Title 23 — Public Utilities and Regulated Industries

(1) As used in this chapter:(1) “Benefit contract” means the agreement for provision of benefits authorized by § 23-74-401, as that agreement is described in § 23-74-404(a);(2) “Benefit member” means an adult member who is designated by the laws or rules of the society to be a be…

(a) A fraternal benefit society shall operate for the benefit of members and their beneficiaries by:(1) Providing benefits as specified in § 23-74-401; and(2) Operating for one (1) or more social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic, or …

(a) A fraternal benefit society shall specify in its laws or rules:(1) Eligibility standards for each and every class of membership, provided that if benefits are provided on the lives of children, the minimum age for adult membership shall be set at not less than fifteen (15) ye…

(a) (1) The principal office of any domestic society shall be located in this state.(2) (A) The meetings of its supreme governing body may be held in any state, district, province, or territory wherein the society has at least five (5) subordinate lodges.(B) All business transact…

(a) The officers and members of the supreme governing body or any subordinate body of a society shall not be personally liable for any benefits provided by a society. (b) (1) Any person may be indemnified and reimbursed by any society for expenses reasonably incurred by, and liab…

The laws of the society may provide that no subordinate body, nor any of its subordinate officers or members, shall have the power or authority to waive any of the provisions of the laws of the society. Such a provision shall be binding on the society and every member and benefic…

(1) A domestic society organized on or after January 1, 1990, shall be formed as follows:(1) Ten (10) or more citizens of the United States, a majority of whom are citizens of this state, who desire to form a fraternal benefit society, may make, sign, and acknowledge before some …

(a) (1) A domestic society may amend its laws in accordance with the provisions thereof by action of its supreme governing body at any regular or special meeting thereof, or, if its laws so provide, by referendum.(2) The referendum may be held in accordance with the provisions of…

A society may create, maintain, and operate, or may establish organizations to operate, not-for-profit institutions to further the purposes permitted by § 23-74-105(a)(2). Such institutions may furnish services free or at a reasonable charge. Any real or personal property owned, …

(a) By a reinsurance agreement, a domestic society may cede any individual risk or risks in whole or in part to an insurer, other than another fraternal benefit society, having the power to make the reinsurance and authorized to do business in this state, or if not so authorized,…

(a) A domestic society may consolidate or merge with any other society by complying with the provisions of this section. It shall file with the Insurance Commissioner:(1) A certified copy of the written contract containing in full the terms and conditions of the consolidation or …

Any domestic fraternal benefit society may be converted and licensed as a mutual life insurance company by compliance with all the requirements of §§ 23-63-205 and 23-63-207 and other provisions of this code applicable to domestic mutual life legal reserve insurers. A plan of con…

(a) A society may provide the following contractual benefits in any form:(1) Death benefits;(2) Endowment benefits;(3) Annuity benefits;(4) Temporary or permanent disability benefits;(5) Hospital, medical, or nursing benefits;(6) Monument or tombstone benefits to the memory of de…

(a) (1) The owner of a benefit contract shall have the right at all times to change the beneficiary or beneficiaries in accordance with the laws or rules of the society unless the owner waives this right by specifically requesting in writing that the beneficiary designation be ir…

No money or other benefit, charity, relief, or aid to be paid, provided, or rendered by any society shall be liable to attachment, garnishment, or other process, or to be seized, taken, appropriated, or applied by any legal or equitable process or operation of law to pay any debt…

(a) (1) Every society authorized to do business in this state shall issue to each owner of a benefit contract a certificate specifying the amount of benefits provided thereby.(2) The certificate, together with any riders or endorsements attached thereto, the laws of the society, …

(a) For certificates issued prior to January 1, 1991, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan, or other option granted shall comply with the provisions of law applicable immediately prior to January 1, 1990. (b) For certif…

A society shall invest its funds only in such investments as are authorized by the laws of this state for the investment of assets of life insurers and subject to the limitations thereon. Any foreign or alien society permitted or seeking to do business in this state which invests…

(a) All assets shall be held, invested, and disbursed for the use and benefit of the society, and no member or beneficiary shall have or acquire individual rights therein or become entitled to any apportionment on the surrender of any part thereof, except as provided in the benef…

Except as herein provided, societies shall be governed by this chapter and shall be exempt from all other provisions of the general insurance laws of this state unless they be expressly designated therein or unless it is specifically made applicable by this chapter.

Every society organized or licensed under this chapter is hereby declared to be a charitable and benevolent institution, and all of its funds shall be exempt from every state, county, district, municipal, and school tax other than taxes on real estate.

(a) Standards of valuation for certificates issued prior to January 1, 1991, shall be those provided by the laws applicable immediately prior to January 1, 1990. (b) (1) The minimum standards of valuation for certificates issued on or after January 1, 1991, shall be based on the …

(a) Reports shall be filed in accordance with the provisions of this section. (b) (1) Every society transacting business in this state shall annually, on or before March 1, unless for cause shown such time has been extended by the Insurance Commissioner, file with the commissione…

Societies which are now authorized to transact business in this state may continue such business until April 1, 1990. The authority of such societies and all societies hereafter licensed may thereafter be renewed annually, but in all cases to terminate on the succeeding April 1. …

(a) (1) The Insurance Commissioner, or any person he or she may appoint, may examine any domestic, foreign, or alien society transacting or applying for admission to transact business in this state in the same manner as authorized for examination of domestic, foreign, or alien in…

(a) No foreign or alien society shall transact business in this state without a license issued by the Insurance Commissioner. Any such society desiring admission to this state shall comply substantially with the requirements and limitations of this chapter applicable to domestic …

(a) When the Insurance Commissioner upon investigation finds that a domestic society:(1) Has exceeded its powers;(2) Has failed to comply with any provision of this chapter;(3) Is not fulfilling its contracts in good faith;(4) Has a membership of less than four hundred (400) afte…

(a) When the Insurance Commissioner upon investigation finds that a foreign or alien society transacting or applying to transact business in this state:(1) Has exceeded its powers;(2) Has failed to comply with any of the provisions of this chapter;(3) Is not fulfilling its contra…

No application or petition for injunction against any domestic, foreign, or alien society, or lodge thereof, shall be recognized in any court of this state unless made by the Attorney General upon request of the Insurance Commissioner.

