(a) It is unlawful for any insurance company authorized to do business in this state to issue or offer for sale or issue in this state any policy of insurance under which the insurer agrees to invest a portion of the policy premium, whether for one (1) or more years, and hold a portion of the policy premium for investment in its own name either directly or indirectly, or as trustee for the benefit of the insured or for the benefit of a certain class of policyholders.
(b) Any insurance company issuing or offering to issue any policy in violation of the provisions of subsection (a) of this section upon conviction shall be fined in any sum not less than five hundred dollars ($500) nor more than five thousand dollars ($5,000), and in addition, the authority of the insurance company to do business in this state may be revoked.
(c)
(1) This section shall not be construed to prohibit the offer or sale of a variable annuity contract issued, or variable benefit payable, in compliance with the applicable requirements of the Arkansas Insurance Code, the Securities Act of 1933, the Investment Company Act of 1940, and the Arkansas Securities Act, § 23-42-101 et seq.
(2) This section shall not apply to contracts with respect to amounts maintained by insurers in such group pension, profit-sharing, and annuity separate accounts as may be authorized by law.
(3) This section shall not apply to policy provisions permitting benefits to be left on deposit with the insurer at a specified rate of interest.
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