1987 Legislation

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ARKANSAS

INSURANCE

DEPARTMENT

400 University Tower Building M Little Rock, Arkansas 72204

Robert M. Eubanks, III

Ph. 501-371-1325

Insurance Commissioner

May 28, 1987

BULLETIN 4-87

TO:

ALL LICENSED INSURERS AND HEALTH MAINTENANCE ORGANIZATIONS,

APPROVED SURPLUS LINE INSURERS, AND OTHER INTERESTED PARTIES

FROM:

ARKANSAS INSURANCE DEPARTMENT

SUBJECT: 1987 LEGISLATION

The purpose of this Bulletin is to summarize briefly that legislation

affecting the insurance industry which was enacted during the recent

legislative session. It is offered as a courtesy for the information of

admitted insurers, health maintenance organizations and approved surplus line

insurers. The Department does not represent that this list is complete as to

all legislation which could affect a particular insurer. It remains the

responsibility of each insurer to become acquainted with all new legislation

affecting it and to take all steps necessary to ensure full compliance with

Arkansas law. Each insurer should immediately notify its Arkansas agents of

any legislation which would affect their individual compliance.

Some of the legislation summarized below will be the subject of later

Bulletins and Regulations. The general effective date for all Acts not

containing an emergency clause or other specified effective date is July 20,

1987. Full texts of these and other Acts of the 1987 General Assembly may be

obtained from the Office of the Secretary of State, State Capitol, Little

Rock, Arkansas 72201, (501) 371-1010.

ACT 19. Amends Ark. Stat. Ann. §§84-1834, et seq., the Arkansas Corporate

Franchise Tax Act to change the State agency responsible to the Arkansas

Secretary of State. Effective January 1, 1988.

ACT 20. Amends §§64-1201, et seq., to require foreign corporations to file

certified copies of charters or articles of incorporation or association and

certified copies of all amendments thereto with the Secretary of State or be

subject to a penalty of $100 to $5,000.

ACT 70

ranchise Tax Act to change the State agency responsible to the Arkansas

Secretary of State. Effective January 1, 1988.

ACT 20. Amends §§64-1201, et seq., to require foreign corporations to file

certified copies of charters or articles of incorporation or association and

certified copies of all amendments thereto with the Secretary of State or be

subject to a penalty of $100 to $5,000.

ACT 70. Amends §75-918, as to defendant's payment of double damages and

attorneys fees when defendant fails to pay property damage claims in motor

vehicle accidents 60 days after written claims notice; to increase property

damage amount from $300 to $1,000 and to increase attorneys fees from $100 to

$250.

ACT 99. Provides that all individual and group disability policies, health

care plans offered by health maintenance organizations, self-insured health

plans, hospital and medical service contracts, and certificates offered or

issued after July 1, 1987, shall include coverage for minors for whom the

insured has filed a petition for adoption. All policies and contracts issued

prior to July 1, 1987, shall include this coverage with the contract's first

renewal or anniversary date on and after July 1, 1987. Inquiries are to be

directed to John Shields, Director, Life and Health Division of this

Department.

ACT 156. Amends §66-3005 in the Trade Practices Act to restrict cancellations

of property and casualty policies in force over 60 days, or after renewal or

annual anniversary dates, to certain permissible grounds. Requires 20 days

advance written notice of cancellation to named insureds, lienholders or loss

payees, and a minimum 10 days advance written notice for non-payment of

premium. Adds as an unfair trade practice refusing to issue or limiting

policy coverage due to nonrenewal of the applicant's previous property or

casualty policy. Effective March 10, 1987. Inquiries are to be directed to

Jan Taylor, Director, Property and Casualty Division of this Department.

ACT 189

lienholders or loss

payees, and a minimum 10 days advance written notice for non-payment of

premium. Adds as an unfair trade practice refusing to issue or limiting

policy coverage due to nonrenewal of the applicant's previous property or

casualty policy. Effective March 10, 1987. Inquiries are to be directed to

Jan Taylor, Director, Property and Casualty Division of this Department.

ACT 189. Grants qualified immunity from civil liability to volunteer fire

departments, except departments of incorporated cities and towns.

