Title 23, Public Utilities and Regulated Industries

(a) A domestic mutual insurer, upon approval of the Insurance Commissioner, may reorganize by:(1) Forming a mutual insurance holding company;(2) Merging its policyholders' membership interests into the mutual insurance holding company; and(3) Continuing the mutual insurer's corpo…

(1) A domestic mutual insurer shall file a proposed plan of reorganization approved by a vote of not less than two-thirds (⅔) of the members of its board of directors for review and approval with the Insurance Commissioner. The proposed plan of reorganization shall be accompanied…

The Insurance Commissioner shall conduct a public hearing regarding a proposed plan of reorganization within one hundred twenty (120) days after the date the completed proposed plan of reorganization is filed under § 23-69-305, unless extended by the commissioner for good cause. …

(a) The Insurance Commissioner shall issue an order approving or disapproving a proposed plan of reorganization within thirty (30) days after the close of the public hearing as required by § 23-69-306. (b) The commissioner shall not approve a proposed plan of reorganization unles…

(a) (1) Within forty-five (45) days after the date of the Insurance Commissioner's approval of a plan of reorganization under § 23-69-307, unless extended by the commissioner for good cause, the mutual insurer shall hold a meeting of its policyholders at a reasonable time and pla…

(a) The Insurance Commissioner shall issue a certificate of authority to a reorganized stock insurer when the mutual insurer files with the commissioner a:(1) Certificate stating that all of the conditions set forth in the plan of reorganization have been satisfied, so long as th…

Any person affected by a final order issued under this subchapter shall have the right to appeal the order to the Pulaski County Circuit Court. The appeal shall be in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

Corporate existence of a mutual insurer reorganizing under this subchapter shall not terminate, but the reorganized stock insurer shall be deemed to be a continuation of the mutual insurer and to have been organized on the date the mutual insurer was originally organized.

By not less than a two-thirds (⅔) vote of the members of its board of directors and with the approval of the Insurance Commissioner, a mutual insurer may abandon a plan of reorganization at any time before the issuance of the certificate of authority by the commissioner. Upon suc…

(a) Subject to applicable requirements of this subchapter and the Insurance Holding Company Regulatory Act, § 23-63-501 et seq., a mutual insurance holding company may:(1) Merge or consolidate with, or acquire the assets of, a mutual insurance holding company licensed under this …

A membership interest in a mutual insurance holding company does not constitute a security under the laws of this state.

(1) A mutual insurance holding company shall:(1) File with the Insurance Commissioner by March 1 of each year an annual statement consisting of an income statement, balance sheet, and cash flows prepared in accordance with generally accepted accounting practices and a confidentia…

The Insurance Commissioner shall have the power to order production of any records, books, or other information and papers in the possession of a mutual insurance holding company or its affiliates as are reasonably necessary to ascertain the financial condition of the reorganized…

Nothing contained in this subchapter shall be construed to prohibit demutualization of a mutual insurance holding company under § 23-69-141.

(a) (1) No director, officer, employee, or agent of the mutual insurer and no other person shall receive any fee, commission, or other valuable consideration whatsoever, other than his or her usual regular salary and compensation, for in any manner aiding, promoting, or assisting…

For purposes of determining whether a plan of reorganization meets the requirements of this subchapter or in connection with any other matters relating to development of a plan of reorganization, the Insurance Commissioner may engage the services of experts. All reasonable costs …

All information, documents, and copies obtained by or disclosed to the Insurance Commissioner or any other person in the course of preparing, filing, and processing an application to reorganize under § 23-69-305, other than information or documents distributed to policyholders in…

Whenever it appears to the Insurance Commissioner that any person or any director, officer, employee, or agent of the person has committed or is about to commit a violation of this subchapter or of any rule or order of the commissioner, the commissioner may apply to the Pulaski C…

The Insurance Commissioner may adopt and promulgate rules and issue orders to carry out this subchapter.

This subchapter is intended to supplement the Arkansas Insurance Code. Further, this subchapter is not intended to and shall not be construed to conflict with existing sections of the Arkansas Insurance Code, including, but not limited to, §§ 23-69-141, 23-70-123, 23-72-119, 23-7…

This subchapter shall be known and may be cited as the “Risk Management and Own Risk Assessment Act”.

