Arkansas Administrative Code

23 CAR § 11-104. Underwriting. (a)(1) Availability of any contract shall not be denied to an insured or prospective insured on the basis of sex or marital status of the insured or prospective insured. (2) However, nothing in this rule shall prohibit an insurer from taking marital…

23 CAR § 11-105. Contract terms and conditions. (a) The amount of benefits payable, or any term, condition, or type of coverage shall not be restricted, modified, excluded, or reduced on the basis of the sex or marital status of the insured or prospective insured. (b) Specific pr…

23 CAR § 11-106. Rates. (a) When rates are differentiated on the basis of sex, the insurer must justify, in writing to the satisfaction of the Insurance Commissioner, the rate differential. (b) All rates: (1) Shall be based on: (A) Sound actuarial principles; and (B) A valid clas…

23 CAR § 11-107. Conversion. (a) If a dependent spouse becomes ineligible for continuation of coverage under a group insurance contract due to change in marital status, the dependent spouse will be eligible to convert to an individual policy subject to the conditions of the group…

23 CAR § 11-108. Revision of policy forms and certifications. (a)(1) All policy forms previously filed and approved by the State Insurance Department need not be refiled if such forms meet the requirements of this rule. (2) Any previously approved forms which are to be used in th…

23 CAR § 11-109. Severability. Any section or provisions of this rule held by a court to be invalid or unconstitutional will not affect the validity of any other section or provision of this rule.

23 CAR § 12-101. Purpose and scope. (a) The purpose of this rule is to improve the State Insurance Department’s surveillance of the financial condition of insurers by requiring: (1) An annual audit of financial statements reporting the financial position and the results of operat…

23 CAR § 12-102. Definitions. The terms and definitions contained herein are intended to provide guidance only as the terms are used within this rule: (1)(A) “Accountant” or “independent certified public accountant” means an independent certified public accountant or accounting f…

23 CAR § 12-103. General requirements related to filing and extensions for filing of annual audited financial reports and audit committee appointment. (a)(1) All insurers shall have an annual audit performed by an independent certified public accountant and shall file an audited …

23 CAR § 12-104. Contents of annual audited financial report. (a) The annual audited financial report shall report the financial position of the insurer as of the end of the most recent calendar year and the results of its operations, cash flows, and changes in capital and surplu…

23 CAR § 12-105. Designation of independent certified public accountant. (a)(1) Each insurer required by this rule to file an annual audited financial report must, within sixty (60) days after becoming subject to the requirement, register with the Insurance Commissioner in writin…

23 CAR § 12-106. Qualifications of independent certified public accountant. (a) The Insurance Commissioner shall not recognize a person or firm as a qualified independent certified public accountant if the person or firm: (1) Is not in good standing with the AICPA and in all stat…

23 CAR § 12-107. Consolidated or combined audits. (a) An insurer may make written application to the Insurance Commissioner for approval to file audited consolidated or combined financial statements in lieu of separate annual audited financial statements if the insurer is part of…

23 CAR § 12-108. Scope of audit and report of independent certified public accountant. (a)(1) Financial statements furnished pursuant to 23 CAR § 12-104 shall be examined by the independent certified public accountant. (2) The audit of the insurer’s financial statements shall be …

23 CAR § 12-109. Notification of adverse financial condition. (a) An insurer that is required to furnish the annual audited financial report shall also require the independent certified public accountant to report, in writing, within five (5) business days to the board of directo…

23 CAR § 12-110. Communication of internal control related matters noted in an audit. (a)(1) In addition to the annual audited financial report, each insurer shall furnish the Insurance Commissioner with a written communication as to any unremediated material weaknesses in its in…

23 CAR § 12-111. Accountant’s letter of qualifications. The accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual audited financial report, a letter stating the following: (1) The accountant is independent with respect to the insu…

23 CAR § 12-112. Availability and maintenance of independent certified public accountants’ workpapers. (a)(1) Every insurer required to file an audited financial report pursuant to this rule shall require the accountant to make available for review by State Insurance Department e…

23 CAR § 12-113. Requirements for audit committees. (a) This section shall not apply to: (1) Foreign or alien insurers licensed in this state; or (2) An insurer that is a SOX compliant entity or a direct or indirect wholly-owned subsidiary of a SOX compliant entity. (b)(1) The au…

23 CAR § 12-114. Internal audit function requirements. (a) Exemption. An insurer is exempt from the requirements of this section if: (1) The insurer has annual direct written and unaffiliated assumed premium, including international direct and assumed premium but excluding premiu…

23 CAR § 12-115. Conduct of insurer in connection with the preparation of required reports and documents. (a) No director or officer of an insurer shall, directly or indirectly: (1) Make or cause to be made a materially false or misleading statement to an accountant in connection…

23 CAR § 12-116. Management’s report of internal control over financial reporting. (a)(1) Every insurer required to file an audited financial report pursuant to this rule that has annual direct written and assumed premiums, excluding premiums reinsured with the Federal Crop Insur…

23 CAR § 12-117. Exemptions and effective dates. (a)(1) Upon written application of any insurer, the Insurance Commissioner may grant an exemption from compliance with any and all provisions of this rule if the commissioner finds, upon review of the application, that compliance w…

23 CAR § 12-118. Canadian and British companies. (a) In the case of Canadian and British insurers, the annual audited financial report shall be defined as the annual statement of total business on the form filed by such companies with their supervisory authority duly audited by a…

23 CAR § 12-119. Severability provision. If any section or portion of a section of this rule or its applicability to any person or circumstance is held invalid by a court, the remainder of the rule or the applicability of the provision to other persons or circumstances shall not …

23 CAR § 13-101. Purpose. The purpose of this rule is to authorize and to set forth the conditions and procedures for participation by insurers in modern systems for holding and transferring securities without physical delivery of securities certificates, specifically through uti…

23 CAR § 13-102. Scope. This rule applies to all: (1) Domestic insurers; (2) Hospital and medical service corporations; (3) Farmers mutual aid associations; and (4) Health maintenance organizations.