ACT 197. Provides that every life, disability, property or casualty policy

issued after January 1, 1988, for Arkansas risks must be accompanied by

information listing addresses and telephone numbers of the Insurance

Department, the insurer's Policyholder Service Office, and the name, address

and telephone number of the soliciting agent, if applicable. Inquiries are to

be directed to the Legal Division of this Department.

ACT 204. Provides minimum standards for certain commercial property and

casualty policies. Effective March 13, 1987. Inquiries are to be directed to

Jan Taylor, Director, Property and Casualty Division of this Department.

ACT 205. Amends §66-3016, the "Twisting" provision in the Trade Practices

Chapter, to address medicare supplement policies. Inquiries are to be

directed to the Legal Division of this Department.

ACT 240. Prohibits nonprofit corporations from using public funds to purchase

key-man life insurance as a form of deferred compensation to the insured

employee.

ACT 242. Amends §§41-1501 and 41-1902 to increase criminal penalties for

arson for purpose of collecting insurance proceeds.

ACT 253. Requires extension of benefits under group health policies,

contracts or certificates, if insured is hospitalized on date of termination,

until hospital confinement ends or the policy's hospital benefits are

exhausted. Inquiries are to be directed to John Shields, Director, Life and

Health Division of this Department.

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ties for

arson for purpose of collecting insurance proceeds.

ACT 253. Requires extension of benefits under group health policies,

contracts or certificates, if insured is hospitalized on date of termination,

until hospital confinement ends or the policy's hospital benefits are

exhausted. Inquiries are to be directed to John Shields, Director, Life and

Health Division of this Department.

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ACT 254. Amends §66-3507, which formerly allowed group policies to be sold in

Arkansas if approved in another state, to provide that the Arkansas Insurance

Commissioner must now approve group contracts which do not meet the Code

definitions of allowable groups before such group policies or certificates are

delivered in this State. Inquiries are to be directed to John Shields,

Director, Life and Health Division of this Department.

ACT 264. Amends §66-5223 to increase certain fees for health maintenance

organizations and to provide for payment of fees to the Arkansas Department of

Health, rather than to the Insurance Commissioner. Effective March 17, 1987.

Inquiries are to be directed to Robert Alexander, Associate Counsel, Legal

Division of this Department.

ACT 268. Amends §66-3209(1) to provide that no group disability certificate

of insurance can be extended to Arkansas residents under a policy issued

outside this State which doesn't include statutory provisions required in

group policies issued in-State, unless the Commissioner determines required

provisions are inappropriate. Inquiries are to be directed to John Shields,

Director, Life and Health Division of this Department.

ACT 329. Imposes duties on Insurance Commissioner in regulating continuing

care providers. Effective March 19, 1987. Inquiries are to be directed to

Robert Alexander, Associate Counsel, Legal Division of this Department.

ACT 335. Requires every insurer writing automobile liability insurance to

offer underinsured motorist coverage to named insureds

Life and Health Division of this Department.

ACT 329. Imposes duties on Insurance Commissioner in regulating continuing

care providers. Effective March 19, 1987. Inquiries are to be directed to

Robert Alexander, Associate Counsel, Legal Division of this Department.

ACT 335. Requires every insurer writing automobile liability insurance to

offer underinsured motorist coverage to named insureds. Inquiries are to be

directed to Jan Taylor, Director, Property and Casualty Division of this

Department.

ACT 336. Amends §66-4014(1)(a) to provide for funeral benefits payments under

first party coverage in personal auto liability policies. Inquiries are to be

directed to Jan Taylor, Director, Property and Casualty Division of this

Department.

ACT 348. Requires every hospital in Arkansas to furnish patient upon request

itemized statement of all services, drugs and supplies billed to patient or an

insurer at time of patient discharge or upon billing, but not to exceed 30

days after discharge, except hospitals operated by the State.

ACT 351. Amends §66-3403 to provide no policy of industrial life insurance

shall be offered, delivered, or issued for delivery in this State on and after

January 1, 1988. Inquiries are to be directed to John Shields, Director, Life

and Health Division of this Department.

