LITTLE ROCK, Ark. – Earlier this spring, Arkansas joined a handful of U.S. states in adopting the new insurance business transfer model called the Insurance Business Transfer (IBT) Act. The law provides insurance companies an organized and efficient process to transfer blocks of insurance business from any jurisdiction to another insurance company in Arkansas, benefiting insurers seeking to restructure and improve operational efficiency, and ultimately creating a unique opportunity for Arkansas to attract new business to the state.
Modeled after the highly successful Part VII transfer process in the United Kingdom and EU, Arkansas’ new IBT Act provides a unique mechanism for insurers to absolutely transfer blocks of insurance business to another insurance company. The IBT provides an efficient and straightforward process to transferring and assuming companies, while also providing legal finality.