1. (a) No domestic, foreign, or alien legal reserve insurer shall deliver or issue for delivery within this state variable contracts unless:

   1. (1) It has a certificate of authority to do a life insurance business in this state;
   2. (2) With respect to contracts issued under the authority of Arkansas Statutes §§ 66-3523 – 66-3527, not less than two million five hundred thousand dollars ($2,500,000) in capital and surplus; and
   3. (3) The Insurance Commissioner is satisfied that its condition or method of operation in connection with the issuance of such contracts will not render its operation hazardous to the public or its policyholders in this state.

   4. (4) In this connection, the commissioner shall consider among other things:

      1. (A) The history and financial condition of the company;
      2. (B) The character, responsibility, and fitness of the officers and directors of the company; and
      3. (C) The law and regulation under which the company is authorized in the state of domicile to issue variable contracts.
2. (b) If the company is a subsidiary of an admitted life insurance company or is affiliated with such company through common management or ownership, it may be deemed by the commissioner to have met the provision of subdivision (a)(3) of this section if either it or the parent or the affiliated company meets the financial and other requirements hereof.

3. (c) Before any company shall deliver or issue for delivery variable contracts within this state it shall submit to the commissioner:

   1. (1) A general description of the kinds of variable contracts it intends to issue;
   2. (2) If requested by the commissioner, a copy of the statutes and regulations of its state of domicile under which it is authorized to issue variable contracts; and
   3. (3) If requested by the commissioner, biographical data with respect to officers and directors of the company on the NAIC uniform biographical data forms.

Codification Notes: “NAIC” means the National Association of Insurance Commissioners.