Arkansas § 11-9-210 Purchase of annuity contracts - Funding of Death and Permanent Total Disability Trust Fund obligations

Arkansas Statutes

§ 11-9-210 — Purchase of annuity contracts - Funding of Death and Permanent Total Disability Trust Fund obligations

(a)(1) The Workers' Compensation Commission is hereby authorized to fund financial obligations of the Death and Permanent Total Disability Trust Fund through the purchase of structured annuity contracts. Provided, the commission shall purchase such annuity contracts only when the commission determines that it is financially advantageous to the trust fund involved.

(2)Structured annuity contracts shall be purchased only from insurance companies:

(A)Licensed to do business in Arkansas and authorized to write annuities as regulated by the State Insurance Department;

(B)Experienced in the business of writing and administering structured annuities;

(C)Determined to be financially sound and having an A.M. Best rating of A+ and category size VIII or greater, or equivalent independent industr

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(a) (1) The Workers' Compensation Commission is hereby authorized to fund financial obligations of the Death and Permanent Total Disability Trust Fund through the purchase of structured annuity contracts. Provided, the commission shall purchase such annuity contracts only when the commission determines that it is financially advantageous to the trust fund involved. (2) Structured annuity contracts shall be purchased only from insurance companies: (A) Licensed to do business in Arkansas and authorized to write annuities as regulated by the State Insurance Department; (B) Experienced in the business of writing and administering structured annuities; (C) Determined to be financially sound and having an A.M. Best rating of A+ and category size VIII or greater, or equivalent independent industry rating; and (D) Be rated AA+ or better by Standard and Poor's, Moody's, or an equivalent rating by an equivalent rating service. (3) Structured annuity contracts purchased by the commission shall: (A) Include a separate contract for each claimant or beneficiary covered; (B) Require that the payments to the claimant or beneficiary be sent to the commission so that it can maintain administrative control over the payments, and the commission will distribute the payments in full to the claimants or beneficiaries; and (C) Provide for return of principal to the appropriate fund in the event that the obligations of the Death and Permanent Total Disability Trust Fund to any claimant or beneficiary cease prior to the end of the period certain guarantee in the contract. (b) The commission shall adopt such appropriate rules consistent with the provisions of this section, § 23-96-104(16) and (25) , and § 23-96-114(f) and (g) as it deems necessary to enable it to efficiently and effectively administer the provisions of this section, § 23-96-104(16) and (25) , and § 23-96-114(f) and (g) and any structured annuity arrangement it may enter into pursuant to the authority granted herein.

Arkansas § 11-9-210 (Purchase of annuity contracts - Funding of Death and Permanent Total Disability Trust Fund obligations) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.