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23-63-818. Stocks of subsidiaries.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-818. Stocks of subsidiaries.
(a) With the Insurance Commissioner's written approval, a domestic insurer may invest in the stock of its wholly owned subsidiary insurance corporation or in the stock of its wholly owned subsidiary business corporation formed or acquired for and necessary and incidental to:
(1) The convenient operation of the domestic insurer's insurance business; or
(2) The administration of any of the domestic insurer's lawful investments.
(b) Unless a greater investment has been approved in writing by the commissioner:
(1) All of the domestic insurer's investments under this section together with its investments in insurance stocks under § 23-63-817(b) shall not at any time exceed:
(A) The domestic insurer's surplus if a life insurer; or
(B) The domestic insurer's policyholders' surplus if other than a life insurer; and
(2)(A) A domestic insurer subject to this subchapter shall limit its investments in common stock, preferred stock, debt obligations, and other securities of its noninsurance subsidiaries to the lesser of:
(i) Ten percent (10%) of the domestic insurer's assets; or
(ii) Fifty percent (50%) of the domestic insurer's surplus.
(B) This subdivision (b)(2) does not apply to the amount of an investment held on July 31, 2007, by a domestic insurer licensed in Arkansas.
(c) With the prior written approval of the commissioner, a domestic insurer may invest any amount in the securities of one (1) or more of the domestic insurer's subsidiaries if after the investment the domestic insurer's policyholders' surplus is:
(1) Reasonable in relation to the domestic insurer's outstanding liabilities; and
(2) Adequate for the domestic insurer's financial needs.
(d) An investment that exceeds the scope of an approval granted
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-818
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:23-63-818
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 3c3e46d7e24a21562469981ec5cf61fdcdeb42de9ed6357a0d70a7f378283b81
Source location: content.xml paragraph 32484
Stored source content
23-63-818. Stocks of subsidiaries.
(a) With the Insurance Commissioner's written approval, a domestic insurer may invest in the stock of its wholly owned subsidiary insurance corporation or in the stock of its wholly owned subsidiary business corporation formed or acquired for and necessary and incidental to:
(1) The convenient operation of the domestic insurer's insurance business; or
(2) The administration of any of the domestic insurer's lawful investments.
(b) Unless a greater investment has been approved in writing by the commissioner:
(1) All of the domestic insurer's investments under this section together with its investments in insurance stocks under § 23-63-817(b) shall not at any time exceed:
(A) The domestic insurer's surplus if a life insurer; or
(B) The domestic insurer's policyholders' surplus if other than a life insurer; and
(2)(A) A domestic insurer subject to this subchapter shall limit its investments in common stock, preferred stock, debt obligations, and other securities of its noninsurance subsidiaries to the lesser of:
(i) Ten percent (10%) of the domestic insurer's assets; or
(ii) Fifty percent (50%) of the domestic insurer's surplus.
(B) This subdivision (b)(2) does not apply to the amount of an investment held on July 31, 2007, by a domestic insurer licensed in Arkansas.
(c) With the prior written approval of the commissioner, a domestic insurer may invest any amount in the securities of one (1) or more of the domestic insurer's subsidiaries if after the investment the domestic insurer's policyholders' surplus is:
(1) Reasonable in relation to the domestic insurer's outstanding liabilities; and
(2) Adequate for the domestic insurer's financial needs.
(d) An investment that exceeds the scope of an approval granted under this section requires the additional prior written approval of the commissioner.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-817. Insurance stocks.
(a) An insurer may invest in the stocks of other solvent insurers formed under the laws of this or another state if the stocks meet the applicable requirements of § 23-63-815 as to preferred or guaranteed stock or § 23-63-816 as to common stock, and, with the advance consent of the Insurance Commissioner, an insurer may invest in issued shares of its own capital stock, provided that these investments shall only be made from the insurer's earned surplus. Investments by an insurer in its own capital stock in accordance with the provisions of this section may be made by pro rata purchase from the insurer's shareholders or on a non-pro rata basis, at the election of the insurer.
(b) With the commissioner's consent, an insurer may acquire and hold the controlling interest in the outstanding voting stock of another stock insurer formed under the laws of this or another state. All stocks under this subsection shall be subject to the limitation as to amount as provided in § 23-63-818.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-817
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 23-63-817. This identifies an authority to review, not proof of applicability.