This text of Arkansas § 23-92-408 (Financial assurance required) is published on Counsel Stack Legal Research, covering Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)Each professional employer organization shall maintain:
(1)An audited minimum net worth of at least one hundred thousand dollars ($100,000), as reflected in the financial statements submitted to the Insurance Commissioner with the initial licensing, and annually thereafter; or (2) (A) A bond in the amount of at least one hundred thousand dollars ($100,000).
(B)The terms and conditions of the bond shall be approved by the commissioner.
(C)The bond shall be conditioned so that the licensee and each member, employee, shareholder, or officer of a person, firm, partnership, corporation, or association operating as an agent of the licensee shall not:
(i)Violate the provisions of this subchapter or violate rules or orders lawfully promulgated by the commissioner under this subchapter; or
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(a) Each professional employer organization shall maintain: (1) An audited minimum net worth of at least one hundred thousand dollars ($100,000), as reflected in the financial statements submitted to the Insurance Commissioner with the initial licensing, and annually thereafter; or (2) (A) A bond in the amount of at least one hundred thousand dollars ($100,000). (B) The terms and conditions of the bond shall be approved by the commissioner. (C) The bond shall be conditioned so that the licensee and each member, employee, shareholder, or officer of a person, firm, partnership, corporation, or association operating as an agent of the licensee shall not: (i) Violate the provisions of this subchapter or violate rules or orders lawfully promulgated by the commissioner under this subchapter; or (ii) Fail to pay any wages due under any contract made by the licensee in the conduct of its business subject to this subchapter. (D) The bond required by this section shall be a surety bond issued by a corporate surety or insurer authorized to do business in Arkansas. (E) In lieu of a bond, the professional employer organization may deposit either: (i) Securities with a minimum market value of at least one hundred thousand dollars ($100,000) with an approved depository under an approved depository agreement under § 23-69-134(b)(4) ; or (ii) An irrevocable letter of credit in a face amount of not less than one hundred thousand dollars ($100,000) in a form that is acceptable to the commissioner. (F) The bond, deposited securities, or letter of credit shall secure payment by the professional employer organization of all taxes, wages, benefits, or other entitlement due to or with respect to a covered employee if the professional employer organization does not make the payments when due. (G) Any securities deposited under this subsection may be included for the purpose of calculation of the minimum net worth required by this subsection. (b) (1) Within forty-five (45) days after the end of each calendar quarter, a professional employer organization shall submit to the commissioner a statement by an independent certified public accountant that all applicable state payroll taxes for covered employees located in this state have been paid on a timely basis for that quarter. (2) The statement shall be either in the form of an examination level attestation or shall be based upon agreed-upon procedures acceptable to the commissioner. (3) The commissioner shall issue by rule requirements for procedures referred to in subdivision (b)(2) of this section. (c) (1) If any person is aggrieved by the misconduct of any licensee, that person may maintain an action in his or her own name upon the bond or assets of the professional employer organization in any court of competent jurisdiction in this state. (2) All claims shall be assignable, and the assignee shall be entitled to the same remedies upon the bond of the licensee as the aggrieved person would have been entitled if the claim had not been assigned. (3) Any assignable claim under subdivision (c)(2) of this section may be enforced in the name of the assignee. (4) Any remedy provided by this section is in addition to any other remedy which otherwise exists. (d) An action on the bond or other security required by this section may be maintained by the commissioner in the name of the State of Arkansas in any court of competent jurisdiction in this state for the benefit of any person or persons aggrieved by the misconduct of the licensee. (e) (1) If any licensee fails to file a new bond with the commissioner within thirty (30) days after notice of cancellation by the surety of the bond required by this section, the license issued to the licensee or the principal under the bond shall be deemed suspended until a new surety bond is filed with and approved by the commissioner. (2) A person whose license is suspended under this section shall not carry on the business of a professional employer organization during the period of the suspension.