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23-69-139. Assessment of stockholders or members.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-69-139. Assessment of stockholders or members.
(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 amounts necessary to cure the deficiency and provide the insurer with a reasonable amount or surplus in addition.
(B) If any stockholder fails to pay a lawful assessment after notice given to him or her in person or by advertisement in such time and manner as approved by the commissioner, the insurer may require the return of the original certificate of stock held by the stockholder, and in cancellation and in lieu thereof issue a new certificate for such number of shares as the stockholder may then be entitled to, upon the basis of the stockholder's proportionate interest in the amount of the insurer's capital stock as determined by the commissioner to be remaining at the time of determination of amount of impairment under § 23-69-138, after deducting from the proportionate interest the amount of the unpaid assessment.
(C) The insurer may pay for or issue fractional shares under this subsection;
(2) If a mutual insurer, shall levy such an assessment upon members as is provided for under § 23-69-124.
(b) Neither this section nor § 23-69-138 shall be deemed to prohibit the insurer from curing any deficiency through any lawful means other than those referred to in those sections.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-69-139
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:23-69-139
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 52dc0d9ce4d25c8aae395aadb6d40dd6bd209d19a0659c30d073dde1b39b7077
Source location: content.xml paragraph 40790
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23-69-139. Assessment of stockholders or members.
(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 amounts necessary to cure the deficiency and provide the insurer with a reasonable amount or surplus in addition.
(B) If any stockholder fails to pay a lawful assessment after notice given to him or her in person or by advertisement in such time and manner as approved by the commissioner, the insurer may require the return of the original certificate of stock held by the stockholder, and in cancellation and in lieu thereof issue a new certificate for such number of shares as the stockholder may then be entitled to, upon the basis of the stockholder's proportionate interest in the amount of the insurer's capital stock as determined by the commissioner to be remaining at the time of determination of amount of impairment under § 23-69-138, after deducting from the proportionate interest the amount of the unpaid assessment.
(C) The insurer may pay for or issue fractional shares under this subsection;
(2) If a mutual insurer, shall levy such an assessment upon members as is provided for under § 23-69-124.
(b) Neither this section nor § 23-69-138 shall be deemed to prohibit the insurer from curing any deficiency through any lawful means other than those referred to in those sections.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-69-124. Contingent liability of nonlife mutual members.
(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 liability shall be expressed in the policy and be in such maximum amount as is specified in the insurer's articles of incorporation.
(2) Termination of the policy of any member shall not relieve the member of contingent liability for his or her proportion, if any, of the obligations of the insurer which accrued while the policy was in force.
(3) Unrealized contingent liability of members does not constitute an asset of the insurer in any determination of its financial condition.
(b)(1) If at any time the assets of a domestic mutual insurer other than a life insurer are less than its liabilities and the minimum amount of surplus required to be maintained by it by the Arkansas Insurance Code for authority to transact the kinds of insurance being transacted, and the deficiency is not cured from other sources, its directors shall levy an assessment only upon its members who held policies providing for contingent liability at any time within the twelve (12) months preceding the date notice of the assessment was mailed to them, and the members shall be liable to the insurer for the amount so assessed.
(2) The assessment shall be for such an amount as is required to cure the deficiency and to provide a reasonable amount of working funds above the minimum amount of surplus, but working funds so provided shall not exceed five percent (5%) of the insurer's liabilities as of the date as of which the amount of the deficiency was determined
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-69-124
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 23-69-124. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-69-138. Impairment of capital or assets.
(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 hearing, the commissioner may suspend the insurer from soliciting or writing any new coverages in this state until the deficiency is made good.
(2) For the purposes of this section, “insolvent” or “impairment” means the same as defined in the Uniform Insurers Liquidation Act, §§ 23-68-101, 23-68-102(2)-(13), 23-68-104, 23-68-105, 23-68-113, and 23-68-115 — 23-68-120.
(b) The deficiency may be made good:
(1) In cash;
(2) In assets eligible under § 23-63-801 et seq., which refers to investments, for the investment of the insurer's funds;
(3) If a stock insurer, by:
(A) Reduction of the stock insurer's capital to an amount not below the minimum required for the kinds of insurance thereafter to be transacted; or
(B) Amendment of its certificate of authority to cover only such kinds of insurance thereafter for which the stock insurer has sufficient capital; or
(4) If a mutual insurer, by amendment of its certificate of authority to cover only the kinds of insurance thereafter for which the mutual insurer has sufficient surplus.
(c)(1) If the deficiency is not made good and proof filed with the commissioner within the thirty-day period:
(A) The insurer shall be deemed insolvent; and
(B) The commissioner shall institute delinquency proceedings against the insurer under the Uniform Insurers Liquidation Act, §§ 23-68-101, 23-68-102(2)-(13), 23-68-104, 23-68-105, 23-68-113, and 23-68-115 — 23-68-120.
(2)(A) However, the commissioner
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-69-138
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 23-69-138. This identifies an authority to review, not proof of applicability.