HB1488

House Bill 1488 amends Arkansas's standard nonforfeiture law for life insurance regarding the deferral of cash surrender values. Under current law, insurers may defer payment of a policy's cash surrender value for up to six months after a demand is made. This bill stipulates that if an insurer chooses to defer this payment beyond 30 days, they must pay interest on the cash surrender value. The interest rate is defined as the prime rate published in the Wall Street Journal on the day the demand for surrender is made. Additionally, the bill mandates that the policy's death benefit must remain in full force and effect until the cash surrender payment is issued.