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Arkansas General Assembly· SB 519Notification that SB519 is now Act 958

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

Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas      As Engrossed: H4/10/25
2 95th General Assembly
                               A Bill

3 Regular Session, 2025                                            SENATE BILL 519

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5 By: Senator J. Boyd

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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 REGULATE THE PAYMENT OF INTEREST

11  ON DEFERRED PAYMENT OF ANY CASH SURRENDER VALUE

12  ACCORDING TO THE TERMS OF THE POLICY; AND FOR OTHER

13  PURPOSES.

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16                       Subtitle

17                       TO AMEND THE STANDARD NONFORFEITURE LAW

18                       FOR LIFE INSURANCE; AND TO REGULATE THE

19                       PAYMENT OF INTEREST ON DEFERRED PAYMENT

20                       OF ANY CASH SURRENDER VALUE ACCORDING TO

21                       THE TERMS OF THE POLICY.

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

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25  SECTION 1. Arkansas Code � 23-81-203(c), concerning the right of an

26 insurer to defer the payment of any cash surrender value Standard

27 Nonforfeiture Law for Life Insurance, is amended to read as follows:

28  (c) The On and after January 1, 2026, the insurer shall reserve the

29 right to defer the payment of any cash surrender value for a period of six

30 (6) months after demand therefor with surrender of the policy according to

31 the terms of the policy, subject to the following:

32  (1) The policy death benefit shall remain in force until payment

33 is made; and

34  (2) If payment is not made within forty-five (45) days after

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

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

    *ANS414*                                                      04-10-2025 13:52:50 ANS414
    As Engrossed: H4/10/25                                                  SB519

1 rate specified under � 23-81-118 and accruing from the date of surrender

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

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4                           /s/J. Boyd

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