Rule detail : 252203

ARK LEG Life Insurance Nonforfeiture

Published on: Apr 28, 2025

ARK LEG passed SB 519, to amend the standard nonforfeiture law for life insurance.
Amends ARK INS 23-81-203 to ensure prompt payment after surrendering policies.
Bill Provisions
Payment of interest on deferred payment of cash surrender value on/after Jan.1, 2026.
Timely payment of cash surrender values to be paid to policyholder within 6 months.
Specified that the policy death benefit shall remain in force until payment is made.
Insurer shall pay interest on the cash surrender if payment is not made within 45 days
Accruing from date of surrender until cash surrender value is paid within the 6 months.
Legislative History
On Mar. 19, 2025, bill introduced in Senate; on Apr. 2, 2025, bill passed the Senate.
On Apr. 2, 2025, bill introduced into House; on Apr. 14, 2025, amended bill passed.
On Apr. 15, 2025, Senate concurred; on Apr. 22, 2025, bill became Act 958.
Effectiveness
Act effective 91 days after legislature adjourned sine die (May 5), so Aug. 4, 2025.

Regulators

ARK LEG

Entity Types

CNSM; Ins

Reference

Bill SB519, Act 958, 4/23/2025; Citation: ARK INS 23-81-203;

Functions

Claims/Accelerated Benefits; Compliance; Legal; Product Administration

Countries

United States of America