Arkansas Code § 23-69-115 - Trust Deposit of Premiums -- Issuance of Policies -- Mutual Insurers

(a) All sums collected by a domestic mutual corporation as premiums or fees on qualifying applications for insurance therein shall be deposited in trust in a bank or trust company in this state under a written trust agreement consistent with this section and with ยง 23-69-114(c)(3). The corporation shall file an executed copy of the trust agreement with the Insurance Commissioner.

(b) Upon issuance to the corporation of a certificate of authority as an insurer for the kind of insurance for which the applications were solicited, all funds so held in trust shall become the funds of the insurer, and the insurer shall in due course issue and deliver its policies for which premiums had been paid and accepted. The insurance provided by the policies shall be effective as of the date of the certificate of authority, or thereafter as provided by the policies.

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Last modified: November 15, 2016