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23-63-516. Examination.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-516. Examination.
(a) Power of Insurance Commissioner. Subject to the limitation contained in this section and in addition to the powers of the Insurance Commissioner under § 23-61-101 et seq., § 23-61-201 et seq., and § 23-61-301 et seq. to examine insurers, the commissioner may examine an insurer registered under § 23-63-514 and the insurer's affiliates to ascertain the financial condition of the insurer, including the enterprise risk to the insurer by the ultimate controlling party, by any entity or combination of entities within the insurance holding company system, or by the insurance holding company system on a consolidated basis.
(b)Access to Books and Records.
(1) The commissioner may order an insurer registered under § 23-63-514 to produce books, records, or other information in the possession of affiliates as reasonably necessary to determine the registered insurer's compliance with this subchapter.
(2)(A) In order to determine compliance with this subchapter, the commissioner may order an insurer registered under § 23-63-514 to produce information not in the possession of the insurer if the insurer can obtain access to the information under contractual relationships, statutory obligations, or other methods.
(B)(i) If the insurer is unable to produce the information requested by the commissioner, the insurer shall provide an acceptable explanation to the commissioner and identify the holder of the information.
(ii) However, if it appears to the commissioner that the insurer's explanation is without merit, the commissioner, after notice and a hearing, may:
(a) Require the insurer to pay a penalty of one hundred dollars ($100) per day until the commissioner receives the requested information; or
(b) Suspend or revoke the insurer's certific
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-516
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:23-63-516
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: f9ef668d54096744ea70a1ba544e8fa30ed23d813c1140b2236c19f209cd849e
Source location: content.xml paragraph 31814
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23-63-516. Examination.
(a) Power of Insurance Commissioner. Subject to the limitation contained in this section and in addition to the powers of the Insurance Commissioner under § 23-61-101 et seq., § 23-61-201 et seq., and § 23-61-301 et seq. to examine insurers, the commissioner may examine an insurer registered under § 23-63-514 and the insurer's affiliates to ascertain the financial condition of the insurer, including the enterprise risk to the insurer by the ultimate controlling party, by any entity or combination of entities within the insurance holding company system, or by the insurance holding company system on a consolidated basis.
(b)Access to Books and Records.
(1) The commissioner may order an insurer registered under § 23-63-514 to produce books, records, or other information in the possession of affiliates as reasonably necessary to determine the registered insurer's compliance with this subchapter.
(2)(A) In order to determine compliance with this subchapter, the commissioner may order an insurer registered under § 23-63-514 to produce information not in the possession of the insurer if the insurer can obtain access to the information under contractual relationships, statutory obligations, or other methods.
(B)(i) If the insurer is unable to produce the information requested by the commissioner, the insurer shall provide an acceptable explanation to the commissioner and identify the holder of the information.
(ii) However, if it appears to the commissioner that the insurer's explanation is without merit, the commissioner, after notice and a hearing, may:
(a) Require the insurer to pay a penalty of one hundred dollars ($100) per day until the commissioner receives the requested information; or
(b) Suspend or revoke the insurer's certificate of authority to transact business in this state.
(c) Use of Consultants. The commissioner may retain at the insurer's expense attorneys, actuaries, accountants, and other experts not otherwise a part of the commissioner's staff as reasonably necessary to assist in an examination under subsection (a) of this section. Any person retained as a consultant shall be under the direction and control of the commissioner and shall act in an advisory capacity.
(d) Expenses. Each registered insurer producing for examination records, books, and papers under subsection (a) of this section shall be liable for and shall pay the expense of the examination in accordance with § 23-61-101 et seq., § 23-61-201 et seq., and § 23-61-301 et seq.
(e)Production.
(1)(A) If an insurer fails to comply with an order of the commissioner, the commissioner may examine the insurer's affiliates to obtain the information.
(B) The commissioner may issue subpoenas, administer oaths, and examine under oath any person for purposes of determining compliance with this section.
(2)(A) Upon the failure or refusal of a person to obey a subpoena, the commissioner may petition a court of competent jurisdiction, and upon a proper showing, the court may enter an order compelling the witness to appear and testify or to produce documentary evidence.
(B) Failure to obey the court order is punishable as contempt of court.
(3)(A) When subpoenaed, a person shall attend as a witness at the place specified in the subpoena anywhere in this state.
(B)(i) A person under subpoena is entitled to the same fees and mileage as a witness in a civil action in a circuit court in this state.
(ii) In order to receive reimbursement for fees, mileage, and actual expenses, if any, necessarily incurred by a person under subpoena, the fees, mileage, and actual expenses shall be itemized, charged to, and paid by the insurer being examined.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-61-101. State Insurance Department — Continuation — Assignment of space.
(a)(1) There is created the State Insurance Department.
