The bill amends the Standard Nonforfeiture Law for Life Insurance in Arkansas, specifically addressing the insurer's right to defer payment of cash surrender values. It modifies the existing provision by clarifying that while insurers can defer payment for up to six months after a demand for surrender, they are now required to pay interest on the cash surrender value if payment is not made within thirty days of the demand.

The new legal language stipulates that the interest must be calculated at the prime rate published in the Wall Street Journal on the day the demand is made, and it will accrue from the date of surrender until the cash surrender value is fully paid within the six-month period. This change aims to provide additional financial protection to policyholders by ensuring they receive interest on their cash surrender values during the deferral period.

Statutes affected:
HB 1488: 23-81-203(c)