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
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