Arkansas Code Title 23. Public Utilities and Regulated Industries § 23-68-133. Reinsurer's liability

(1)(A) In the event of insolvency and the appointment of a receiver, the reinsurance obligation shall be payable to the receiver upon demand, with reasonable provision for verification, on the basis of claims allowed pursuant to this subchapter, without diminution because of the insolvency or because the receiver has failed to pay all or a portion of any claims.

(B) Payments by the reinsurer as set forth above shall be made directly to the ceding insurer or to its receiver; and

(2)(A) The receiver of a reinsured company shall give written notice of the pendency of a claim against the reinsured company indicating the policy or bond reinsured within a reasonable time after the claim is filed.

(B) The receiver of a reinsured company may arrange for the giving of notice of the pendency of claims on reinsured policies by guaranty funds or by other persons responsible for the adjustment and settlement of the reinsured company's claims.

(C) Failure to give notice shall not excuse the obligation of the reinsurer unless it is substantially prejudiced thereby.

(D) The reinsurer may interpose, at its own expense, in the proceeding where the claim is to be adjudicated, any defense or defenses which it may deem available to the reinsured company or its receiver.