§ 23-69-507 — Opinion report - Review requirements

Arkansas § 23-69-507

• Jurisdiction: Arkansas
• Title: 23

Text

(a) The opinion report required under § 23-69-506(b)(14) shall provide the following: (1) A statement of the independent expert's professional qualifications, including a description of the experience that qualifies him or her as an expert suitable for the engagement; (2) A statement indicating whether or not the independent expert has, or has had, direct or indirect interest in the transferring insurer or the assuming insurer or any affiliate of the transferring insurer or assuming insurer; (3) A statement as to the scope of the opinion report; (4) A summary of the terms of the insurance business transfer plan to the extent relevant to the opinion report; (5) Documents, reports, and other material information the independent expert has considered in preparing the opinion report and if any information requested has not been provided; (6) A statement indicating the extent to which the independent expert has relied on the information and judgment of others; (7) The identities of the individuals on whom the independent expert has relied and a statement as to why, in the opinion of the independent expert, such reliance is reasonable; (8) A statement of the independent expert's opinion of the likely effects of the insurance business transfer plan on policyholders and claimants, distinguishing between the following: (A) Transferring policyholders and claimants; (B) Policyholders and claimants of the transferring insurer whose policies will not be transferred; and (C) Policyholders and claimants of the assuming insurer; (9) For each opinion that the independent expert expresses in the opinion report, a statement of the facts and circumstances supporting the opinion; and (10) A statement as to whether the security position of policyholders that are affected by the insurance business transfer are adversely materially affected by the insurance business transfer. (b) The independent expert shall include in an opinion report: (1) An analysis of the transferring insurer's actuarial review of reserves for the subject business to determine the reserve adequacy; (2) An analysis of the financial condition of the transferring insurer and the assuming insurer and the effect the insurance business transfer will have on the financial condition of each insurer; (3) A review of the plans or proposals the assuming insurer has with respect to the administration of the policies subject to the proposed insurance business transfer; (4) An analysis of whether the proposed insurance business transfer will have an adverse material impact on the policyholders and claimants of the transferring insurer and the assuming insurer; (5) An analysis of the assuming insurer's corporate governance structure to ensure that there is proper board and management oversight and expertise to manage the subject business; and (6) Any other information that the Insurance Commissioner requests in order to review the insurance business transfer.

Legislative History

Added by Act 2021, No. 1018,§ 1, eff. 7/28/2021.