(a) Upon the State Board of Finance's approval of the formation of the captive insurance company described under § 19-3-506, the Secretary of the Department of Shared Administrative Services shall:(1) Provide administrative support and employ staff to implement, administer, and operate the captive insurance company;(2) Facilitate the creation, implementation, or modification of the insurance policy issued by the captive insurance company;(3) Facilitate agreements between the captive insurance company and other insurers and reinsurers;(4) (A) Facilitate contracts, agreements, and procurements on behalf of the captive insurance company to effectuate this chapter, including without limitation contracting with financial consultants, investment consultants, actuaries, auditors, accountants, brokers, adjusters, attorneys, third-party administrators, and other contractors as necessary to carry out the duties and responsibilities of establishing, implementing, and administering the captive insurance company.(B) Payment for expenses for these services may come from the State Captive Insurance Program Trust Fund under § 19-26-338 or the assets of the captive insurance company;(5) Prepare or assist in the preparation of financial statements and reports of financial condition;(6) Maintain or assist in maintaining accounting for the captive insurance company;(7) Ensure the captive insurance company's compliance with applicable laws and rules;(8) Perform other duties or actions necessary for the effective implementation, operation, and administration of the captive insurance company;(9) Recommend a minimum reserve balance for the State Captive Insurance Program Trust Fund;(10) Enforce the prohibition of the employment of a public adjuster by a public school that is utilizing the State Captive Insurance Program;(11) Coordinate with the Commission for Arkansas Public School Academic Facilities and Transportation to ensure timely and proper inspections of public schools participating in the program;(12) Require every public school or state agency with state-owned property to furnish to the secretary a complete list showing the location of every building located on a public school or state agency's real property; and(13) Employ necessary adjusters, engineers, appraisers, and other personnel required in the administration of this chapter.
(1) Provide administrative support and employ staff to implement, administer, and operate the captive insurance company;
(2) Facilitate the creation, implementation, or modification of the insurance policy issued by the captive insurance company;
(3) Facilitate agreements between the captive insurance company and other insurers and reinsurers;
(4) (A) Facilitate contracts, agreements, and procurements on behalf of the captive insurance company to effectuate this chapter, including without limitation contracting with financial consultants, investment consultants, actuaries, auditors, accountants, brokers, adjusters, attorneys, third-party administrators, and other contractors as necessary to carry out the duties and responsibilities of establishing, implementing, and administering the captive insurance company.(B) Payment for expenses for these services may come from the State Captive Insurance Program Trust Fund under § 19-26-338 or the assets of the captive insurance company;
(A) Facilitate contracts, agreements, and procurements on behalf of the captive insurance company to effectuate this chapter, including without limitation contracting with financial consultants, investment consultants, actuaries, auditors, accountants, brokers, adjusters, attorneys, third-party administrators, and other contractors as necessary to carry out the duties and responsibilities of establishing, implementing, and administering the captive insurance company.
(B) Payment for expenses for these services may come from the State Captive Insurance Program Trust Fund under § 19-26-338 or the assets of the captive insurance company;
(5) Prepare or assist in the preparation of financial statements and reports of financial condition;
(6) Maintain or assist in maintaining accounting for the captive insurance company;
(7) Ensure the captive insurance company's compliance with applicable laws and rules;
(8) Perform other duties or actions necessary for the effective implementation, operation, and administration of the captive insurance company;
(9) Recommend a minimum reserve balance for the State Captive Insurance Program Trust Fund;
(10) Enforce the prohibition of the employment of a public adjuster by a public school that is utilizing the State Captive Insurance Program;
(11) Coordinate with the Commission for Arkansas Public School Academic Facilities and Transportation to ensure timely and proper inspections of public schools participating in the program;
(12) Require every public school or state agency with state-owned property to furnish to the secretary a complete list showing the location of every building located on a public school or state agency's real property; and
(13) Employ necessary adjusters, engineers, appraisers, and other personnel required in the administration of this chapter.
(b) Funds received by the captive insurance company shall be:(1) Used exclusively for the purposes and activities stated in this chapter; and(2) Invested and reinvested in the name of the captive insurance company according to the business plan that is submitted by the captive insurance company and approved by the State Insurance Department to ensure the investments provide the greatest benefit for the captive insurance company.
(1) Used exclusively for the purposes and activities stated in this chapter; and
(2) Invested and reinvested in the name of the captive insurance company according to the business plan that is submitted by the captive insurance company and approved by the State Insurance Department to ensure the investments provide the greatest benefit for the captive insurance company.
(c) Notwithstanding any law to the contrary:(1) A reserve balance remaining unexpended at the end of a fiscal year in the captive insurance company's fund or account does not revert to the General Revenue Fund Account, but is carried forward into the subsequent fiscal year; and(2) Interest accruing on investments and deposits of the captive insurance company shall:(A) Be credited to the captive insurance company's fund or account;(B) Not revert to the General Revenue Fund Account; and(C) Be carried forward into the subsequent fiscal year.
(1) A reserve balance remaining unexpended at the end of a fiscal year in the captive insurance company's fund or account does not revert to the General Revenue Fund Account, but is carried forward into the subsequent fiscal year; and
(2) Interest accruing on investments and deposits of the captive insurance company shall:(A) Be credited to the captive insurance company's fund or account;(B) Not revert to the General Revenue Fund Account; and(C) Be carried forward into the subsequent fiscal year.
(A) Be credited to the captive insurance company's fund or account;
(B) Not revert to the General Revenue Fund Account; and
(C) Be carried forward into the subsequent fiscal year.
(d) (1) The captive insurance company shall maintain a policy that is consistent with the state's claims administration process under the Arkansas Insurance Code and other applicable laws and rules related to the adjustment, adjudication, and settlement of claims filed against the state.(2) The granting or denial of claims filed pursuant to the captive insurance company's policy shall be done according to the Arkansas Insurance Code and other applicable laws and rules.
(1) The captive insurance company shall maintain a policy that is consistent with the state's claims administration process under the Arkansas Insurance Code and other applicable laws and rules related to the adjustment, adjudication, and settlement of claims filed against the state.
(2) The granting or denial of claims filed pursuant to the captive insurance company's policy shall be done according to the Arkansas Insurance Code and other applicable laws and rules.
(e) The captive insurance company established under § 19-3-506 is subject to:(1) Applicable laws and rules that apply to captive insurers under § 23-63-1601 et seq. and the applicable laws and rules governing the captive insurance company's business structure unless specifically exempted; and(2) An annual audit by Arkansas Legislative Audit.
(1) Applicable laws and rules that apply to captive insurers under § 23-63-1601 et seq. and the applicable laws and rules governing the captive insurance company's business structure unless specifically exempted; and
(2) An annual audit by Arkansas Legislative Audit.
(f) The captive insurance company shall file annually a copy of the examination performed by the State Insurance Department with the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
(g) If the captive insurance company established under § 19-3-506 ceases to exist, then its assets remaining after its obligations and liabilities have been satisfied or discharged shall pass to and become the property of the Restricted Reserve Fund under § 19-27-317.