ACT 390. Arkansas Volunteer Immunity Act. Provides qualified immunity from

civil liability for personal injury or property damage for "qualified"

volunteers. NOTE: Section 5 references liability of volunteer limited to

amount of his liability insurance in certain cases. Effective March 25, 1987.

uiries are to be directed to John Shields, Director, Life

and Health Division of this Department.

ACT 390. Arkansas Volunteer Immunity Act. Provides qualified immunity from

civil liability for personal injury or property damage for "qualified"

volunteers. NOTE: Section 5 references liability of volunteer limited to

amount of his liability insurance in certain cases. Effective March 25, 1987.

ACT 400. Amends §66-2901 to authorize the Insurance Commissioner to issue

cease and desist orders to unauthorized insurers and agents and brokers aiding

unauthorized insurers, and to impose monetary and license sanctions for

violations. This Act does not apply to service of legal process on

unauthorized insurers or to surplus line insurance.

ACT 408. Provides Insurance Commissioner with jurisdiction to regulate the

operation of risk retention and purchasing groups in this State in conformity

with the Federal Liability Risk Retention Act of 1986. Covers only commercial

liability insurance and excludes personal lines. Effective March 25, 1987.

Inquiries are to be directed to Jan Taylor, Director, Property and Casualty

Division of this Department.

ACT 442. Makes it unlawful for any person to operate a motor vehicle in this

State unless he has a certificate of self-insurance, or a policy or surety

bond from an authorized insurer with $25/$50/$15 limits. Provides no vehicle

license plate shall be issued or renewed without proof of such coverage. See

also Act 474 of 1987 and Act 971 of 1987.

ACT 456. Department's Omnibus Bill. Effective March 30, 1987.

Section 1. Amends §66-2108 to clarify that data and reports designated as

confidential by the NAIC and furnished to the Commissioner are privileged and

are not open to public inspection, and are only admissible in proceedings

brought by the Commissioner. Grants immunity to the NAIC and the Commissioner

and other pertinent parties as to the furnishing of such reports.

Section 2

arch 30, 1987.

Section 1. Amends §66-2108 to clarify that data and reports designated as

confidential by the NAIC and furnished to the Commissioner are privileged and

are not open to public inspection, and are only admissible in proceedings

brought by the Commissioner. Grants immunity to the NAIC and the Commissioner

and other pertinent parties as to the furnishing of such reports.

Section 2. Amends §66-2125(5) to clarify that the respondent party pays

transcript costs when appealing the Commissioner's orders.

Section 3. Amends §66-2127(8) to allow appeals from the Commissioner's orders

to the Arkansas Court of Appeals, as well as to the Arkansas Supreme Court.

Section 4. Amends §66-2207(1) to increase the minimum capital or surplus

required of surety insurers from $250,000 to $500,000.

Section 5. Repeals §66-2209(3), which allowed insurers to file a surety bond

with the Commissioner in lieu of other approved securities for the required

security deposit. See also Act 561 of 1987.

Section 6. Amends §66-2211 to broaden the Commissioner's authority to examine

insurers applying for a certificate of authority, with exam expenses to be

paid by the applicant insurer.

Section 7. Amends §66-2212 to delete the 60-day provision for Commissioner to

approve applicant insurers and to delete the provision that insurers may

consider applications deemed approved after such time has elapsed.

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Section 8. Increases various fees charged for licenses and certificates of

authority in §66-2301, including increasing from $250 to $500 fees for

document review of new applicant insurers and surplus line insurers;

increasing from $100 to $500 fee for original license of rate service

organizations; increasing from $25 to $100 fee for amending certificates of

authority; increasing agent license and renewal fees by $5; and setting fees

for initial and renewal agent licenses of nonresident firms and corporations.

Section 9

$500 fees for

document review of new applicant insurers and surplus line insurers;

increasing from $100 to $500 fee for original license of rate service

organizations; increasing from $25 to $100 fee for amending certificates of

authority; increasing agent license and renewal fees by $5; and setting fees

for initial and renewal agent licenses of nonresident firms and corporations.