(2) The State Insurance Department is a division of the Department of Commerce.
(b) Suitable space shall be assigned for the use of the State Insurance Department.
(c)(1)(A) The purpose of the State Insurance Department is to serve and protect the public interest by the equitable enforcement of the state's laws and rules affecting the insurance industry.
(B) The primary mission of the State Insurance Department shall be consumer protection through insurer solvency and market conduct regulation, and fraud prosecution and deterrence.
(2) Nothing in this subsection shall be construed to limit the Insurance Commissioner's authority as enumerated in other provisions of the Arkansas Insurance Code.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-61-101
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 23-61-101. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-61-201. Examination of insurers required.
(a)(1) The Insurance Commissioner shall examine the affairs, transactions, accounts, records, market conduct activity, and assets of each authorized insurer as often as in the commissioner's sole discretion he or she deems advisable.
(2) The commissioner shall so examine each authorized insurer not less frequently than every five (5) years.
(3) Examination of an alien insurer shall be limited to its insurance transactions and affairs in the United States.
(4) In scheduling and determining the nature, scope, and frequency of the examinations, the commissioner shall consider such matters as the results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports of independent certified public accountants, and other criteria as set forth in the most current edition of the applicable examiners handbook and other standards adopted by the National Association of Insurance Commissioners and in effect when the commissioner exercises discretion to conduct an examination under subdivision (a)(1) of this section.
(b) The commissioner may, in like manner, examine each insurer applying for an initial certificate of authority to transact insurance in this state.
(c) In lieu of making his or her own examination of any foreign or alien insurer authorized in this state, the commissioner may, in his or her discretion, accept a full report of the last recent examination of a foreign or alien insurer as prepared by the insurance department for the company's state of domicile or port-of-entry state. After January 1, 1994, such reports may only be accepted by the commissioner if:
(1) The insurance department preparing the report was at the time of the examination accredited under the Na
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-61-201
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 23-61-201. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-61-301. Examination, investigation, or hearing — Witnesses and evidence.
(a) With respect to the subject of any examination, investigation, or hearing being conducted by the Insurance Commissioner, the commissioner may subpoena witnesses and administer oaths or affirmations and examine any individual under oath and may require and compel the production of records, books, papers, contracts, and other documents.
(b)(1) Witness fees and mileage shall not be allowed as to any licensee of the commissioner.
(2) Witness fees and mileage of persons or entities not licensees of the commissioner, if claimed, shall be allowed the same as for testimony in a circuit court. Provided, however, that such a claim must be made at the time, date, and place of the hearing to which the person or entity has been summoned, and the amount thereof shall be processed in the same manner as are State Insurance Department employees' requests for expense reimbursement from the State of Arkansas.
(3) Witness fees, mileage, and the actual expense necessarily incurred in securing attendance of witnesses and their testimony shall be itemized and shall be paid by the person being examined or investigated if, in the proceedings in which the witness is called, the person is found to have been in violation of the law, or paid by the person, if other than the commissioner, at whose request the hearing is held.
(c)(1) Subpoenas of witnesses shall be served in the same manner as if issued by a circuit court and may be served by certified mail.
(2) If any individual fails to obey a subpoena issued and served pursuant to this section with respect to any matter concerning which he or she may be lawfully interrogated, upon application of the commissioner, the circuit court of the county in which is
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-61-301
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 23-61-301. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-514. Registration of insurers.
(a) Registration. Every insurer that is authorized to do business in this state and that is a member of an insurance holding company system shall register with the Insurance Commissioner, except:
(1) A foreign insurer subject to disclosure requirements and standards adopted by code, statute, or regulation in the jurisdiction of its domicile that are substantially similar to those contained in this section; and
(2) A domestic insurer or a domestic holding company system authorized and doing business solely within this state that:
(A) Is not affiliated with a foreign or alien insurer; and
(B) Reported less than seven million dollars ($7,000,000) in gross premium during the most recent annual reporting period.
(b) Information and Form Required. Every insurer subject to registration shall file a registration statement on a form prescribed by the National Association of Insurance Commissioners, which shall contain current information about:
(1) The capital structure, general financial condition, and ownership and management of the insurer and any person controlling the insurer;
(2) The identity of every member of the insurance holding company system;
(3) The following agreements in force, relationships subsisting, and transactions currently outstanding between the insurer and its affiliates:
(A) Loans, other investments, purchases, sales, or exchanges of securities of the affiliates by the insurer or of the insurer by its affiliates;
(B) Purchases, sales, or exchanges of assets;
(C) Transactions not in the ordinary course of business;
(D) Guarantees or undertakings for the benefit of an affiliate which result in an actual contingent exposure of the insurer's assets to liability, other than insurance contracts
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-514
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 23-63-514. This identifies an authority to review, not proof of applicability.