Arkansas 2025 Regular Session

Arkansas House Bill HB1488 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 391 of the Regular Session
3		-	ANS256 03-17-2025 13:58:53 ANS256
4		-
5		-	State of Arkansas As Engrossed: H3/6/25 S3/17/25 1
	2	+	ANS256 02/14/2025 7:37:32 AM ANS256
	3	+	State of Arkansas 1
6	4		95th General Assembly A Bill 2
7	5		Regular Session, 2025 HOUSE BILL 1488 3
8	6		4
9	7		By: Representative Wardlaw 5
10		-	~~By: Senator Gilmore~~ 6
	8	+	6
11	9		7
12	10		For An Act To Be Entitled 8
13	11		AN ACT TO AMEND THE STANDARD NONFORFEITURE LAW FOR 9
14	12		LIFE INSURANCE; TO REQUIRE AN INSURER TO PAY INTEREST 10
15	13		ON DEFERRED PAYMENT OF ANY CASH SURRENDER VALUE UNDER 11
16	14		CERTAIN POLICIES; AND FOR OTHER PURPOSES. 12
17	15		13
18	16		14
19	17		Subtitle 15
20	18		TO AMEND THE STANDARD NONFORFEITURE LAW 16
21	19		FOR LIFE INSURANCE; AND TO REQUIRE AN 17
22	20		INSURER TO PAY INTEREST ON DEFERRED 18
23	21		PAYMENT OF ANY CASH SURRENDER VALUE 19
24	22		UNDER CERTAIN POLICIES. 20
25	23		21
26	24		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
27	25		23
28	26		SECTION 1. Arkansas Code § 23 -81-203(c), concerning the right of an 24
29	27		insurer to defer the payment of any cash surrender value Standard 25
30	28		Nonforfeiture Law for Life Insurance, is amended to read as follows: 26
31		-	(c) The insurer shall reserve the right to defer the payment of any 27
32		-	cash surrender value for a period of six (6) months after demand therefor 28
33		-	with surrender of the policy ., subject to the following: 29
34		-	(1) The policy death benefit shall remain in full force and 30
35		-	effect until payment is made; and 31
36		-	(2) If payment is not made within thirty (30) days after demand 32
37		-	is made for the surrender of the policy, in addition to the cash surrender 33
38		-	value, the insurer shall pay interest on the cash surrender value at the 34
39		-	prime rate as published in the Wall Street Journal on the day that the demand 35
40		-	is made for surrender of the policy and accruing from the date of surrender 36 As Engrossed: H3/6/25 S3/17/25 HB1488
41		-
42		-	2 03-17-2025 13:58:53 ANS256
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45		-	until the cash surrender value is paid in full within the six -month period. 1
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47		-	/s/Wardlaw 3
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50		-	APPROVED: 3/25/25 6
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	29	+	(c)(1) The Except as provided under subdivision (c)(2) of this 27
	30	+	section, the insurer shall reserve the right to defer the payment of any cash 28
	31	+	surrender value for a period of six (6) months after demand therefor with 29
	32	+	surrender of the policy. 30
	33	+	(2) If payment is not made within thirty (30) days after demand 31
	34	+	is made for the surrender of the policy, in addition to the cash surrender 32
	35	+	value, the insurer shall pay interest on the cash surrender value at the 33
	36	+	prime rate as published in the Wall Street Journal on the day that the demand 34
	37	+	is made for surrender of the policy and accruing from the date of surrender 35
	38	+	until the cash surrender value is paid in full within the six -month period. 36