The Arkansas Insurance Department issued a reminder that Act 506 of 2005 amended Arkansas Code § 23-77-107(a)(2), now states that an automobile club or association may be penalized (suspended or revoked) if it no longer meets requirements for the authority originally granted by the Arkansas Insurance Department – due to a deficiency in the statutory asset deposit required by §23-77-106(d)(1)(A), or due to the failure of the club or association to maintain a deposit of securities or other assets acceptable to the Commissioner; and in the $20,000 amount as prescribed by Arkansas Code §23-77-106(d)(1)(A).
The Act in question strikes use of surety bonds for deposits; thus surety bonds will no longer be accepted by the Arkansas Insurance Department.
Contact the Securities Administrator, Finance Division, at (501) 371-2665, or malisa.landers@Arkansas.org, for more information.
Topics Auto New Markets
Was this article valuable?
Here are more articles you may enjoy.
Pritzker Signs Bills Giving Insurance Department Power to Overturn Rate Changes 
Alabama Courthouse Workers Smelled a Rat. Court Must Decide if Insurer Defends Suit 
AI-Native Network American Growth Insurance Makes Heller-Kowitz its First Buy 
Allstate Introduces Large Language Model, ALLIE 
