(a) A captive insurance company may be formed and operated in any form of business organization authorized under Arkansas law and approved by the Insurance Commissioner.
(b) The alien captive insurance company may register to do business in this state after the commissioner's certificate has been issued.
(c) The capital stock of a captive insurance company incorporated as a stock insurer shall be issued at not less than par value.
(d) At least one (1) of the members of the board of directors of a captive insurance company formed as a corporation in this state shall be a resident of the United States or a United States territory.
(e) At least one (1) of the members of the subscribers' advisory committee of a captive insurance company formed as a reciprocal insurer shall be a resident of the United States or a United States territory.
(f) (1) A captive insurance company formed under this subchapter has the privileges of and is subject to the business organization law of this state and is subject to this subchapter.(2) If a conflict occurs between business organization law and this subchapter, the latter controls.(3) (A) The Arkansas Insurance Code concerning mergers, consolidations, and mutualizations applies in determining the procedures to be followed by a captive insurance company in carrying out any of those transactions.(B) The commissioner may, upon request of an insurer that is a party to a merger authorized under subdivision (f)(3)(A) of this section, waive certain applicable requirements to the merger transaction.(C) A conversion may be accomplished under a reasonable plan and procedure as may be approved by the commissioner and according to rules that the commissioner may promulgate.(D) The commissioner may waive or modify the requirements for public notice and hearing.(E) If a notice of public hearing is required but no one requests a hearing, the commissioner may cancel the hearing.(F) An alien insurer may be a party to a merger authorized under subdivision (f)(3)(A) of this section if the requirements for a merger between a captive insurance company and a foreign insurer under this chapter apply to the merger transaction.
(1) A captive insurance company formed under this subchapter has the privileges of and is subject to the business organization law of this state and is subject to this subchapter.
(2) If a conflict occurs between business organization law and this subchapter, the latter controls.
(3) (A) The Arkansas Insurance Code concerning mergers, consolidations, and mutualizations applies in determining the procedures to be followed by a captive insurance company in carrying out any of those transactions.(B) The commissioner may, upon request of an insurer that is a party to a merger authorized under subdivision (f)(3)(A) of this section, waive certain applicable requirements to the merger transaction.(C) A conversion may be accomplished under a reasonable plan and procedure as may be approved by the commissioner and according to rules that the commissioner may promulgate.(D) The commissioner may waive or modify the requirements for public notice and hearing.(E) If a notice of public hearing is required but no one requests a hearing, the commissioner may cancel the hearing.(F) An alien insurer may be a party to a merger authorized under subdivision (f)(3)(A) of this section if the requirements for a merger between a captive insurance company and a foreign insurer under this chapter apply to the merger transaction.
(A) The Arkansas Insurance Code concerning mergers, consolidations, and mutualizations applies in determining the procedures to be followed by a captive insurance company in carrying out any of those transactions.
(B) The commissioner may, upon request of an insurer that is a party to a merger authorized under subdivision (f)(3)(A) of this section, waive certain applicable requirements to the merger transaction.
(C) A conversion may be accomplished under a reasonable plan and procedure as may be approved by the commissioner and according to rules that the commissioner may promulgate.
(D) The commissioner may waive or modify the requirements for public notice and hearing.
(E) If a notice of public hearing is required but no one requests a hearing, the commissioner may cancel the hearing.
(F) An alien insurer may be a party to a merger authorized under subdivision (f)(3)(A) of this section if the requirements for a merger between a captive insurance company and a foreign insurer under this chapter apply to the merger transaction.
