AR HB1040

Repeals Arkansas Code Title 23, Chapter 91, Subchapter 2 (the Arkansas Legal Insurance Act) in its entirety, effective upon approval.

Eliminates the regulatory framework governing legal insurance plans, including certificate of authority requirements, policy form approvals, rate regulations, and financial reporting requirements for legal insurance providers.

Removes provisions establishing minimum capital requirements ($100,000), reserve requirements, segregated account requirements, and management contract oversight for legal insurance insurers.

Eliminates the 2.5% premium tax on legal insurance direct written premium income that was previously collected and deposited to state general revenues.

Repeals all licensing, examination, and regulatory authority of the Insurance Commissioner over persons transacting legal insurance business in Arkansas.