested, a title insurer or a title insurance agency issuing a title insurance policy to a lender in conjunction with a mortgage loan involving real property made simultaneously with the purchase of all or part of the real property securing the loan shall give written notice on a form prescribed or approved by the Insurance Commissioner to the purchaser-mortgagor at the closing.
(2)
The notice required by subdivision (b)(1) of this section shall explain:
(A)
That a title insurance policy for the lender involving real property is issued for the protection of the mortgage lender and that the policy does not provide title insurance protection to the purchaser-mortgagor as the owner of the real property being purchased;
(B)
The coverage that a title insurance policy relating to real property insures and that risks exist for the purchaser-mortgagor of real property that could be insured through the purchase of an owner's title policy involving real property; and
(C)
That the purchaser-mortgagor may obtain an owner's title insurance policy at a specified premium.
(3)
A copy of the notice signed by the purchaser-mortgagor shall be retained in the closing file for at least five (5) years after the effective date of the lender's title insurance policy.
Acts 2007, No. 684, § 6; 2009, No. 1190, § 10.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 103 - TITLE INSURANCE (§§ 23-103-101 — 23-103-417) › Subchapter 4 - ARKANSAS TITLE INSURANCE ACT (§§ 23-103-401 — 23-103-417) › Section 23-103-414 - Record retention requirements

(a)
The title insurer and the title insurance agency shall maintain sufficient records of their affairs, including evidence of underwriting title, determination of insurability, and records of their escrow operations and escrow accounts.
(b)
The Insurance Commissioner may prescribe the specific records and documents to be kept and the length of time for which the records shall be maintained.
Acts 2007, No. 684, § 6; 2009, No. 1190, § 11.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 103 - TITLE INSURANCE (§§ 23-103-101 — 23-103-417) › Subchapter 4 - ARKANSAS TITLE INSURANCE ACT (§§ 23-103-401 — 23-103-417) › Section 23-103-415 - Rules promulgated by Insurance Commissioner

The Insurance Commissioner shall issue rules in accordance with the Arkansas Administrative Procedure Act, §
25-15-201
et seq., to implement this subchapter.
Acts 2007, No. 684, § 6.
Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 103 - TITLE INSURANCE (§§ 23-103-101 — 23-103-417) › Subchapter 4 - ARKANSAS TITLE INSURANCE ACT (§§ 23-103-401 — 23-103-417) › Section 23-103-416 - Penalties - Liabilities

(a)
If the Insurance Commissioner determines that a title insurer, title insurance agency, title insurance agent, or any other person has violated this subchapter or any rule or order promulgated under this subchapter, the commissioner may order:
(1)
(A)
Payment of a monetary penalty not to exceed one thousand dollars ($1,000) for each act or violation and not to exceed an aggregate penalty of ten thousand dollars ($10,000) unless the title insurer, title insurance agency, title insurance agent, or other person knew or reasonably should have known that the title insurer, title insurance agency, title insurance agent, or other person was in violation of this subchapter.
(B)
If the title insurer, title insurance agency, title insurance agent, or other person knew or reasonably should have known that the title insurer, title insurance agency, title insurance agent, or other person was in violation of this subchapter, the penalty shall not exceed five thousand dollars ($5,000) for each act or violation and not exceed an aggregate penalty of fifty thousand dollars ($50,000) in any six-month period; or
(2)
Suspension or revocation of the title insurer's, title insurance agency's, title insurance agent's, or other person's license if the title insurer, title insurance agency, title insurance agent, or other person knew or reasonably should have known that the title insurer, title insurance agency, title insurance agent, or other person was in violation of this subchapter.
(b)
If an order of rehabilitation or liquidation of the title insurer or of conservation of assets of the title insurer has been entered and the receiver appointed under the order determines that the title insurance agency or title insurance agent or any other person has not complied with this subchapter or any rule or order promulgated under this subchapter and the title insurer suffered any resulting loss or damage, the receiver may maintain a civil action for recovery of damages or other appropriate sanctions for the benefit of the title insurer and its policyholders and creditors.
(c)
This section does not affect the right of the commissioner to impose any other penalties provided under §
23-64-101
et seq.
Acts 2007, No. 684, § 6; 2009, No. 1190, § 12.