Arkansas Administrative Code
Agency 054 - Arkansas Insurance Department
Rule 054.00.98-008 - Rule and Regulation 57 (Correction) - Insurance Department Administrative and Regulatory Fees
Current through Register Vol. 49, No. 9, September, 2024
SECTION 1. PURPOSE.
The purpose of this Rule and Regulation is to implement and clarify the pertinent fee provisions of Act 652 of 1993, "The State insurance Department Trust Fund Act" [codified at Ark. Code Ann. §§ 23-61-701 et seq.]; Act 901 of 1993, the Department's "Omnibus Act"; Act 787 of 1993, the "Life Care Providers Act" [codified at Ark. Code Ann. §§ 23-93-201 et seq.] and others. This Rule is designed to specify the amount, method and manner of payment of nonrefundable administrative and regulatory fees of insurers, agents and other licensees or registrants, as well as other filing fees for various Arkansas Insurance Department ("Department") products and services, all of which are payable to "The State Insurance Department Trust Fund" ("Trust Fund").
It is also to emphasize that fees charged under current laws are not affected, diminished or altered by the provisions of this Rule. As appropriate, and to the extent fees are charged under other Arkansas laws for the same product, process or service as to which a fee is to be paid pursuant to the Acts referenced herein and this Rule and Regulation, this Rule is to provide for the payment of all of such fees in a coordinated, consistent manner.
SECTION 2. AUTHORITY; SCOPE AND APPLICATION.
All persons and entities referred to in paragraphs (b) (1) (A) through (b) (1) (N) may sometimes hereinafter be referred to collectively as "Licensees, Registrants, or Permittees."
SECTION 3. EFFECTIVE DATE.
The provisions of this Rule shall become effective August 1, 1998, upon statutory filing per Arkansas law.
SECTION 4. DERIVATION AND CLASSES OF FEES.
SECTION 5. INSURERS (See Section 2(b)(1)(A).
SUBSECTION I.
CATEGORY "A" FEES (Maximum $1500)
(Per Covered Entity, filing, or transaction)
DEPARTMENT SERVICE OR PRODUCT |
FEE AMOUNTS |
|
(a) |
Authorized or Licensed Insurers. |
|
(1) Department expense for independent actuarial review of previously disapproved rate/rule filing set for hearing at filer's request (excluding Workers' Compensation which is not subject to a monetary cap) EXPENSE AS INCURRED BUT NOT TO EXCEED------------ |
$1500 |
|
(2) Filing and review of each Bulk or Assumption Reinsurance Agreement------------------------------- |
$ 500 |
|
(3) Fifing and review of all documents necessary for issuance of Certificate of Incorporation for Domestic Insurers----------- (Coupled with the $100 fee in Ark. Code Ann. § 23-61-401(1)(A) the total fee due is $600.) |
$ 500 |
|
(4) Reviewing all documents necessary for issuance of Original Certificate of Authority for all Companies----------- (Coupled with the $500 fee in Ark. Code Ann. § 23-61-401(1)(C) the total fee due is $1000.) |
$ 500 |
|
(5) Filing notice of appointment of Managing General Agent/Agency or Notice of Termination of Managing General Agent/Agency------------------------------------------------------------ |
$ 500 |
|
(6) Review/processing of information necessary to amend an Arkansas Certificate of Authority------------------------------ (Coupled with the $100 fee in Ark. Code Ann. § 23-61-401(3)(C) the total fee due is $500.) |
$ 400 |
|
(7)(A) Filing and review of independent rate filings initial filing to adopt an Advisory Organization's reference filing for loss costs, or filing to change the loss cost multiplier already on file, including companion rule filings required to implement the rate filings (P, C, S, M)------------------------------------------------------ |
$ 100 |
|
("P, C, S, M" signifies property, casualty (including workers' compensation), surety and marine insurance and all other specific lines identified at Ark. Code Ann. §§ 23-62-104 through 23-62-108.) |
||
(B) Filing to adopt an Advisory Organization's reference for loss costs with no changes to company's loss cost multiplier already on file, including companion rule filing required to implement the new loss cost filing---------------------------------------- |
$ 50 |
|
(8) Issuance of an Original Certificate of Incorporation for Domestic Insurers------------------------------------------------------------------- |
$ 150 |
|
(Coupled with the $50 fee in Ark. Code Ann. § 23-61-401(1)(B) the total fee due is $200.) |
||
(9) Issuance of Original Certificate of Authority for all Companies----------- (Coupled with the $150 fee in Ark. Code Ann. § 23-61-401(1)(D) the total fee due is $300.) |
$ 150 |
|
(10) Review and processing of amended Articles of Incorporation, each filing, each insurer------------------------------------- (Coupled with the $25 fee in Ark. Code Ann. § 23-61-401(3)(A) the total fee due is $100.) |
$ 75 |
|
(b) |
Approved Non-Admitted Surplus Line Insurer. Annual continuation of foreign surplus line company registration (DUE MARCH 1ST)---------------------------------------------------------- |
$ 500 |
(c) |
Accreidited/Trusteed Reinsurer Initial registration and annua! renewal for Accredited or Trusteed Status---------------------------------------------------------------------------- |
$ 500 |
SUBSECTION II.
