SB464 Summary

• Amends the definition of "resident" under the Arkansas Life and Health Insurance Guaranty Association Act to clarify that determination is based on residency status on the date a court order finds an insurer to be impaired or insolvent, whichever occurs first.

• Adds two new exclusions from coverage: policies with uncredited interest or value changes subject to forfeiture as of the impairment/insolvency date, and policies providing Medicare Part C or Part D benefits.

• Significantly expands reinsurance assumption procedures, allowing the Association up to 180 days from liquidation order (instead of one year from coverage date) to elect to assume reinsurance contracts and establishing detailed rights and obligations for premium payments and loss recoveries.

• Increases accident and health insurance benefit coverage limits from $300,000 to $500,000 per individual, while maintaining $300,000 limits for disability and long-term care insurance benefits.

• Clarifies that structured settlement annuity payees are subject to $300,000 per-payee coverage limits and reorganizes benefit limitation provisions for better clarity.