Browse Arkansas Code titles and sections

23-96-107. Coverage.

Arkansas Code — all titles (historical 2020) · legal_authorities

23-96-107. Coverage.

Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-96-107

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.

Issuing source page ↗

Authority boundary: historical statutory source snapshot not current law.

Open the recorded source website ↗

Record provenance

Stable record: arkansas_code:legal_authorities:23-96-107
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 187b770d052aad183bccea88b02e954f0471a5c97834698fb510b9e1d4ad1248

Source location: content.xml paragraph 57340

Stored source content

23-96-107. Coverage. (a) This chapter shall provide coverage for the policies and contracts specified in subsection (b) of this section to: (1) Persons who, regardless of where they reside, except for nonresident certificate holders under group policies or contracts, are the beneficiaries, assignees, or payees, including healthcare providers rendering services covered under health insurance policies or certificates of the persons covered under subdivision (a)(2) of this section; (2) Persons who are owners of or certificate holders or enrollees under such policies or contracts, other than unallocated annuity contracts and structured settlement annuities, and in each case who: (A) Are residents; or (B) Are not residents, but only under all of the following conditions: (i) The member insurer that issued the policies or contracts is domiciled in this state; (ii) The states in which the persons reside have associations similar to the Arkansas Life and Health Insurance Guaranty Association created by this chapter; and (iii) The persons are not eligible for coverage by an association in any other state because the insurer or the health maintenance organization was not licensed in the state at the time specified in the state's guaranty association law; (3) For unallocated annuity contracts specified in subsection (b) of this section, subdivisions (a)(1) and (2) of this section shall not apply, and except as provided in subdivisions (a)(5) and (6) of this section, this chapter shall provide coverage to: (A) Persons who are the owners of the unallocated annuity contracts if the unallocated annuity contracts are issued to or in connection with a specific benefit plan whose plan sponsor has its principal place of business in this state; and (B) Persons who are owners of unallocated annuity contracts issued to or in connection with government lotteries if the owners are residents; (4) For structured settlement annuities specified in subsection (b) of this section, subdivisions (a)(1) and (2) of this section shall not apply, and except as provided in subdivisions (a)(5) and (6) of this section, this chapter shall provide coverage to a person who is a payee under a structured settlement annuity, or beneficiary of a payee if the payee is deceased, if the payee: (A) Is a resident, regardless of where the contract owner resides; or (B) Is not a resident, but only under the following conditions: (i) The contract owner of the structured settlement annuity: (a) Is a resident; or (b) Is not a resident, but the insurer that issued the structured settlement annuity is domiciled in this state; (ii) The state in which the contract owner resides has an association similar to the Arkansas Life and Health Insurance Guaranty Association created by this chapter; and (iii) Neither the payee, or beneficiary, nor the contract owner is eligible for coverage by the association of the state in which the payee or contract owner resides; (5) This chapter shall not provide coverage for: (A) A person who is a payee, or beneficiary, of a contract owner resident of this state, if the payee, or beneficiary, is afforded any coverage by the association of another state; (B) A person covered in subdivision (a)(3) of this section if any coverage is provided by the association of another state to the person; or (C) A person who acquires rights to receive payments through a structured settlement factoring transaction as defined in 26 U.S.C. § 5891(c)(3)(A), regardless of whether or not the structured settlement factoring transaction occurred before or after the section became effective; (6)(A) This chapter is intended to provide coverage to a person who is a resident of this state and, in special circumstances, to a nonresident. (B) In order to avoid duplicate coverage, if a person who would otherwise receive coverage under this chapter is provided coverage under the laws of any other state, the person shall not be provided coverage under this chapter. (C) In determining the application of the provision of this subdivision (a)(6) in situations in which a person could be covered by the association of more than one (1) state, whether as an owner, payee, enrollee, beneficiary, or assignee, this chapter shall be construed in conjunction with other state laws to result in coverage by only one (1) association. (b)(1) This chapter shall provide coverage to the persons specified in subsection (a) of this section for policies or contracts of direct, nongroup life insurance, health insurance that, for the purposes of this chapter, includes health maintenance organization subscriber contracts and certificates, or annuities for certificates under direct group policies and contracts, and for supplemental contracts to any of these, and for unallocated annuity contracts, in each case issued by member insurers, except as limited by this chapter. (2) Annuity contracts and certificates under group annuity contracts include without limitation: (A) Guaranteed investment contracts; (B) Deposit administration contracts; (C) Unallocated funding agreements; (D) Allocated funding agreements; (E) Structured settlement annuities; (F) Annuities issued to or in connection with government lotteries; and (G) Any immediate or deferred annuity contracts. (c)(1) A member insurer or agent shall not deliver a policy or contract described in subsection (b) of this section and excluded under § 23-96-106(a)(1) from coverage under this chapter unless the member insurer or agent, before or at the time of delivery, gives the policy holder or contract holder a separate written notice which clearly and conspicuously discloses that the policy or contract is not covered by the Arkansas Life and Health Insurance Guaranty Association. (2) The Insurance Commissioner shall by rule specify the form and content of the notice.

