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23-63-1302. Definitions.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-1302. Definitions.
As used in this subchapter:
(1) “Adjusted RBC report” means a risk-based capital report that has been adjusted by the Insurance Commissioner under § 23-63-1303(e);
(2) “Corrective order” means an order issued by the commissioner specifying corrective actions that the commissioner has determined are needed;
(3) “Domestic insurer” means an insurance company domiciled in this state;
(4) “Foreign insurer” means an insurance company that may do business in this state under § 23-63-201 et seq. but is not domiciled in this state;
(5) “Fraternal benefit society” means an insurance company or society organized and licensed under Arkansas Code Title 23, Chapter 74;
(6) “Life or accident and health insurer” means:
(A) An insurance company authorized to transact a life or accident and health insurance business under § 23-63-201 et seq.; or
(B) An authorized property and casualty insurer writing only accident and health insurance;
(7) “NAIC” means the National Association of Insurance Commissioners;
(8) “Negative trend” means, with respect to a life or accident and health insurer or a fraternal benefit society, a negative trend over a period, as determined according to the trend test calculation included in the RBC instructions for a life or accident and health insurer or RBC instructions for a fraternal benefit society;
(9)(A) “Property or casualty insurer” means an insurance company authorized to transact property or casualty insurance business under § 23-63-201 et seq., including farmers' mutual aid associations and fraternal benefit societies.
(B) “Property or casualty insurer” does not include:
(i) Monoline mortgage guaranty insurers;
(ii) Financial guaranty insurers; or
(iii) Title insurers;
(10) “RBC” means risk-based
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-1302
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:23-63-1302
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 5fd8acc75571ee9afb9fb44ee6a28b35513db29c7f522e65e776a3ba96f858cc
Source location: content.xml paragraph 33177
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23-63-1302. Definitions.
As used in this subchapter:
(1) “Adjusted RBC report” means a risk-based capital report that has been adjusted by the Insurance Commissioner under § 23-63-1303(e);
(2) “Corrective order” means an order issued by the commissioner specifying corrective actions that the commissioner has determined are needed;
(3) “Domestic insurer” means an insurance company domiciled in this state;
(4) “Foreign insurer” means an insurance company that may do business in this state under § 23-63-201 et seq. but is not domiciled in this state;
(5) “Fraternal benefit society” means an insurance company or society organized and licensed under Arkansas Code Title 23, Chapter 74;
(6) “Life or accident and health insurer” means:
(A) An insurance company authorized to transact a life or accident and health insurance business under § 23-63-201 et seq.; or
(B) An authorized property and casualty insurer writing only accident and health insurance;
(7) “NAIC” means the National Association of Insurance Commissioners;
(8) “Negative trend” means, with respect to a life or accident and health insurer or a fraternal benefit society, a negative trend over a period, as determined according to the trend test calculation included in the RBC instructions for a life or accident and health insurer or RBC instructions for a fraternal benefit society;
(9)(A) “Property or casualty insurer” means an insurance company authorized to transact property or casualty insurance business under § 23-63-201 et seq., including farmers' mutual aid associations and fraternal benefit societies.
(B) “Property or casualty insurer” does not include:
(i) Monoline mortgage guaranty insurers;
(ii) Financial guaranty insurers; or
(iii) Title insurers;
(10) “RBC” means risk-based capital;
(11) “RBC instructions” means the RBC report including risk-based capital instructions adopted by the NAIC, as amended by the NAIC;
(12) “RBC level” means an insurer's company action level RBC, regulatory action level RBC, authorized control level RBC, or mandatory control level RBC when:
(A) “Authorized control level RBC” means the number determined under the risk-based capital formula according to the RBC instructions;
(B) “Company action level RBC” means, with respect to an insurer, the product of two (2) and its authorized control level RBC;
(C) “Mandatory control level RBC” means the product of seven-tenths of one percent (0.7%) and the authorized control level RBC; and
(D) “Regulatory action level RBC” means the product of one and five-tenths (1.5) and its authorized control level RBC;
(13) “RBC plan” means a comprehensive financial plan containing the elements named in § 23-63-1304(b). If the commissioner rejects the RBC plan and it is revised by the insurer with or without the commissioner's recommendation, the plan is called the “revised RBC plan”;
(14) “RBC report” means the report required under § 23-63-1303; and
(15) “Total adjusted capital” means the sum of:
(A) An insurer's statutory capital and surplus as determined according to the statutory accounting applicable to the annual financial statements required under § 23-63-216; and
(B) Other items, if any, that the RBC instructions may provide.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-1303. RBC reports.
(a) Annually on or before March 1, each domestic insurer shall prepare and submit to the Insurance Commissioner a report of its RBC levels as of the end of the previous calendar year in a form and containing the information as needed by the RBC instructions. In addition, each domestic insurer shall file its RBC report:
(1) With the NAIC according to the RBC instructions; and
(2) With the insurance commissioner in a state in which the insurer may do business, if the insurance commissioner has notified the insurer of its request in writing, in which case the insurer shall file its RBC report by the later of:
(A) Fifteen (15) days from the receipt of notice to file its RBC report with that state; or
(B) The filing date.