Section 9. Amends §66-2410 to delete reinsurance provisions which are

inconsistent with other provisions of the Insurance Code.

Section 10. Amends §66-2603(1) to require the Commissioner's prior approval

before insurers invest in assets which do not pay interest annually or more

frequently.

Section 11. Amends §66-2812 to add new language which allows licensing of

nonresident firms and corporations as agents.

Section 12. Amends §66-2921(1) to provide that surplus line brokers pay the

4% surplus line tax not later than 60 days after the end of the month in which

the surplus line insurance was procured, rather than annually.

Section 13. Amends §66-2922 to provide penalties for late surplus line broker

tax payments not in compliance with §66-2921(1) in Section 12 above.

Section 14. Amends §66-3029 to require disability agents to provide

professional service to insureds and prospective insureds.

Section 15. Amends §66-3248(1) to require certificates issued through out-of-

state group disability contracts to include newborn infant coverage.

Section 16. Repeals §66-3259, which required refunds of advance premiums

paid, when an insured cancels a life or disability policy, due to the Pulaski

County Court case which ruled Act 710 of 1983 unconstitutional.

Section 17. Amends §66-3702 by adding subsection (6) which requires group

disability policies to contain provisions for immediate payment of benefits

upon receipt of proof of loss (other than loss of time benefits), and to

provide for payment of loss of time benefits.

Section 18

ls a life or disability policy, due to the Pulaski

County Court case which ruled Act 710 of 1983 unconstitutional.

Section 17. Amends §66-3702 by adding subsection (6) which requires group

disability policies to contain provisions for immediate payment of benefits

upon receipt of proof of loss (other than loss of time benefits), and to

provide for payment of loss of time benefits.

Section 18. Amends §66-3723 to allow individuals to continue under the old

group disability policy until the new group disability policy covers all

previously covered conditions.

Section 19. Amends §66-3731 to provide that any request for a conversion

policy must be made not later than 30 days after the group disability coverage

has terminated.

Section 20. Amends §66-3733 to allow an individual to keep the conversion

policy in force until all previously covered conditions are covered under the

new group disability policy.

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Section 21. Amends §66-5202 as to health maintenance organizations to define

"domestic corporation".

Section 22. Amends §66-5203(1) to license only corporations as health

maintenance organizations, but does not require incorporation of current

health maintenance organization licensees.

Section 23. Amends §66-5204(2) to provide for Health Maintenance

Organizations license issuance only when the Commissioner is satisfied that

this Section's requirements are met. Adds requirements for paid-in capital of

$100,000 minimum and additional working capital or surplus funds in an amount

approved by the Commissioner.

Section 24. Amends §66-5222 to conform with amendments to §66-5204(2) in

Section 23 above.

Section 25. Amends §66-5224(4)(b) to change citations of the Administrative

Procedure Act to Insurance Code provisions for hearings and judicial review.

Section 26. Amends §66-5404(1) to require legal insurers to maintain paid-in

capital of $100,000 minimum and additional working capital or surplus in an

amount approved by the Commissioner

with amendments to §66-5204(2) in

Section 23 above.

Section 25. Amends §66-5224(4)(b) to change citations of the Administrative

Procedure Act to Insurance Code provisions for hearings and judicial review.

Section 26. Amends §66-5404(1) to require legal insurers to maintain paid-in

capital of $100,000 minimum and additional working capital or surplus in an

amount approved by the Commissioner. Deletes provision for surety bonds in

lieu of other approved securities required for the insurer's deposit.

Section 27. Amends §66-5408 to require the legal insurer's annual report to

be filed by March 1 annually, rather than by April 15th annually.

Section 28. Amends §66-5419 to require domestic and foreign legal insurers to

pay premium taxes at the rate of 2-1/2% of direct written premium income in

Arkansas, less policyholder dividends and return premiums. See also Act 1033

of 1987.

ACT 474. Makes it unlawful for any person to operate a motor vehicle in this

State unless he has a certificate of self-insurance, or a policy or surety

bond with an authorized insurer with $25/$50/$15 limits. See also Act 442 of

1987 and Act 971 of 1987.

