Current through Register Vol. 49, No. 9, September, 2024
SECTION
1. PURPOSE. The purpose of this Rule is to promulgate guidelines
for licensed property and casualty insurers to follow in reporting Arkansas
claims experience, premium income, and other related information on property
and casualty policies and contracts; and to specify the format and content of
the reporting form for the annual reports required by Act 156 of 1993. Further,
the Arkansas Insurance Department shall compile, publish and make available the
reports as to any particular insurer and year to any interested insured or
citizen or their legal representatives.
SECTION
2. AUTHORITY AND SCOPE. This Rule is promulgated pursuant to the
Commissioner's authority under Act 166 of 1993, and Ark. Code Ann. §
23-61-108,
§§
25-15-201, et
seq. under the Administrative Procedure Act, and other applicable laws. It is
intended to apply to all licensed property and/or casualty insurers holding an
Arkansas Certificate of Authority. It is not intended to apply to and shall not
apply to foreign or alien registered risk retention groups, registered
purchasing groups, automobile clubs or associations, or approved but not
admitted surplus line insurers.
SECTION
3. EFFECTIVE DATE. This Rule and Regulation shall be effective on
August 1, 1994, upon filing with Arkansas Secretary of State and the Arkansas
State Library, pursuant to the provisions of Ark. Code Ann. §§
25-15-201, et
seq., as amended by Act 1106 of 1993.
SECTION
4. REPORTING REQUIREMENTS.
(a)
COMPILATIONS. Commencing on and after January 1, 1994, all licensed property
and casualty insurers shall keep records of and compile the following data on
its direct writing in this State, and in particular on all Arkansas loss claims
reported and incurred but not reported as to personal and commercial polices
and contracts covering Arkansas risks, including those multi-state polices
covering Arkansas persons or properties, or activity of business
operations.
(b) REPORTING.
(1) REPORT FORM. The reporting form as
prescribed by the Commissioner, Form "AR 166" shall accompany the mailing of
this Rule and Regulation to all licensed property and casualty insurers, and
insurers shall duplicate the form and complete it for filing the annual reports
coincident with the filing of their Annual Statement pursuant to Ark. Code
§
23-63-216.
The claims reports are due no later than March 1st annually, unless the
Commissioner has granted a time extension for good cause shown, after receiving
such written requests from the insurer in advance of the March 1st annual
deadline.
(2) DISKETTE FILINGS. In
lieu of a hard copy report filing, filing of the annual reports required by
this Rule and Regulation may be performed by diskette filings, accompanied by a
supporting hard copy, with the advance permission of the Department. Insurers
may secure a Lotus format diskette from the Department for use in filing
reports by diskette matching the prescribed format of Form AR 166, upon filing
of a written request therefor accompanied by a twenty dollar ($20) distribution
and handling charge by company check or money order and payable to The State
Insurance Department Trust Fund pursuant to the provisions of Act 652 of
1993.
(3) FILINGS BY LICENSED RATE
SERVICE OR ADVISORY ORGANIZATIONS. Pursuant to Ark. Code Ann. §§
23-67-116(2) and (13), licensed rate service or advisory organizations may file
reports required by this Rule and Regulation on behalf of a member or
subscriber insurer.
(c)
WAIVER OF REPORTS. Timely written requests filed with the Commissioner before
the due date asking his consideration for waiver of the reporting requirements
on an annual basis shall be considered and granted for good cause shown for
licensees under the following circumstances:
(1) Insurers currently under court-ordered
conservation, rehabilitation, or liquidation in their domiciliary
states;
(2) insurers whose Arkansas
Certificate of Authority has been suspended, expired or revoked, or cancelled
upon voluntary surrender; and
(3)
insurers under orders of supervision or conservation issued by the domiciliary
insurance commissioner, director or superintendent. The Commissioner may grant
such waivers upon his own initiative by taking judicial notice of property and
casualty insurers under license suspensions or supervision in any state, under
a suspended or expired or revoked or cancelled Arkansas license, or under any
court-ordered conservation or rehabilitation or liquidation in any
state.
(d) "ZERO" REPORTS
REQUIRED. Other than insurers who have obtained waiver of the reports from the
Commissioner as described in Section (c) above, property and/or casualty
insurers with Arkansas Certificates of Authority listing a "reinsurance only"
restriction, and direct writers with no direct-written Arkansas premiums in the
reporting year, and insurers with no Arkansas losses (incurred and reported,
and incurred but not reported) to report under Arkansas policies or contracts
for the reporting period, shall all nonetheless be responsible for and shall
continue to file the annual forms, but shall complete them by reporting "zero"
or "none" or other applicable notations under the appropriate sections, and
annotating the appropriate explanation on the form.
(e) FIRST ANNUAL DEADLINE. The first Report
due under Act 166 of 1993 shall be due no later than March 1, 1995, covering
the 1994 calendar year reporting period.
(f) PENALTIES. Any insurer failing to file
the annual report when due in the absence of a time extension or waiver granted
by the Commissioner, or any insurer filing a false or fraudulent report shall
be deemed to have committed a Trade Practice violation under Ark. Code Ann.
§
23-66-205,
§
23-66-205(5),
and other applicable laws; and shall be subject to the penalties recited in
Ark. Code Ann. § 23-65-210, including suspension or revocation of the
Arkansas Certificate of Authority, and monetary fines and other applicable
provisions of the Arkansas Insurance Code.
(g) FILING FEES; DEPOSIT OF FEES AND FINES.
The annual filing fee shall be $50 per insurer pursuant to the provisions of
Act 652 of 1993. Insurer holding companies shall not file a consolidated
report. All such filing fees are payable by company check, money order, and/or
cashiers or certified check, and shall be payable to The State Insurance
Department Trust Fund ("Trust Fund". Upon collection the Commissioner shall
immediately deposit all such fees into The Trust Fund as special revenues.
Fines and other monetary penalties shall be deposited as other applicable
Arkansas laws provide.
(h)
COMMISSIONER'S ANNUAL PUBLICATION. The Commissioner shall compile and make
available to the public the reports filed by each licensee as required by Act
166 of 1993 and the provisions of this Rule. The Commissioner shall also file
copies annually with the Governor of the State of Arkansas, the Arkansas
Legislative Council, the Arkansas Secretary of State, the Arkansas State
Library, and the National Association of Insurance Commissioners. Fees payable
to obtain the annual reports shall be made payable to the The State Insurance
Department Trust Fund by personal check, cashiers or certified checks, money
orders or cash. Upon collection, the Commissioner shall deposit such payments
immediately into The Trust Fund.
SECTION 5. SEVERABILITY. Any section or
provision of this Rule held by a court to be invalid or unconstitutional will
not affect the validity of any other section or provision of this Rule.
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