(a) The General Assembly finds that:(1) The Insurance Commissioner requires an insurer or insurance group to submit confidential and privileged information to the State Insurance Department to allow the commissioner to evaluate the financial condition and stability of the insurer…

(1) As used in this subchapter:(1) “Insurance group” means an insurer and the insurer's affiliates that are in an insurance holding company system, as defined in the Insurance Holding Company Regulatory Act, § 23-63-501 et seq.;(2) “Insurer” means the same as defined in § 23-62-4…

(a) An insurer shall establish and maintain a risk management framework to assist the insurer with identifying, assessing, monitoring, managing, and reporting on the insurer's material and relevant risks. (b) An insurer may satisfy subsection (a) of this section if the insurance …

(1) Except as provided in § 23-69-407, an insurer or the insurance group that the insurer is a member of shall perform an own risk and solvency assessment:(1) According to the Own Risk and Solvency Assessment Guidance Manual or a comparable process; and(2) Annually, or at any tim…

(a) (1) (A) Upon request, an insurer shall submit to the Insurance Commissioner no more than one (1) time a year beginning January 1, 2017, an own risk and solvency assessment summary report, or any combination of filings applicable to the insurer or the insurance group of which …

(a) An insurer is exempt from this subchapter if:(1) The insurer has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and National Flood Insur…

(a) (1) An own risk and solvency assessment summary report shall be prepared pursuant to the Own Risk and Solvency Assessment Guidance Manual, subject to the requirements of subsection (b) of this section.(2) An insurer shall maintain any documentation and supporting information …

(a) Any documents, materials, or other information, including an own risk and solvency assessment summary report, in the possession of or under the control of the State Insurance Department that are obtained by, created by, or disclosed to the Insurance Commissioner or any other …

(a) An insurer failing without just cause to timely file the own risk and solvency assessment summary report under this subchapter shall be required, after notice and hearing, to pay a penalty of one hundred dollars ($100) for each day's delay, to be recovered by the Insurance Co…

This subchapter shall be known and may be cited as the “Arkansas Insurance Business Transfer Act”.

(a) The General Assembly finds that:(1) There is not a basis or procedure for the transfer and novation of insurance policies from a transferring insurer to an assuming insurer by way of an insurance business transfer without the affirmative consent of policyholders or reinsureds…

(1) As used in this subchapter:(1) “Affiliate” means an affiliate as that term is defined in § 23-63-503;(2) “Applicant” means a transferring insurer or reinsurer that submits an application under § 23-69-506;(3) (A) “Assuming insurer” means an insurer domiciled in this state tha…

(a) All court proceedings brought under this subchapter shall be filed in the Pulaski County Circuit Court. (b) The court may issue any order, process, or judgment that is necessary or appropriate to carry out this subchapter. (c) This subchapter does not preclude the court from,…

(a) Except as otherwise ordered by the Pulaski County Circuit Court or the Insurance Commissioner, if notice is required to be given by the applicant under this subchapter, the applicant, within fifteen (15) days of the event triggering the requirement, shall cause transmittal of…

(a) An applicant shall file an insurance business transfer plan with the Insurance Commissioner for his or her review and approval. (b) The insurance business transfer plan shall contain the following information or an explanation as to why the information is not included:(1) The…

(a) The opinion report required under § 23-69-506(b)(14) shall provide the following:(1) A statement of the independent expert's professional qualifications, including a description of the experience that qualifies him or her as an expert suitable for the engagement;(2) A stateme…

(a) (1) The Insurance Commissioner shall have sixty (60) business days from the date of receipt of a completed application for an insurance business transfer plan filed under § 23-69-506 to review the insurance business transfer plan to determine if the applicant is authorized to…

(a) (1) Within thirty (30) days after notice from the Insurance Commissioner that an applicant may proceed with filing the insurance business transfer plan with the Pulaski County Circuit Court, the applicant shall petition the court for approval of the insurance business transfe…

Insurers subject to this subchapter consent to the jurisdiction of the Insurance Commissioner with regard to ongoing oversight of operations, management, and solvency relating to the transferred business, including the authority of the commissioner to conduct financial analysis a…

(a) At the time of filing its application with the Insurance Commissioner for review and approval of an insurance business transfer plan, an applicant shall pay a nonrefundable fee to the State Insurance Department in the amount of ten thousand dollars ($10,000). (b) In the commi…

The Insurance Commissioner shall promulgate rules to implement this subchapter.

(1) As used in this chapter, unless the context otherwise requires:(1) “Attorney” refers to the attorney in fact of a reciprocal insurer. The attorney may be an individual, firm, or corporation. The attorney of a foreign or alien reciprocal insurer, which insurer is duly authoriz…

(a) All authorized reciprocal insurers shall be governed by those sections of this chapter not expressly made applicable to domestic reciprocals. (b) Existing authorized reciprocal insurers shall comply with the provisions of this chapter after January 1, 1960.

(a) A reciprocal insurer, upon qualifying therefor as provided for by the Arkansas Insurance Code, may transact any kinds of insurance defined by the Arkansas Insurance Code, other than life or title insurances. (b) Such an insurer may purchase reinsurance, and may grant reinsura…

(1) A reciprocal insurer shall:(1) Have and use a business name. The name shall include the word “reciprocal”, “interinsurer”, “interinsurance”, “exchange”, “underwriters”, or “underwriting”; and(2) Sue and be sued in its own name. (1) Have and use a business name. The name shall…