TO AMEND THE STANDARD NONFORFEITURE LAW FOR LIFE INSURANCE; AND TO REQUIRE AN INSURER TO PAY INTEREST ON DEFERRED PAYMENT OF ANY CASH SURRENDER VALUE UNDER CERTAIN POLICIES.

HB 1488 (now Act 391) amends Arkansas' standard life insurance nonforfeiture law to require insurers to pay interest on delayed cash surrender payments for certain policies. It directly affects policyholders who request to withdraw the cash value of their life insurance policies but receive payments later than required. The key provision mandates that insurers pay interest on any deferred cash surrender value during the delay period, ensuring policyholders aren't financially disadvantaged by late payments. This change applies specifically to policies covered under the amended nonforfeiture law, with no broader scope specified in the bill text.