SB324

Senate Bill 324 amends the Arkansas Insurance Code to exempt specific nonprofit agricultural membership organizations from standard insurance regulations. To qualify, an organization must be incorporated in Arkansas, maintain a physical presence in every county, and have a primary purpose of promoting the interests of farmers. These organizations are permitted to provide healthcare coverage contracts to their members and families, with the option to reinsure risks through authorized insurers. The bill mandates that these organizations pay the same insurance premium tax as domestic insurers. Additionally, the bill requires these organizations to designate an ombudsman to handle member complaints in coordination with the State Insurance Department. It further clarifies that laws concerning hospital and medical service corporations do not apply to these entities.