Arkansas § 23-40-114 Trust funds - Creation - Deposits, withdrawals, and transfers of funds

Arkansas Statutes

§ 23-40-114 — Trust funds - Creation - Deposits, withdrawals, and transfers of funds

(a)All contract proceeds collected under contracts for prepaid funeral benefits, including funds collected under contracts entered into before June 28, 1985, shall be deposited with a trustee within twenty (20) business days after receipt of proceeds, to be held, invested, and administered in a trust fund for the benefit and protection of the contract purchasers pursuant to this chapter.

(b)Each trust fund shall be created by a letter or written agreement which shall be filed with and approved by the Insurance Commissioner prior to placement of funds.

(c)The seller may deposit money or property as surplus at any time.

(d)The commissioner shall prescribe by regulation proper affidavits and forms for the withdrawal of funds from the trust fund.

(e)The commissioner shall first approve an

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(a) All contract proceeds collected under contracts for prepaid funeral benefits, including funds collected under contracts entered into before June 28, 1985, shall be deposited with a trustee within twenty (20) business days after receipt of proceeds, to be held, invested, and administered in a trust fund for the benefit and protection of the contract purchasers pursuant to this chapter. (b) Each trust fund shall be created by a letter or written agreement which shall be filed with and approved by the Insurance Commissioner prior to placement of funds. (c) The seller may deposit money or property as surplus at any time. (d) The commissioner shall prescribe by regulation proper affidavits and forms for the withdrawal of funds from the trust fund. (e) The commissioner shall first approve and authorize in writing any transfer of funds from an existing trustee to a proposed new trustee if the proposed new trustee meets the requirements of this chapter and the rules promulgated thereunder. (f) The licensee shall file a request for a transfer of funds, together with a filing fee of two hundred fifty dollars ($250), and any other information required by rule. (g) This section shall not apply to the proceeds of insurance policies or contracts, and it shall not be necessary to establish a trust for the payment of such proceeds to the beneficiary designated in the policy or contract or the assignee or transferee thereof. (h) [Repealed.]

Arkansas § 23-40-114 (Trust funds - Creation - Deposits, withdrawals, and transfers of funds) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

Amended by Act 2019, No. 315,§ 2506, eff. 7/24/2019. Amended by Act 2015, No. 904,§ 6, eff. 4/1/2015. Acts 1985, No. 156, § 8; A.S.A. 1947, § 67-1720; Acts 1995, No. 852, § 6; 1997, No. 372, § 7; 2001, No. 1043, § 3; 2003, No. 987, § 4[3].