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23-63-1624. Dormant captive insurance company — Definition.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-1624. Dormant captive insurance company — Definition.
(a) As used in this section, “dormant captive insurance company” means a pure captive insurance company, sponsored captive insurance company, or industrial insured captive insurance company that has:
(1) Ceased transacting the business of insurance, including the issuance of insurance policies; and
(2) No remaining liabilities associated with insurance business transactions, or insurance policies issued before the filing of its application for a certificate of dormancy under this section.
(b)(1) A captive insurance company domiciled in this state that meets the criteria of subsection (a) of this section may apply to the Insurance Commissioner for a certificate of dormancy.
(2) The certificate of dormancy is subject to renewal every five (5) years and shall be forfeited if not renewed within that time.
(c) A dormant captive insurance company that has been issued a certificate of dormancy shall:
(1) Possess and thereafter maintain unimpaired, paid-in capital and surplus of not less than twenty-five thousand dollars ($25,000);
(2) Before March 15 of each year, submit to the commissioner a report of its financial condition, verified by oath of two (2) of its executive officers, in a form as may be prescribed by the commissioner; and
(3) Pay a license renewal fee as provided in the rules promulgated by the commissioner under Section 18 of Rule and Regulation 73 of the State Insurance Department.
(d) A dormant captive insurance company is not subject to or liable for the payment of any tax under § 23-63-1614.
(e) A dormant captive insurance company shall apply to the commissioner for approval to surrender its certificate of dormancy and resume conducting the business of insurance before issuing
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-1624
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:23-63-1624
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 13a79c6e44b458b9953a03e82d0008b5d130620b4de3ea4dc72a1c632411cd18
Source location: content.xml paragraph 34322
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23-63-1624. Dormant captive insurance company — Definition.
(a) As used in this section, “dormant captive insurance company” means a pure captive insurance company, sponsored captive insurance company, or industrial insured captive insurance company that has:
(1) Ceased transacting the business of insurance, including the issuance of insurance policies; and
(2) No remaining liabilities associated with insurance business transactions, or insurance policies issued before the filing of its application for a certificate of dormancy under this section.
(b)(1) A captive insurance company domiciled in this state that meets the criteria of subsection (a) of this section may apply to the Insurance Commissioner for a certificate of dormancy.
(2) The certificate of dormancy is subject to renewal every five (5) years and shall be forfeited if not renewed within that time.
(c) A dormant captive insurance company that has been issued a certificate of dormancy shall:
(1) Possess and thereafter maintain unimpaired, paid-in capital and surplus of not less than twenty-five thousand dollars ($25,000);
(2) Before March 15 of each year, submit to the commissioner a report of its financial condition, verified by oath of two (2) of its executive officers, in a form as may be prescribed by the commissioner; and
(3) Pay a license renewal fee as provided in the rules promulgated by the commissioner under Section 18 of Rule and Regulation 73 of the State Insurance Department.
(d) A dormant captive insurance company is not subject to or liable for the payment of any tax under § 23-63-1614.
(e) A dormant captive insurance company shall apply to the commissioner for approval to surrender its certificate of dormancy and resume conducting the business of insurance before issuing any insurance policies.
(f) A certificate of dormancy shall be revoked if a dormant captive insurance company no longer meets the criteria of subsection (a) of this section.
(g) The commissioner may establish guidelines and procedures as necessary to carry out this section.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-1614. Premium tax — Definition.
(a) Except as provided in this section, a captive insurance company shall pay to the Insurance Commissioner by March 1 of each year, a tax at the rate of:
(1) Two hundred fifty thousandths of one percent (0.250%) on the first twenty million dollars ($20,000,000);
(2) One hundred fifty thousandths of one percent (0.150%) on the next twenty million dollars ($20,000,000); and
(3) Fifty thousandths of one percent (0.050%) on each dollar thereafter, on the direct premiums collected or contracted for on policies or contracts of insurance written by the captive insurance company during the year ending December 31 next preceding, after deducting from the direct premiums subject to the tax the amounts paid to policyholders as return premiums, which shall include dividends on unabsorbed premiums or premium deposits returned or credited to policyholders.
(b)(1) Except as provided in this section, a captive insurance company shall pay to the commissioner by March 1 of each year, a tax at the rate of:
(A) Two hundred twenty-five thousandths of one percent (0.225%) on the first twenty million dollars ($20,000,000) of assumed reinsurance premium;
(B) One hundred fifty thousandths of one percent (0.150%) on the next twenty million dollars ($20,000,000);
(C) Fifty thousandths of one percent (0.050%) on the next twenty million dollars ($20,000,000); and
(D) Twenty-five thousandths of one percent (0.025%) of each dollar thereafter.
(2) No reinsurance tax applies to premiums for risks or portions of risks that are subject to taxation on a direct basis under subsection (a) of this section.
(3) A premium tax is not payable in connection with the receipt of assets in exchange for the assumption of loss reserves and other liabilities
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-1614
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-63-1614. This identifies an authority to review, not proof of applicability.