ACT 478. Amends §66-3702 to require each insurer who is replacing an existing

group contract to allow all previously covered individuals to enroll under the

new group policy regardless of any restrictions, such as in "actively at

work". Individuals must be a member of a class being covered by the new

policy. Inquiries are to be directed to John Shields, Director, Life and

Health Division of this Department.

§66-3702 to require each insurer who is replacing an existing

group contract to allow all previously covered individuals to enroll under the

new group policy regardless of any restrictions, such as in "actively at

work". Individuals must be a member of a class being covered by the new

policy. Inquiries are to be directed to John Shields, Director, Life and

Health Division of this Department.

ACT 489. Makes it unlawful for an employer providing pharmacy services to

employees for health care programs to require employees to obtain drugs from

an out-of-state mail order pharmacy, to pay a co-payment fee or other

conditions. Does not apply to an employer who offers health insurance to

employees which provides payment of equal portion of employee's cost of drugs

regardless of supplier if the insurance plan allows freedom of choice for drug

purchase. Effective March 30, 1987.

ACT 513. Authorizes banks, trust companies or savings banks to open Deferred

Income Investment Accounts for depositors. Section 3 requires the Bank

Commissioner to incorporate §§66-3315 - 66-3322, as to annuity and pure

endowment contracts, as applicable, into regulations promulgated pursuant to

this Act.

ACT 527. Provides workers compensation for designated volunteer public safety

workers of county government, such as sheriff's auxiliaries, ambulance

services, rural volunteer fire departments, etc. Section 3 requires insurers

or other entities providing workers compensation to a county to offer coverage

for volunteer public safety workers on the same terms as for county employees.

ACT 561. Amends §66-2209 to increase the minimum security deposit

required of insurers applying for a certificate of authority, or admitted

insurers applying for an added line(s) to a certificate of authority. Adds a

new special security deposit of $100,000 for surety insurers applying to

engage in or engaging in writing bail bonds in this State. Deletes provision

permitting filing of surety bonds in lieu of other securities

ase the minimum security deposit

required of insurers applying for a certificate of authority, or admitted

insurers applying for an added line(s) to a certificate of authority. Adds a

new special security deposit of $100,000 for surety insurers applying to

engage in or engaging in writing bail bonds in this State. Deletes provision

permitting filing of surety bonds in lieu of other securities. See also

Section 5 of Act 456 of 1987.

ACT 573. Amends §§66-3248 and 82-625, et seq. Requires every disability

insurance policy, contract, or health care plan covering a family to include

coverage for testing non-caucasian newborn infants for sickle-cell anemia.

Inquiries are to be directed to John Shields, Director, Life and Health

Division of this Department.

ACT 598. Amends §75-902 to require drivers of vehicles involved in an

accident to remove the vehicles from the roadway unless the vehicles are

disabled or there is visible or apparent injury to a person.

ACT 601. Authorizes the court in civil actions to award to the prevailing

party an attorney's fee of $5,000 or 10% of the amount in controversy,

whichever is less, if there is a complete absence of a justiciable issue of

law or fact raised by the losing party or his attorney. This Act does not

apply to actions arising out of a written agreement or instrument entitling

prevailing party to an award of reasonable attorney's fees.

ACT 610. Amends §66-3033 to provide that no person, including primary and

secondary mortgagees, vendors, or lenders may unreasonably disapprove the

insurance policy or binder provided by a borrower for property securing the

credit or lien, or require any borrower, insurer, broker or agent to pay a

separate charge for handling policies or binders, or for substituting a policy

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or binder of one insurer for that of another. This Act also provides that

once a binder has been issued, the insurer must issue the policy within ninety

ve the

insurance policy or binder provided by a borrower for property securing the

credit or lien, or require any borrower, insurer, broker or agent to pay a

separate charge for handling policies or binders, or for substituting a policy

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or binder of one insurer for that of another. This Act also provides that

once a binder has been issued, the insurer must issue the policy within ninety

(90) days and that all information given on the binder must be without

material change when the policy is issued.

