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AR SB519
Bill
Status
4/22/2025
Primary Sponsor
Justin Boyd
Click for details
AI Summary
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Amends Arkansas Code § 23-81-203(c) regarding the Standard Nonforfeiture Law for Life Insurance, effective January 1, 2026
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Insurers may defer cash surrender value payments for up to six months after demand and policy surrender, according to policy terms
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Policy death benefits must remain in force until the cash surrender value payment is made
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If payment is not made within 45 days of surrender demand, insurers must pay interest on the cash surrender value at the rate specified under § 23-81-118, accruing from the date of surrender until paid in full
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Approved April 21, 2025 as Act 958 of the Regular Session
Legislative Description
To Amend The Standard Nonforfeiture Law For Life Insurance; And To Regulate The Payment Of Interest On Deferred Payment Of Any Cash Surrender Value According To The Terms Of The Policy.
Last Action
Notification that SB519 is now Act 958
4/22/2025