# Ark. Code Ann. § 23-63-505: Subsidiaries of insurer

> Arkansas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-505

## Section

- **Citation:** Ark. Code Ann. § 23-63-505
- **Heading:** Subsidiaries of insurer
- **Jurisdiction:** Arkansas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** AR Code / Title 23 / Chapter 63 / Subchapter 5 / Section 23-63-505

## Text

(a) Authorization. Any domestic insurer, subject to this subchapter, either by itself or in cooperation with one (1) or more persons, may organize or acquire one (1) or more subsidiaries. (b) Qualification of Investment - When Determined. Whether any investment pursuant to subsection (a) of this section meets the applicable requirements thereof is to be determined immediately after the investment is made, taking into account the then-outstanding principal balance on all previous investments in debt obligations and the value of all previous investments in equity securities as of the date they were made. (c) Cessation of Control. If an insurer ceases to control a subsidiary, it shall dispose of any investment therein made pursuant to this section within three (3) years from the time of the cessation of control or within such further time as the Insurance Commissioner may prescribe unless, at any time after the investment shall have been made, the investment shall have met the requirements for investment under any other section of this subchapter and the insurer has notified the commissioner thereof. Acts 1971, No. 288, § 4; A.S.A. 1947, § 66-5004.

(a) Authorization. Any domestic insurer, subject to this subchapter, either by itself or in cooperation with one (1) or more persons, may organize or acquire one (1) or more subsidiaries.

(b) Qualification of Investment - When Determined. Whether any investment pursuant to subsection (a) of this section meets the applicable requirements thereof is to be determined immediately after the investment is made, taking into account the then-outstanding principal balance on all previous investments in debt obligations and the value of all previous investments in equity securities as of the date they were made.

(c) Cessation of Control. If an insurer ceases to control a subsidiary, it shall dispose of any investment therein made pursuant to this section within three (3) years from the time of the cessation of control or within such further time as the Insurance Commissioner may prescribe unless, at any time after the investment shall have been made, the investment shall have met the requirements for investment under any other section of this subchapter and the insurer has notified the commissioner thereof.

Acts 1971, No. 288, § 4; A.S.A. 1947, § 66-5004.

## Nearby sections

- [Ark. Code Ann. § 23-63-501 Title](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-501.md)
- [Ark. Code Ann. § 23-63-502 Legislative findings](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-502.md)
- [Ark. Code Ann. § 23-63-503 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-503.md)
- [Ark. Code Ann. § 23-63-505 Subsidiaries of insurer](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-505.md)
- [Ark. Code Ann. § 23-63-506 Control of or merger with domestic insurer - Filing requirements - Definition](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-506.md)
- [Ark. Code Ann. § 23-63-507 Control of or merger with domestic insurer - Exceptions](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-507.md)
- [Ark. Code Ann. § 23-63-508 Control of or merger with domestic insurer - Content of statement](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-508.md)
- [Ark. Code Ann. § 23-63-509 Control of or merger with domestic insurer - Alternative filing materials](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-509.md)
- [Ark. Code Ann. § 23-63-510 Control of or merger with domestic insurer - Approval by commissioner - Hearing](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-510.md)
- [Ark. Code Ann. § 23-63-511 Control of or merger with domestic insurer - Mailings](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-511.md)
- [Ark. Code Ann. § 23-63-512 Control of or merger with domestic insurer - Jurisdiction of courts - Service of process](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-512.md)
- [Ark. Code Ann. § 23-63-513 Control of or merger with domestic insurer - Violations](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-513.md)
- [Ark. Code Ann. § 23-63-514 Registration of insurers](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-514.md)
- [Ark. Code Ann. § 23-63-515 Standards - Definition](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-515.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C63_S5_S23-63-505. Check the current official text before relying on it. Not legal advice.