§ 23-96-101. Title

This chapter shall be known and may be cited as the “Arkansas Life and Health Insurance Guaranty Association Act”.

§ 23-96-102. Purpose

(a) The purpose of this chapter is to protect, subject to certain limitations, the persons specified in § 23-96-107(a) against failure in the performance of contractual obligations under life and health and annuity policies, plans, or contracts specified in § 23-96-107(b) because of the impairment or insolvency of the member insurer that issued the policies, […]

§ 23-96-103. Construction — Applicability

(a) This chapter shall be construed to effect the purpose under § 23-96-102. (b) This chapter shall not be construed to reduce the liability for unpaid assessments of the insureds of an impaired or insolvent insurer operating under a plan with assessment liability.

§ 23-96-104. Definitions

As used in this chapter: (1) “Account” means any of the two (2) accounts created under § 23-96-109; (2) “Association” means the Arkansas Life and Health Insurance Guaranty Association created under § 23-96-109; (3) “Authorized assessment” or the term “authorized” when used in the context of assessments means a resolution by the Board of Directors […]

§ 23-96-105. Advertisement of association act in insurance sales — Notice to policy owners

(a) (1) A person, including a member insurer, agent, or affiliate of a member insurer, shall not make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in any newspaper, magazine, or other publication, or in the form of a […]

§ 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 […]

§ 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 […]

§ 23-96-108. Immunity

(a) The following are not liable for or subject to any cause of action resulting from an act or omission by them in the performance of their powers and duties under this chapter: (1) A member insurer or its agents or employees; (2) The Arkansas Life and Health Insurance Guaranty Association or its agents or […]

§ 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 […]

§ 23-96-110. Powers and duties of association

(a) In addition to the rights and powers elsewhere in this chapter, the Arkansas Life and Health Insurance Guaranty Association may: (1) Enter into such contracts as are necessary or proper to carry out this chapter; (2) Sue or be sued, including taking any legal actions necessary or proper to recover any unpaid assessments under […]

§ 23-96-111. Impaired insurers

If a member insurer is an impaired insurer, the Arkansas Life and Health Insurance Guaranty Association, in its discretion and subject to any conditions imposed by the association that do not impair the contractual obligations of the impaired insurer and that are approved by the Insurance Commissioner, may: (1) Guarantee, assume, reissue, or reinsure, or […]

§ 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 […]

§ 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, […]

§ 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 […]

§ 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 […]

§ 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 […]

§ 23-96-117. Detection and prevention of insolvencies or impairments

To aid in the detection and prevention of member insurer insolvencies or impairments: (1) The Insurance Commissioner shall: (A) (i) Notify the commissioners of all the other states, territories of the United States, and the District of Columbia when he or she takes any of the following actions against a member insurer: (a) Revocation of […]

§ 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 […]

§ 23-96-119. Distributions of ownership rights

(a) (1) (A) Before the termination of any liquidation, rehabilitation, or conservation proceeding, the court may take into consideration the contributions of the respective parties, including the Arkansas Life and Health Insurance Guaranty Association, the shareholders, contract owners, certificate holders, enrollees, and policy owners of the insolvent insurer, and any other party with a bona […]

§ 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 […]