Ark. Code Ann. § 23-60-101 Title.
This code constitutes the Arkansas Insurance Code.
General Provisions
Ark. Code Ann. tit. 23, ch. 60
in effectArk. Code Ann. § 23-60-102 Definitions.
As used in the Arkansas Insurance Code, unless the context otherwise requires:
(1)(A)(i) “Insurance” is any agreement, contract, or other transaction whereby one party, the “insurer”, is obligated to confer benefit of pecuniary value upon another party, the “insured” or “beneficiary”, dependent upon the happening of a fortuitous event in which the insured or beneficiary has, or is expected to have at the time of such a happening, a material interest that will be adversely affected by the happening of such an event.
(ii) A “fortuitous event” means any occurrence or failure to occur that is, or is assumed by the parties to be, to a substantial extent beyond the control of either party.
(B) “Insurance” shall, for purposes of subtitle 3 of this title, be deemed to include “annuities”, which are agreements by insurers to make periodic payments that continue during the survival of the measuring life or lives under the agreements or for a specified period.
(C) “Reinsurance” is a contract under which an originating insurer, called the “ceding” insurer, procures insurance for itself in another insurer, called the “assuming” insurer or reinsurer, with respect to part or all of an insurance risk of the originating insurer.
(D)(i) “Insurance” shall not include a debt cancellation agreement.
(ii) “Debt cancellation agreement” is a loan term or contractual arrangement modifying a loan term dealing with motor vehicles under which a lender agrees to cancel all or part of a borrower's obligation to repay an extension of credit from the lender upon the occurrence of a specified event other than the death or disability of the borrower. The agreement may be separate from or a part of other loan documents.
(2) “Insurer” includes every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insurance;
(3) “Person” includes an individual, insurer, company, association, organization, Lloyd's, society, reciprocal or inter-insurance exchange, partnership, syndicate, business trust, corporation, and every legal entity;
(4) “Commissioner” means the Insurance Commissioner of this state;
(5) “Department” means the State Insurance Department;
(6) A “domestic” insurer is one formed under the laws of this state;
(7) A “foreign” insurer means one formed under the laws of any jurisdiction other than this state;
(8) An “alien” insurer means one formed under the laws of any country other than the United States, its states, districts, territories, and commonwealths;
(9) Except where distinguished by context, “foreign” insurers include also “alien” insurers;
(10)(A) When used in a context signifying a jurisdiction other than the State of Arkansas, “state” means any state, district, territory, commonwealth, or possession of the United States.
(B) For purposes of conforming the Arkansas Insurance Code to comply with the provisions of the North American Free Trade Agreement, “state” shall also be deemed to include Canada and the Republic of Mexico, as appropriate;
(11) An “authorized” insurer means one duly authorized by a subsisting certificate of authority issued by the commissioner to transact insurance in this state;
(12) An “unauthorized” insurer is one not authorized by a subsisting certificate of authority issued by the commissioner to transact insurance in this state;
(13) “Transact” with respect to insurance includes any of the following:
(A) Solicitation and inducement;
(B) Preliminary negotiations;
(C) Effectuation of a contract of insurance;
(D) Transaction of matters subsequent to effectuation of a contract of insurance and arising out of it;
(14) “Wet marine and foreign trade insurance”, with the exception of chapter 67 of this title, shall include only:
(A) Insurances upon vessels, crafts, hulls, and of interests therein or with relation thereto;
(B) Insurance of marine builders' risks, marine war risks, and contracts of marine protection and indemnity insurance;
(C) Insurance of freights and disbursements pertaining to a subject of insurance coming within this definition; and
(D) Insurance of personal property and interests therein, in course of exportation from or importation into any country, or in course of transportation by land, water, or air from point of origin to final destination, in respect to, appertaining to, or in connection with any and all risks or perils of navigation, transit, or transportation, and while being prepared for and while awaiting shipment, and during any delays, storage, transshipment, or reshipment incident thereto.
Ark. Code Ann. § 23-60-103 Application of code.