ACT 619. Amends §§66-5402 and 66-5412, the Legal Insurance Chapter of Code,

to require legal referral service programs claiming an exemption from

regulation as a legal insurer to file program materials with Commissioner

before doing business in this State, and thereafter any program modifications.

Authorizes the Commissioner to determine appropriate provisions of Agent

Licensing Chapter of Code to be applicable to licensing of legal insurance

agents, and to develop and administer an exam for legal agent license

applicants. Licensing inquiries are to be directed to Lenita Blasingame,

Director, License Division of this Department. Legal referral service program

inquiries are to be directed to Jean Langford, Associate Counsel, Legal

Division of this Department.

ACT 622. Amends §§66-2801, et seq., the Agent License Chapter of Code.

Effective April 4, 1987. Inquiries are to be directed to Lenita Blasingame,

Director, License Division of this Department.

ACT 658. Authorizes an early intervention program for infants and toddlers

with handicaps and their families. NOTE:

Section 1 defines the State policy

to include coordination of payments for early intervention services from

Federal, State, local and private sources, including public and private

insurance coverage.

ACT 676. Amends §34-1214(B) to exclude from the definition of "marital

property" benefits for permanent disability or future medical expenses from

workers compensation or personal injury claims.

ACT 685

defines the State policy

to include coordination of payments for early intervention services from

Federal, State, local and private sources, including public and private

insurance coverage.

ACT 676. Amends §34-1214(B) to exclude from the definition of "marital

property" benefits for permanent disability or future medical expenses from

workers compensation or personal injury claims.

ACT 685. Grants immunity from civil liability to persons furnishing

information as to suspected fraudulent insurance acts to law enforcement

officials, the Insurance Department, NAIC, or other organizations established

to detect and prevent fraudulent insurance acts. Effective April 7, 1987.

ACT 686. Authorizes the Arkansas Soil and Water Conservation Commission to

issue Waste Disposal and Pollution Abatement Facilities General Obligation

Bonds. NOTE: Section 12 provides that the bonds shall be legal for investment

of insurance company funds. Effective April 7, 1987. Inquiries are to be

directed to Lewis Wharf f, Chief Examiner, Finance Division of this Department.

ACT 696. Amends §§50-620, the Arkansas Uniform Unclaimed Property Act.

Effective April 7, 1987.

ACT 697. Amends §66-3120 to authorize the Commissioner to obtain a review of

workers compensation insurance rate filings from an independent actuary and to

require the filing insurer or rate service organization to pay such actuarial

review costs. Inquiries are to be directed to Jan Taylor, Director, Property

and Casualty Division of this Department.

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operty Act.

Effective April 7, 1987.

ACT 697. Amends §66-3120 to authorize the Commissioner to obtain a review of

workers compensation insurance rate filings from an independent actuary and to

require the filing insurer or rate service organization to pay such actuarial

review costs. Inquiries are to be directed to Jan Taylor, Director, Property

and Casualty Division of this Department.

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ACT 713. Arkansas Rights of the Terminally Ill Act or Permanently

Unconscious Act. Note:

Section 10 states: "(a) Death resulting from the

withholding or withdrawal of life-sustaining treatment pursuant to a

declaration and in accordance with this Act does not constitute, for any

purpose, a suicide or homicide. (b) The making of a declaration pursuant to

Section 2 does not affect in any manner the sale, procurement, or issuance of

any policy of life insurance or annuity, nor does it affect, impair, or modify

the terms of an existing policy of life insurance or annuity. A policy of

life insurance of [or] annuity is not legally impaired or invalidated in any

manner by the withholding or withdrawal of life-sustaining treatment from an

insured qualified patient, notwithstanding any term to the contrary."

Repeals Act 879 of 1977. Effective July 1, 1987.

ACT 715. Arkansas Premarital Agreement Act. Section 3 permits parties to

contract with respect to ownership rights in and disposition of death benefits

from a life insurance policy. Repeals Act 548 of 1981. Effective July 1,

1987.

ACT 736. Directs Insurance Commissioner to prescribe a standard disability

insurance claim form to be used by all disability insurers doing business in

this State. Provides Commissioner may suspend or revoke the certificate of

authority of any insurer refusing to use and accept claim form. Inquiries are

to be directed to John Shields, Director, Life and Health Division of this

Department.

