Title 23 — Public Utilities and Regulated Industries
95 chapters · 4,024 sections in this title.
Ark. Code Ann. § 23-69-101 Scope
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Sections 23-69-101 — 23-69-103, 23-69-105 — 23-69-141, 23-69-143, and 23-69-149 — 23-69-156 shall apply only to domestic stock insurers and domestic mutual insurers transacting, or proposing to transact, insurance on the legal reserve plan.
Ark. Code Ann. § 23-69-102 Definitions
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(1) As used in §§ 23-69-101 — 23-69-103, 23-69-105 — 23-69-141, 23-69-143, and 23-69-149 — 23-69-156, unless the context otherwise requires:(1) A “stock” insurer is an incorporated insurer with capital divided into shares and owned by its stockholders; and(2) A “mutual” insurer i…
Ark. Code Ann. § 23-69-103 Inapplicability of general corporation statutes
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The statutes of this state relating to the powers and procedures of corporations other than insurance corporations shall not apply to domestic stock insurers and domestic mutual insurers, except as stated in § 23-69-128.
Ark. Code Ann. § 23-69-104 Powers of company not enlarged
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Nothing in §§ 23-69-101 — 23-69-103, 23-69-105 — 23-69-141, 23-69-143, and 23-69-149 — 23-69-156 shall be construed to authorize any company to engage in any kind of insurance business not authorized by its articles of incorporation nor to authorize any foreign or alien company t…
Ark. Code Ann. § 23-69-105 Incorporation
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(a) This section applies to stock and mutual insurers hereafter incorporated in this state. (b) One (1) or more persons may act as the incorporator or incorporators of a stock or mutual insurer by delivering articles of incorporation to the Insurance Commissioner for filing. (c) …
Ark. Code Ann. § 23-69-106 Articles of incorporation — Filing and approval
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(a) (1) The incorporator or incorporators of a proposed domestic insurer incorporated under this subchapter, particularly §§ 23-69-101 — 23-69-103, 23-69-105 — 23-69-141, 23-69-143, and 23-69-149 — 23-69-156, shall deliver the duplicate originals of the articles of incorporation …
Ark. Code Ann. § 23-69-107 Articles of incorporation — Amendment
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(a) A domestic stock insurer may amend its articles of incorporation for any lawful purpose by written authorization of the holders of a majority of the voting power of its outstanding capital stock or by affirmative vote of a majority voting at a lawful meeting of stockholders o…
Ark. Code Ann. § 23-69-108 Officers
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(a) (1) (A) Every domestic stock or mutual insurer shall have:(i) (a) A chief executive officer or a president, or both. (b) The chief executive officer or president shall also serve as a member of the board of directors;(ii) A secretary; and(iii) A treasurer.(B) The chief execut…
Ark. Code Ann. § 23-69-109 Pecuniary interest of officers, directors, employees, etc
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(a) Any officer or director, any member of any committee, or any employee of a domestic insurer who is charged with the duty of investing or handling the insurer's funds:(1) Shall not deposit or invest the funds except in the insurer's corporate name;(2) Shall not borrow the fund…
Ark. Code Ann. § 23-69-110 Vacancies on board of directors
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(a) Vacancies on the board of directors may be filled by the remaining members of the board, and each person so elected shall be a director until his or her successor is elected by the stockholders or members, at the next annual meeting of stockholders or members, or at any speci…
Ark. Code Ann. § 23-69-111 Corporate powers and duties
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(a) An insurance corporation formed under §§ 23-69-101 — 23-69-103, 23-69-105 — 23-69-141, 23-69-143, and 23-69-149 — 23-69-156, or existing on January 1, 1960, and of a type which might be formed under §§ 23-69-101 — 23-69-103, 23-69-105 — 23-69-141, 23-69-143, and 23-69-149 — 2…
Ark. Code Ann. § 23-69-112 Initial qualifications — Domestic mutuals
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(a) When newly organized, a domestic mutual insurer may be authorized to transact any one (1) of the kinds of insurance listed in §§ 23-62-101 — 23-62-108. (b) When applying for an original certificate of authority, the insurer must be otherwise qualified therefor under the Arkan…
Ark. Code Ann. § 23-69-113 Formation of nonlife mutual insurer — Deposit required
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(a) Before soliciting any applications for insurance as required under § 23-69-112 as a qualification for the certificate of authority, the incorporator or incorporators of the proposed insurer shall deposit with the Insurance Commissioner acceptable securities in the penal sum o…
Ark. Code Ann. § 23-69-114 Formation of nonlife mutual insurer — Applications for insurance
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(a) Upon receipt of the Insurance Commissioner's approval of the bond or deposit as provided in § 23-69-113, the directors and officers of the proposed domestic mutual insurer may commence solicitation of the requisite applications for insurance policies as they may accept, and t…
