Arkansas State Guidelines

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CURRENT LEGISLATION

REGULATORY FORMS:

• • Provider Application
  • Annual Report

Relevant State Departments of Insurance Contact Info

Arkansas Department of Commerce
Arkansas Insurance Department
1 Commerce Way, Bldg 4, Suite 502
Little Rock, Arkansas 72202-2087

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TYPE OF LICENSE LIFE SETTLEMENT

WHAT DOES THE STATE DEFINE AS CONTESTABLE?: 2 YEARS

WHAT IS THE REQUIRED HOLDING PERIOD?: 2 YEARS. See: A.C.A. 23-81-811(n).

WHEN DOES LICENSE NEED TO BE RENEWED?: NO INFORMATION

IS BROKER COMPENSATION DISCLOSURE REQUIRED?: YES. See: A.C.A. 23-81-809(a)(8).

IS THERE A MINIMUM PAYMENT REQUIREMENT?: YES. 054-00-CARR-069(9). Standards for evaluation of reasonable
payments.
In order to assure that viators receive a reasonable return for viaticating an insurance policy, the following shall be
minimum discounts:

Insured’s Life Expectancy (Minimum Percentage Of Face Value Less Outstanding Loan Received by Viator)
Less than 6 months (80%)
At least 6 but less than 12 months (70%)
At least 12 but less than 18 months (65%)
At least 18 but less than 24 months (60%)
At least 24 but less than 30 months (50%)
Thirty months or more No minimum

This percentage may be reduced by 5% for viaticating a policy written by an insurer rated less than the highest 4
categories by A.M. Best. or comparable rating by another rating agency.

WHEN DOES THE MONEY NEED TO BE IN ESCROW?: A.C.A. 23-81-811(j). (1) Within three (3) business days after receipt
from the owner of documents to effect the transfer of the insurance policy, the provider shall pay the proceeds of the
settlement to an escrow or trust account managed by a trustee or escrow agent in a state or federally chartered
financial institution pending acknowledgement of the transfer by the issuer of the policy.
(2) The trustee or escrow agent shall transfer the proceeds due to the owner within three (3) business days of
acknowledgement of the transfer from the insurer.

IS THERE A NOTICE REQUIREMENT TO THE INSURED AFTER THE SALE?: NO

IS THERE A NOTICE REQUIREMENT TO THE CARRIER BEFORE/AFTER THE SALE?: A.C.A. 23-81-811(g). (1) Within twenty
(20) days after an owner executes the life settlement contract, the provider shall give written notice to the insurer that
issued that insurance policy that the policy has become subject to a life settlement contract.
(2) The notice shall be accompanied by the documents required by § 23-81-810(a)(2).

WHAT IS THE RESCISSION PERIOD?: A.C.A. 23-81-811(i). (1) All life settlement contracts entered into in this state shall
provide that the owner may rescind the contract on or before fifteen (15) days after the date it is executed by all parties
to the life settlement contract.

IS THERE A VOC REQUIREMENT (OWN/STATE/NAIC FORM)?: YES – OWN – A.C.A. 23-81-811(b)(2). The request for
verification of coverage shall be made on a form approved by the Insurance Commissioner.