Cross-references

Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.

Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 5891 — Structured settlement factoring transactions

**(a) Imposition of tax** There is hereby imposed on any person who acquires directly or indirectly structured settlement payment rights in a structured settlement factoring transaction a tax equal to 40 percent of the factoring discount as determined under subsection (c)(4) with respect to such factoring transaction. **(b) Exception for certain approved transactions** (1) **In general** — The tax under subsection (a) shall not apply in the case of a structured settlement factoring transaction in which the transfer of structured settlement payment rights is approved in advance in a qualified order. (2) **Qualified order** — For purposes of this section, the term “qualified order” means a final order, judgment, or decree which— (A) finds that the transfer described in paragraph (1)— (i) does not contravene any Federal or State statute or the order of any court or responsible administrative authority, and (ii) is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents, and (B) is issued— (i) under the authority of an applicable State statute by an applicable State court, or (ii) by the responsible administrative authority (if any) which has exclusive jurisdiction over the underlying action or proceeding which was resolved by means of the structured settlement. (3) **Applicable State statute** — For purposes of this section, the term “applicable State statute” means a statute providing for the entry of an order, judgment, or decree described in paragraph (2)(A) which is enacted by— (A) the State in which the payee of the structured settlement is domiciled, or (B) if there is no statute described in subparagraph (A), the State in which either the party to the structured settlement (includin

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5891

Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 5891. This identifies an authority to review, not proof of applicability.

Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 5891 — Structured settlement factoring trans-

Page 3292 TITLE 26—INTERNAL REVENUE CODE § 5891 Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by section 2004(o)(1)(A), (C), (2) of Pub. L. 100–647 effective, except as otherwise provided, as if in- cluded in the provisions of the Revenue Act of 1987, Pub. L. 100–203, title X, to which such amendment re- lates, see section 2004(u) of Pub. L. 100–647, set out as a note under section 56 of this title. Pub. L. 100–647, title II, § 2004(o)(1)(B)(ii), Nov. 10, 1988, 102 Stat. 3608, provided that: ‘‘The amendment made by clause (i) [amending this section] shall apply to trans- actions occurring on or after March 31, 1988.’’ EFFECTIVE DATE Pub. L. 100–203, title X, § 10228(d), Dec. 22, 1987, 101 Stat. 1330–418, provided that: ‘‘The amendments made by this section [enacting this chapter and amending section 275 of this title] shall apply to consideration re- ceived after the date of the enactment of this Act [Dec. 22, 1987] in taxable years ending after such date; except that such amendments shall not apply in the case of any acquisition pursuant to a written binding contract in effect on December 15, 1987, and at all times there- after before the acquisition.’’ CHAPTER 55—STRUCTURED SETTLEMENT FACTORING TRANSACTIONS Sec. 5891. Structured settlement factoring transactions. § 5891. Structured settlement factoring trans- actions (a) Imposition of tax There is hereby imposed on any person who ac- quires directly or indirectly structured settle- ment payment rights in a structured settlement factoring transaction a tax equal to 40 percent of the factoring discount as determined under subsection (c)(4) with respect to such factoring transaction. (b) Exception for certain approved transactions (1) In general The tax

Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 5891

Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 5891. This identifies an authority to review, not proof of applicability.

Arkansas Code — all titles (historical 2020) · legal_authorities

23-96-106. Scope of chapter.

23-96-106. Scope of chapter. (a) This chapter shall not provide coverage for: (1) A portion of a policy or contract not guaranteed by the member insurer, or under which the risk is borne by the policy owner or contract owner; (2) A portion of a policy or contract of reinsurance, unless assumption certificates have been issued under the reinsurance policy or contract; (3) A policy or contract to the extent that the rate of interest on which it is based, or the interest rate, crediting rate, or similar factor determined by use of an index or other external reference stated in the policy or contract employed in calculating returns or changes in value: (A) Averaged over the period of four (4) years before the date on which the member insurer becomes an impaired or insolvent insurer under this chapter, whichever is earlier, exceeds a rate of interest determined by subtracting two (2) percentage points from Moody's Corporate Bond Yield Average averaged for that same four-year period or for such lesser period if the policy or contract was issued less than four (4) years before the member insurer becomes an impaired insurer or insolvent insurer under this chapter, whichever is earlier; and (B) On and after the date on which the Arkansas Life and Health Insurance Guaranty Association becomes obligated with respect to such policy or contract, exceeds the rate of interest determined by subtracting three (3) percentage points from Moody's Corporate Bond Yield Average as most recently available; (4) A portion of a policy or contract issued to a plan or program of an employer, association, or other person to provide life, health, or annuity benefits to its employees, members, or others to the extent that the plan or program is self-funded or uninsured, including without

Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-96-106

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 23-96-106. This identifies an authority to review, not proof of applicability.