ACT 738. Amends §§66-5503, et seq., the Arkansas Property and Casualty

Insurance Guaranty Act. Effective April 7, 1987

sability insurers doing business in

this State. Provides Commissioner may suspend or revoke the certificate of

authority of any insurer refusing to use and accept claim form. Inquiries are

to be directed to John Shields, Director, Life and Health Division of this

Department.

ACT 738. Amends §§66-5503, et seq., the Arkansas Property and Casualty

Insurance Guaranty Act. Effective April 7, 1987. Inquiries are to be

directed to Steve Durish, Liquidation Officer, Liquidation Division of this

Department.

ACT 779. Requires all disability insurers doing business in this State to

include in vitro fertilization as a covered expense. Requires Insurance

Commissioner to establish minimum and maximum levels of coverage after a

public hearing, and allows Commissioner to suspend or revoke the certificate

of authority of any carrier failing to comply with this Act. Inquiries are to

be directed to John Shields, Director, Life and Health Division of this

Department.

ACT 833. Amends §66-6010 to exempt from the surety bond requirement for

registration any third party administrator who operates only pursuant to an

Administrative Service Agreement and who does not collect, receive or remit

funds on behalf of insureds. Effective April 8, 1987. Inquiries are to be

directed to Lenita Blasingame, Director, License Division of this Department.

ACT 836. Defines duties of volunteer fire departments. Section 2 provides

that when a volunteer fire department responds to a fire occurring on

property within the district owned by a nonmember and insured for damage

from fire, the insurer shall pay to the volunteer fire department reasonable

costs of its services from the claim proceeds and obtain a written release

from the fire chief prior to dispursing balance of claim proceeds to any other

person, financial institution, company or corporation with a legal interest in

the proceeds. Repeals Act 1088 of 1985 (§20-950).

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nmember and insured for damage

from fire, the insurer shall pay to the volunteer fire department reasonable

costs of its services from the claim proceeds and obtain a written release

from the fire chief prior to dispursing balance of claim proceeds to any other

person, financial institution, company or corporation with a legal interest in

the proceeds. Repeals Act 1088 of 1985 (§20-950).

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ACT 837. Creates the Arkansas Fire Protection Services Board and the Office

of Fire Protection Services. Permits annual certification of fire departments

by Office of Fire Protection Services. Provides limited liability for

certified fire departments. For workers compensation purposes, volunteer fire

fighters of certified fire departments, other than municipal fire departments,

shall be deemed county employees, and receive minimum compensation therefor.

ACT 839. Amends §§66-5903, et seq., the Amusement Ride and Amusement

Attraction Safety Insurance Act. Requires permit applicant to file insurer's

most recent safety inspection or loss control report or insurer's certificate

that no inspection was conducted. Requires insurer to notify Insurance

Commissioner if amusement ride operator's liability policy is reinstated after

cancellation notice is issued or if such notice is rescinded, and for other

purposes. Inquiries are to be directed to Lenita Blasingame, Director,

License Division of this Department.

ACT 859. Provides for registration of homebuilders with building inspectors

of Arkansas counties, incorporated cities, towns, and villages. Section 4

requires applicant to file certificate of an admitted carrier stating that

applicant has public liability and property damage coverage with $50/$100/$20

limits, and workers compensation insurance, if applicable. Requires

liability and workers compensation carriers to notify Secretary of State upon

cancellation/nonrenewal of this coverage.

ACT 895

orated cities, towns, and villages. Section 4

requires applicant to file certificate of an admitted carrier stating that

applicant has public liability and property damage coverage with $50/$100/$20

limits, and workers compensation insurance, if applicable. Requires

liability and workers compensation carriers to notify Secretary of State upon

cancellation/nonrenewal of this coverage.

ACT 895. Provides that records prepared by or in the possession of entities

having potential liability for payment for services provided by or paid for in

whole or part by an agency of the State shall be made available for

inspection, review, audit and other purposes to representatives of the State.

