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23-96-116. Plan of operation.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-96-116. Plan of operation.
(a)(1)(A) The Arkansas Life and Health Insurance Guaranty Association shall submit to the Insurance Commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the Arkansas Life and Health Insurance Guaranty Association.
(B) The plan of operation and any amendments to the plan of operation shall become effective upon the commissioner's written approval or unless he or she has not disapproved it within thirty (30) days.
(2)(A) If the Arkansas Life and Health Insurance Guaranty Association fails to submit a suitable plan of operation within one hundred twenty (120) days following March 9, 1989, or if at any time thereafter the Arkansas Life and Health Insurance Guaranty Association fails to submit suitable amendments to the plan of operation, the commissioner shall, after notice and hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate this chapter.
(B) Such rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the Arkansas Life and Health Insurance Guaranty Association and approved by the commissioner.
(b) All member insurers shall comply with the plan of operation.
(c) In addition to other requirements enumerated in this chapter, the plan of operation shall:
(1) Establish procedures for handling the assets of the Arkansas Life and Health Insurance Guaranty Association;
(2) Establish the amount and method of reimbursing members of the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association under § 23-96-109(b);
(3) Establish regular places and times for meetings, including telephone conference calls of the board;
(4) Establ
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-96-116
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:23-96-116
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: bba4c214655a742192d72f57136ceb471a4fbbfac4573327a6849e0c78a78f9c
Source location: content.xml paragraph 57648
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23-96-116. Plan of operation.
(a)(1)(A) The Arkansas Life and Health Insurance Guaranty Association shall submit to the Insurance Commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the Arkansas Life and Health Insurance Guaranty Association.
(B) The plan of operation and any amendments to the plan of operation shall become effective upon the commissioner's written approval or unless he or she has not disapproved it within thirty (30) days.
(2)(A) If the Arkansas Life and Health Insurance Guaranty Association fails to submit a suitable plan of operation within one hundred twenty (120) days following March 9, 1989, or if at any time thereafter the Arkansas Life and Health Insurance Guaranty Association fails to submit suitable amendments to the plan of operation, the commissioner shall, after notice and hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate this chapter.
(B) Such rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the Arkansas Life and Health Insurance Guaranty Association and approved by the commissioner.
(b) All member insurers shall comply with the plan of operation.
(c) In addition to other requirements enumerated in this chapter, the plan of operation shall:
(1) Establish procedures for handling the assets of the Arkansas Life and Health Insurance Guaranty Association;
(2) Establish the amount and method of reimbursing members of the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association under § 23-96-109(b);
(3) Establish regular places and times for meetings, including telephone conference calls of the board;
(4) Establish procedures for records to be kept of all financial transactions of the Arkansas Life and Health Insurance Guaranty Association, its agents, and the board;
(5) Establish the procedures whereby selections for the board will be made and submitted to the commissioner;
(6) Establish any additional procedures for assessments under § 23-96-115; and
(7) Contain additional provisions necessary or proper for the execution of the powers and duties of the Arkansas Life and Health Insurance Guaranty Association.
(d)(1)(A) The plan of operation may provide that any or all powers and duties of the Arkansas Life and Health Insurance Guaranty Association, except those under § 23-96-114(c)(3) and § 23-96-115, may be delegated to the State Insurance Department or to a corporation, association, organization, or other entity which performs or will perform functions similar to those of the Arkansas Life and Health Insurance Guaranty Association, or its equivalent, in two (2) or more states.
(B) Such a corporation, association, organization, or other entity, including, as applicable, the department, shall be reimbursed for any payments made on behalf of the Arkansas Life and Health Insurance Guaranty Association and shall be paid for its performance of any function of the Arkansas Life and Health Insurance Guaranty Association.
(2) A delegation under this subsection shall take effect only with the approval of both the board and the commissioner, and may be made only to a corporation, association, organization or other entity, including the department, which extends protection not substantially less favorable and effective than that provided by this chapter.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-96-109. Creation of the association — Examination — Annual report — Tax exemption — Board of directors.
(a)(1)(A) There is created a nonprofit legal entity to be known as the “Arkansas Life and Health Insurance Guaranty Association”.
