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23-95-105. Plan for coverage — Contents.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-95-105. Plan for coverage — Contents.
(a) Each plan promulgated or prepared pursuant to § 23-95-104 shall:
(1) Give consideration to:
(A) The need for adequate and readily accessible coverage;
(B) Optional methods of improving the market affected;
(C) The inherent limitations of the insurance mechanism;
(D) The need for reasonable underwriting standards; and
(E) The requirement of reasonable loss prevention measures;
(2) Establish procedures that will create minimum interference with the voluntary market;
(3) Distribute the obligations imposed by the plan and any profits or losses experienced by the plan equitably and efficiently among the participating insurers;
(4) Establish procedures for applicants and participants to have their grievances reviewed by an impartial body. The filing and processing of a complaint or grievance pursuant to this section does not waive or stay the requirement for participation in the plan; and
(5) Establish a rating plan which shall be actuarially sound.
(b) Each plan may, on behalf of its participants:
(1) Issue policies of insurance to eligible applicants;
(2) Underwrite, adjust, and pay losses on insurance issued by the plan;
(3) Appoint a service company or companies to perform the functions enumerated in this subsection; and
(4) Obtain reinsurance for any part or all of its risks.
(c) Participation by the insurer in the losses and expenses of the plan shall be in the proportion that the direct written premiums of the insurer written in this state bears to the total aggregate written premium written in this state. Premiums which serve as the basis for participation in other risk-sharing plans established under prior law shall be excluded both from the insurer's direct written premium and the total a
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-95-105
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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Authority boundary: historical statutory source snapshot not current law.
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Record provenance
Stable record: arkansas_code:legal_authorities:23-95-105
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 1c82dbb4035596f52911718cc080319f1ca6f8ad4da910a8746a944da125eab7
Source location: content.xml paragraph 57101
Stored source content
23-95-105. Plan for coverage — Contents.
(a) Each plan promulgated or prepared pursuant to § 23-95-104 shall:
(1) Give consideration to:
(A) The need for adequate and readily accessible coverage;
(B) Optional methods of improving the market affected;
(C) The inherent limitations of the insurance mechanism;
(D) The need for reasonable underwriting standards; and
(E) The requirement of reasonable loss prevention measures;
(2) Establish procedures that will create minimum interference with the voluntary market;
(3) Distribute the obligations imposed by the plan and any profits or losses experienced by the plan equitably and efficiently among the participating insurers;
(4) Establish procedures for applicants and participants to have their grievances reviewed by an impartial body. The filing and processing of a complaint or grievance pursuant to this section does not waive or stay the requirement for participation in the plan; and
(5) Establish a rating plan which shall be actuarially sound.
(b) Each plan may, on behalf of its participants:
(1) Issue policies of insurance to eligible applicants;
(2) Underwrite, adjust, and pay losses on insurance issued by the plan;
(3) Appoint a service company or companies to perform the functions enumerated in this subsection; and
(4) Obtain reinsurance for any part or all of its risks.
(c) Participation by the insurer in the losses and expenses of the plan shall be in the proportion that the direct written premiums of the insurer written in this state bears to the total aggregate written premium written in this state. Premiums which serve as the basis for participation in other risk-sharing plans established under prior law shall be excluded both from the insurer's direct written premium and the total aggregate direct written premium in determining participation in the losses and expenses of the plan.
(d) Each plan shall provide for:
(1) The method of classifying risks;
(2) The making and filing of rates which are not excessive, inadequate, or unfairly discriminatory and policy forms applicable to the various risks insured by the plan;
(3) The adjusting and processing of claims;
(4) The commission rates to be paid to agents or brokers for coverages written by the plan; and
(5) Any other insurance of investment functions that are necessary for the purpose of providing adequate and readily accessible coverage.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-95-104. Plan for coverage — Requirement.
(a)(1) If the Insurance Commissioner finds after a hearing that in all or in any part of this state, any amount or kind of insurance authorized by §§ 23-62-104 and 23-62-105 is not reasonably available in the voluntary market and that the public interest requires the availability of that insurance, the commissioner shall direct insurers doing business within this state to prepare a voluntary plan which will provide that insurance coverage.
(2) The plan shall be submitted to the commissioner within the time he or she designates and, if approved by him or her, may be put into operation.
(3) If the plan is not approved by the commissioner or if the plan is not submitted as required, the commissioner may promulgate a plan to provide insurance coverage for any risks in this state which, based on reasonable underwriting standards, are entitled to obtain coverage, but are otherwise unable to obtain coverage in the voluntary market.
(b) All orders of the commissioner finding that a line of insurance is not reasonably available in the voluntary market shall consider, to the extent practicable, historical data from the past five (5) years regarding:
(1) Market availability;
(2) Major trends in policy forms, limits, and deductibles offered;
(3) Filed rates for the line if available;
(4) Loss ratios, claims severity, and claims frequency on both the state and national levels;
(5) Availability of surplus lines coverage;
(6) The types of insurers offering the line of insurance in the state;
(7) The existence of any residual market programs, market assistance programs, and captive insurance; and
(8) Whether alternatives to the creation of a risk-sharing plan are feasible.
(c) The commissioner may require licensed in
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-95-104
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 23-95-104. This identifies an authority to review, not proof of applicability.