23-63-216. Annual statement and other information.

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 commissioner may allow a life insurer or property and casualty insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least ninety-five percent (95%) of its total premium considerations or total statutory required reserves, respectively, to file the “Annual Statement Blank for Health” as its annual statement with the companion quarterly statement forms. (8)(A) The National Association of Insurance Commissioners' annual statement convention blank shall be verified by the oath of the insurer's president or vice president and secretary, treasurer, or actuary, as applicable, or if a reciprocal insurer, by its attorney in fact or if a corporation, its like officers. (B)(i) The statement of an alien insurer shall be verified by the oath of the insurer's United States manager or other officer authorized and shall relate only to its transactions and affairs in the United States unless the commissioner requires otherwise. (ii) If the commissioner requires a statement as to the alien insurer's affairs throughout the world, the insurer shall file the statement with the commissioner as soon as reasonably possible. (C) The commissioner may waive a requirement under this section for verification under oath. (9)(A) The commissioner may refuse to continue the insurer's certificate of authority, as provided in § 23-63-211, or may suspend or revoke the certificate of authority of an insurer failing to file its annual statement when due. (B)(i) In addition, the insurer shall be subject to a penalty of one hundred dollars ($100) for each day of delinquency. (ii) The penalty shall be collected by the commissioner, if necessary, by a civil suit brought by the commissioner in Pulaski County Circuit Court, unless the penalty is waived by the commissioner upon a showing by the insurer of good cause for its failure to file its report on or before the date due. (10) At the time of filing, the insurer shall pay the fee for filing its annual statement as prescribed by § 23-61-401. (11) In addition to information called for and furnished in connection with its annual statement, an insurer shall furnish to the commissioner as soon as reasonably possible such information with respect to its transactions or affairs as the commissioner requests in writing. (12)(A) In accordance with the specifications applicable to annual financial statements, each authorized domestic insurer and health maintenance organization and hospital or medical service corporation, or other domestic licensee so directed by the State Insurance Department in writing shall also file with the commissioner a quarterly financial statement on a form prescribed by the commissioner not later than forty-five (45) days following the end of each of the first three (3) calendar quarters of each year, excepting the fourth quarter of each calendar year, that shall be reconciled in the annual financial statement. (B) The filing specifications of this section for annual financial reports apply to quarterly financial reports. (b)(1)(A) In addition to the information required by subsection (a) of this section, an authorized insurer reporting fifty thousand dollars ($50,000) or more in annual gross premiums shall file for each line of business written in this state a market conduct annual statement, or successor product, in the general form and context, in the time frame required by, and according to instructions provided by the National Association of Insurance Commissioners. (B) If a particular line of business does not have an approved market conduct annual statement form, the authorized insurer is not required to file a report for that line of business until such time as the National Association of Insurance Commissioners adopts a market conduct annual statement form for that line of business. (2) An insurer is not required to file a market conduct annual statement under subdivision (b)(1) of this section if the insurer: (A) Sells prepaid funeral or prepaid legal products only; or (B) Is licensed only in this state. (3) The commissioner may, for good cause, grant an extension of time for filing a market conduct annual statement, if a written application for an extension of time is received at least five (5) business days before the filing due date. (c)(1) Insurers shall submit the market conduct annual statement data required by subsection (b) of this section in an electronic format and manner as prescribed by the commissioner. The commissioner may designate the National Association of Insurance Commissioners to receive the market conduct annual statement on his or her behalf, for the purpose of collecting, compiling, aggregating, and reporting on market conduct annual statement data. (2) Any forms or data submitted by the insurer as market conduct annual statement data under this subsection are deemed to be documents or information obtained from the insurer by the department as examination under § 23-61-207 without the necessity of a formal examination notice under § 23-61-203 or examination report and adoption order under § 23-61-205. (d)(1)(A) Annually on or before March 1, each domestic, foreign, and alien insurer authorized to transact business in this state shall file with the National Association of Insurance Commissioners a copy of its annual statement convention blank, along with such additional filings as prescribed by the commissioner as of the December 31 preceding. (B) The information filed with the National Association of Insurance Commissioners shall be in the same format and scope as that required by the commissioner and shall include the signed jurat page and the actuarial certification. (C) Any amendments and addendums to the annual statement filing subsequently filed with the commissioner shall also be filed with the National Association of Insurance Commissioners. (2) Foreign insurers that are domiciled in a state with a law substantially similar to this subsection and comply with their state's law are in compliance with this subsection. (3) In the absence of malice, members of the National Association of Insurance Commissioners, their committees, subcommittees, task forces, delegates, employees, and others charged with the responsibility of collecting, reviewing, analyzing, and disseminating the information developed from the filing of the annual statement convention blanks shall be acting as agents of the commissioner under the authority of this subsection and shall not be subject to civil liability for libel, slander, or another cause of action by virtue of their collection, review, and analysis or dissemination of the data and information collected from the filings required in this section. (4) The commissioner may impose the sanctions set out in subdivision (a)(9) of this section on an insurer failing to file its annual statement with the National Association of Insurance Commissioners when due or within an extension of time that the commissioner for good cause has granted. (5) Each authorized insurer shall submit its annual and quarterly statement and supplemental information to the National Association of Insurance Commissioners in electronic format as specified by the National Association of Insurance Commissioners. (e)(1) Each domestic insurer authorized to transact business in this state shall include in its annual statement an opinion, as is relevant to the lines of business the domestic insurer is authorized to write, on its life and health policy and claim reserves and its property and liability loss and loss adjustment expense reserves by a qualified actuary. (2) The opinion shall be in the format prescribed by the National Association of Insurance Commissioners' Annual and Quarterly Statement Instruction handbook. (f)(1) An insurer or a related entity licensed to do business in this state shall maintain the insurer's or the related entity's books, records, and documents in a manner that allows the commissioner to readily ascertain during an examination the insurer's or the related entity's compliance with the insurance laws of this state, rules, and the standards outlined in the most recent and appropriate companion National Association of Insurance Commissioners’ Market Conduct Examiners Handbook, including without limitation company operations and management, policyholder service, marketing, producer licensing, underwriting, rating, complaint handling, grievance handling, and claims practices. (2) A health insurer or a related entity shall maintain the health insurer's or the related entity's books, records, and documents in a manner that allows the commissioner to readily ascertain during a market conduct examination the health insurer's or the related entity's practices regarding network adequacy, utilization review, quality assessment and improvement, and provider credentialing. (3) The records described under subdivisions (f)(1) and (2) of this section shall be retained for the current year plus five (5) calendar years.