Arkansas Administrative Code
Agency 003 - DEPARTMENT OF COMMERCE
Division 22 - Insurance Department
Rule 003.22.22-002 - Proposed Amended rule 56 "Companies Financial Regulation Fee"

(A) AUTHORITY. The Insurance Commissioner ("Commissioner") hereby promulgates this Rule under his authority pursuant to Ark. Code Ann. § 23-61-108 and § 23-61-709.

(B) SCOPE. This Rule shall apply to all licensed insurers, including without limitation all authorized domestic, foreign, and/or alien stock and mutual insurers, mutual assessment life and disability insurers, health maintenance organizations ("HMO's"), fraternal benefit societies, hospital and medical service corporations, stipulated premium plan and reciprocal insurers, title insurance companies, prepaid legal insurance companies, and farmers' mutual aid associations ("FMAA's"). For purposes of this Rule, "insurers" shall mean all and any of the licensed or authorized insurers of the Commissioner referenced in this Rule and as defined in Ark. Code Ann. § 23-60-102(11).

(C) APPLICATION. The Rule is not intended to and shall not apply to approved but nonadmitted surplus line insurers, registered foreign and alien risk retention groups, registered purchasing groups, risk-based provider organizations, or to licensed automobile clubs or associations. The Rule is intended to apply to licensed or authorized insurers with no annual direct written Arkansas premiums in the reported calendar year.

(A) FEES DUE ON OR BEFORE JUNE of each calendar year. All insurers are required by Ark. Code Ann. § 23-61-703(a)(1) and by this Rule to forward to the Department the nonrefimdable administrative and financial regulation fee, payable to THE STATE INSURANCE DEPARTMENT TRUST FUND, based upon the insurer's direct written premiums or annuity considerations (both new and renewal) written in the State of Arkansas during the previous calendar year, as evidenced on the Annual Statement Schedule T page. For Life, Accident and Health companies this would include the total amount from "Total Columns 2 through 5" on the Schedule T. For Property and Casualty companies this would be the total from column "Direct Premiums Written." The fees are to be determined and paid in accordance with the following schedule.

(B) MANNER AND METHOD OF PAYMENT.

(C) PAYMENT UPON VOLUNTARY WITHDRAWAL. Any insurer voluntarily withdrawing from the State of Arkansas, or voluntarily surrendering its Arkansas certificate of authority for cancellation, shall report and pay the fees owed under this Rule for the final report or calendar year of withdrawal before the Department cancels or expires the Arkansas license and before the Department releases any security deposit of the withdrawing insurer.

(D) FEES IN ADDITION TO OTHER REQUIRED PAYMENTS. The fees paid by insurers as required under this Rule are due and payable in addition to any other licensure, exam, appointment or registration, product or service fee, fine or tax or assessment required by any other law or Rule.

(E) DOMESTIC INSURERS' CREDITS FOR FEES PAID IN OTHER JURISDICTIONS. Pursuant to Ark Code Ann § 23-63-116, insurers domiciled in Arkansas are entitled to list as a credit against their Arkansas premium taxes the retaliatory amount of fees paid in other states of licensure because of this State's imposition of the administrative and financial regulation fee under this Rule. For fees paid for a calendar year, a credit may be taken on the insurer's annual premium tax report due March 1st the following calendar year. In no event shall any such credits be allowed against quarterly estimated premium tax payments or referenced in such reports.

(F) FEES IN LIEU OF EXAMINERS' COMPENSATION.

(A) TIME EXTENSION. In his or her complete discretion and for good cause shown, the Insurance Commissioner may grant an extension for reporting and/or payment of the fee required by this Rule for any insurer applying for an extension with written notice received by the Commissioner not less than ten (10) days prior to the due date prescribed by this Rule.

(B) WAIVER; CESSATION OF WAIVER. The Commissioner in his or her complete discretion may waive all or any part of the fee assessed under this Rule due from an insurer if:

(C) PENALTY.