# Arkansas SB237: TO AMEND THE LAW CONCERNING THE LICENSING AND REGULATION OF CAPTIVE INSURERS. Arkansas SB237, TO AMEND THE LAW CONCERNING THE LICENSING AND REGULATION OF CAPTIVE INSURERS., is a 2025 Regular Session Senate bill sponsored by Justin Boyd (Republican), Trey Steimel (Republican); status enacted, last action 2025-04-14 (Notification that SB237 is now Act 554) (as of 2026-10-19). - Canonical: https://policyrisk.com/state-bill/AR-SB237-2025 - As of: 2026-10-19 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Arkansas SB237 - State: Arkansas - Session: 2025 Regular Session - Title: TO AMEND THE LAW CONCERNING THE LICENSING AND REGULATION OF CAPTIVE INSURERS. - Status: enacted - Chamber: Senate - Introduced: 2025-02-14 - Last action: 2025-04-14, Notification that SB237 is now Act 554 - Sponsors: Justin Boyd (Republican), Trey Steimel (Republican) - Cosponsors: 0 - Touches household money: no - Roll calls: 2 (129 yes, 0 no in all) - Economic provisions PRIA read: 9 ## Summary No summary available. ## Bill overview: provisions PRIA read - Captive insurers can move to Arkansas: benefit, low. Insurers based in another state or country can move their legal home to Arkansas as captives of the same type. They must meet Arkansas formation and licensing rules and stop being domestic entities in their former jurisdictions. Their former regulators must have no objection, and the Arkansas commi… - Easier licensing paths for captive insurers: benefit, low. Associations no longer need a full year of existence to qualify for a captive insurer. They must still meet ownership, voting-control, or subscriber requirements for their captive type. The commissioner can issue temporary licenses when doing so serves the public's best interest. Applicants must su… - Easier ordinary dividends for pure captives: benefit, low. Pure captive insurers can pay ordinary dividends without getting the commissioner's approval first. Extraordinary dividends and distributions still need prior approval. Captives remain subject to legal distribution limits and approved capital and surplus requirements for ongoing dividend programs. - Lower capital minimums for some captives: benefit, low. Association stock captives need $250,000 in paid-in capital for licensing, down from $400,000. Sponsored captives need $100,000, down from $250,000. Special-purpose captives need at least $125,000, down from $300,000. The commissioner can require more for special-purpose captives after reviewing th… - Captive tax credit rewards Arkansas payroll: benefit, low. Captive insurers can apply for a premium-tax credit tied to noncommissioned salaries and wages paid for captive operations. Eligible employees must have at least six months of employment, primarily live in Arkansas, and pay Arkansas income taxes. The credit cannot reduce the insurer's premium tax b… - Captive insurers face license enforcement penalties: cost, low. After notice and a hearing, the commissioner must suspend or revoke a captive insurer's license for listed serious violations. Grounds include unsound finances, hazardous practices, refusing examinations or required records, and failing to pay final judgments within 30 days. Knowing or reckless vio… - Higher capital minimum for industrial captives: cost, low. Industrial insured captives organized as stock insurers need at least $250,000 in paid-in capital to obtain an Arkansas license. The previous minimum was $200,000, so applicants need $50,000 more. - Audit relief and checks for pure captives: mixed, low. The commissioner can waive a pure captive's audit or actuarial-opinion requirement, but relief is not automatic. Its parent must have a consolidated audit, guarantee the captive's liabilities, and hold at least $100 million in net equity. The parent also needs a financial-strength rating of BBB or… - Captive relocation tax relief carries penalties: mixed, low. Captives moving their legal home to Arkansas owe Arkansas premium taxes only on premiums paid after the move. They must report all taxes due but can elect to skip payment in their first