2025 Arkansas Insurance Legislation Summary: Life
This is the fourth and final article in a series summarizing insurance legislation from the 95th Arkansas General Assembly, which convened on January 13, 2025, and entered an extended recess on April 16, 2025. The legislature is not expected to return until April 2026 for a fiscal session, unless a special session is called.
Legislation of Interest to Life Insurers
Passed Legislation
- HB1307 (Act 308): Amends the Uniform Prudent Management of Institutional Funds Act, updating standards for managing and investing institutional funds.
- HB1353 (Act 142): Regulates vision benefit managers, requiring reimbursement to providers at or above Medicare rates and prohibiting required virtual credit card reimbursement.
- HB1488 (Act 391) and SB519 (Act 958): Amend the Standard Nonforfeiture Law for Life Insurance. Insurers must pay interest on deferred cash surrender values and death benefits if the insured dies after surrender demand but before payment.
- HB1507 (Act 252): Clarifies the exemption from divestment for certain investments applies to local and state public entities regarding Environmental, Social Justice, or Governance Scores.
Failed/Defeated Legislation
- HB1335: Would have established the “Every Arkansan Retirement Plan Opportunity Act.”
- HB1351: Proposed regulatory oversight for Vision Benefit Managers, but was superseded by HB1353 (Act 142).
The Arkansas Attorney General has opined that acts without an emergency clause or specified effective date will become effective on Tuesday, August 5, 2025, the 91st day following the May 5, 2025 sine die adjournment.
Authors: Martha McKenzie Hill and Derrick Smith from Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C.
Disclaimer: The information provided is general and may not apply to all situations. Specific legal advice based on particular situations is recommended.
