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23-79-515. Orderly cessation of operations.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-79-515. Orderly cessation of operations.
(a)(1) The Arkansas Comprehensive Health Insurance Pool shall cease enrollment and coverage under the plan on and after January 1, 2014, as required by federal law.
(2) After taking all reasonable steps, including those specified in this section, to timely and efficiently assist in the transition of individuals receiving plan coverage to the individual health insurance market, the Board of Directors of the Arkansas Comprehensive Health Insurance Pool shall cease operating the pool after paying health insurance claims for plan coverage and meeting all other obligations of the board under this section.
(b) The board may take all actions it deems necessary to:
(1) Cease enrollment for plan coverage effective December 1, 2013;
(2)(A) Terminate all existing plan coverage effective at the end of the calendar day on December 31, 2013.
(B) The board shall provide at least ninety (90) days notice to current policyholders of the termination; and
(3) Amend plan policies and provide adequate notice to policyholders, agents, and providers that to be paid or reimbursed, a claim for plan services is required to be filed by the earlier of one hundred eighty (180) days after plan coverage ends or three hundred sixty-five (365) days after the date of service giving rise to the claim.
(c) This section does not require the board to revise plan benefits to comply with federal law or to maintain plan coverage for any individual after December 31, 2013.
(d)(1) After all plan coverage terminates under this section, the board shall take reasonable steps to wind up all significant operations of the pool by December 31, 2014.
(2) Notwithstanding any other provision of this subchapter, to facilitate an efficient cessation of operation
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-79-515
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:23-79-515
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 44a5dde110b86afd91dce35628ec904f1c20e8de406330963828768dc992c339
Source location: content.xml paragraph 47321
Stored source content
23-79-515. Orderly cessation of operations.
(a)(1) The Arkansas Comprehensive Health Insurance Pool shall cease enrollment and coverage under the plan on and after January 1, 2014, as required by federal law.
(2) After taking all reasonable steps, including those specified in this section, to timely and efficiently assist in the transition of individuals receiving plan coverage to the individual health insurance market, the Board of Directors of the Arkansas Comprehensive Health Insurance Pool shall cease operating the pool after paying health insurance claims for plan coverage and meeting all other obligations of the board under this section.
(b) The board may take all actions it deems necessary to:
(1) Cease enrollment for plan coverage effective December 1, 2013;
(2)(A) Terminate all existing plan coverage effective at the end of the calendar day on December 31, 2013.
(B) The board shall provide at least ninety (90) days notice to current policyholders of the termination; and
(3) Amend plan policies and provide adequate notice to policyholders, agents, and providers that to be paid or reimbursed, a claim for plan services is required to be filed by the earlier of one hundred eighty (180) days after plan coverage ends or three hundred sixty-five (365) days after the date of service giving rise to the claim.
(c) This section does not require the board to revise plan benefits to comply with federal law or to maintain plan coverage for any individual after December 31, 2013.
(d)(1) After all plan coverage terminates under this section, the board shall take reasonable steps to wind up all significant operations of the pool by December 31, 2014.
(2) Notwithstanding any other provision of this subchapter, to facilitate an efficient cessation of operations:
(A) The board may continue to use existing contractors until cessation of operations without the need to issue competitive requests for proposals;
(B) The board may continue to fund operations of this subchapter under § 23-79-507;
(C) The board shall remain in effect:
(i) As provided by § 23-79-504(b); and
(ii) Until a judgment, order, or decree in any action, suit, or proceeding commenced against or by the pool is fully executed; and
(D)(i) The term of each current board member shall be extended until the date the pool concludes all business as provided under this section and the Insurance Commissioner certifies the cessations of operations under subsection (g) of this section.
(ii) The term of a board member expires when the commissioner certifies the cessations of operations under subsection (g) of this section.
(e) On or before June 30, 2013, the board shall amend the plan of operation to reflect the actions necessary to implement this section.
(f) If the board has excess funds after the cessation of operations of the pool, the funds shall be returned to the general revenue funds of the state.
(g)(1) On or before March 1, 2016, or a later date if necessary to complete the cessation of operations of the pool, the board shall file a report with the General Assembly and commissioner that reflects completion of the requirements of this section and includes an independent auditor's report on the financial statements of the pool.
