Recent Development: Arkansas Insurance Dep't. Final Rule 126: "Insurance Business Transfers"

Authors

Silas Heffley, University of Arkansas, FayettevilleFollow

Keywords

Arkansas, Insurance, Mask mandate policy, Oil and gas

Abstract

Pursuant to Act 1018 of 2021, “An Act to Establish the Arkansas Business Transfer Act,” the Arkansas Insurance Department has promulgated Final Rule 126 “to provide standards and procedures for the transfer and novation of insurance policies from a transferring insurer to an assuming insurer through a transaction known as an ‘insurance business transfer.’” The Rule requires that the applicant submit an Insurance Business Transfer Plan—along with a nonrefundable $10,000 fee—to the Department detailing the transaction. One critical element of this Plan is the Independent Expert Opinion Report. An independent expert will produce a written report to be included in the Plan and will assist the court and the Commissioner of the Insurance Department in their review of the transaction. Under Final Rule 126, “The Commissioner shall authorize the submission of the Plan to the court unless he or she finds that the insurance business transfer would have an adverse material impact on the interests of policyholders or claimants that are part of the subject business.” Within thirty days of the Commissioner’s approval of the Plan, the Rule requires the applicant to petition the court for approval. Final Rule 126 became effective on January 1, 2022.

Recommended Citation

Silas Heffley, Recent Development: Arkansas Insurance Dep't. Final Rule 126: "Insurance Business Transfers", 75 Ark. L. Rev. (2022).
Available at: https://scholarworks.uark.edu/alr/vol75/iss2/11