(a)(1) Within thirty (30) days after notice from the Insurance Commissioner that an applicant may proceed with filing the insurance business transfer plan with the Pulaski County Circuit Court, the applicant shall petition the court for approval of the insurance business transfer plan.
(2)Upon written request by the applicant, the commissioner may extend the period for filing a petition with the court for an additional thirty (30) days.
(b)An applicant shall inform the court of the reason for the applicant's petition to the court to approve the insurance business transfer plan on the basis that no adverse material impact to policyholders or claimants affected by the proposed insurance business transfer will result.
(c)(1) A petition shall be in the form of a verified petition to the co
Free access — add to your briefcase to read the full text and ask questions with AI
(a) (1) Within thirty (30) days after notice from the Insurance Commissioner that an applicant may proceed with filing the insurance business transfer plan with the Pulaski County Circuit Court, the applicant shall petition the court for approval of the insurance business transfer plan. (2) Upon written request by the applicant, the commissioner may extend the period for filing a petition with the court for an additional thirty (30) days. (b) An applicant shall inform the court of the reason for the applicant's petition to the court to approve the insurance business transfer plan on the basis that no adverse material impact to policyholders or claimants affected by the proposed insurance business transfer will result. (c) (1) A petition shall be in the form of a verified petition to the court for implementation of the insurance business transfer plan through the court. (2) The petition shall include the insurance business transfer plan and shall identify any documents and witnesses that the applicant intends to present at a hearing regarding the petition. (d) (1) The commissioner shall be a party to the proceedings before the court concerning the petition and shall be served with copies of all filings according to the Arkansas Rules of Civil Procedure. (2) The position of the commissioner in the proceeding shall not be limited by his or her initial review of the insurance business transfer plan. (e) (1) Following the filing of the petition, an applicant shall file a motion for a scheduling order setting a hearing on the petition. (2) (A) Within fifteen (15) days after receipt of the scheduling order, the applicant shall cause notice of the hearing to be provided according to § 23-69-505 . (B) Following the date of distribution of the notice, there shall be a comment period of sixty (60) days. (f) The notice to policyholders shall provide: (1) The date and time of the approval hearing; (2) The name, address, and telephone number of the assuming insurer and transferring insurer; (3) A statement that a policyholder may comment on or object to the transfer and novation; (4) The procedures and deadline for submitting comments on or objections to the insurance business transfer plan; (5) A summary of any effect that the transfer and novation will have on the policyholder's rights; (6) A statement that the assuming insurer is authorized to assume the subject business and that court approval of the insurance business transfer plan shall extinguish all rights of policyholders under policies that are part of the subject business against the transferring insurer; (7) A statement that a policyholder does not have the opportunity to opt out of or otherwise reject the transfer and novation; (8) Contact information for the State Insurance Department for the policyholder to obtain further information; and (9) (A) Information on how to access an electronic copy of the insurance business transfer plan. (B) If a policyholder is unable to readily access an electronic copy of the insurance business transfer plan, the applicant shall provide a hard copy of the insurance business transfer plan to the policyholder by first class mail. (g) (1) A person, including his, her, or its legal representative, who or that considers himself, herself, or itself to be adversely affected may present evidence or comments to the court at the approval hearing. (2) However, the evidence or comments shall not confer standing on any person. (3) A person participating in the approval hearing shall follow the process established by the court and shall be responsible for his, her, or its own costs and attorney's fees. (h) After the comment period described in subdivision (e)(2)(B) of this section has ended, the insurance business transfer plan shall be presented by the applicant for approval by the court. (i) At any time before the court issues an order approving the insurance business transfer plan, the applicant may withdraw the insurance business transfer plan without prejudice. (j) (1) If the court finds that the implementation of the insurance business transfer plan would not have an adverse material impact on the interests of policyholders or claimants that are part of the subject business, the court shall enter an implementation order. (2) The implementation order shall: (A) Order implementation of the insurance business transfer plan; (B) Order a transfer and novation with respect to all policyholders or reinsureds and their respective policies and reinsurance agreements under the subject business, including: (i) The extinguishment of all rights of policyholders under policies that are part of the subject business against the transferring insurer; (ii) Providing that the transferring insurer shall have no further rights, obligations, or liabilities with respect to such policies; and (iii) Providing that the assuming insurer shall have all such rights, obligations, and liabilities as if the assuming insurer, instead of the transferring insurer, were the original insurer of such policies; (C) Release the transferring insurer from all obligations or liabilities under policies that are part of the subject business; (D) (i) Authorize and order the transfer of property or liabilities, including without limitation the ceded reinsurance of transferred policies and contracts on the subject business. (ii) The subject business shall vest in and become a liability of the assuming insurer; (E) Order that the applicant provide notice of the transfer and novation according to § 23-69-505 ; and (F) Make any orders with respect to incidental, consequential, and supplementary matters as are necessary to assure the insurance business transfer plan is fully and effectively executed. (k) If the court finds that the insurance business transfer plan should not be approved, the court by its order may: (1) Deny the petition; or (2) Provide the applicant leave to file an amended insurance business transfer plan and petition. (l) This section does not affect the right of appeal for any party.