(a) All contract proceeds held in trust pursuant to the provisions of this chapter and all income derived therefrom shall be exempt from attachment, garnishment, execution, and claims of creditors, receivers, or trustees in bankruptcy. The trust fund shall not be seized, taken, appropriated, or applied to pay any debt or liability of the seller by any legal or equitable process or by operation of law.
(b) The seller shall notify the Insurance Commissioner within ten (10) days upon the filing of bankruptcy or upon becoming insolvent. Upon receipt of notification, the commissioner shall notify the trustee of the trust fund, and all income earned after that date shall be held in trust by the trustee and disbursed only upon the direction of the commissioner.
Structure Arkansas Code
Title 23 - Public Utilities and Regulated Industries
Subtitle 2 - Financial Institutions And Securities
Chapter 40 - Arkansas Prepaid Funeral Benefits Law
§ 23-40-104. Arkansas Insurance Code not affected
§ 23-40-105. Burial associations exempted
§ 23-40-106. Violations — Penalties
§ 23-40-107. Division of Prepaid Funeral Benefits — State Insurance Department Prepaid Trust Fund
§ 23-40-110. Application for initial or renewed permit
§ 23-40-111. Issuance of permit — Cancellation or denial
§ 23-40-112. Prepaid funeral benefits contracts
§ 23-40-113. Change of ownership
§ 23-40-114. Trust funds — Creation — Deposits, withdrawals, and transfers of funds
§ 23-40-115. Trust funds — Investments
§ 23-40-116. Trust funds — Disbursements
§ 23-40-117. Trust funds — Exemption from attachment, etc
§ 23-40-118. Agent for deposit of contract proceeds
§ 23-40-119. Annual report and fee
§ 23-40-120. Records required — Examination
§ 23-40-122. Cancellation or transfer
§ 23-40-123. Delinquency proceedings
§ 23-40-126. Unfair competition or unfair or deceptive acts or practices prohibited — Penalties