An act TO AMEND THE STANDARD NONFORFEITURE LAW FOR 10 LIFE INSURANCE, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas           As Engrossed: H3/6/25 S3/17/25
2 95th General Assembly
                                       A Bill

3 Regular Session, 2025                                           HOUSE BILL 1488

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5 By: Representative Wardlaw

6 By: Senator Gilmore

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8                             For An Act To Be Entitled

9   AN ACT TO AMEND THE STANDARD NONFORFEITURE LAW FOR

10  LIFE INSURANCE; TO REQUIRE AN INSURER TO PAY INTEREST

11  ON DEFERRED PAYMENT OF ANY CASH SURRENDER VALUE UNDER

12  CERTAIN POLICIES; AND FOR OTHER PURPOSES.

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15                                    Subtitle

16                       TO AMEND THE STANDARD NONFORFEITURE LAW

17                       FOR LIFE INSURANCE; AND TO REQUIRE AN

18                       INSURER TO PAY INTEREST ON DEFERRED

19                       PAYMENT OF ANY CASH SURRENDER VALUE

20                       UNDER CERTAIN POLICIES.

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22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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24  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 insurer shall reserve the right to defer the payment of any

28 cash surrender value for a period of six (6) months after demand therefor

29 with surrender of the policy., subject to the following:

30  (1) The policy death benefit shall remain in full force and

31 effect until payment is made; and

32  (2) If payment is not made within thirty (30) days after demand

33 is made for the surrender of the policy, in addition to the cash surrender

34 value, the insurer shall pay interest on the cash surrender value at the

35 prime rate as published in the Wall Street Journal on the day that the demand

36 is made for surrender of the policy and accruing from the date of surrender

    *ANS256*                                                      03-17-2025 13:58:53 ANS256
    As Engrossed: H3/6/25 S3/17/25              HB1488

1 until the cash surrender value is paid in full within the six-month period.

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3                                   /s/Wardlaw

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