Unless otherwise expressly provided for in the Arkansas Insurance Code, no provision of the Arkansas Insurance Code shall apply with respect to the following entities:
(1) Domestic stipulated premium insurers, as identified in § 23-70-101 et seq., concerning stipulated premium insurers except as stated in those sections;
(2) Assessment life, health, and accident insurers, as identified in § 23-72-102 et seq., concerning assessment life and disability insurers except as stated in those sections;
(3) Farmers' mutual aid associations or companies, as identified in § 23-73-102 et seq., concerning farmers' mutual aid associations or companies except as stated in those sections, but excepting the requirements for fraudulent insurance acts prevention, codified in § 23-66-501 et seq., and including the payment of assessments due from insurers and other licensees under the State Insurance Department Criminal Investigation Division Trust Fund Act, § 23-100-101 et seq., which shall apply to farmers' mutual aid associations or companies;
(4) Fraternal benefit societies, as identified in § 23-74-101 et seq., concerning fraternal benefit societies except as stated in those sections; and
(5) Nonprofit vision service plan corporations composed of at least fifty (50) participating optometrists or ophthalmologists licensed by the State of Arkansas to provide vision care services on a prepaid basis when each licensed optometrist or ophthalmologist is subject to the rules of the professional's respective state board and when each participating licensed optometrist or ophthalmologist agrees to assume responsibility for completion of the provisions of the vision care services contracted for so that no element of risk is incurred by any subscriber group or person.
Ark. Code Ann. § 23-60-104 Exceptions — Burial associations — Healthcare sharing ministries — Direct healthcare agreements — Definitions.
(a) The Arkansas Insurance Code and rules promulgated by the Insurance Commissioner under the Arkansas Insurance Code do not apply to a:
(1) Burial association governed by §§ 23-78-101 — 23-78-119 and 23-78-121 — 23-78-125;
(2) Direct healthcare agreement; or
(3) Healthcare sharing ministry.
(4)(A) A nonprofit agricultural membership organization.
(B) Any risk arising out of a contract for coverage for healthcare services between a member of a nonprofit agricultural membership organization and a nonprofit agricultural membership organization, or its affiliate, may be reinsured by an insurer that is authorized to transact insurance in this state.
(C) A nonprofit agricultural membership organization shall pay a levy of the insurance premium tax to the same extent as a domestic insurer under § 26-57-604.
(b) As used in this section:
(1)(A) “Direct healthcare agreement” means a written agreement that:
(i) Is between a licensed healthcare provider and a patient or the patient's legal representative;
(ii)(a) Allows either party to terminate the agreement in writing, without penalty or payment of a termination fee, at any time or after notice as specified in the agreement.
(b) The notice of termination described in subdivision (b)(1)(A)(ii)(a) of this section shall not exceed sixty (60) days;
(iii) Describes the healthcare services to be provided in exchange for payment of a periodic fee;
(iv) Specifies the periodic fee required and any additional fees that may be charged;
(v) May allow the periodic fee and any additional fees to be paid by a third party;
(vi) Prohibits the healthcare provider from charging or receiving additional compensation for healthcare services included in the periodic fee; and
(vii) Conspicuously and prominently states that the agreement is not health insurance and does not meet any individual health insurance mandate that may be required by federal law.
(B) A direct healthcare agreement shall provide a written disclaimer on or accompanying an application distributed by or on behalf of an entity offering a direct healthcare agreement that reads, in substance: “Notice: A direct healthcare agreement is not an insurance policy, and the select medical services as specified under a direct healthcare agreement may not constitute the minimum essential health benefits under federal healthcare laws established by Pub. L. No. 111-148, as amended by Pub. L. No. 111-152, and any amendments to, or regulations or guidance issued under, those statutes existing on January 1, 2017.
You may be responsible for any payment for medical services not covered by health insurance under your insurer's statement of benefits policy.”.
(C) “Direct healthcare agreement” does not mean a health benefit plan or a health maintenance organization as defined in § 23-76-102; and
(2) “ Healthcare sharing ministry” means a faith- based, nonprofit organization that:
(A) Is tax-exempt under the Internal Revenue Code of 1986;
(B) Limits participation to those who are of a similar faith;
(C) Facilitates an arrangement to match participants who have financial or medical needs to participants with the present ability to assist those with financial or medical needs according to criteria established by the healthcare sharing ministry;
(D) Provides for the financial or medical needs of a participant through contributions from one (1) participant to another;
(E) Establishes contribution amounts for participants with no guarantee of return, assumption of risk, or promise to pay qualified medical needs of the participant or of the medical provider performing the service or services for the participant;
(F) Provides a written monthly statement to its participants that lists:
(i) The total dollar amount of qualified needs submitted to the healthcare sharing ministry; and
(ii) The amount of contribution established for its participants;
(G) Provides a written disclaimer on or accompanying an application and guideline material distributed by or on behalf of the healthcare sharing ministry that reads, in substance: “Notice: The organization facilitating the sharing of medical expenses is not an insurance company and neither its guidelines nor plan of operation is an insurance policy. If anyone chooses to assist you with your medical bills, it will be totally voluntary because participants are not compelled by law to contribute toward your medical bills. Participation in the organization or a subscription to any of its documents should never be considered to be insurance. Regardless of whether you receive a payment for medical expenses or if this organization continues to operate, you are always personally responsible for the payment of your own medical bills.”; and
(H) Transfers or distributes contribution amounts from one (1) participant to match the qualified medical needs of another participant to whom neither the organization nor the sending participant has an obligation or commitment to pay for any qualified medical needs with its own funds.
