(a) With the approval of the State Board of Finance under this section and notwithstanding § 23-63-1625, the Treasurer of State may establish, and the Secretary of the Department of Shared Administrative Services shall maintain, a captive insurance company as defined in § 23-63-1601 to maintain the State Captive Insurance Program under the State Captive Insurance Program Act, § 25-45-101 et seq.
(b) The captive insurance company described under subsection (a) of this section is:(1) Subject to § 23-63-1601 et seq. and other applicable laws and rules, whether or not adequate insurance markets are available to cover the risks, hazards, and liabilities described in this section;(2) A separate legal entity, owned and controlled by the state, and shall insure only the losses, exposures, and risks of entities that are subject to insurance and self-insurance requirements under state law, including without limitation executive, legislative, and judicial branch state agencies, public schools, and state-supported institutions of higher education; and(3) Administratively attached to the Department of Shared Administrative Services for the purposes of administration and personnel.
(1) Subject to § 23-63-1601 et seq. and other applicable laws and rules, whether or not adequate insurance markets are available to cover the risks, hazards, and liabilities described in this section;
(2) A separate legal entity, owned and controlled by the state, and shall insure only the losses, exposures, and risks of entities that are subject to insurance and self-insurance requirements under state law, including without limitation executive, legislative, and judicial branch state agencies, public schools, and state-supported institutions of higher education; and
(3) Administratively attached to the Department of Shared Administrative Services for the purposes of administration and personnel.
(c) Through the establishment of the captive insurance company described under subsection (a) of this section, the board shall:(1) Annually review and approve the captive insurance company's actuarial plan;(2) Periodically determine, reevaluate, and revise:(A) The potential losses, exposures, and risks that will be insured through the captive insurance company;(B) The nature and scope of insurance coverage or coverages to be provided through the captive insurance company;(C) The method by which coverage or coverages are to be extended and contributions are to be paid and collected, including without limitation premiums and assessments;(D) The amount of the exposure for each line of insurance coverage as well as the premium amounts for each entity, including without limitation public schools, state-supported institutions of higher education, and the state;(E) A process through which premiums may be collected directly from each entity; and(F) (i) The initial and continuing capital requirements to form and maintain the captive insurance company, including without limitation the amount and funding source for the initial and continuing capital.(ii) Initial or continuing capital may be funded by general revenues from the State Captive Insurance Program Trust Fund or other sources allowable under applicable laws and rules;(3) (A) Establish an investment policy for the investment and reinvestment of capital, premiums, and other funds and assets of the captive insurance company.(B) The investment policy described under subdivision (c)(3)(A) of this section may authorize the funds and assets to be invested in a security, investment, or investment interest that is not otherwise prohibited by Arkansas Constitution, Article 12, § 5.(C) Collateral that is required to secure an investment or investment interest authorized in the investment policy may be in the form of a security, investment, or investment interest in which the funds and assets of the captive insurance company may be directly invested, including cash;(4) Approve regulatory filings to be made by the state on behalf of the captive insurance company in compliance with applicable laws and rules;(5) (A) Delegate to the secretary the day-to-day operations and responsibilities of the captive insurance company and promulgation of rules to implement this section.(B) The secretary shall implement the board directives and exercise the state's powers, duties, and responsibilities contained in this section to implement the captive insurance company.(C) The secretary may assign duties and responsibilities to the secretary's staff or private vendors and contractors, as the secretary deems necessary and proper, and may consult with professionals as necessary about the administration of the captive insurance company.(D) The secretary may also establish, implement, and adopt policies, guidelines, and operating procedures under this section and the board's delegation;(6) Approve the dissolution of the captive insurance company with the prior approval of the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee; and(7) Perform other duties or actions necessary for the effective implementation, operation, and administration of the captive insurance company.
