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23-96-118. Duties and powers of Insurance Commissioner.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-96-118. Duties and powers of Insurance Commissioner.
(a) In addition to the duties and powers enumerated elsewhere in this chapter:
(1) The Insurance Commissioner shall:
(A) Upon request of the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association, provide the Arkansas Life and Health Insurance Guaranty Association with a statement of the premiums in this and any other appropriate states for each member insurer;
(B)(i) When an impairment is declared and the amount of the impairment is determined, serve a demand upon the impaired insurer to make good the impairment within a reasonable time.
(ii) Notice to the impaired insurer shall constitute notice to its shareholders, if any.
(iii) The failure of the impaired insurer to promptly comply with such a demand shall not excuse the association from the performance of its powers and duties under this chapter; and
(C) In any liquidation or rehabilitation proceeding involving a domestic member insurer, be appointed as the liquidator or rehabilitator; and
(2)(A) The commissioner may suspend or revoke, after notice and hearing, the certificate of authority to transact business in this state of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation.
(B)(i) As an alternative, the commissioner may levy a forfeiture on any member insurer that fails to pay an assessment when due.
(ii) The forfeiture shall not exceed five percent (5%) of the unpaid assessment per month, but a forfeiture shall not be less than one hundred dollars ($100) per month.
(b)(1) A final action of the board or the association may be appealed to the commissioner by any member insurer if the appeal is taken within sixty (60) days of its receipt of notice of the
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-96-118
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:23-96-118
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 3af2b63827ecd43ca38482cd9ccdc00f712b8bab06a05643b421108e9c7c4696
Source location: content.xml paragraph 57696
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23-96-118. Duties and powers of Insurance Commissioner.
(a) In addition to the duties and powers enumerated elsewhere in this chapter:
(1) The Insurance Commissioner shall:
(A) Upon request of the Board of Directors of the Arkansas Life and Health Insurance Guaranty Association, provide the Arkansas Life and Health Insurance Guaranty Association with a statement of the premiums in this and any other appropriate states for each member insurer;
(B)(i) When an impairment is declared and the amount of the impairment is determined, serve a demand upon the impaired insurer to make good the impairment within a reasonable time.
(ii) Notice to the impaired insurer shall constitute notice to its shareholders, if any.
(iii) The failure of the impaired insurer to promptly comply with such a demand shall not excuse the association from the performance of its powers and duties under this chapter; and
(C) In any liquidation or rehabilitation proceeding involving a domestic member insurer, be appointed as the liquidator or rehabilitator; and
(2)(A) The commissioner may suspend or revoke, after notice and hearing, the certificate of authority to transact business in this state of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation.
(B)(i) As an alternative, the commissioner may levy a forfeiture on any member insurer that fails to pay an assessment when due.
(ii) The forfeiture shall not exceed five percent (5%) of the unpaid assessment per month, but a forfeiture shall not be less than one hundred dollars ($100) per month.
(b)(1) A final action of the board or the association may be appealed to the commissioner by any member insurer if the appeal is taken within sixty (60) days of its receipt of notice of the final action's being appealed.
(2) If a member company is appealing an assessment, the amount assessed shall be paid to the association and available to meet association obligations during the pendency of an appeal.
(3) If the appeal on the assessment is upheld, the amount paid in error or excess shall be returned to the member insurer.
(4) Any final action or order of the commissioner shall be subject to judicial review in a court of competent jurisdiction according to the laws of this state that apply to actions or orders of the commissioner.
(c) If the association fails to act within a reasonable period of time as provided in § 23-96-112(a) and §§ 23-96-113 and 23-96-120, the commissioner shall have the powers and duties of the association under this chapter with respect to impaired insurers or insolvent insurers.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-96-112. Insolvent insurers.
(a) If a member insurer is an insolvent insurer, the Arkansas Life and Health Insurance Guaranty Association, in its discretion, shall:
(1) Do both of the following:
(A) Guarantee, assume, reissue, or reinsure, or cause to be guaranteed, assumed, reissued, or reinsured, the policies or contracts of the insolvent insurer or assure payment of the contractual obligations of the insolvent insurer; and
(B) Provide the moneys, pledges, loans, notes, guarantees, or other means as are reasonably necessary to discharge such duties; or
(2) Provide benefits and coverages in accordance with § 23-96-113.
(b)(1) All proceedings in which the insolvent insurer is a party in any court in this state shall be stayed sixty (60) days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the association on any matters germane to its powers or duties.
(2) As to judgment under any decision, order, verdict, or finding based on default, the association may apply to have the judgment set aside by the same court that made the judgment and shall be permitted to defend against the suit on the merits.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-96-112
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. The source passage cites 23-96-112. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-96-113. Authority of association when proceeding under § 23-96-111 or § 23-96-112.
(a)(1) When proceeding under § 23-96-111 or § 23-96-112(a)(2), the Arkansas Life and Health Insurance Guaranty Association shall:
(A) With respect to policies and contracts, assure payment of benefits that would have been payable under the policies or contracts of the insolvent insurer, for claims incurred:
(i) With respect to group policies and contracts, not later than the earlier of the next renewal date under the policies or contracts or forty-five (45) days, but in no event less than thirty (30) days, after the date on which the association becomes obligated with respect to the policies and contracts; and
(ii) With respect to nongroup policies, contracts, and annuities, not later than the earlier of the next renewal date, if any, under the policies or contracts, or one (1) year, but in no event less than thirty (30) days, from the date on which the association becomes obligated with respect to the policies or contracts;
(B) Make diligent efforts to provide all known insureds, enrollees, or annuitants, for nongroup policies and contracts, or group policy or contract owners with respect to group policies and contracts thirty (30) days' notice of the termination, under this subdivision (a)(1), of the benefits provided; and
(C) With respect to nongroup policies and contracts covered by the association, make available to each known insured, enrollee, or annuitant, or owner if other than the insured or annuitant, and with respect to an individual formerly an insured, enrollee, or annuitant under a group policy or contract who is not eligible for replacement group coverage, make available substitute coverage on an individual basis according to subdivision (a)(2)(A) of this se
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-96-113
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 23-96-113. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-96-120. Payment of premiums.
(a) Nonpayment of premiums within thirty-one (31) days after the date required under the terms of any guaranteed, assumed, alternative, or reissued policy or contract or substitute coverage shall terminate the Arkansas Life and Health Insurance Guaranty Association's obligations under the policy, contract, or coverage under this chapter with respect to the policy, contract, or coverage, except with respect to any claims incurred or any net cash surrender value which may be due under this chapter.
(b) Premiums due for coverage after entry of an order of liquidation of an insolvent insurer shall belong to and be payable at the direction of the association, and the association shall be liable for unearned premiums due to policy owners or contract owners arising after the entry of the order.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-96-120
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 23-96-120. This identifies an authority to review, not proof of applicability.