SB519

Senate Bill 519 amends the Standard Nonforfeiture Law for life insurance in Arkansas. Starting January 1, 2026, the bill establishes conditions for insurers that choose to defer the payment of cash surrender value on life insurance policies for up to six months. Under the new provisions, if an insurer chooses to exercise this deferment, the policy's death benefit must remain active until the payment is processed. Furthermore, if the cash surrender value is not paid within 45 days of the policyholder's demand, the insurer is required to pay interest on that amount. This interest accrues from the initial date of the demand until the payment is made in full.