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SB236

To Amend The Insurance Holding Company Regulatory Act.

Passed

Last Action (March 12, 2025): Notification that SB236 is now Act 261

Sponsors

AI-Generated Summary

Senate Bill 236 updates the Arkansas Insurance Holding Company Regulatory Act to align with national standards for insurance regulation. The bill introduces new definitions, including 'group capital calculation instructions' and the 'NAIC liquidity stress test framework,' which are developed by the National Association of Insurance Commissioners (NAIC). It clarifies the authority of domestic insurers regarding the organization and acquisition of subsidiaries and sets specific financial limitations on these investments. The legislation updates procedures for the Insurance Commissioner's approval of mergers and acquisitions, including provisions for consolidated hearings when multiple states are involved. Additionally, it mandates that ultimate controlling persons of insurers file annual group capital calculation reports. The bill also amends materiality disclosure requirements and repeals existing language regarding filing violations.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiaries are the state’s regulatory body, the Arkansas Insurance Department, and the general public. By implementing standardized liquidity stress tests and group capital calculations, the Commissioner gains better tools to monitor the financial health of insurance holding companies. Policyholders also benefit from the increased oversight and transparency, as these measures are designed to ensure that insurers maintain adequate financial reserves to meet their obligations.

Who Might Suffer?

The primary entities impacted are insurance holding companies and their domestic insurers, who must comply with the new reporting and capital calculation requirements. These firms may incur increased administrative costs, operational burdens, and greater regulatory scrutiny due to the mandatory annual filings and compliance with NAIC-defined liquidity stress tests. The additional reporting and oversight may limit the flexibility of these companies in managing their subsidiary investments or corporate structures.

Vote Records

Third Reading

March 10, 2025
Yea: 98 Nay: 0 NV: 2 Absent: 0 Passed
View individual votes (100)
Legislator Party Chamber Vote
Tracy Steele Democrat House Yea
Fred Allen Democrat House Yea
Lane Jean Republican House Yea
Stephen Meeks Republican House Yea
Mark Perry Democrat House Yea
Jon Eubanks Republican House Yea
Matthew Shepherd Republican House Yea
Jeff Wardlaw Republican House Yea
Bruce Cozart Republican House Yea
David Whitaker Democrat House Yea
Mike Holcomb Republican House Yea
Stephen Magie Democrat House Yea
Mark McElroy Republican House Yea
Richard Womack Republican House Yea
Jack Ladyman Republican House Yea
Robin Lundstrum Republican House Yea
Dwight Tosh Republican House Yea
Rick Beck Republican House Yea
Mary Bentley Republican House Yea
Les Eaves Republican House Yea
Justin Gonzales Republican House Yea
Julie Mayberry Republican House Yea
Ken Ferguson Democrat House Yea
Ron Mcnair Republican House Yea
Marcus Richmond Republican House Yea
Deann Vaught Republican House Yea
Karilyn Brown Republican House Yea
Sonia Eubanks Barker Republican House Yea
Frances Cavenaugh Republican House Yea
Jimmie Gazaway Republican House Yea
Roger Lynch Republican House Yea
John Maddox Republican House Yea
Aaron Pilkington Republican House Yea
Johnny Rye Republican House NV
Les Warren Republican House Yea
Carlton Wing Republican House Yea
Austin Mccollum Republican House Yea
Carol Dalby Republican House Yea
Steve Hollowell Republican House Yea
Brian Evans Republican House Yea
Lee Johnson Republican House Yea
Andrew Collins Democrat House Yea
Stan Berry Republican House Yea
Harlan Breaux Republican House Yea
Cameron Cooper Republican House Yea
Nicole Clowney Democrat House Yea
Cindy Crawford Republican House Yea
Denise Garner Democrat House Yea
Tippi McCullough Democrat House Yea
Jay Richardson Democrat House Yea
Jim Wooten Republican House Yea
Denise Ennett Democrat House Yea
Richard McGrew Republican House Yea
Joy Springer Democrat House Yea
Howard Beaty Republican House Yea
Tony Furman Republican House Yea
Kendon Underwood Republican House Yea
David Ray Republican House Yea
John Carr Republican House Yea
Rick McClure Republican House Yea
Keith Brooks Republican House Yea
Ashley Hudson Democrat House Yea
Jon Milligan Republican House Yea
RJ Hawk Republican House Yea
Wade Andrews Republican House Yea
Rebecca Burkes Republican House Yea
Hope Duke Republican House Yea
Zack Gramlich Republican House Yea
Mindy McAlindon Republican House Yea
Matt Duffield Republican House Yea
Stetson Painter Republican House Yea
Steve Unger Republican House Yea
Wayne Long Republican House Yea
Scott Richardson Republican House Yea
Brandon Achor Republican House Yea
Jeremiah Moore Republican House Yea
Joey Carr Republican House Yea
Matt Brown Republican House Yea
Shad Pearce Republican House Yea
Chad Puryear Republican House Yea
Ryan Rose Republican House Yea
Bart Schulz Republican House Yea
Trey Steimel Republican House Yea
Tara Shephard Democrat House Yea
Jeremy Wooldridge Republican House Yea
Kendra Moore Republican House Yea
Brit McKenzie Republican House Yea
Steven Walker Republican House Yea
Glenn Barnes Democrat House Yea
Lincoln Barnett Democrat House NV
Alyssa Brown Republican House Yea
Nick Burkes Republican House Yea
Paul Childress Republican House Yea
James Eaton Republican House Yea
Brad Hall Republican House Yea
Dolly Henley Republican House Yea
Jessie McGruder Democrat House Yea
Jason Nazarenko Republican House Yea
Randy Torres Republican House Yea
Diana Gonzales Worthen Democrat House Yea

Third Reading

Feb. 24, 2025
Yea: 32 Nay: 0 NV: 0 Absent: 3 Passed
View individual votes (35)
Legislator Party Chamber Vote
Jane English Republican Senate Yea
Jonathan Dismang Republican Senate Yea
Greg Leding Democrat Senate Yea
Missy Irvin Republican Senate Absent
Bryan King Republican Senate Yea
Kim Hammer Republican Senate Yea
Stephanie Flowers Democrat Senate Yea
Frederick Love Democrat Senate Yea
Terry Rice Republican Senate Yea
Reginald Murdock Democrat Senate Yea
Gary Stubblefield Republican Senate Yea
Jim Dotson Republican Senate Yea
John Payton Republican Senate Yea
Alan Clark Republican Senate Yea
Ronald Caldwell Republican Senate Yea
Bart Hester Republican Senate Yea
Jimmy Hickey Republican Senate Yea
Dan Sullivan Republican Senate Yea
David Wallace Republican Senate Yea
Blake Johnson Republican Senate Yea
Justin Boyd Republican Senate Yea
Clarke Tucker Democrat Senate Absent
Scott Flippo Republican Senate Yea
Clint Penzo Republican Senate Yea
Mark Johnson Republican Senate Absent
Ricky Hill Republican Senate Yea
Jamie Scott Democrat Senate Yea
Breanne Davis Republican Senate Yea
Ben Gilmore Republican Senate Yea
Joshua Bryant Republican Senate Yea
Matt McKee Republican Senate Yea
Jim Petty Republican Senate Yea
Steve Crowell Republican Senate Yea
Tyler Dees Republican Senate Yea
Matt Stone Republican Senate Yea
Read Full Bill on arkleg.state.ar.us