This Act applies to, but is not limited to, records of private health

insurers. Effective April 13, 1987.

ACT 896. Authorizes Insurance Commissioner to create risk sharing plans for

property and/or casualty insurance which is not reasonably available in the

voluntary market. Effective April 13, 1987. Inquiries are to be directed to

Jan Taylor, Director, Property and Casualty Division of this Department.

ACT 927. Amends §§66-2810 and 66-3023(2) to authorize Insurance Commissioner

to license insurance consultants who advise others as to property and casualty

risks for fees. Permits licensed consultants to charge a fee which is not

excessive. Inquiries are to be directed to Lenita Blasingame, Director,

License Division of this Department.

ACT 955. Amends §66-2803(2) to allow Insurance Commissioner to license, as

Arkansas resident agents, persons living in adjacent states, in border

communities or trade areas within 5 miles of the Arkansas boundary, upon

reciprocal agreements with adjacent states, and under certain conditions.

Inquiries are to be directed to Lenita Blasingame, Director, License Division

of this Department.

t.

ACT 955. Amends §66-2803(2) to allow Insurance Commissioner to license, as

Arkansas resident agents, persons living in adjacent states, in border

communities or trade areas within 5 miles of the Arkansas boundary, upon

reciprocal agreements with adjacent states, and under certain conditions.

Inquiries are to be directed to Lenita Blasingame, Director, License Division

of this Department.

ACT 959. Makes significant changes to rate filing requirements for property

and casualty insurers. Repeals §§66-3101 through/66-3119. Effective six (6)

months after enactment on April 14, 1987. Inquiries are to be directed to Jan

Taylor, Director, Property and Casualty Division of this Department.

ACT 970. Grants limited tort immunity to directors of nonprofit corporations,

and members of boards, commissions, and agencies of governmental entities.

Applies only to causes of action accruing on and after August 1, 1987.

ACT 971. Amends Section 3 of Act 442 of 1987 to exempt the Department of

Finance and Administration from liability for bodily injury and property

damage due to acts and omissions as to its keeping of motor vehicle records as

to liability insurance of vehicle license applicants, and for other purposes.

See also Act 442 of 1987 and Act 474 of 1987.

ACT 1033. Amends §§66-2302, et seq., 19-2212.1, and 84-1904, et seq., to add

new premium taxes to domestic life and disability, domestic wet marine and

foreign trade insurers, and all health maintenance organizations, and allows

for certain tax credits. Amends provisions on legal insurance premium tax.

Exempts domestic life and disability companies from payment of State income

tax. Provides for quarterly premium tax payments and annual reconciliations.

See also Section 28 of Act 456 of 1987. Inquiries are to be directed to Pam

Davis, Fiscal Officer, Accounting Division of this Department.

ACT 1047

ations, and allows

for certain tax credits. Amends provisions on legal insurance premium tax.

Exempts domestic life and disability companies from payment of State income

tax. Provides for quarterly premium tax payments and annual reconciliations.

See also Section 28 of Act 456 of 1987. Inquiries are to be directed to Pam

Davis, Fiscal Officer, Accounting Division of this Department.

ACT 1047. Requires all insurers, hospital and medical service corporations

and health maintenance organizations to offer alcohol and drug dependency

coverage in group disability policies and contracts delivered, issued for

delivery, or renewed in this State 120 days after effective date of this Act,

with certain exceptions. Inquiries are to be directed to John Shields,

Director, Life and Health Division of this Department.

ACT 1068. Amends §§64-1001, et seq., as to fees charged by Secretary of

State. Section 2 excludes insurance companies from payment of fees required

of foreign corporations doing intrastate business in Arkansas. Provides

Sections 1 and 2 cease to be effective on December 31, 1987. Effective April

17, 1987.

Telephone numbers for the referenced Divisions are as follows: Accounting-

(501) 371-1412; Finance-(501) 371-1275; Legal-(501) 371-1811; License-(501)

371-1421; Life and Health-(501) 371-1346; Liquidation-(501) 371-2138; and

Property and Casualty-(501) 371-1814.

6k,)(0j0

Robert M.

M. Eubanks III

Insurance Commissioner