2021 Arkansas Insurance Legislation Summary: Arkansas Insurance Business Transfer Act | Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C.

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This is the fifth article in a series of summaries of Insurance legislation from the 93rd Arkansas General Assembly.

Arkansas has joined a number of states in enacting legislation meant to allow an insurer to transfer blocks of business to another insurer without the need for individual policyholder consent.

On April 29, 2021, Governor Asa Hutchison signed Senate Bill 203, the Arkansas Insurance Business Transfer Act (“Arkansas IBT Law”). Modeled after the Oklahoma Insurance Business Transfer Act that was signed into law in May of 2018 and the NCOIL Insurance Business Transfer Model Act approved in March of 2020, the Arkansas IBT Law allows any United States insurer or reinsurer (“Transferring Insurer”) to transfer and novate a block of business to an insurance company domiciled in Arkansas, including an Arkansas-domiciled captive insurance company (“Assuming Company”). The IBT Law applies to property, casualty, life,…

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