CATEGORY "B" - MAXIMUM $50
(Per Covered Entity, Filing or Transaction)
ADMINISTRATIVE AND REGULATORY FEES |
FEE AMOUNTS |
(a) |
Compliance. |
(1) Filing or review of policy/contract, endorsements or certificates, riders, applications, or annuity forms, per submission----------------- |
$ 50 |
*Note that a Service purchaser of an Advisory Organization must file the purchased Form for review. |
|
(2) Filing/review of each Life and/or Disability rate filing or loss ratio guarantee filing, per insurer------------------------------ |
$ 50 |
(3) Filing to adopt a reference or item filing of Advisory Organization, per item (excluding loss cost reference filing)----- |
$ 25 |
(4) Filing each set of new/amended or restated By-laws, per insurer, per filing-------------------------------------------------------- |
$ 25 |
(5) Life and/or Disability: Filing/review of insurer's advertisements, per advertisement, per each insurer-------------- |
$ 25 |
(6) Policy, contract or annuity forms: Filing and review of each life and/or disability certificate rider, application, or endorsement, if filed separately from basic form, per insurer--------------------------------------------------------------------- |
$ 20 |
(7) Policy and contract forms, all lines, filing corrections in previously filed policy and contract forms----------------------------- |
$ 20 |
(8) Filing of each insurer address change, not involving an amendment to a Certificate of Authority or Articles of Incorporation, per filing, per insurer------------------------------------- |
$ 10 |
(9) Filing of Department Forms 1-71 as to cancellation/nonrenewal of all appointed insurance agents and agencies after a Name change or after Merger or Consolidation of two or more insurers-------------------- |
$ 10 |
(10) Each filing of an individual Department Form 1-71 as to cancellations/nonrenewals of agent appointments, each appointment, each insurer----------------------------------------- |
$ 10 |
(11) Each filing of a Consent to Rate Form, per insurer, per policy/contract (P, C, S, M)------------------------------------------- |
$ 10 |
(12) Preparation and execution of Certificates of Compliance for insurers---------------------------------------------------- |
$ 15 |
(Coupled with the $5 fee in Ark. Code Ann. § 23-61-401(14)(B) the total fee due is $20.) |
|
(13) Filing biographical affidavits on insurer officers and directors per Rule and Regulation 7 (DOMESTIC INSURERS ONLY)---------------------------------------- |
$ 10 |
(14) Filing 1-48 agent appointment forms for all appointed insurance agents and agencies in the new name of an insurer after a Name Change or after Merger or Consolidation of two or more insurers---------------------------------- |
$ 10 |
(b) |
Insurers' appointments of Insurance Agents and Agencies. In addition to and as an increase of all other current agent license fees paid by insurers and others in connection with initial and renewal agent appointments under the Insurance Code or other applicable laws or rules, the following additional fees are hereby assessed insurers. |
All AGENTS AND AGENCIES must note that even though statutorily, appointment fees are payable by insurers and even though Ark. Code Ann. § 23-61-708(d) makes it clear that this economic burden must be borne by insurers, it is, nonetheless, the dual responsibility of agents and agencies to make sure that appointments are kept current.