(2) If satisfied upon review of the report that the board has complied with this section and accomplished the pool's cessation of operations in a reasonable manner, the commissioner shall certify that the business of the pool has concluded in accordance with this section and publish the certification on the State Insurance Department website.
(h) Upon certification under subsection (g) of this section, the operations of the pool are suspended indefinitely unless reactivated by the General Assembly.
(i) The commissioner may address any matters regarding the pool arising after the certification under subsection (g) of this section, and the Attorney General shall defend a legal action filed after the certification, including seeking the dismissal of the action under § 23-79-516 or for any other purpose.
(j) Unless inconsistent with this section, the remainder of this subchapter continues to apply to the pool and the board.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-79-504. Arkansas Comprehensive Health Insurance Pool.
(a) There is created a nonprofit legal entity to be known as the “Arkansas Comprehensive Health Insurance Pool” as the successor entity to the nonprofit legal entity established by Acts 1995, No. 1339.
(b)(1) The pool shall operate subject to the supervision and control of the Board of Directors of the Arkansas Comprehensive Health Insurance Pool. The pool is created as a political subdivision, instrumentality, and body politic of the State of Arkansas, and, as such, is not a state agency.
(2) Except to the extent defined in this subchapter, the pool will be exempt from:
(A) All state, county, and local taxes;
(B) The Arkansas Procurement Law, § 19-11-201 et seq.;
(C) The Freedom of Information Act of 1967, § 25-19-101 et seq.; and
(D) The Arkansas Administrative Procedure Act, § 25-15-201 et seq.
(3) The board shall consist of the following seven (7) members to be appointed by the Insurance Commissioner:
(A) Two (2) current or former representatives of insurance companies licensed to do business in the State of Arkansas;
(B) Two (2) current or former representatives of health maintenance organizations licensed to do business in the State of Arkansas;
(C) One (1) member of a health-related profession licensed in the State of Arkansas;
(D) One (1) member from the general public who is not associated with the medical profession, a hospital, or an insurer; and
(E) One (1) member to represent a group considered to be uninsurable.
(4) In making appointments to the board, the commissioner shall strive to ensure that at least one (1) person serving on the board is at least sixty (60) years of age.
(5) All terms shall be for three (3) years.
(6) The board shall elect one (1) of its members
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-79-504
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 23-79-504. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-79-507. Funding of pool.
(a)Premiums.
(1)(A) The Arkansas Comprehensive Health Insurance Pool shall establish premium rates for plan coverage as provided in subdivision (a)(2) of this section.
(B) Separate schedules of premium rates based on age, sex, and geographical location may apply for individual risks.
(C) Premium rates and schedules shall be submitted to the Insurance Commissioner for approval prior to use.
(2)(A)(i) With the assistance of the commissioner, the pool shall determine a standard risk rate by considering the premium rates charged by other insurers offering health insurance coverage to individuals in Arkansas.
(ii) The standard risk rate shall be established using reasonable actuarial techniques and shall reflect anticipated experience and expenses for the coverage.
(B)(i) Rates for plan coverage shall not exceed one hundred fifty percent (150%) of rates established as applicable for individual standard risks in Arkansas.
(ii) Subject to the limits provided in this subdivision (a)(2), subsequent rates shall be established to help provide for the expected costs of claims, including recovery of prior losses, expenses of operation, investment income of claim reserves, and any other cost factors subject to the limitations described in this section.
(b)Sources of Additional Revenue.
(1) In addition to the powers enumerated in § 23-79-506, the pool shall have the authority to:
(A) Assess insurers in accordance with the provisions of this section; and
(B)(i) Make advance interim assessments as may be reasonable and necessary for the pool's organizational and interim operating expenses.
(ii) Any such interim assessments may be credited as offsets against any regular assessments due following the close of the fiscal year.
(2)(A) Fo
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-79-507
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 23-79-507. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-79-516. Statute of limitations and repose.
Because winding up the operations of the Arkansas Comprehensive Health Insurance Pool requires the expeditious determination of its outstanding liabilities, a cause of action against the pool or the Board of Directors of the Arkansas Comprehensive Health Insurance Pool shall be commenced within the earlier of one (1) year after the cause of action accrues or December 31, 2015.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-79-516
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. The source passage cites 23-79-516. This identifies an authority to review, not proof of applicability.