(g) (1) (A) Notwithstanding any other method authorized by law, a foreign or alien insurer may become a domestic captive insurance company by complying with the requirements of this subchapter relative to the organization and licensing of a domestic captive insurance company of the same type with the approval of the commissioner.(B) A foreign or alien insurer redomesticating to this state under this section may be organized under any corporate form permitted by this chapter.(2) (A) A foreign or alien insurer that is domiciled in a foreign or alien jurisdiction may redomesticate under this section if as a result of the actions taken by the foreign or alien insurer under this section to redomesticate to this state, the foreign or alien insurer shall no longer be a domestic legal entity of the foreign or alien jurisdiction.(B) A foreign or alien insurer that applies to redomesticate under this section shall provide evidence to the commissioner that the applicable regulatory authority of the foreign or alien jurisdiction of its domicile has no objection to the redomestication.(3) (A) The foreign or alien insurer applying to redomesticate under this section shall:(i) File with the Secretary of State its articles of association, charter, or other organizational document, together with appropriate amendments thereto adopted according to the laws of this state;(ii) Bring the articles of association, charter, or other organizational document into compliance with the laws of this state; and(iii) Obtain an approval letter issued by the commissioner.(B) The foreign or alien insurer may file with the Secretary of State an election deferring the effective date of the redomestication.(C) Upon filing and paying any required fees, the Secretary of State shall issue an acknowledgement letter to the applicant.(4) The foreign or alien insurer shall file a copy of the Secretary of State's acknowledgement letter with the commissioner, who shall then issue a license under § 23-63-1602.(5) Upon the completion of a redomestication under this section, the captive insurance company shall be:(A) Considered domiciled in this state;(B) Subject to this subchapter; and(C) Deemed to have a formation date corresponding to its original formation date in the foreign or alien domicile.(6) For the purposes of an examination under § 23-63-1608, an examination conducted by the foreign or alien domicile that is substantially similar to an examination conducted in this state if the company had been domiciled in this state shall be recognized for the purposes of establishing the period of time when the next examination is due.(7) A foreign or alien insurer redomesticating under this section:(A) Shall:(i) Be liable only for taxes due under § 23-63-1614 on premiums paid to the captive insurance company after redomestication; and(ii) (a) Report all premium taxes due under § 23-63-1614 but may elect to forego the payment of premium taxes, in either its first or its second year of operations, but not both, after redomesticating into this state.(b) A foreign or alien insurer making an election under subdivision (g)(7)(A)(ii)(a) of this section that surrenders its license or redomesticates to another jurisdiction within five (5) years of redomestication into this state shall immediately pay a tax in an amount equal to the premium tax under § 23-63-1614 plus ten percent (10%) per annum from the date the premium tax under § 23-63-1614 would have been due; and(B) After July 1 of any year shall be subject to only one-half (1/2) of the minimum premium tax specified under § 23-63-1614 in its first year.(8) This section shall not:(A) Be the exclusive means of redomesticating a captive insurance company to this state; and(B) Restrict the ability of an insurance company to undergo a merger, consolidation, transfer of assets and liabilities, or utilize any other means permitted by law to effect the transfer of operations of a foreign or alien insurance company to this state.
(1) (A) Notwithstanding any other method authorized by law, a foreign or alien insurer may become a domestic captive insurance company by complying with the requirements of this subchapter relative to the organization and licensing of a domestic captive insurance company of the same type with the approval of the commissioner.(B) A foreign or alien insurer redomesticating to this state under this section may be organized under any corporate form permitted by this chapter.
(A) Notwithstanding any other method authorized by law, a foreign or alien insurer may become a domestic captive insurance company by complying with the requirements of this subchapter relative to the organization and licensing of a domestic captive insurance company of the same type with the approval of the commissioner.
(B) A foreign or alien insurer redomesticating to this state under this section may be organized under any corporate form permitted by this chapter.
(2) (A) A foreign or alien insurer that is domiciled in a foreign or alien jurisdiction may redomesticate under this section if as a result of the actions taken by the foreign or alien insurer under this section to redomesticate to this state, the foreign or alien insurer shall no longer be a domestic legal entity of the foreign or alien jurisdiction.(B) A foreign or alien insurer that applies to redomesticate under this section shall provide evidence to the commissioner that the applicable regulatory authority of the foreign or alien jurisdiction of its domicile has no objection to the redomestication.
(A) A foreign or alien insurer that is domiciled in a foreign or alien jurisdiction may redomesticate under this section if as a result of the actions taken by the foreign or alien insurer under this section to redomesticate to this state, the foreign or alien insurer shall no longer be a domestic legal entity of the foreign or alien jurisdiction.