Ark. Code Ann. § 23-69-115 Trust deposit of premiums — Issuance of policies — Mutual insurers
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(a) All sums collected by a domestic mutual corporation as premiums or fees on qualifying applications for insurance therein shall be deposited in trust into a bank or trust company in this state under a written trust agreement consistent with this section and with § 23-69-114(c)…
Ark. Code Ann. § 23-69-116 Failure to complete organization — Mutual insurers
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If the proposed domestic mutual insurer fails to complete its organization and to secure its original certificate of authority within one (1) year from and after the date of its certificate of incorporation, the corporation shall be dissolved by the Insurance Commissioner. The co…
Ark. Code Ann. § 23-69-117 Additional kinds of insurance — Mutual insurers
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A domestic mutual insurer, after being authorized to transact one (1) kind of insurance, may be authorized by the Insurance Commissioner to transact such additional kinds of insurance as are permitted under § 23-63-204, while otherwise in compliance with the Arkansas Insurance Co…
Ark. Code Ann. § 23-69-118 Membership — Mutual insurers
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(a) Each policyholder of a domestic mutual insurer, other than of a reinsurance contract, is a member of the insurer with all rights and obligations of membership, and the policy shall so specify. (b) Any person, government, or governmental agency, state or political subdivision …
Ark. Code Ann. § 23-69-119 Bylaws — Mutual insurers
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(a) (1) A domestic mutual insurer shall have bylaws consistent with § 23-69-111(b)(7).(2) The initial board of directors of a domestic mutual insurer shall adopt original bylaws, subject to the approval of the insurer's members at the next succeeding meeting.(3) The members may m…
Ark. Code Ann. § 23-69-120 Meetings of stockholders or members
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(a) Meetings of stockholders or members of a domestic insurer shall be held in the city or town of its principal office or place of business in this state or in such other place within the State of Arkansas as shall be specified by its articles of incorporation or articles of ass…
Ark. Code Ann. § 23-69-121 Stockholders' voting rights
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(a) Unless otherwise provided in the articles of incorporation or an amendment thereof, every stockholder of record of a domestic stock insurer shall be entitled, at each meeting of stockholders thereof and upon each proposal presented at the meeting, to one (1) vote for each sha…
Ark. Code Ann. § 23-69-122 Proxies — Stock insurers
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(a) Every proxy of a stockholder of an insurer shall be revocable at will, and this provision cannot be waived. (b) The revocation of a proxy shall not be effective until notice thereof has been given to the secretary of the insurer. (c) The Insurance Commissioner shall have the …
Ark. Code Ann. § 23-69-123 Buying of vote or proxy — Corrupt and dishonest practices prohibited
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(a) No person shall buy or sell a vote or proxy, relative to any meeting of stockholders or members of an insurer, or engage in any corrupt or dishonest practice in or relative to the conduct of any meeting. (b) Violation of this section shall be punishable as provided in § 23-60…
Ark. Code Ann. § 23-69-124 Contingent liability of nonlife mutual members
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(a) (1) Each member of a domestic mutual insurer other than a life insurer shall, except as otherwise hereinafter provided with respect to nonassessable policies, have a contingent liability, pro rata and not one for another, for the discharge of its obligations, which contingent…
Ark. Code Ann. § 23-69-125 Contingent liability and assessability of policies — Mutual insurers
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(a) (1) While possessing surplus funds in amount not less than the paid-in capital stock required of a domestic stock insurer transacting like kinds of insurance, a domestic mutual insurer may, upon receipt of the Insurance Commissioner's order so authorizing, extinguish the cont…
Ark. Code Ann. § 23-69-126 Participating policies
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(a) A domestic stock or domestic mutual insurer may issue any or all of its policies with or without participation in profits, savings, or unabsorbed portions of premiums, may classify policies issued on a participating and nonparticipating basis, and may determine the right to p…
Ark. Code Ann. § 23-69-127 Consideration for stock
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(a) Shares of stock of a domestic stock insurer shall be issued for a consideration having a value in the judgment of the insurer's board of directors of not less than the par value of the stock so issued. (b) In the absence of fraud, or willful over-valuation or under-valuation …
Ark. Code Ann. § 23-69-128 Transfer of stock
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The provisions of chapter 8 of the Uniform Commercial Code, § 4-8-101 et seq., to the extent applicable, shall apply as to stock of a domestic stock insurer.