(b) A life or accident and health insurer's or a fraternal benefit society's RBC is determined according to the formula stated in the RBC instructions. The formula shall take into account and may adjust for the covariance among the following factors determined in each case by applying the factors as stated in the RBC instructions:
(1) The risk for the insurer's assets;
(2) The risk of adverse insurance experience for the insurer's liabilities and obligations;
(3) The interest rate risk for the insurer's business; and
(4) Other business and relevant risks as determined in each case by applying RBC instructions.
(c) A property and casualty insurer's RBC is determined according to the formula stated in the RBC instructions. The formula may adjust for the covariance among the following factors determined according to the formula stated in the RBC instructions:
(1) Asset risk;
(2) Credit risk;
(3) Underwriting risk; and
(4) Other business and relevant risks as stated in the RBC instructions.
(d) An excess
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-1303
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-63-1303. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-1304. Company action level event — Definition.
(a) As used in this subchapter, “company action level event” means any of the following events:
(1) The filing of an RBC report by an insurer that indicates:
(A) The insurer's total adjusted capital is greater than or equal to its regulatory action level RBC but less than its company action level RBC;
(B) If a life or accident and health insurer or a fraternal benefit society, the life or accident and health insurer or the fraternal benefit society has total adjusted capital that is greater than or equal to its company action level RBC but less than the product of its authorized control level RBC and three (3) and has a negative trend; or
(C) For the year ending December 31, 2011, and each year following, if a property and casualty insurer, the property and casualty insurer has total adjusted capital that is greater than or equal to its company action level RBC but less than the product of its authorized control level RBC and three (3) and triggers the trend test determined according to the trend test calculation included in the Property and Casualty RBC Instructions;
(2) The notification by the Insurance Commissioner to the insurer of an adjusted RBC report that indicates an event in subdivision (a)(1) of this section, if the insurer does not challenge the adjusted RBC report under § 23-63-1308; or
(3) If under § 23-63-1308 an insurer challenges an adjusted RBC report that indicates the event in subdivision (a)(1) of this section, the notification by the commissioner to the insurer that the commissioner, after a hearing, has rejected the insurer's challenge.
(b) In the event of a company action level event, the insurer shall prepare and submit to the commissioner an RBC plan that shall:
(1) Identify
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-1304
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-63-1304. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-201. Certificate of authority required — Exceptions.
(a) No person shall act as an insurer and no insurer shall transact insurance in this state unless authorized by a subsisting certificate of authority issued to it by the Insurance Commissioner except as to such transactions as are expressly otherwise provided for in the Arkansas Insurance Code.
(b) A certificate of authority shall not be required of an insurer with respect to the following:
(1) Investigation, settlement, or litigation of claims under its policies lawfully written in Arkansas, or making change of beneficiary or other modifications of an insurance or annuity contract, or otherwise administering insurance or annuity contracts in force, or liquidation of assets and liabilities of the insurer, other than collection of new premiums, all as resulting from its former authorized operations in Arkansas;
(2) Transactions subsequent to issuance of or relative to a policy covering only subjects of insurance not resident, located, or expressly to be performed in Arkansas at time of issuance, or covering property in course of transportation by land, air, or water to, from, or through Arkansas and including any preparation or storage incidental thereto, and lawfully solicited, written, or delivered outside Arkansas; or
(3) Transactions pursuant to surplus lines coverages lawfully written under § 23-65-101 et seq., the Unauthorized Insurers Process Act, § 23-65-201 et seq., and the Surplus Lines Insurance Law, § 23-65-301 et seq., of the Arkansas Insurance Code.
(c) A foreign insurer may transact business in this state without certificate of authority, for the purpose and to the extent only of investing its funds in Arkansas real estate or securities, by complying with the laws of this state relatin
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-201
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-63-201. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-216. Annual statement and other information.
(a)(1) Annually on or before March 1 or within an extension of time that the Insurance Commissioner for good cause may have granted, each authorized insurer shall file with the commissioner a full and true statement of its financial condition, transactions, and affairs as of the December 31 preceding.
(2) The statement shall be the appropriate and most recent National Association of Insurance Commissioners':
(A) “Annual Statement Blank For Life And Accident And Health”;
(B) “Property And Casualty Annual Statement Blank”;
(C) “Title Insurance Annual Statement Blank”;
(D) “Annual Statement Blank for Health” for use by hospital, medical, and dental service or indemnity corporations;
(E) “Fraternal Annual Statement Blank”;
(F) “Annual Statement Blank for Health” for health insurers or health maintenance organizations and others; or
(G) Other National Association of Insurance Commissioners' convention blank as appropriate.
(3) The statement shall be prepared in accordance with the most recent and appropriate companion National Association of Insurance Commissioners' “Annual and Quarterly Statement Instructions” and follow those accounting practices and procedures prescribed by the most recent and appropriate companion National Association of Insurance Commissioners' Accounting Practices and Procedures Manual.
(4) Arkansas domestic insurers shall file the statement with the commissioner in hard-copy format.
(5) Each authorized insurer shall file an audited financial statement on or before June 1 of each year.
(6) Authorized foreign and alien insurers complying with subsection (b) of this section are deemed to have satisfied the requirement to file the statement with the commissioner.
(7) The commis
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-216
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-63-216. This identifies an authority to review, not proof of applicability.