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23-63-1501. Definitions.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-1501. Definitions.
As used in this subchapter:
(1) “Adjusted RBC report” means an RBC report that has been adjusted by the Insurance Commissioner in accordance with § 23-63-1502(d);
(2) “Corrective order” means an order issued by the commissioner specifying corrective actions that the commissioner has determined are required;
(3) “Domestic health organization” means:
(A) A health maintenance organization domiciled in this state, as established under § 23-76-107; or
(B) A hospital and medical service corporation as defined in § 23-75-101;
(4) “Foreign health organization” means a health organization licensed to do business in this state but is not domiciled in this state;
(5)(A) “Health organization” means a health maintenance organization, hospital and medical service corporation, limited health service organization, dental or vision plan, hospital, or a medical and dental indemnity or service corporation.
(B) “Health organization” does not include:
(i) An organization that is licensed as either a life and health insurer; or
(ii) A property and casualty insurer that is subject to the life or property and casualty RBC requirements;
(6) “NAIC” means the National Association of Insurance Commissioners;
(7) “RBC instructions” means the RBC report, including risk-based capital instructions adopted by the NAIC, as these RBC instructions may be amended by the NAIC according to the procedures adopted by the NAIC;
(8) “RBC level” means a health organization'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”
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-1501
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:23-63-1501
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 36b645adce1bc4a9e12514c597021375fe5d93ba1fcf1bbaa67c24d35a0c8ce2
Source location: content.xml paragraph 33536
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23-63-1501. Definitions.
As used in this subchapter:
(1) “Adjusted RBC report” means an RBC report that has been adjusted by the Insurance Commissioner in accordance with § 23-63-1502(d);
(2) “Corrective order” means an order issued by the commissioner specifying corrective actions that the commissioner has determined are required;
(3) “Domestic health organization” means:
(A) A health maintenance organization domiciled in this state, as established under § 23-76-107; or
(B) A hospital and medical service corporation as defined in § 23-75-101;
(4) “Foreign health organization” means a health organization licensed to do business in this state but is not domiciled in this state;
(5)(A) “Health organization” means a health maintenance organization, hospital and medical service corporation, limited health service organization, dental or vision plan, hospital, or a medical and dental indemnity or service corporation.
(B) “Health organization” does not include:
(i) An organization that is licensed as either a life and health insurer; or
(ii) A property and casualty insurer that is subject to the life or property and casualty RBC requirements;
(6) “NAIC” means the National Association of Insurance Commissioners;
(7) “RBC instructions” means the RBC report, including risk-based capital instructions adopted by the NAIC, as these RBC instructions may be amended by the NAIC according to the procedures adopted by the NAIC;
(8) “RBC level” means a health organization'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 a health organization, the product of two (2) and its authorized control level RBC;
(C) “Mandatory control level RBC” means the product of seven-tenths (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;
(9) “RBC plan” means a comprehensive financial plan containing the elements specified in § 23-63-1503(b). If the commissioner rejects the RBC plan and it is revised by the health organization with or without the commissioner's recommendation, the plan shall be called the “revised RBC plan”;
(10) “RBC report” means the report required in § 23-63-1502; and
(11) “Total adjusted capital” means the sum of:
(A) A health organization's statutory capital and surplus, such as net worth, as determined according to the statutory accounting applicable to the annual financial statements required to be filed; and
(B) Other items that the RBC instructions may provide.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-1502. RBC reports.
(a)(1) On or before each March 1, the “filing date”, a domestic health organization shall prepare and submit to the Insurance Commissioner a report of its RBC levels as of the end of the calendar year just ended, in a form and containing the information required by the RBC instructions.
(2) A domestic health organization shall file its RBC report:
(A) With the NAIC according to the RBC instructions; and
(B) With the insurance commissioner in a state in which the health organization is authorized to do business if the insurance commissioner has notified the health organization of its request in writing, in which case the health organization shall file its RBC report by the later of:
(i) Fifteen (15) days from the receipt of notice to file its RBC report with that state; or
(ii) The filing date.