23 CAR § 13-103. Definitions. When used in this rule, the following definitions apply: (1)(A) "Agent" shall mean a national bank, state bank, or trust company that maintains an account in its name in a clearing corporation or which is a member of the Federal Reserve System and th…

23 CAR § 13-104. Terms not mutually exclusive. The terms defined in 23 CAR § 13-103 shall not be interpreted to be mutually exclusive. Example 1: As regards clearing corporations, an insurer may be a "direct participant" with a clearing corporation. In all other instances the ins…

23 CAR § 13-105. Use of book-entry systems. (a) With the prior approval of the Insurance Commissioner, an insurer may deposit within or outside this state or arrange for the deposit within or outside this state of securities held in or purchased for its general account and its se…

23 CAR § 13-106. Deposits of securities. (a) Securities held in book-entry systems may be used for purposes of deposits required by statute or arising from voluntary agreement with the Insurance Commissioner, provided that all such deposits must be placed through an approved cust…

23 CAR § 13-107. Custody agreement for banks — Requirements. (a)(1) An insurer may, by written agreement with a custodian authorized by a resolution of the insurer's board of directors or an authorized committee thereof, provide for the custody of its securities with a custodian,…

23 CAR § 13-108. Custody agreements for securities broker-dealers — Requirements. (a) All custodial agreements between a securities broker-dealer and an insurer shall comply with the following: (1) The agreement shall contain a clause appointing the securities firm to hold the in…

23 CAR § 13-110. Severability. If any section or portion of a section of this rule or its applicability to any person or circumstance is held invalid by a court, the remainder of the rule or the applicability of the provision to other persons or circumstances shall not be affecte…

23 CAR § 14-101. Purpose. The purpose of this part is to: (1) Implement Acts 1983, No. 534, as amended, and Arkansas Code § 23-64-202(b)(2), as amended by Acts 2021, No. 397, by establishing curricula for courses of instruction required to be completed by applicants seeking insur…

23 CAR § 14-102. Applicability and scope. (a) Applicability. (1) This part shall apply to insurance producers, including original license applicants or currently licensed applicants seeking an additional line of authority, which for purposes of this part shall be deemed to includ…

23 CAR § 14-103. Course requirements. (a) All applicants for an Arkansas life line of authority are hereby required to complete a course of instruction with a minimum of twenty (20) hours of instruction that includes, but is not limited to, all of the following, as applicable: (1…

23 CAR § 14-104. Instructor and electronic education instructor/proctor qualifications. (a)(1)(A) Instructors must have had specific insurance training or educational experiencesatisfactory to and approved by the Insurance Commissioner in order to be certified to teach any part o…

23 CAR § 14-105. Course provider requirements. (a)(1) Application for approval as a course provider shall be submitted to the State Insurance Department not less than ninety (90) days prior to the expected use of the program. (2) A course provider shall include the following info…

23 CAR § 14-106. Program review. The State Insurance Department shall have the authority to visit a training facility and review its program at any time including, but not limited to, curriculum records and attendance records.

23 CAR § 14-107. Licensing procedure of applicant. (a) The required hours of instruction must be completed prior to the date of the licensing examination. (b)(1) The instructor or designated official of the course provider shall complete an original and one (1) copy of each indiv…

23 CAR § 14-108. Completion of course requirements. Educational requirements must be completed no more than two (2) years prior to taking the license exam for course certification to be valid.

23 CAR § 14-109. Violations. State Insurance Department approval of instructors and course providers of instruction courses may be withdrawn for violations of this part.

23 CAR § 14-110. Severability. Any section or provision of this part held by a court to be invalid or unconstitutional will not affect the validity of any other section or provision of this part.

23 CAR § 15-101. Purpose. (a) The purpose of this rule is to define certain minimum standards which, if violated with such frequency as to indicate a general business practice, will be deemed to constitute unfair claims settlement practices. (b) Arkansas Code § 23-66-201 et seq.,…

23 CAR § 15-102. Applicability and scope. (a) This rule applies to all persons, to all insurance policies and insurance contracts, and to all contracts, certificates, subscriber agreements, or other evidences of coverage issued by insurers, health maintenance organizations, and r…

23 CAR § 15-103. Definitions. (a) The definitions of "person", "evidence of coverage", and of "insurance policy or insurance contract" contained in the Trade Practices Act, Arkansas Code § 23-66-203, and in Arkansas Code § 23-76-102 shall apply to this part. (b) In addition, wher…

23 CAR § 15-104. File and record documentation. (a) The claim files of insurers, including health carriers, shall be subject to examination by the Insurance Commissioner or by his or her duly appointed designees. (b) Such files shall contain all notes and work papers pertaining t…

23 CAR § 15-105. Failure to acknowledge pertinent communications. (a) The provisions of this section shall not apply to persons that are defined as health carriers under 23 CAR § 15-103(b)(8). (b)(1) Every insurer, upon receiving notification of a claim shall, within fifteen (15)…

23 CAR § 15-106. Standards for prompt investigation of claims. (a) The provisions of this section shall not apply to persons that are defined as health carriers under 23 CAR § 15-103(b)(8). (b)(1) Every insurer shall complete investigation of a claim within forty-five (45) calend…