HB 1238 Summary

• Modifies the Self-Insured Fidelity Bond Program to clarify coverage applies to fraudulent or dishonest acts committed by state, county, municipal, and school district officials and employees.

• Repeals the fees payable by insurance agents on inactive license status (Arkansas Code § 23-61-707).

• Allows insurers to process claim payments via check, draft, or electronic funds transfer with a three business-day deadline; violations result in a $200 penalty or 15% of claim amount, whichever is higher.

• Modifies captive insurer licensing and regulation by clarifying definitions and confidentiality requirements for information submitted by captive insurance companies.

• Repeals health maintenance organization insolvency protection requirements and modifies various insurance code provisions affecting stipulated premium plan insurers, mutual assessment insurers, farmers' mutual aid companies, fraternal benefit societies, hospital service corporations, and credit life/disability insurers.

• Allows commissioners to permit for-profit or nonprofit business organizations to form associations or groups of employers in multiple employer trusts or welfare arrangements.