(B) A foreign or alien insurer that applies to redomesticate under this section shall provide evidence to the commissioner that the applicable regulatory authority of the foreign or alien jurisdiction of its domicile has no objection to the redomestication.
(3) (A) The foreign or alien insurer applying to redomesticate under this section shall:(i) File with the Secretary of State its articles of association, charter, or other organizational document, together with appropriate amendments thereto adopted according to the laws of this state;(ii) Bring the articles of association, charter, or other organizational document into compliance with the laws of this state; and(iii) Obtain an approval letter issued by the commissioner.(B) The foreign or alien insurer may file with the Secretary of State an election deferring the effective date of the redomestication.(C) Upon filing and paying any required fees, the Secretary of State shall issue an acknowledgement letter to the applicant.
(A) The foreign or alien insurer applying to redomesticate under this section shall:(i) File with the Secretary of State its articles of association, charter, or other organizational document, together with appropriate amendments thereto adopted according to the laws of this state;(ii) Bring the articles of association, charter, or other organizational document into compliance with the laws of this state; and(iii) Obtain an approval letter issued by the commissioner.
(i) File with the Secretary of State its articles of association, charter, or other organizational document, together with appropriate amendments thereto adopted according to the laws of this state;
(ii) Bring the articles of association, charter, or other organizational document into compliance with the laws of this state; and
(iii) Obtain an approval letter issued by the commissioner.
(B) The foreign or alien insurer may file with the Secretary of State an election deferring the effective date of the redomestication.
(C) Upon filing and paying any required fees, the Secretary of State shall issue an acknowledgement letter to the applicant.
(4) The foreign or alien insurer shall file a copy of the Secretary of State's acknowledgement letter with the commissioner, who shall then issue a license under § 23-63-1602.
(5) Upon the completion of a redomestication under this section, the captive insurance company shall be:(A) Considered domiciled in this state;(B) Subject to this subchapter; and(C) Deemed to have a formation date corresponding to its original formation date in the foreign or alien domicile.
(A) Considered domiciled in this state;
(B) Subject to this subchapter; and
(C) Deemed to have a formation date corresponding to its original formation date in the foreign or alien domicile.
(6) For the purposes of an examination under § 23-63-1608, an examination conducted by the foreign or alien domicile that is substantially similar to an examination conducted in this state if the company had been domiciled in this state shall be recognized for the purposes of establishing the period of time when the next examination is due.
(7) A foreign or alien insurer redomesticating under this section:(A) Shall:(i) Be liable only for taxes due under § 23-63-1614 on premiums paid to the captive insurance company after redomestication; and(ii) (a) Report all premium taxes due under § 23-63-1614 but may elect to forego the payment of premium taxes, in either its first or its second year of operations, but not both, after redomesticating into this state.(b) A foreign or alien insurer making an election under subdivision (g)(7)(A)(ii)(a) of this section that surrenders its license or redomesticates to another jurisdiction within five (5) years of redomestication into this state shall immediately pay a tax in an amount equal to the premium tax under § 23-63-1614 plus ten percent (10%) per annum from the date the premium tax under § 23-63-1614 would have been due; and(B) After July 1 of any year shall be subject to only one-half (1/2) of the minimum premium tax specified under § 23-63-1614 in its first year.
(A) Shall:(i) Be liable only for taxes due under § 23-63-1614 on premiums paid to the captive insurance company after redomestication; and(ii) (a) Report all premium taxes due under § 23-63-1614 but may elect to forego the payment of premium taxes, in either its first or its second year of operations, but not both, after redomesticating into this state.(b) A foreign or alien insurer making an election under subdivision (g)(7)(A)(ii)(a) of this section that surrenders its license or redomesticates to another jurisdiction within five (5) years of redomestication into this state shall immediately pay a tax in an amount equal to the premium tax under § 23-63-1614 plus ten percent (10%) per annum from the date the premium tax under § 23-63-1614 would have been due; and
(i) Be liable only for taxes due under § 23-63-1614 on premiums paid to the captive insurance company after redomestication; and
(ii) (a) Report all premium taxes due under § 23-63-1614 but may elect to forego the payment of premium taxes, in either its first or its second year of operations, but not both, after redomesticating into this state.(b) A foreign or alien insurer making an election under subdivision (g)(7)(A)(ii)(a) of this section that surrenders its license or redomesticates to another jurisdiction within five (5) years of redomestication into this state shall immediately pay a tax in an amount equal to the premium tax under § 23-63-1614 plus ten percent (10%) per annum from the date the premium tax under § 23-63-1614 would have been due; and
(a) Report all premium taxes due under § 23-63-1614 but may elect to forego the payment of premium taxes, in either its first or its second year of operations, but not both, after redomesticating into this state.