Ark. Code Ann. § 23-69-129 Dividends to stockholders
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(a) A domestic stock insurer shall not pay any dividend to stockholders except out of that part of its available surplus funds which is derived from net profits on its business. (b) A stock dividend may be paid out of any available surplus funds in excess of the aggregate amount …
Ark. Code Ann. § 23-69-130 Dividends to mutual policyholders
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(a) The directors of a domestic mutual insurer may from time to time apportion and pay or credit to its members dividends only out of that part of its surplus funds which represents net realized savings and net realized earnings in excess of the surplus required by law to be main…
Ark. Code Ann. § 23-69-131 Unauthorized dividends prohibited
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(a) Any director of a domestic stock or mutual insurer who votes for or concurs in the declaration or payment of a dividend, other than as authorized under § 23-69-129 or § 23-69-130, to stockholders or members shall upon conviction be guilty of a Class A misdemeanor and shall be…
Ark. Code Ann. § 23-69-132 Borrowed surplus
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(a) (1) (A) A domestic stock or mutual insurer may borrow cash or other admitted assets satisfactory to the Insurance Commissioner to defray the expenses of its organization, provide it with surplus funds, or for any purpose of its business, upon entering a written agreement that…
Ark. Code Ann. § 23-69-133 Stockholders' liability
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(a) Every holder of shares of stock of a domestic stock insurer not fully paid shall be personally liable to the insurer's creditors for the insurer's debts to an amount equal to the amount unpaid on the shares held by him or her. (b) Anything in §§ 23-69-101 — 23-69-103, 23-69-1…
Ark. Code Ann. § 23-69-134 Maintenance of home office and records — Definitions
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(a) Every domestic insurer shall have and maintain its principal place of business and home office in this state and shall keep therein complete records of its assets, transactions, and affairs in accordance with such methods and systems as are customary or suitable as to the kin…
Ark. Code Ann. § 23-69-135 Evidence of disbursement required
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(a) No insurer shall make any disbursement of one thousand dollars ($1,000) or more unless evidenced by a voucher, bill, or other document correctly describing the consideration for the payment or evidenced by a check, draft, or receipt endorsed or signed by or on behalf of the p…
Ark. Code Ann. § 23-69-136 Situs of personal property for taxation
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For the purpose of state, county, and municipal taxation, the situs of all personal property belonging to a domestic insurer and located in this state shall be at the home office of the insurer.
