§ 23-60-102 - Definitions.
23-60-102. Definitions.
As used in the Arkansas Insurance Code, unless the context otherwise requires:
(1) (A) (i) "Insurance" is any agreement, contract, or other transaction whereby one party, the "insurer", is obligated to confer benefit of pecuniary value upon another party, the "insured" or "beneficiary", dependent upon the happening of a fortuitous event in which the insured or beneficiary has, or is expected to have at the time of such happening, a material interest that will be adversely affected by the happening of such an event.
(ii) A "fortuitous event" means any occurrence or failure to occur that is, or is assumed by the parties to be, to a substantial extent beyond the control of either party.
(B) "Insurance" shall, for purposes of subtitle 3 of this title, be deemed to include "annuities", which are agreements by insurers to make periodic payments that continue during the survival of the measuring life or lives under the agreements or for a specified period.
(C) "Reinsurance" is a contract under which an originating insurer, called the "ceding" insurer, procures insurance for itself in another insurer, called the "assuming" insurer or reinsurer, with respect to part or all of an insurance risk of the originating insurer.
(D) (i) "Insurance" shall not include a debt cancellation agreement.
(ii) "Debt cancellation agreement" is a loan term or contractual arrangement modifying a loan term dealing with motor vehicles under which a lender agrees to cancel all or part of a borrower's obligation to repay an extension of credit from the lender upon the occurrence of a specified event other than the death or disability of the borrower. The agreement may be separate from or a part of other loan documents.
(2) "Insurer" includes every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insurance;
(3) "Person" includes an individual, insurer, company, association, organization, Lloyd's, society, reciprocal or inter-insurance exchange, partnership, syndicate, business trust, corporation, and every legal entity;
(4) "Commissioner" means the Insurance Commissioner of this state;
(5) "Department" means the State Insurance Department;
(6) A "domestic" insurer is one formed under the laws of this state;
(7) A "foreign" insurer means one formed under the laws of any jurisdiction other than this state;
(8) An "alien" insurer means one formed under the laws of any country other than the United States, its states, districts, territories, and commonwealths;
(9) Except where distinguished by context, "foreign" insurers include also "alien" insurers;
(10) (A) When used in a context signifying a jurisdiction other than the State of Arkansas, "state" means any state, district, territory, commonwealth, or possession of the United States.
(B) For purposes of conforming the Arkansas Insurance Code to comply with the provisions of the North American Free Trade Agreement, "state" shall also be deemed to include Canada and the Republic of Mexico, as appropriate;
(11) An "authorized" insurer means one duly authorized by a subsisting certificate of authority issued by the commissioner to transact insurance in this state;
(12) An "unauthorized" insurer is one not authorized by a subsisting certificate of authority issued by the commissioner to transact insurance in this state;
(13) "Transact" with respect to insurance includes any of the following:
(A) Solicitation and inducement;
(B) Preliminary negotiations;
(C) Effectuation of a contract of insurance;
(D) Transaction of matters subsequent to effectuation of a contract of insurance and arising out of it;
(14) "Wet marine and foreign trade insurance", with the exception of 23-67-101 et seq. shall include only:
(A) Insurances upon vessels, crafts, hulls, and of interests therein or with relation thereto;
(B) Insurance of marine builders' risks, marine war risks, and contracts of marine protection and indemnity insurance;
(C) Insurance of freights and disbursements pertaining to a subject of insurance coming within this definition; and
(D) Insurance of personal property and interests therein, in course of exportation from or importation into any country, or in course of transportation by land, water, or air from point of origin to final destination, in respect to, appertaining to, or in connection with any and all risks or perils of navigation, transit, or transportation, and while being prepared for and while awaiting shipment, and during any delays, storage, transshipment, or reshipment incident thereto.