2005 Changes To Auto Club License Deposits

Arkansas Insurance Department Mike Huckabee Julie Benafield Bowman Governor Commissioner September 16, 2005 BULLETIN NO. 8-2005 TO: ALL LICENSED AUTOMOBILE CLUBS OR ASSOCIATIONS; NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS; TRADE ORGANIZATIONS AND OTHER INTERESTED PARTIES FROM: ARKANSAS INSURANCE DEPARTMENT RE: 2005 CHANGES TO AUTO CLUB LICENSE DEPOSITS Please note that Act 506 of 2005 amended Arkansas Code § 23-77-107(a)(2), which now states that the automobile club or association may be penalized (suspended or revoked) if it no longer meets requirements for the authority originally granted by the Arkansas Insurance Department, due to a deficiency in the statutory asset deposit required by §23-77-106(d)(1)(A), or due to the failure of the club or association to maintain a deposit of securities or other assets acceptable to the Commissioner; and in the $20,000 amount as prescribed by Arkansas Code §23-77- 106(d)(1)(A). The Act in question strikes use of surety bonds for deposits; thus surety bonds will no longer be accepted by the Arkansas Insurance Department. Please contact the Securities Administrator, Finance Division, at 501-371-2665, or malisa.landers@Arkansas.org, if you have any questions. (signed by Julie Benafield Bowman) (signed on September 16, 2005) _____________________________ ____________________________ JULIE BENAFIELD BOWMAN DATE INSURANCE COMMISSIONER STATE OF ARKANSAS 1200 West Third Street, Little Rock, AR 72201-1904 · (501) 371-2600 · (501) 371-2618 fax · www.insurance.arkansas.gov Information (800) 282-9134 · Consumer Services (800) 852-5494 · Seniors (800) 224-6330 · Criminal Inv. (866) 660-0888