§ 23-63-1610 — Investments

(a) (1) Except as provided in § 23-63-1614 , an association captive insurance company, a producer reinsurance captive insurance company, a sponsored captive insurance company, and an industrial insured group shall comply with the investment requirements contained in the Arkansas Insurance Code. (2) The Insurance Commissioner may approve the use of alternative reliable methods of valuation and rating. (b) (1) A pure captive insurance company or industrial insured captive insurance company is not subject to any restrictions on allowable investments contained in the Arkansas Insurance Code. (2) The commissioner may prohibit or limit an investment that threatens the solvency or liquidity of the company. (c) (1) Only a pure captive insurance company may make loans to its parent company or affiliates, with the prior written approval of the commissioner and evidenced by a note in a form approved by the commissioner. (2) Loans of minimum capital and surplus funds required by § 23-63-1604(a) and § 23-63-1605(a) are prohibited. (d) Notwithstanding the provisions of § 23-63-1620 , the assets of two (2) or more protected cells may be combined for purposes of investment, and the combination does not defeat the segregation of such assets for accounting or other purposes. (e) (1) Sponsored captive insurance companies shall comply with the investment requirements contained in § 23-63-801 et seq., as applicable. (2) However, compliance with the investment requirements shall be waived for sponsored captive insurance companies to the extent that credit for reinsurance ceded to reinsurers is allowed under § 23-63-1611 or to the extent otherwise deemed reasonable and appropriate by the commissioner. (f) Unless the commissioner requires or finds another method of valuation that is not inconsistent with the valuation method promulgated by the National Association of Insurance Commissioners and is reasonable under the circumstances, the valuation procedures established by the National Association of Insurance Commissioners shall apply to sponsored captive insurance companies except to the extent the valuation procedures are inconsistent with approved accounting standards in use by the company. (g) Notwithstanding any other provision of this subchapter, the commissioner may approve the use of alternative reliable methods of valuation and rating.

Legislative History

Amended by Act 2019, No. 521,§ 10, eff. 7/24/2019. Acts 2001, No. 1391, § 10.