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23-92-408. Financial assurance required.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-92-408. Financial assurance required.
(a) Each professional employer organization shall maintain:
(1) An audited minimum net worth of at least one hundred thousand dollars ($100,000), as reflected in the financial statements submitted to the Insurance Commissioner with the initial licensing, and annually thereafter; or
(2)(A) A bond in the amount of at least one hundred thousand dollars ($100,000).
(B) The terms and conditions of the bond shall be approved by the commissioner.
(C) The bond shall be conditioned so that the licensee and each member, employee, shareholder, or officer of a person, firm, partnership, corporation, or association operating as an agent of the licensee shall not:
(i) Violate the provisions of this subchapter or violate rules or orders lawfully promulgated by the commissioner under this subchapter; or
(ii) Fail to pay any wages due under any contract made by the licensee in the conduct of its business subject to this subchapter.
(D) The bond required by this section shall be a surety bond issued by a corporate surety or insurer authorized to do business in Arkansas.
(E) In lieu of a bond, the professional employer organization may deposit either:
(i) Securities with a minimum market value of at least one hundred thousand dollars ($100,000) with an approved depository under an approved depository agreement under § 23-69-134(b)(4); or
(ii) An irrevocable letter of credit in a face amount of not less than one hundred thousand dollars ($100,000) in a form that is acceptable to the commissioner.
(F) The bond, deposited securities, or letter of credit shall secure payment by the professional employer organization of all taxes, wages, benefits, or other entitlement due to or with respect to a covered employee if the profession
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-92-408
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:23-92-408
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 1765abc2f9c13cfc7d0995b731222e583e24cd0ef8232e36bd60c5e2570cb3f4
Source location: content.xml paragraph 55887
Stored source content
23-92-408. Financial assurance required.
(a) Each professional employer organization shall maintain:
(1) An audited minimum net worth of at least one hundred thousand dollars ($100,000), as reflected in the financial statements submitted to the Insurance Commissioner with the initial licensing, and annually thereafter; or
(2)(A) A bond in the amount of at least one hundred thousand dollars ($100,000).
(B) The terms and conditions of the bond shall be approved by the commissioner.
(C) The bond shall be conditioned so that the licensee and each member, employee, shareholder, or officer of a person, firm, partnership, corporation, or association operating as an agent of the licensee shall not:
(i) Violate the provisions of this subchapter or violate rules or orders lawfully promulgated by the commissioner under this subchapter; or
(ii) Fail to pay any wages due under any contract made by the licensee in the conduct of its business subject to this subchapter.
(D) The bond required by this section shall be a surety bond issued by a corporate surety or insurer authorized to do business in Arkansas.
(E) In lieu of a bond, the professional employer organization may deposit either:
(i) Securities with a minimum market value of at least one hundred thousand dollars ($100,000) with an approved depository under an approved depository agreement under § 23-69-134(b)(4); or
(ii) An irrevocable letter of credit in a face amount of not less than one hundred thousand dollars ($100,000) in a form that is acceptable to the commissioner.
(F) The bond, deposited securities, or letter of credit shall secure payment by the professional employer organization of all taxes, wages, benefits, or other entitlement due to or with respect to a covered employee if the professional employer organization does not make the payments when due.
(G) Any securities deposited under this subsection may be included for the purpose of calculation of the minimum net worth required by this subsection.
(b)(1) Within forty-five (45) days after the end of each calendar quarter, a professional employer organization shall submit to the commissioner a statement by an independent certified public accountant that all applicable state payroll taxes for covered employees located in this state have been paid on a timely basis for that quarter.
(2) The statement shall be either in the form of an examination level attestation or shall be based upon agreed-upon procedures acceptable to the commissioner.
(3) The commissioner shall issue by rule requirements for procedures referred to in subdivision (b)(2) of this section.
(c)(1) If any person is aggrieved by the misconduct of any licensee, that person may maintain an action in his or her own name upon the bond or assets of the professional employer organization in any court of competent jurisdiction in this state.
(2) All claims shall be assignable, and the assignee shall be entitled to the same remedies upon the bond of the licensee as the aggrieved person would have been entitled if the claim had not been assigned.
(3) Any assignable claim under subdivision (c)(2) of this section may be enforced in the name of the assignee.
(4) Any remedy provided by this section is in addition to any other remedy which otherwise exists.
(d) An action on the bond or other security required by this section may be maintained by the commissioner in the name of the State of Arkansas in any court of competent jurisdiction in this state for the benefit of any person or persons aggrieved by the misconduct of the licensee.
(e)(1) If any licensee fails to file a new bond with the commissioner within thirty (30) days after notice of cancellation by the surety of the bond required by this section, the license issued to the licensee or the principal under the bond shall be deemed suspended until a new surety bond is filed with and approved by the commissioner.
(2) A person whose license is suspended under this section shall not carry on the business of a professional employer organization during the period of the suspension.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-69-134. Maintenance of home office and records.
(a) Every domestic insurer shall have and maintain its principal place of business and home office in this state and shall keep therein complete records of its assets, transactions, and affairs in accordance with such methods and systems as are customary or suitable as to the kind or kinds of insurance transacted.
(b) Every domestic insurer shall have and maintain its assets in this state, except as to:
(1) Real property and personal property appurtenant thereto lawfully owned by the insurer and located outside this state;
(2) Such property of the insurer as may be customary, necessary, and convenient to enable and facilitate the operation of its branch offices and regional home offices located outside this state as referred to in subsection (d) of this section;
(3) Such securities of the insurer that are readily marketable and have a maturity of one (1) year or less from the date of purchase and that are kept in safekeeping in a federally chartered bank, bank and trust company, or national bank association domiciled outside the State of Arkansas, provided that:
(A) The insurer shall maintain in its possession a safekeeping receipt for those securities evidencing uncontestable ownership; and
(B) At no time shall the insurer hold pursuant to this subdivision (b)(3) securities in an aggregate amount in excess of the greater of:
(i) Ten percent (10%) of its assets; or
(ii) Forty percent (40%) of its surplus if a life or accident and health insurer or of its surplus to policyholders if other than a life or accident and health insurer; and
(4) In the discretion of the Insurance Commissioner, custodied securities may be held or managed inside or outside the state by a bank custodian as defined by and subje
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-69-134
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 23-69-134. This identifies an authority to review, not proof of applicability.