Stricken language would be deleted from and underlined language would be added to present law.
*ANS256* 02/14/2025 7:37:32 AM ANS256
State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1488 3
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By: Representative Wardlaw 5
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For An Act To Be Entitled 8
AN ACT TO AMEND THE STANDARD NONFORFEITURE LAW FOR 9
LIFE INSURANCE; TO REQUIRE AN INSURER TO PAY INTEREST 10
ON DEFERRED PAYMENT OF ANY CASH SURRENDER VALUE UNDER 11
CERTAIN POLICIES; AND FOR OTHER PURPOSES. 12
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Subtitle 15
TO AMEND THE STANDARD NONFORFEITURE LAW 16
FOR LIFE INSURANCE; AND TO REQUIRE AN 17
INSURER TO PAY INTEREST ON DEFERRED 18
PAYMENT OF ANY CASH SURRENDER VALUE 19
UNDER CERTAIN POLICIES. 20
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
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SECTION 1. Arkansas Code ยง 23 -81-203(c), concerning the right of an 24
insurer to defer the payment of any cash surrender value Standard 25
Nonforfeiture Law for Life Insurance, is amended to read as follows: 26
(c)(1) The Except as provided under subdivision (c)(2) of this 27
section, the insurer shall reserve the right to defer the payment of any cash 28
surrender value for a period of six (6) months after demand therefor with 29
surrender of the policy. 30
(2) If payment is not made within thirty (30) days after demand 31
is made for the surrender of the policy, in addition to the cash surrender 32
value, the insurer shall pay interest on the cash surrender value at the 33
prime rate as published in the Wall Street Journal on the day that the demand 34
is made for surrender of the policy and accruing from the date of surrender 35
until the cash surrender value is paid in full within the six -month period. 36