(b) A health organization's RBC is determined according to the formula stated in the RBC instructions. The formula shall take the following into account and may adjust for the covariance between, determined in each case by applying the factors in the way stated in the RBC instructions:
(1) Asset risk;
(2) Credit risk;
(3) Underwriting risk; and
(4) Other business risks and other relevant risks as are stated in the RBC instructions.
(c) An excess of capital, including net worth, over the amount produced by the risk-based capital requirements contained in this subchapter and the formulas, schedules, and instructions referenced in this subchapter is desirable in the business of health insurance. Accordingly, health organizations should seek to maintain capital above the RBC levels required by this subchapter. Additional capital is useful in the insurance business and helps to secure a health organization against various risks inherent
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-1502
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 23-63-1502. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-1503. Company action level event.
(a) “Company action level event” means any of the following events:
(1) The filing of an RBC report by a health organization that indicates that the health organization's total adjusted capital is greater than or equal to its regulatory action level RBC but less than its company action level RBC;
(2) For the year ending December 31, 2011, and each following year, if a health organization has total adjusted capital that:
(A) 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
(B) The triggering of the trend test determined in accordance with the trend test calculation included in the health organization's RBC instructions;
(3) The notification by the Insurance Commissioner to the health organization of an adjusted RBC report that indicates an event in subdivision (a)(1) of this section, provided the health organization does not challenge the adjusted RBC report under § 23-63-1507; or
(4) If under § 23-63-1507 a health organization challenges an adjusted RBC report that indicates the event in subdivision (a)(1) of this section, the notification by the commissioner to the health organization that the commissioner, after a hearing, has rejected the health organization's challenge.
(b) In the event of a company action level event, the health organization shall prepare and submit to the commissioner an RBC plan that shall:
(1) Identify the conditions that contribute to the company action level event;
(2) Contain proposals of corrective actions that the health organization intends to take and that would be expected to result in the elimination of the company action level event;
(3)(A) Provide projections of the health organization'
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-1503
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 23-63-1503. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-75-101. Definition.
(a) As used in this chapter, “hospital service corporations”, “medical service corporations”, and “hospital and medical service corporations” are corporations organized under the laws of this state for the purpose of establishing, maintaining, and operating nonprofit hospital service or medical service plans, or combination of plans, whereby hospital, medical, and related services may be provided by hospitals, physicians, or others with which the corporations have contracted for the purposes, to such of the public as become subscribers to the corporations under contracts which entitle each subscriber to certain hospital or medical services or benefits, or both.
(b) This section shall not be deemed to prohibit issuance, by corporations so authorized as of immediately prior to January 1, 1960, of contracts providing for the payment of cash indemnities for hospital, medical, or related services instead of providing for hospital or medical benefits on a service basis or from issuing contracts providing for a combination of indemnity and service benefits.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-75-101
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 23-75-101. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-76-107. Establishment.
(a)(1) Any person that meets the requirements of § 23-76-102(9) may apply to the Insurance Commissioner for and obtain a certificate of authority to establish and operate a health maintenance organization.
(2) No person shall establish or operate a health maintenance organization in this state, nor sell or offer to sell, nor solicit offers to purchase or receive advance or periodic consideration in conjunction with a health maintenance organization without obtaining a certificate of authority under this chapter.
(3) The corporation must have the express authority to operate a health maintenance organization contained in its articles of incorporation. Incorporation shall not be required of any entity that has been issued a certificate of authority prior to March 30, 1987.
(b)(1) Every health maintenance organization, as of July 9, 1975, shall submit an application for a certificate of authority under subsection (c) of this section within sixty (60) days of July 9, 1975.
(2) Each applicant may continue to operate until the commissioner acts upon the application.
(3) In the event that an application is denied under § 23-76-108, the applicant shall henceforth be treated as a health maintenance organization whose certificate of authority has been revoked.
(c) Each application for a certificate of authority shall be verified by an officer or authorized representative of the applicant, shall be in a form prescribed by the commissioner, and shall set forth or be accompanied by the following:
(1) A copy of the basic organizational document, if any, of the applicant, such as the articles of incorporation, articles of association, partnership agreement, trust agreement, or other applicable documents, and all amendments thereto;
(2) A cop
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-76-107
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 23-76-107. This identifies an authority to review, not proof of applicability.