CERTAIN PAYMENTS PROHIBITED. Ark. Code Ann. § 23-61-708(d) prohibits agents from being compelled to pay insurer appointment fees for agent licensing, or being compelled to reimburse insurers for such appointment fees. The Commissioner in his discretion may discipline any insurer attempting to compel or compelling any agent to pay such appointment fees directly or indirectly.
SECTION 6. AGENTS, AGENCIES, BROKERS, VIATICAL SETTLEMENT AGENTS AND BROKERS, ADJUSTERS, LIMITED ADJUSTERS, CONSULTANTS, RISK RETENTION GROUP AGENTS, PURCHASING GROUP BROKERS, SURPLUS LINE BROKERS, SURPLUS LINE BROKERS FOR PURCHASING GROUPS ONLY, HMO AGENTS, PREPAID LEGAL INSURANCE AGENTS, FRATERNAL BENEFIT SOCIETY AGENTS, FMAA AGENTS.
Review, processing, and retrieval for copying, certifying, or other distribution upon written request for information regarding individual agents (residents nonresident), per each agent/agency, (exempting governmental agencies, insurance buying public, or others upon Commissioner's discretion)----------$ 10
SECTION 7. INSURANCE HOLDING COMPANY TRANSACTIONS.
(Fees below are per each holding company, not per each licensed insurer.)
(FOREIGN & ALIEN COMPANIES)---------------------------------------------------------$ 500
(Forms B and C) (all companies)--------------------------------------------------------------$ 250
SECTION 8. HEALTH MAINTENANCE ORGANIZATIONS.
SECTION 9. RATE SERVICE OR ADVISORY ORGANIZATIONS.
EXPENSE AS INCURRED BUT NOT TO EXCEED-----------------$1500
SECTION 10. RISK RETENTION GROUPS.
SECTION 11. PURCHASING GROUPS.
SECTION 12. AUTOMOBILE CLUBS OR ASSOCIATIONS.
SECTION 13. THIRD PARTY ADMINISTRATORS.
All new applicants for registration as a third party administrator ("TPA"), and all previously registered TPA'S shall pay the following filing and processing fee for issuance/renewal of each certificate of registration, in addition to ail other registration fees imposed by §§ 23-92-201, etseq., other fees addressed in this Rule, or fees imposed under other sections of Arkansas law. The fees imposed under this Section and any others as required shall accompany the TPA application for the initial registration, or renewal of registration due no later than December 15 annually.---------------------------------------------------------------$ 75
(Coupled with the $25 fee in Ark. Code Ann. § 23-92-203 the total fee due is $100.)
SECTION 14. EMPLOYEE LEASING FIRMS.
* Either resident or nonresident firms or groups with
"substantial presence" in this State as defined in Department Rule and Regulation 58.
SECTION 15. CONTINUING CARE FACILITIES AND LIFE CARE PROVIDERS.
SECTION 16. REINSURANCE INTERMEDIARIES.
SECTION 17. COURSE PROVIDERS FOR AGENT PRE-LICENSING
AND CONTINUING EDUCATION: ANNUAL REGISTRATION AND FEES.
Each original registration and/or annual renewal of a course provider for agent pre-licensing education---------------------$ 100
Each original registration and/or annual renewal of a course provider for agent continuing education------------------------$ 100
SECTION 18. MANAGING GENERAL AGENTS/AGENCIES.
SECTION 19. NOTARY BOND SURETY CORPORATIONS.
Initial and/or annual renewal of registration as Notary Bond Surety Corporation----------------------------------------------------------------------------------------$ 50
SECTION 20. MISCELLANEOUS FEES.
SECTION 21. INFORMATION SYSTEMS SERVICES.
