(a) Every mutual assessment life and disability insurer shall have and maintain in force and on file with the Insurance Commissioner a bond in favor of the State of Arkansas in the sum of twenty thousand dollars ($20,000), for the use of the policyholders of the insurer and their beneficiaries, with good and sufficient surety approved by the commissioner, and conditioned for the prompt payment of all assessments to parties or beneficiaries entitled thereto.
(b) The makers of the bond shall continue to be liable thereon for any violation of the conditions thereof or for any loss accruing to the policyholders of the insurer or their beneficiaries.
(c) The bond shall be renewable every two (2) years on March 1.
(d) If at any time it appears that the bond has for any cause become insufficient, the commissioner may require the insurer to replace the bond on reasonable notice.
Structure Arkansas Code
Title 23 - Public Utilities and Regulated Industries
Chapter 72 - Mutual Assessment Life and Disability Insurers
§ 23-72-103. Other provisions applicable
§ 23-72-104. Minimum requirements for new insurers
§ 23-72-106. Refusal, suspension, or revocation of certificate of authority
§ 23-72-107. Pro rata or level assessment plans
§ 23-72-110. Filing and amendment of bylaws
§ 23-72-111. Special provisions of pro rata assessment plan
§ 23-72-112. Additional assessments or adjustments of rates or benefits
§ 23-72-113. Benefits and payment — Level or stipulated plan insurers
§ 23-72-114. Benefits not subject to attachment
§ 23-72-115. Notice to members of scaled and reduced claims
§ 23-72-116. Pro rata plan insurer — Reclassification and rearrangement of members
§ 23-72-118. Conversion to level premium plan
§ 23-72-119. Merger or bulk reinsurance or conversion