(I) Provides an identification card to each participant that includes an indication that the participant is a member of a healthcare sharing ministry.
(3) "Nonprofit agricultural membership organization" means an organization that:
(A) Is incorporated under the laws of this state;
(B) Has a physical presence in every county of this state;
(C) Has a purpose of promoting the interests of farmers or their affiliates in this state;
(D) Provides coverage for healthcare services for members and their families pursuant to contracts between members and the organization or its affiliates; and
(E)(i) Has a designated individual who, in consultation with the State Insurance Department, operates as an ombudsman to address concerns from insured members regarding the insurance policy.
(ii) If a complaint is received by the department from insured members of the nonprofit agricultural membership organization, then the department shall forward the complaints to the designated individual operating as the nonprofit agricultural membership organization's ombudsman under subdivision (b)(3)(E)(i) of this section.
Ark. Code Ann. § 23-60-105 Particular provisions prevail.
Provisions of the Arkansas Insurance Code relative to a particular kind of insurance or a particular type of insurer or to a particular matter shall prevail over provisions relating to insurance in general or insurers in general or to such matters in general.
Ark. Code Ann. § 23-60-106 Prior acts, offenses, rights, etc., not affected.
The Arkansas Insurance Code shall not impair or affect any act done; offense committed or right accruing, accrued, or acquired; or liability, penalty, forfeiture, or punishment incurred prior to the time the Arkansas Insurance Code takes effect, but the same may be enjoyed, asserted, enforced, prosecuted, or inflicted, as fully and to the same extent as if the Arkansas Insurance Code had not been passed.
Ark. Code Ann. § 23-60-107 Captions and headings not to affect meaning.
The scope and meaning of any provision shall not be limited or otherwise affected by the caption or heading of any chapter, section, or provision.
Ark. Code Ann. § 23-60-108 Penalty generally.
Unless a greater penalty is provided by another law of this state, a violation of a statute or rule enforceable by the Insurance Commissioner is punishable:
(1) By the refusal, suspension, revocation, or nonrenewal of a license or certificate of authority; and
(2) A fine no greater than one thousand dollars ($1,000) per violation, not to exceed fifty thousand dollars ($50,000) in any six-month period.
Ark. Code Ann. § 23-60-109 Penalty for false or misleading statements.
Any person who files any statement, application, form, or other document required to be filed by the Arkansas Insurance Code knowing the statement or information contained in the document to be false or misleading in any material respect shall be guilty of a Class D felony.
Ark. Code Ann. § 23-60-110 Compliance with code required.
No person shall transact a business of insurance in Arkansas, or relative to a subject of insurance resident, located, or to be performed in Arkansas, without complying with the applicable provisions of the Arkansas Insurance Code.
Ark. Code Ann. § 23-60-111 Civil liability.
(a) In the absence of fraud or bad faith, no civil cause of action of any nature shall arise against the person for supplying any information:
(1) Relating to suspected fraudulent insurance acts furnished to or received from law enforcement officials or their agents and employees;
(2) Relating to suspected fraudulent insurance acts furnished to or received from other persons subject to the provisions of the insurance laws of this state; or
(3) Furnished in reports to the State Insurance Department, National Association of Insurance Commissioners, or any organization established to detect and prevent fraudulent insurance acts or their agents, employees, or designees.
(b) Neither the Insurance Commissioner nor any employee of the department, in the absence of fraud or bad faith, shall be subject to civil liability, and no civil cause of action of any nature shall arise against the person by virtue of the publication of any report or bulletin related to the official activities of the department.
(c) Nothing in this section is intended to abrogate or modify in any way any common law or statutory privilege or immunity heretofore enjoyed by any person.
Ark. Code Ann. § 23-60-112 American Law Institute — Restatement not public policy.
A statement of the law in the American Law Institute's Restatement of the Law, Liability Insurance does not constitute the public policy of this state if the statement of the law is inconsistent or in conflict with, or otherwise not addressed by:
(1) A statute of the State of Arkansas;
(2) The common law and statute law of England as adopted in Arkansas under § 1-2-119; or
(3) Arkansas case law precedent.
Source: Public.Resource.Org / UniCourt, Official Code of Arkansas Annotated, Release 78 (2020) (unicourt.github.io/cic-code-ar)URL: https://unicourt.github.io/cic-code-ar/transforms/ar/ocar/r78/gov.ar.code.title.23.htmlFetched: 11/8/2026