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Arkansas Code Title 23. Public Utilities and Regulated Industries § 23-96-118. Duties and powers of Insurance Commissioner

Current as of March 28, 2024 | Updated by Findlaw Staff

(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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Cite this article: FindLaw.com - Arkansas Code Title 23. Public Utilities and Regulated Industries § 23-96-118. Duties and powers of Insurance Commissioner - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-23-public-utilities-and-regulated-industries/ar-code-sect-23-96-118/

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