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AR SB519

Bill

Status

Passed

4/22/2025

Primary Sponsor

Justin Boyd

Click for details

Origin

Senate

95th General Assembly (2025 Regular)

AI Summary

  • Amends Arkansas Code § 23-81-203(c) regarding the Standard Nonforfeiture Law for Life Insurance, effective January 1, 2026

  • Insurers may defer cash surrender value payments for up to six months after demand and policy surrender, according to policy terms

  • Policy death benefits must remain in force until the cash surrender value payment is made

  • 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

  • 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

Committee Referrals

Insurance and Commerce4/2/2025
Insurance & Commerce3/19/2025

Full Bill Text

No bill text available