or second Arkansas year, not both. Surrendering their license or moving away within five years triggers immediate… ## Sponsors and cosponsors - Sponsor: Justin Boyd (Republican), Senate - Sponsor: Trey Steimel (Republican), House ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-04-07 | House | House Vote - Monday, April 7, 2025 8:52:54 PM | pass | 95 | 0 | | | 2025-03-03 | Senate | Senate Vote - Monday, March 3, 2025 2:16:14 PM | pass | 34 | 0 | | ## Actions (15) - 2025-04-14: Notification that SB237 is now Act 554 (Senate) - 2025-04-09: DELIVERED TO GOVERNOR. (Senate) - 2025-04-09: Reported correctly enrolled and ordered delivered to the Governor. (Senate) - 2025-04-08: ORDERED ENROLLED (Senate) - 2025-04-08: Returned from the House as passed. (Senate) - 2025-04-08: Returned to the Senate as passed. (House) - 2025-04-07: Read the third time and passed and ordered transmitted to the Senate. (House) - 2025-04-02: Returned by the Committee Do Pass (House) - 2025-03-03: Read the first time, rules suspended, read the second time and referred to the Committee on INSURANCE & COMMERCE- HOUSE (House) - 2025-03-03: RECEIVED FROM THE SENATE (House) - 2025-03-03: Ordered immediately transmitted to the House. (Senate) - 2025-03-03: Read the third time and passed. (Senate) - 2025-02-20: Returned by the Committee, with the recommendation that it Do Pass (Senate) - 2025-02-17: Read first time, rules suspended, read second time, referred to INSURANCE & COMMERCE - SENATE (Senate) - 2025-02-14: Filed (Senate) ## Bill text - SB237 - Introduced, 2025-02-14: [PDF](https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FBills%2F2025R%2FPublic%2FSB237.pdf) - Act Version: [PDF](https://www.arkleg.state.ar.us/Acts/FTPDocument?path=%2FACTS%2F2025R%2FPublic%2F&file=554.pdf&ddBienniumSession=2025%2F2025R) ## Related bills - HB1265: AN ACT FOR THE UNIVERSITY OF ARKANSAS AT LITTLE ROCK APPROPRIATION FOR THE 2025-2026 FISCAL YEAR. (enacted) - HB1237: TO PROHIBIT MEDICAL PROFESSIONALS FROM SOLICITING INJURED INDIVIDUALS; AND TO SET PENALTIES FOR A VIOLATION OF THE PROHIBITION OF SOLICITATION OF INJURED INDIV… (failed) - HB1686: TO AMEND THE LAW CONCERNING LICENSES TO CARRY CONCEALED HANDGUNS. (failed) - SB440: TO AMEND THE LAW CONCERNING EMBALMERS AND FUNERAL DIRECTORS; TO REGULATE THE USE OF ALKALINE HYDROLYSIS; AND TO REGULATE ALKALINE HYDROLYSIS FACILITIES. (failed) - HB1695: TO CLARIFY THE FORECLOSURE PROCESS FOR PROPERTY SUBJECT TO A MUNICIPAL LIEN; TO ALLOW A MUNICIPALITY TO PETITION TO SET ASIDE THE SALE OF PROPERTY TO CERTAIN P… (failed) - HR1012: TO AMEND THE RULES OF THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL ASSEMBLY; TO REQUIRE THAT A MEMBER OF THE HOUSE OF REPRESENTATIVES BE SELECTED A… (failed) ## Sources - [SB237 - Introduced (PDF)](https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FBills%2F2025R%2FPublic%2FSB237.pdf) - [Act Version (PDF)](https://www.arkleg.state.ar.us/Acts/FTPDocument?path=%2FACTS%2F2025R%2FPublic%2F&file=554.pdf&ddBienniumSession=2025%2F2025R) ## Related - [HB1265: AN ACT FOR THE UNIVERSITY OF ARKANSAS AT LITTLE ROCK APPROPRIATION FOR THE 2025…](https://policyrisk.com/state-bill/AR-HB1265-2025) - [HB1237: TO PROHIBIT MEDICAL PROFESSIONALS FROM SOLICITING INJURED INDIVIDUALS; AND TO S…](https://policyrisk.com/state-bill/AR-HB1237-2025) - [HB1686: TO AMEND THE LAW CONCERNING LICENSES TO CARRY CONCEALED HANDGUNS.](https://policyrisk.com/state-bill/AR-HB1686-2025) - [SB440: TO AMEND THE LAW CONCERNING EMBALMERS AND FUNERAL DIRECTORS; TO REGULATE THE US…](https://policyrisk.com/state-bill/AR-SB440-2025) - [HB1695: TO CLARIFY THE FORECLOSURE PROCESS FOR PROPERTY SUBJECT TO A MUNICIPAL LIEN; TO…](https://policyrisk.com/state-bill/AR-HB1695-2025) - [HR1012: TO AMEND THE RULES OF THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL…](https://policyrisk.com/state-bill/AR-HR1012-2025) - [Arkansas bills](https://policyrisk.com/states/arkansas/bills) - [Arkansas state hub](https://policyrisk.com/states/arkansas) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/AR-SB237-2025 (as of 2026-10-19).