Ark. Code Ann. § 23-69-137 Management and exclusive agency contracts
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(a) (1) No domestic insurer shall make any contract whereby any person is granted or is to enjoy in fact the management of the insurer to the substantial exclusion of its board of directors or to have the controlling or preemptive right to produce substantially all insurance busi…
Ark. Code Ann. § 23-69-138 Impairment of capital or assets
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(a) (1) (A) If a stock or mutual insurer becomes impaired or insolvent, the Insurance Commissioner may:(i) Determine the amount of the deficiency; and(ii) Serve notice upon the insurer to make good the deficiency within thirty (30) days after service of the notice.(B) After a hea…
Ark. Code Ann. § 23-69-139 Assessment of stockholders or members
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(a) Any insurer receiving the Insurance Commissioner's notice mentioned in § 23-69-138(a):(1) (A) If a stock insurer, by resolution of its board of directors and subject to any limitations upon assessment contained in its articles of incorporation, may assess its stockholders for…
Ark. Code Ann. § 23-69-140 Mutualization of stock insurers
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(a) A stock insurer other than a title insurer may become a mutual insurer under such plan and procedure as may be approved by the Insurance Commissioner after a hearing thereon. (b) The commissioner shall not approve any plan, procedure, or mutualization unless:(1) It is equitab…
Ark. Code Ann. § 23-69-141 Converting mutual insurer to stock insurer
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(a) A mutual insurer may become a stock insurer under such plan and procedure as may be approved by the Insurance Commissioner after a hearing thereon. (b) The commissioner shall not approve any plan or procedure unless:(1) It is equitable to the insurer's members;(2) It is subje…
Ark. Code Ann. § 23-69-142 Mergers and consolidations and acquisition by exchange of stock — Definition
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(a) (1) A domestic stock insurer may merge or consolidate with one (1) or more domestic or foreign stock insurers authorized to transact insurance in this state by complying with the other applicable provisions of this chapter and subject to subsections (a) and (b) of this sectio…
Ark. Code Ann. § 23-69-143 Mergers and consolidations — Mutual insurers
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(a) A domestic mutual insurer may merge or consolidate with another mutual or stock insurer under the applicable procedures prescribed by § 23-69-144, except as provided in this section. (b) The plan and agreement for merger or consolidation shall be submitted to and approved by …
Ark. Code Ann. § 23-69-144 Agreement or adoption of plan for merger, consolidation, or plan of exchange of shares
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(a) The directors, or a majority of them, of the corporations as desire to merge or consolidate or adopt a plan of exchange of shares pursuant to § 23-69-142 or § 23-69-143 shall enter into an agreement or adopt a plan signed by them and under the corporate seals of the respectiv…
Ark. Code Ann. § 23-69-145 Effect of merger or consolidation
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(a) When the agreement of merger or consolidation as filed with the Insurance Commissioner as required under § 23-69-144 becomes effective, the separate existence of the constituent corporations shall cease, and they shall become a single corporation in accordance with the agreem…
Ark. Code Ann. § 23-69-146 Effect of exchange under plan of exchange
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(a) (1) When the plan of exchange of shares, as filed with the Insurance Commissioner as required under § 23-69-144, becomes effective, the exchange provided for therein is considered to have been consummated, and each shareholder of the domestic stock insurance company acquired …
Ark. Code Ann. § 23-69-147 Acquiring and acquired corporations under plan of exchange to be separate
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The domestic stock insurance company acquired under a plan of exchange and the acquiring person are, in all respects, separate and distinct entities with neither entity having any liability to the creditors or policyholders, if any, or shareholders of the other, for any acts or o…
Ark. Code Ann. § 23-69-148 Nonconsenting stockholders
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(a) If any stockholder entitled to vote in any domestic insurer on a proposal to merge or consolidate, or on a proposal to adopt a plan of exchange as provided in §§ 23-69-101 — 23-69-103, 23-69-105 — 23-69-141, 23-69-143, and 23-69-149 — 23-69-156, votes against the same and, at…
Ark. Code Ann. § 23-69-149 Assumption reinsurance — Stock insurers
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(a) (1) A domestic stock insurer may reinsure all or substantially all of its insurance in force or a major class thereof with another insurer by an agreement of assumption reinsurance.(2) However, an agreement shall not become effective unless filed with the Insurance Commission…
Ark. Code Ann. § 23-69-150 Assumption reinsurance — Mutual insurers
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(a) A domestic mutual insurer may reinsure all or substantially all of its insurance in force, or a major class thereof, with another insurer, stock or mutual, by an agreement of assumption reinsurance after compliance with this section. The agreement shall not become effective u…