Stricken language would be deleted from and underlined language would be added to present law.
Act 958 of the Regular Session
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State of Arkansas As Engrossed: H4/10/25 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 519 3
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By: Senator J. Boyd 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 REGULATE THE PAYMENT OF INTEREST 10
ON DEFERRED PAYMENT OF ANY CASH SURRENDER VALUE 11
ACCORDING TO THE TERMS OF THE POLICY; AND FOR OTHER 12
PURPOSES. 13
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Subtitle 16
TO AMEND THE STANDARD NONFORFEITURE LAW 17
FOR LIFE INSURANCE; AND TO REGULATE THE 18
PAYMENT OF INTEREST ON DEFERRED PAYMENT 19
OF ANY CASH SURRENDER VALUE ACCORDING TO 20
THE TERMS OF THE POLICY. 21
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23
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SECTION 1. Arkansas Code § 23-81-203(c), concerning the right of an 25
insurer to defer the payment of any cash surrender value Standard 26
Nonforfeiture Law for Life Insurance, is amended to read as follows: 27
(c) The On and after January 1, 2026, the insurer shall reserve the 28
right to defer the payment of any cash surrender value for a period of six 29
(6) months after demand therefor with surrender of the policy according to 30
the terms of the policy, subject to the following: 31
(1) The policy death benefit shall remain in force until payment 32
is made; and 33
(2) If payment is not made within forty-five (45) days after 34
demand is made for the surrender of the policy, in addition to the cash 35
surrender value, the insurer shall pay interest on the cash surrender at the 36 As Engrossed: H4/10/25 SB519
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rate specified under § 23 -81-118 and accruing from the date of surrender 1
until the cash surrender value is paid in full within the six -month period. 2
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/s/J. Boyd 4
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APPROVED: 4/21/25 7
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