Section 23-71-116 - Conversion to legal reserve insurerA stipulated premium plan insurer may be converted to a legal reserve stock life and accident and health insurer subject to the following conditions:
(1) The insurer's articles of incorporation shall be amended to provide for transaction of insurance on a legal reserve basis;(2) When first so converted, the insurer shall have paid-in capital stock of at least twenty-five thousand dollars ($25,000) and surplus funds of at least twelve thousand five hundred dollars ($12,500). At the end of the fifth calendar year next succeeding the calendar year in which the insurer was converted, its paid-in capital stock shall be not less than thirty-seven thousand five hundred dollars ($37,500). At the end of the tenth and subsequent calendar years next succeeding the calendar year in which the insurer was so converted, its paid-up capital stock shall be not less than fifty thousand dollars ($50,000);(3) The insurer shall write no new business on the stipulated premium plan following the date of conversion;(4) Stipulated premium plan business in force on the date of conversion may continue in force on the same plan. However, the insurer shall maintain separate accounts of its stipulated premium plan business and its legal reserve business;(5) The maximum single risk retained by the insurer after conversion shall not exceed five percent (5%) of the insurer's paid-in capital stock until the paid-in capital stock amounts to one hundred thousand dollars ($100,000) or more; and(6) After conversion the insurer shall otherwise have the same powers and obligations as like legal reserve insurers under the Arkansas Insurance Code.Acts 1959, No. 148, § 554; A.S.A. 1947, § 66-4415; Acts 2001, No. 1603, § 31.