(B) All member insurers shall be and remain members of the association as a condition of their authority to transact insurance or a health maintenance organization business in this state.
(C) The association shall perform its functions under the plan of operation established and approved under § 23-96-116 and shall exercise its powers through a board of directors established under subsection (b) of this section.
(2)(A) The association shall come under the immediate supervision of the Insurance Commissioner and shall be subject to the applicable insurance laws of this state.
(B) Meetings or records of the association may be opened to the public upon majority vote of the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association.
(3) The association shall be subject to examination and regulation by the commissioner.
(4)(A) The board shall submit to the commissioner each year, not later than one hundred twenty (120) days after the association's fiscal year, a financial report in a form approved by the commissioner and a report of its activities during the preceding fiscal year.
(B) Upon request of a member insurer, the association shall provide the member insurer with a copy of the report.
(5) For purposes of administration and assessment, the association shall maintain two (2) accounts:
(A) The life insurance and annuity account, which includes the following subaccounts:
(i) Life insurance account;
(ii) Annuity account, which shall include annuity contracts owned by a governmental retirement p
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-96-109
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 23-96-109. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-96-114. Liability for benefits — Assignment or subrogation of rights — Definition.
(a) The benefits that the Arkansas Life and Health Insurance Guaranty Association may become obligated to cover shall in no event exceed the lesser of:
(1) The contractual obligations for which the member insurer is liable or would have been liable if it were not an impaired insurer or insolvent insurer; or
(2) With respect to:
(A) Any one (1) life, regardless of the number of policies or contracts:
(i) Three hundred thousand dollars ($300,000) in life insurance death benefits or net cash surrender and net cash withdrawal values for life insurance;
(ii) Five hundred thousand dollars ($500,000) in health benefit plan benefits and five hundred thousand dollars ($500,000) in health benefits for coverages not defined as health benefit plans, including any net cash surrender and net cash withdrawal values, provided coverage for disability income insurance benefits and long-term care insurance benefits shall not exceed three hundred thousand dollars ($300,000); or
(iii) Three hundred thousand dollars ($300,000) in the present value of annuity benefits, including net cash surrender and net cash withdrawal values;
(B) Each individual participating in a governmental retirement benefit plan established under section 401(k), section 403(b), or section 457 of the Internal Revenue Code covered by an unallocated annuity contract or the beneficiaries of each such individual if deceased, in the aggregate three hundred thousand dollars ($300,000) in present value annuity benefits, including net cash surrender and net cash withdrawal values; or
(C) Each payee of a structured settlement annuity or beneficiary or beneficiaries of the payee if deceased, three hundred thousand dollars ($30
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-96-114
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 23-96-114. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-96-115. Assessments — Tax credits.
(a)(1) For the purpose of providing the funds necessary to carry out the powers and duties of the Arkansas Life and Health Insurance Guaranty Association, the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association shall assess the member insurers, separately for each account, at such time and for such amounts as the board finds necessary.
(2) Assessments shall be due not less than thirty (30) days after prior written notice to the member insurers and shall accrue interest at ten percent (10%) per annum on and after the due date.
(b) There shall be two (2) classes of assessments, as follows:
(1)(A) Class A assessments shall be authorized and called for the purpose of meeting administrative and legal costs and other expenses.
(B) Class A assessments may be authorized and called whether or not related to a particular impaired insurer or insolvent insurer; and
(2) Class B assessments shall be authorized and called to the extent necessary to carry out the powers and duties of the association under § 23-96-106(b), §§ 23-96-110 — 23-96-114, and 23-96-120 with regard to an impaired insurer or an insolvent insurer.
(c)(1)(A)(i) The amount of a Class A assessment shall be determined by the board and may be authorized and called on a pro rata or non-pro rata basis.
(ii) If pro rata, the board may provide that the Class A assessment be credited against future Class B assessments.
(B) The amount of a Class B assessment, except for assessments related to long-term care insurance, shall be allocated for assessment purposes between the accounts and among the subaccounts of the life insurance and annuity account under an allocation formula which may be based on the premiums or reserves of the impaired or
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-96-115
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 23-96-115. This identifies an authority to review, not proof of applicability.