Rule detail : 251273

ARK LEG Captive Insurer Requirements

Published on: Apr 21, 2025

On Apr. 14, ARK LEG passed bill on licensing, regulation of insurers.

ARK LEG passed SB 237 on the licensing, regulation requirements for captive insurers.
Amends ARK INS 23-63-1601 (definitions), ARK INS 23-63-1602 (applications), ARK INS 23-63-1604 (capital, dividends), ARK INS 23-63-1605(a)(1) (capital).
Also amends ARK INS 23-63-1606 (organization), ARK INS 23-63-1607(b)(2) (reporting), ARK INS 23-63-1608(a) (examinations), ARK INS 23-63-1614 (taxes).
ARK INS 23-63-1624(c)(3) (renewal fee); adds ARK INS 23-63-1625 (violations)
Bill Provisions
Authorizes commissioner to issue provisional license, requirements for eligibility.
Revises amount of unimpaired paid-in capital required of certain captive insurers.
Foreign, alien insurer may become domestic by complying with domestic requirements.
Specifies requirements for foreign, alien insurers to redomesticate within Arkansas.
Allows waiver of audit or actuarial opinion if parent satisfies certain conditions.
Authorizes application for premium tax credits for operating expenses of insurers.
Commissioner can revoke, suspend license of captive insurer under certain conditions.
Legislative History
On Feb. 17, 2025, bill introduced in Senate; on Mar. 3, 2025, bill passed in Senate.
On Mar. 3, 2025, bill introduced in House; on Apr. 7, 2025, bill passed in House.
On Apr. 14, 2025, SB 237 was approved by the governor, assigned Act 554.
Effectiveness
Act effective 91 days after legislature adjourned sine die (May 5), so Aug. 4, 2025.

Regulators

ARK LEG

Entity Types

Ins

Reference

Act 554, Bill SB237, PR, 4/14/2025; Citation: *ARK INS* 23-63-1601, 23-63-1602, 23-63-1604, 23-63-1605, 23-63-1606, 23-63-1607, 23-63-1608, 23-63-1614, 23-63-1624;

Functions

Compliance; Legal; Registration/Licensing; Tax

Countries

United States of America