(b) A foreign or alien insurer making an election under subdivision (g)(7)(A)(ii)(a) of this section that surrenders its license or redomesticates to another jurisdiction within five (5) years of redomestication into this state shall immediately pay a tax in an amount equal to the premium tax under § 23-63-1614 plus ten percent (10%) per annum from the date the premium tax under § 23-63-1614 would have been due; and
(B) After July 1 of any year shall be subject to only one-half (1/2) of the minimum premium tax specified under § 23-63-1614 in its first year.
(8) This section shall not:(A) Be the exclusive means of redomesticating a captive insurance company to this state; and(B) Restrict the ability of an insurance company to undergo a merger, consolidation, transfer of assets and liabilities, or utilize any other means permitted by law to effect the transfer of operations of a foreign or alien insurance company to this state.
(A) Be the exclusive means of redomesticating a captive insurance company to this state; and
(B) Restrict the ability of an insurance company to undergo a merger, consolidation, transfer of assets and liabilities, or utilize any other means permitted by law to effect the transfer of operations of a foreign or alien insurance company to this state.
(h) (1) (A) A captive insurance company formed as a reciprocal insurer under this subchapter is subject to § 23-70-101 et seq. and this subchapter.(B) If a conflict occurs between § 23-70-101 et seq. and this subchapter, the latter controls.(C) To the extent a reciprocal insurer is made subject to the Arkansas Insurance Code under § 23-70-101 et seq., the Arkansas Insurance Code is not applicable to a reciprocal insurer formed under this subchapter unless expressly made applicable to a captive insurance company by this subchapter.(2) In addition to subdivision (h)(1) of this section, a captive insurance company organized as a reciprocal insurer that is an industrial insured group is subject to § 23-70-101 et seq. and applicable provisions of the Arkansas Insurance Code.
(1) (A) A captive insurance company formed as a reciprocal insurer under this subchapter is subject to § 23-70-101 et seq. and this subchapter.(B) If a conflict occurs between § 23-70-101 et seq. and this subchapter, the latter controls.(C) To the extent a reciprocal insurer is made subject to the Arkansas Insurance Code under § 23-70-101 et seq., the Arkansas Insurance Code is not applicable to a reciprocal insurer formed under this subchapter unless expressly made applicable to a captive insurance company by this subchapter.
(A) A captive insurance company formed as a reciprocal insurer under this subchapter is subject to § 23-70-101 et seq. and this subchapter.
(B) If a conflict occurs between § 23-70-101 et seq. and this subchapter, the latter controls.
(C) To the extent a reciprocal insurer is made subject to the Arkansas Insurance Code under § 23-70-101 et seq., the Arkansas Insurance Code is not applicable to a reciprocal insurer formed under this subchapter unless expressly made applicable to a captive insurance company by this subchapter.
(2) In addition to subdivision (h)(1) of this section, a captive insurance company organized as a reciprocal insurer that is an industrial insured group is subject to § 23-70-101 et seq. and applicable provisions of the Arkansas Insurance Code.
(i) The articles of incorporation or bylaws of a captive insurance company may authorize a quorum of a board of directors to consist of no fewer than one-third (⅓) of the fixed or prescribed number of directors under § 4-27-824(b).
(j) The subscribers' agreement or other organizing document of a captive insurance company formed as a reciprocal insurer may authorize a quorum of a subscribers' advisory committee to consist of no fewer than one-third (⅓) of the number of its members.