(a)

1. (1) The purpose of this part is to implement the Arkansas Insurance Business Transfer Act, Arkansas Code § 23-69-501 et seq., to provide standards and procedures for the transfer and novation of insurance policies from a transferring insurer to an assuming insurer through a transaction known as an “insurance business transfer”.
2. (2) The Arkansas Insurance Business Transfer Act permits an insurer to take a book of insurance policies and completely transfer all risks, obligations, and liabilities to another company.
3. (3) This mechanism can provide legal and economic finality to legacy insurance risks and improve the use of capital and management resources by permitting another company with expertise in run-off business to assume the discontinued lines of business that are the subject of the transfer.

(b)

1. (1) Such a transaction does not require the affirmative consent of policyholders or reinsureds if the transfer and novation is conducted in accordance with the Arkansas Insurance Business Transfer Act.
2. (2) However, even with the absence of affirmative consent, the interests of policyholders, claimants, and reinsureds is always a primary consideration when this type of transaction is pursued.
3. (3) Procedural safeguards found in the Arkansas Insurance Business Transfer Act and this part exist to avoid any adverse material impact on those interests.