2010 Arkansas Code
Title 23 - Public Utilities and Regulated Industries
Subtitle 3 - Insurance
Chapter 73 - Farmers' Mutual Aid Associations
§ 23-73-120 - Dissolution.

23-73-120. Dissolution.

(a) Voluntary. (1) An association or company may discontinue its operations and settle its affairs at any meeting of its members, due notice of the time, place, and purpose of which shall have been given to its members and the Insurance Commissioner, by a vote of two-thirds (2/3) of the members present or represented by proxy at the meeting.

(2) Voting shall be conducted by written ballot which shall be signed by the member, on a ballot form approved by the commissioner, prior to voting.

(3) (A) After the members have voted to dissolve, the association or company shall file a plan of dissolution with the commissioner for approval.

(B) The dissolution plan must include provisions that:

(i) Allow current policyholders to obtain similar coverage with another licensed insurer or farmers' mutual aid association or company; and

(ii) Designate a committee of policyholders to liquidate assets and pay debts or expenses.

(4) After the commissioner has approved the dissolution plan, the designated committee shall liquidate any assets and pay the debts and expenses of the association or company.

(5) Upon final settlement of all the affairs of the association by the committee, it shall make a final report and accounting of the proceedings of the dissolutions which shall be signed by its members and be filed with and approved by the commissioner.

(6) If the commissioner approves the final report, the commissioner shall transmit to the committee a certificate of approval and thereupon the association shall be deemed dissolved and shall cease to exist. The commissioner shall certify the dissolution to the Secretary of State.

(7) The committee shall have its necessary and reasonable expenses reimbursed in the dissolution of the association or company as approved by the commissioner.

(b) Involuntary. An association or company shall be statutorily dissolved in accordance with the provisions of 23-68-101 -- 23-68-113 and 23-68-115 -- 23-68-132.