(a) A pro rata assessment insurer, by resolution of its board of directors approved by the Insurance Commissioner, may convert the whole or any part of its membership into a level or stipulated rate division. Thereafter, laws applicable to a level or stipulated rate insurer shall apply and govern the insurer or division so converted.
(b) The insurer shall segregate the funds and income of the two (2) classes and not intermingle funds when the insurer is operating on a pro rata assessment basis and with a division on a level or stipulated rate assessment basis.
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