As used in this part:

1. (1) "Affiliate" has the meaning ascribed to such term in Arkansas Code § 23-63-503;
2. (2) "Applicant" means a transferring insurer or reinsurer applying under Arkansas Code § 23-69-506;

3. (3)

   1. (A) "Assuming insurer" means an insurer domiciled in Arkansas that assumes or seeks to assume policies from a transferring insurer pursuant to the Arkansas Insurance Business Transfer Act, Arkansas Code § 23-69-501 et seq.
   2. (B) An assuming insurer may be a company established pursuant to Arkansas Code § 23-63-1601 et seq., regarding captive insurers;
4. (4) "Commissioner" means the Insurance Commissioner;

5. (5)

   1. (A) "Court" means the Pulaski County Circuit Court.
   2. (B) All proceedings brought under the Arkansas Insurance Business Transfer Act have proper and exclusive venue in the Pulaski County Circuit Court;
6. (6) "Department" means the State Insurance Department;
7. (7) "Implementation order" means an order issued by the Pulaski County Circuit Court under Arkansas Code § 23-69-506;

8. (8) "Independent expert" means an impartial person who:

   1. (A) Has no financial interest in either the assuming insurer or transferring insurer;
   2. (B) Has not been employed by or acted as an officer, director, consultant, or other independent contractor for either the assuming insurer or transferring insurer within the past twelve (12) months;
   3. (C) Is not appointed by the Insurance Commissioner to assist in any capacity in any proceeding;
   4. (D) Is receiving no compensation in connection with the transaction governed by the Arkansas Insurance Business Transfer Act other than a fee based on a fixed or hourly basis that is not contingent on the approval or consummation of an insurance business transfer; and
   5. (E) Provides proof of insurance coverage that is satisfactory to the Insurance Commissioner;

9. (9)

   1. (A) "Insurance business transfer" means a transfer and novation in accordance with the Arkansas Insurance Business Transfer Act or this part.
   2. (B) Insurance business transfers will transfer insurance obligations or risks, or both, of existing or in-force contracts of insurance or reinsurance from a transferring insurer to an assuming insurer.

   3. (C) Once approved pursuant to the Arkansas Insurance Business Transfer Act, the insurance business transfer will effect a novation of the transferred contracts of insurance or reinsurance with the result that the:

      1. (i) Assuming insurer becomes directly liable to the policyholders of the transferring insurer; and
      2. (ii) Transferring insurer's insurance obligations or risks, or both, under the contracts are extinguished;
10. (10) "Insurance business transfer plan" or "plan" means the plan submitted to the State Insurance Department to accomplish the transfer and novation pursuant to an insurance business transfer, including any associated transfer of assets and rights from or on behalf of the transferring insurer to the assuming insurer;
11. (11) "Insurer" means an insurance or surety company, including a reinsurance company, and shall be deemed to include a corporation, company, partnership, association, society, order, individual, or aggregation of individuals engaging in or proposing or attempting to engage in any kind of insurance or surety business, including the exchanging of reciprocal or interinsurance contracts between individuals, partnerships, and corporations;
12. (12) “Notice” means provision of notification pursuant to Arkansas Code § 23-69-505 within fifteen (15) days of an event triggering a notice requirement under the Arkansas Insurance Business Transfer Act;
13. (13) "Policy" means a policy, contract, or certificate of insurance or a contract of reinsurance pursuant to which the insurer agrees to assume an obligation or risk, or both, of the policyholder or to make payments on behalf of or to the policyholder or its beneficiaries and shall include property, casualty, life, health, and any other line of insurance the Insurance Commissioner finds is suitable for an insurance business transfer;
14. (14) "Policyholder" means an insured or a reinsured under a policy that is part of the subject business;
15. (15) "Subject business" means the policy or policies that are the subject of the plan;

16. (16) "Transfer and novation" means the transfer of insurance obligations or risks, or both, of existing or in-force policies from a transferring insurer to an assuming insurer and is intended to effect a novation of the transferred policies with the result that the:

    1. (A) Assuming insurer becomes directly liable to the policyholders of the transferring insurer on the transferred policies; and
    2. (B) Transferring insurer's insurance obligations or risks, or both, under the transferred policies are extinguished; and
17. (17) "Transferring insurer" means an insurer or reinsurer that transfers and novates or seeks to transfer and novate obligations or risks, or both, under one (1) or more policies to an assuming insurer pursuant to a plan.