(a) Agents of societies shall be licensed in accordance with the provisions of the laws regulating the licensing, revocation, suspension, or termination of license of resident and nonresident agents, provided that:(1) No examination shall be required to maintain or renew a licens…

Every society authorized to do business in this state shall be subject to the Trade Practices Act, § 23-66-201 et seq. However, nothing in the Trade Practices Act, § 23-66-201 et seq., shall be construed as applying to or affecting the right of any society to determine its eligib…

(a) (1) Every society authorized to do business in this state shall appoint in writing to the Insurance Commissioner an Arkansas resident as its registered agent to be its true and lawful attorney upon whom all lawful process in any action or proceeding against it shall be served…

All decisions and findings of the Insurance Commissioner made under the provisions of this chapter shall be subject to review by proper proceedings in any court of competent jurisdiction in this state.

(1) Any person who:(1) Willfully makes a false or fraudulent statement:(A) In or relating to an application for membership or for the purpose of obtaining money from or a benefit in any society upon conviction shall be guilty of a Class A misdemeanor; or(B) In any verified report…

(a) Nothing contained in this chapter shall be so construed as to affect or apply to:(1) Grand or subordinate lodges of societies, orders, or associations now doing business in this state which provide benefits exclusively through local or subordinate lodges;(2) Orders, societies…

(1) In addition to the provisions contained in this chapter, the following provisions of this code shall also apply to fraternal benefit societies to the extent as applicable:(1) Sections 23-60-101 — 23-60-108 and 23-60-110, general provisions;(2) Section 23-61-101 et seq., § 23-…

(a) As used in this chapter, “hospital service corporations”, “medical service corporations”, and “hospital and medical service corporations” are corporations organized under the laws of this state for the purpose of establishing, maintaining, and operating nonprofit hospital ser…

(1) The corporations described in § 23-75-101 are subject to the following chapters and provisions of this code, to the extent applicable and not in conflict with the express provisions of this chapter:(1) Sections 23-60-101 — 23-60-108 and 23-60-110, referring to scope of code;(…

Hospital service corporations, medical service corporations, and hospital and medical service corporations incorporated in this state shall be governed by this chapter and shall be exempt from all other provisions of this code, except as expressly provided in this chapter. No ins…

(a) This chapter shall not apply to any employer operating or maintaining a hospital service plan or medical service plan, participation in which is limited to his or her employees and the employees of a parent company or subsidiary company of the employer. (b) As used in this se…

(a) Nothing in this chapter shall be deemed to alter the relationship of physician and patient. (b) The corporation shall not in any way influence the subscriber in his or her free choice of hospital or physician, other than to limit its benefits to participating hospitals and ph…

(a) Any corporation shall hereafter be organized under the laws of this state relating to private corporations not for pecuniary profit, insofar as the laws are not inconsistent with this chapter. (b) (1) Upon adoption of an amendment to its articles of incorporation or bylaws, t…

(a) The corporation may issue contracts to its subscribers only when the Insurance Commissioner has, by certificate of authority, authorized it to do so. (b) Application for the certificate of authority shall be made on forms supplied or approved by the commissioner containing su…

(a) The Insurance Commissioner shall issue an initial certificate of authority authorizing the applicant to issue contracts to its subscribers when it is shown to the satisfaction of the commissioner that:(1) The applicant is established as a bona fide nonprofit hospital service …

(a) (1) Corporations governed by this chapter shall at all times have on deposit through the Insurance Commissioner sums as follows:(A) If newly formed under this chapter, the sum of fifteen thousand dollars ($15,000); or(B) If formed under prior law, the sum as was required unde…

(a) A corporation holding a certificate of authority under this chapter may enter into contracts with:(1) Licensed hospitals;(2) Physicians and surgeons licensed to practice in this state;(3) Licensed nursing homes;(4) Visiting nurse associations; and(5) Any hospital maintained a…

(a) (1) All rates charged by the corporation to subscribers or classes of subscribers having contracts covered by §§ 23-85-101 — 23-85-131, and the form and content of all contracts between the corporation and its subscribers, classes of subscribers, or groups of subscribers, and…

(1) The directors of a corporation shall at all times include representatives of:(1) Administrators or trustees of hospitals which have contracted with the corporation to render hospital service to subscribers, if the corporation is a hospital service corporation or a hospital an…

(a) The operating and administrative expenses of any corporation, including, but not limited to, all costs in connection with the solicitation of subscribers to such a corporation and capital expenditures, shall not exceed:(1) Thirty percent (30%) of paid subscriptions during the…

(a) (1) Not later than March 1 of each year, every corporation shall file with the Insurance Commissioner a statement sworn to by at least two (2) of its principal officers, showing its condition on the last day of the next preceding calendar year.(2) In accordance with the speci…