ELECTRONIC, HARD COPY OR MAGNETIC; FEES NOT TO EXCEED AMOUNTS BELOW:
(a) |
Licensed Company Listings |
Foreign |
Domestic |
|
1. |
All Companies--------------------------$1500 |
$1,400 |
--------$ 100 |
|
2. |
Property & Casualty Companies-$ 750 |
$ 650 |
---------$ 100 |
|
3. |
Life and Disability Companies------$ 750 |
$ 650 |
--------$ 100 |
|
4. |
Fraternal Benefit Societies---------$ 50 |
|||
5. |
Farmers Mutual Aid Assns---------$ 50 |
|||
6. |
Title Insurers----------------------------$ 50 |
|||
7. |
MET's & MEWA's----------------------$ 250 |
|||
8. |
Third Party Administrators-----------$ 150 |
|||
9. |
Purchasing Groups--------------------$ 250 |
|||
10. |
Risk Retention Groups---------------$ 50 |
|||
11. |
Surplus Lines Insurers---------------$ 250 |
|||
12. |
Health Maintenance Orgs----------- |
$ 25 |
||
13. |
Auto Clubs or Assns------------------ |
$ 50 |
||
14. |
Surety Insurers------------------------- |
$ 25 |
||
15. |
Notary Bond Surety Cos------------ |
$ 10 |
||
16. |
Workers' Comp. Cos----------------- |
$ 25 |
||
17. |
Employee Leasing Cos-------------- |
$ 10 |
||
18. |
Ace/Trust Reinsurers---------------- |
$ 25 |
||
(b) |
Licensed Agents Listings |
Resident/ |
Non-resident |
|
1. |
All Agents------------------------------- |
$1500 |
--------$1,000- |
-------$ 500 |
2. |
Life Agents----------------------------- |
$ 750 |
---------$ 500 |
--------$ 250 |
3. |
Disability Agents---------------------- |
$ 750 |
---------$ 500- |
--------$ 250 |
4. |
L & D Agents-------------------------- |
$ 750 |
--------$ 500 |
-------$ 250 |
5 |
Multiline Agents----------------------- |
$ 750 |
---------$ 500 |
--------$ 250 |
6 |
Brokers---------------------------------- |
$ 250 |
---------$ 50 |
--------$ 200 |
7 |
Consultants---------------------------- |
$ 250 |
||
8. |
RRG Agents--------------------------- |
$ 50 |
||
9. |
Purchasing Group Brokers--------- |
$ 50 |
||
10. |
Adjusters-------------------------------- |
$ 250 |
||
11. |
Surplus Line Brokers---------------- |
$ 50 |
||
12. |
Managing General Agents/Agencies |
$ 50 |
||
13. |
Reinsurance Intermediaries------- |
$ 25 |
||
(c) |
Agency Listings w/Appointments w/o Appts. All Agencies----------------------------- |
$ 1500------------------- |
$ 500 |
|
(d) |
Continuing Education Listings w/courses w/o courses |
|||
Approved Providers------------------- |
$ 500-------------------- |
$ 350 |
If partial lists of licensees or licensees of a limited line or category are requested, the Commissioner may charge a reasonable fee less than the foregoing amounts.
SECTION 22. TRUST FUND DEPOSIT REQUIRED.
All fees imposed pursuant to this Rule and Regulation SHALL BE DUE AND PAYABLE TO THE "STATE INSURANCE DEPARTMENT TRUST FUND". Fees paid pursuant to this Rule shall whenever possible, be directed to the specific Division of the Department handling the filing, or as otherwise directed by the Department.
All of the fees required by this Rule shall be payable by COMPANY, AGENT OR AGENCY CHECKS, PERSONAL, CERTIFIED OR CASHIER'S CHECKS, CASH OR MONEY ORDERS. As noted above, where both current Code and this Rule require a fee as to the same product, filing or service, both may be combined in one payment payable to "THE STATE INSURANCE DEPARTMENT TRUST FUND".
SECTION 23. CUMULATIVE/NONREFUNDABLE FEES
All fees and penalties imposed under this Rule are cumulative and in addition to any other licensure, exam, appointment, or registration fee, tax, premium tax, assessment, fine or penalty required by the provisions of any other Arkansas Code or Rule Section. To that extend, the provisions of this Rule are not designed to or intended to affect, interfere with or otherwise supersede other fee or penalty collections and deposits pursuant to other Arkansas Law or Rule Provisions.
SECTION 24. SCRIVENERS' ERRORS.
The Commissioner may, in his discretion, waive any fee set forth in this Rule and Regulation for the filing of any document or thing, if he determines that such filing is, in fact, a re-filing made solely to correct scriveners' or other errors. In such event, nonetheless, the Commissioner may charge a reasonable "processing fee" which shall not exceed $50.
SECTION 25. PENALTIES.
SECTION 26. SEVERABILITY.
If any provision of this Rule or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Rule which can be given effect without the invalid provisions or application, and to this end, the provisions of this Rule are declared to be severable.