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23-73-112. Qualifications for certificate of authority.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-73-112. Qualifications for certificate of authority.
To qualify for and hold a certificate of authority to insure property or issue policies, the company or association shall:
(1)(A)(i) Have at least two hundred fifty (250) members who hold policies or certificates upon at least two hundred fifty (250) separate risks.
(ii) An association or company whose membership falls below two hundred fifty (250) members shall notify the Insurance Commissioner immediately and shall have ninety (90) days from that date to bring its membership level back up to the requisite number of two hundred fifty (250) members.
(iii) If an association or company fails to restore the membership level to two hundred fifty (250) members within the prescribed ninety-day period, the commissioner may:
(a) Direct the association or company to follow a course of action that will protect the assets of the association and allow for continued protection of the members; or
(b) Place the association or company into involuntary dissolution as contained in § 23-73-120.
(B)(i) If immediate initial compliance with subdivision (1)(A) of this section would cause a domestic association or company to be ineligible for a continued certificate of authority to operate in this state on April 11, 2005, the commissioner may allow that domestic association or company to augment its membership in increments in order for it to achieve compliance with the minimum requirements by no later than December 31, 2006.
(ii) For good cause shown in writing by an association or company, including planned action steps to achieve the minimum membership, the commissioner may grant one (1) or more extensions of the deadline set for compliance in subdivision (1)(B)(i) of this section for a period or periods not to exceed on
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-73-112
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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Record provenance
Stable record: arkansas_code:legal_authorities:23-73-112
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 617d1a182a22f5724fce29a86ec3909202aca1069467ca48ad2acaf1ead959ec
Source location: content.xml paragraph 42369
Stored source content
23-73-112. Qualifications for certificate of authority.
To qualify for and hold a certificate of authority to insure property or issue policies, the company or association shall:
(1)(A)(i) Have at least two hundred fifty (250) members who hold policies or certificates upon at least two hundred fifty (250) separate risks.
(ii) An association or company whose membership falls below two hundred fifty (250) members shall notify the Insurance Commissioner immediately and shall have ninety (90) days from that date to bring its membership level back up to the requisite number of two hundred fifty (250) members.
(iii) If an association or company fails to restore the membership level to two hundred fifty (250) members within the prescribed ninety-day period, the commissioner may:
(a) Direct the association or company to follow a course of action that will protect the assets of the association and allow for continued protection of the members; or
(b) Place the association or company into involuntary dissolution as contained in § 23-73-120.
(B)(i) If immediate initial compliance with subdivision (1)(A) of this section would cause a domestic association or company to be ineligible for a continued certificate of authority to operate in this state on April 11, 2005, the commissioner may allow that domestic association or company to augment its membership in increments in order for it to achieve compliance with the minimum requirements by no later than December 31, 2006.
(ii) For good cause shown in writing by an association or company, including planned action steps to achieve the minimum membership, the commissioner may grant one (1) or more extensions of the deadline set for compliance in subdivision (1)(B)(i) of this section for a period or periods not to exceed one (1) year;
(2)(A) Maintain contracts or treaties of reinsurance as necessary based on its risk and surplus level with insurance companies, excluding surplus lines insurers, licensed or otherwise registered to conduct that business in the State of Arkansas.
(B) Indemnity reinsurance contracts or treaties shall be structured to provide protection to the company or association against a reduction of the surplus to an extent that the reduction:
(i) Endangers the solvency of the company or association; or
(ii) Hinders the company's or association's ability to pay claims made by policyholders; and
(3) Fully comply with and qualify according to the other provisions of this chapter.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-73-120. Dissolution.
(a)Voluntary.
(1) An association or company may discontinue its operations and settle its affairs at any meeting of its members, due notice of the time, place, and purpose of which shall have been given to its members and the Insurance Commissioner, by a vote of two-thirds (2/3) of the members present or represented by proxy at the meeting.
(2) Voting shall be conducted by written ballot which shall be signed by the member, on a ballot form approved by the commissioner, prior to voting.
(3)(A) After the members have voted to dissolve, the association or company shall file a plan of dissolution with the commissioner for approval.
(B) The dissolution plan must include provisions that:
(i) Allow current policyholders to obtain similar coverage with another licensed insurer or farmers' mutual aid association or company; and
(ii) Designate a committee of policyholders to liquidate assets and pay debts or expenses.
(4) After the commissioner has approved the dissolution plan, the designated committee shall liquidate any assets and pay the debts and expenses of the association or company.
(5) Upon final settlement of all the affairs of the association by the committee, it shall make a final report and accounting of the proceedings of the dissolutions which shall be signed by its members and be filed with and approved by the commissioner.
(6) If the commissioner approves the final report, the commissioner shall transmit to the committee a certificate of approval and thereupon the association shall be deemed dissolved and shall cease to exist. The commissioner shall certify the dissolution to the Secretary of State.
(7) The committee shall have its necessary and reasonable expenses reimbursed in the dissolution of the association or c
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-73-120
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 23-73-120. This identifies an authority to review, not proof of applicability.