(1) Annually review and approve the captive insurance company's actuarial plan;
(2) Periodically determine, reevaluate, and revise:(A) The potential losses, exposures, and risks that will be insured through the captive insurance company;(B) The nature and scope of insurance coverage or coverages to be provided through the captive insurance company;(C) The method by which coverage or coverages are to be extended and contributions are to be paid and collected, including without limitation premiums and assessments;(D) The amount of the exposure for each line of insurance coverage as well as the premium amounts for each entity, including without limitation public schools, state-supported institutions of higher education, and the state;(E) A process through which premiums may be collected directly from each entity; and(F) (i) The initial and continuing capital requirements to form and maintain the captive insurance company, including without limitation the amount and funding source for the initial and continuing capital.(ii) Initial or continuing capital may be funded by general revenues from the State Captive Insurance Program Trust Fund or other sources allowable under applicable laws and rules;
(A) The potential losses, exposures, and risks that will be insured through the captive insurance company;
(B) The nature and scope of insurance coverage or coverages to be provided through the captive insurance company;
(C) The method by which coverage or coverages are to be extended and contributions are to be paid and collected, including without limitation premiums and assessments;
(D) The amount of the exposure for each line of insurance coverage as well as the premium amounts for each entity, including without limitation public schools, state-supported institutions of higher education, and the state;
(E) A process through which premiums may be collected directly from each entity; and
(F) (i) The initial and continuing capital requirements to form and maintain the captive insurance company, including without limitation the amount and funding source for the initial and continuing capital.(ii) Initial or continuing capital may be funded by general revenues from the State Captive Insurance Program Trust Fund or other sources allowable under applicable laws and rules;
(i) The initial and continuing capital requirements to form and maintain the captive insurance company, including without limitation the amount and funding source for the initial and continuing capital.
(ii) Initial or continuing capital may be funded by general revenues from the State Captive Insurance Program Trust Fund or other sources allowable under applicable laws and rules;
(3) (A) Establish an investment policy for the investment and reinvestment of capital, premiums, and other funds and assets of the captive insurance company.(B) The investment policy described under subdivision (c)(3)(A) of this section may authorize the funds and assets to be invested in a security, investment, or investment interest that is not otherwise prohibited by Arkansas Constitution, Article 12, § 5.(C) Collateral that is required to secure an investment or investment interest authorized in the investment policy may be in the form of a security, investment, or investment interest in which the funds and assets of the captive insurance company may be directly invested, including cash;
(A) Establish an investment policy for the investment and reinvestment of capital, premiums, and other funds and assets of the captive insurance company.
(B) The investment policy described under subdivision (c)(3)(A) of this section may authorize the funds and assets to be invested in a security, investment, or investment interest that is not otherwise prohibited by Arkansas Constitution, Article 12, § 5.
(C) Collateral that is required to secure an investment or investment interest authorized in the investment policy may be in the form of a security, investment, or investment interest in which the funds and assets of the captive insurance company may be directly invested, including cash;
(4) Approve regulatory filings to be made by the state on behalf of the captive insurance company in compliance with applicable laws and rules;
(5) (A) Delegate to the secretary the day-to-day operations and responsibilities of the captive insurance company and promulgation of rules to implement this section.(B) The secretary shall implement the board directives and exercise the state's powers, duties, and responsibilities contained in this section to implement the captive insurance company.(C) The secretary may assign duties and responsibilities to the secretary's staff or private vendors and contractors, as the secretary deems necessary and proper, and may consult with professionals as necessary about the administration of the captive insurance company.(D) The secretary may also establish, implement, and adopt policies, guidelines, and operating procedures under this section and the board's delegation;
(A) Delegate to the secretary the day-to-day operations and responsibilities of the captive insurance company and promulgation of rules to implement this section.
(B) The secretary shall implement the board directives and exercise the state's powers, duties, and responsibilities contained in this section to implement the captive insurance company.
(C) The secretary may assign duties and responsibilities to the secretary's staff or private vendors and contractors, as the secretary deems necessary and proper, and may consult with professionals as necessary about the administration of the captive insurance company.
(D) The secretary may also establish, implement, and adopt policies, guidelines, and operating procedures under this section and the board's delegation;
(6) Approve the dissolution of the captive insurance company with the prior approval of the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee; and
(7) Perform other duties or actions necessary for the effective implementation, operation, and administration of the captive insurance company.