AR SB1106

Adds new section 23-68-135 to Arkansas Code establishing an early distribution process for insurance company liquidation estates to guaranty associations.

Requires liquidators to make early payments of distributable assets to guaranty associations as frequently as possible after liquidation order entry, but at minimum annually, in amounts consistent with the new section.

Mandates liquidators submit financial statements and distribution requests to the court within 120 days of liquidation order entry and at least annually thereafter, with guaranty associations receiving 30 days advance notice before court filing.

Limits early distributions to anticipated entire claims of guaranty associations falling within priority classes established under existing law; requires guaranty associations to return any payments needed for secured creditor claims.

Prohibits liquidators from offsetting guaranty association distributions by special deposits or assets held in other states without guaranty association consent or court order, and waives bond requirements for guaranty associations receiving early payments.