On Mar. 25, ARK LEG enacted bill on interest on deferred payments.
ARK LEG enacted bill HB 1488 on insurer right to defer cash surrender value payment.
Amends ARK INS 23-81-203(c) on nonforfeiture provisions relating to life insurance.
Bill Provisions
Insurer reserves right to defer payment of any cash surrender value for six months after demand subject to policy death benefit remaining in effect until payment is made
If payment is not made within thirty days after demand is made for the surrender of the policy, insurer shall pay interest on value in addition to the cash surrender value.
Interest at prime rate as published in Wall Street Journal on day demand is made for surrender, accruing until cash surrender value is paid in full within six-month period.
Legislative History
On Feb. 14, 2025, bill was introduced in House; on Mar. 10, 2025, bill passed House.
On Mar. 10, 2025, bill was introduced in Senate; on Mar. 18, 2025, bill passed Senate.
On Mar. 19, 2025, bill amendment concurred in House; enrolled and sent to governor.
On Mar. 25, 2025, bill was approved by the governor and was assigned Act 391.
Effectiveness
Act effective 91 days after legislature adjourned sine die (May 5), so Aug. 4, 2025.
Regulators
ARK LEG
Entity Types
Ins
Reference
Act 391, Bill HB1488, 3/25/2025; Citation: ARK INS 23-81-203(c);
