§ 23-90-101. Title
This chapter shall be known and may be cited as the “Arkansas Property and Casualty Insurance Guaranty Act”.
§ 23-90-102. Purpose
This chapter is for the purpose of providing funds in addition to assets of insolvent insurers for the protection of the holders of covered claims as defined in § 23-90-103 through payment and through contracts of reinsurance or assumption of liabilities or of substitution or otherwise.
§ 23-90-103. Definitions
As used in this chapter: (1) “Commissioner” means the Insurance Commissioner; (2) (A) (i) “Covered claim” means an unpaid claim of an insured or third-party liability claimant which arises out of and is within the coverage and not in excess of the applicable limits of an insurance policy to which this chapter applies, and which […]
§ 23-90-104. Applicability — Exceptions
This chapter shall apply to all kinds of direct insurance written by insurers licensed to transact insurance in this state but shall not be applicable to the following: (1) Life, annuity, health, or accident and health insurance; (2) Mortgage guaranty, financial guaranty, or other form of insurance offering protection against investment risks; (3) Bail bonds […]
§ 23-90-105. Construction
This chapter shall be liberally construed to effect the purpose under § 23-90-102 which shall constitute an aid and guide to interpretation.
§ 23-90-106. Arkansas Property and Casualty Advisory Association — Creation — Members
(a) (1) There is created by this chapter an advisory association to be known as the “Arkansas Property and Casualty Advisory Association”, herein called the “advisory association” to be composed of eight (8) insurers. (2) The Insurance Commissioner shall appoint the insurers who will serve as the initial advisory association. Subsequent members of the advisory […]
§ 23-90-107. Arkansas Property and Casualty Advisory Association — Procedures
(a) The State Insurance Department shall promulgate reasonable organizational rules for the Arkansas Property and Casualty Advisory Association which shall set forth, among other things, quorum and attendance requirements for meetings, procedural rules to be followed at advisory association meetings, and rules concerning the replacement of members. (b) (1) The advisory association shall conduct its […]
§ 23-90-108. Arkansas Property and Casualty Advisory Association — Powers and duties
(a) (1) The Arkansas Property and Casualty Advisory Association shall advise and counsel with the Insurance Commissioner upon matters relating to the solvency of insurers. (2) The commissioner may call a meeting of the association when a court of competent jurisdiction determines that an insurer is insolvent and may call a meeting of the association […]
§ 23-90-109. Arkansas Property and Casualty Advisory Association — Reports and recommendations
Reports or recommendations made by the Arkansas Property and Casualty Advisory Association to the Insurance Commissioner and his or her representatives shall not be considered public documents and there shall be no liability on the part of and no cause of action against a member of the association or the association itself for any report, […]
§ 23-90-110. Arkansas Property and Casualty Advisory Association — Right of officers, directors, and employees to contract — Interested parties
(a) Any insurer that has an officer, director, or employee serving as a member of the Arkansas Property and Casualty Advisory Association shall not lose the right to negotiate for and enter into contracts of reinsurance or assumption of liability or contracts of substitution to provide for liabilities for covered claims with the receiver of […]
§ 23-90-111. Covered claims — Notification to insureds of insurer’s insolvency
(a) This chapter shall apply to covered claims existing prior to the determination that an insurer is an insolvent insurer and to covered claims arising within thirty (30) days after the determination of insolvency or before the policy expiration date if less than thirty (30) days after the determination of insolvency or before the insured […]
§ 23-90-112. Estimation of amount needed to pay claims — Assessment of insurers
(a) (1) Whenever a court of competent jurisdiction determines that an insurer has become an insolvent insurer, the receiver appointed in accordance with §§ 23-68-101 — 23-68-113 and 23-68-115 — 23-68-132 shall promptly estimate the amount of additional funds needed to supplement the assets of the insolvent insurer and any available amounts in the fund […]
§ 23-90-113. Failure to pay assessment
(a) After notice and hearing, the Insurance Commissioner may suspend or revoke the certificate of authority to transact business in this state of any insurer who fails to pay an assessment when due. (b) As an alternative, the commissioner may levy a fine on any member insurer which fails to pay an assessment when due. […]
§ 23-90-114. Accounting for and repayment of assessments
(a) (1) Upon receipt from an insurer of payment of an assessment or partial assessment, the receiver shall provide the insurer with a participation receipt which shall create a liability against the assessment fund maintained by the Insurance Commissioner. (2) The assessment fund from which an advance is made to an insolvent insurer for the […]
§ 23-90-115. Payment of covered claims
(a) (1) When an insurer has been determined by a court of competent jurisdiction to be an insolvent insurer, the receiver shall marshal all assets of the insolvent insurer, including, but not limited to, those which are designated as, or that constitute, reserve assets offsetting reserve liabilities for all liabilities falling within the term “covered […]
§ 23-90-116. Duties of receiver
(a) (1) Covered claims against an insolvent insurer placed in temporary or permanent receivership under an order of liquidation, rehabilitation, or conservation by a court of competent jurisdiction shall be processed and acted upon by the receiver or ancillary receiver in the same manner as other claims as provided in §§ 23-68-101 — 23-68-113 and […]
§ 23-90-117. Right of recovery
(a) (1) Any person having a claim against an insurer under any provision in an insurance policy other than a policy of an insolvent insurer, which is also a covered claim, shall be required to exhaust first his or her right under the policy. (2) Any amount payable on a covered claim under this chapter […]
§ 23-90-118. Issuance of new or renewal policies
(a) An insolvent insurer placed in receivership for which assessments have been made under the provisions of this chapter shall not be authorized, upon release from receivership, to issue new or renewal insurance policies until such time as the insolvent insurer has repaid in full the entire amount advanced to it from the assessment fund […]
§ 23-90-119. Assessment as credit against taxes
(a) Any assessment paid by an insurer under this chapter shall be allowed to an insurer as a credit against its premium tax payable under §§ 26-57-601 — 26-57-605 and 26-57-607. (b) The tax credit referred to in this section shall be allowed at a rate of twenty percent (20%) per year for five (5) […]
§ 23-90-120. Liability of insurer, commissioner, etc
There shall be no liability on the part of and no cause of action of any nature shall arise against any insurer subject to this chapter or its agents or employees, the Arkansas Property and Casualty Advisory Association, or the Insurance Commissioner or his or her representatives for any action by them in the performance […]