The bill amends the Standard Nonforfeiture Law for Life Insurance in Arkansas, specifically addressing the conditions under which an insurer can defer the payment of cash surrender value. It stipulates that while an insurer can reserve the right to defer payment for up to six months after a demand for surrender is made, the policy's death benefit must remain in full force and effect until payment is completed.

Additionally, if the payment is not made within thirty days of the demand, the insurer is required to pay interest on the cash surrender value at the prime rate published in the Wall Street Journal, accruing from the date of surrender until the cash surrender value is fully paid within the six-month period. This amendment aims to provide greater financial protection and clarity for policyholders regarding their cash surrender values.

Statutes affected:
Old version HB1488 V2 - 3-6-2025 01:34 PM: 23-81-203(c)
Old version HB1488 V3 - 3-17-2025 01:59 PM: 23-81-203(c)
Old version HB1488 Original - 2-14-2025 10:03 AM: 23-81-203(c)
HB 1488: 23-81-203(c)
Act 391: 23-81-203(c)