Arkansas Administrative Code

23 CAR § 24-203. Appointed actuary. (a) An “appointed actuary” is a qualified actuary who is appointed or retained to prepare the statement of actuarial opinion required by this part, either directly by or by the authority of the board of directors through an executive officer of…

23 CAR § 24-204. Standards for asset adequacy analysis. The asset adequacy analysis required by this part shall: (1) Conform to the Standards of Practice as promulgated from time to time by the Actuarial Standards Board and on any additional standards under this part, which stand…

23 CAR § 24-205. Liabilities to be covered. (a) Under authority of Arkansas Code § 23-84-112, the statement of actuarial opinion shall apply to all in-force business on the statement date, whether directly issued or assumed, regardless of when or where issued, e.g., reserves of E…

23 CAR § 24-301. General description. The statement of actuarial opinion submitted in accordance with this subpart shall consist of: (1) A paragraph identifying the appointed actuary and his or her qualifications, see 23 CAR § 24-302(b); (2) A scope paragraph identifying the subj…

23 CAR § 24-302. Recommended language. (a)(1) The following paragraphs are to be included in the statement of actuarial opinion in accordance with this subpart. (2)(A) Language is that which in typical circumstances should be included in a statement of actuarial opinion. (B) The …

23 CAR § 24-303. Assumptions for new issues. The adoption for new issues or new claims or other new liabilities of an actuarial assumption that differs from a corresponding assumption used for prior new issues or new claims or other new liabilities is not a change in actuarial as…

23 CAR § 24-304. Adverse opinions. (a) If the appointed actuary is unable to form an opinion, then he or she shall refuse to issue a statement of actuarial opinion. (b)(1) If the appointed actuary’s opinion is adverse or qualified, then he or she shall issue an adverse or qualifi…

23 CAR § 24-305. Reliance on information furnished by other persons. (a) If the appointed actuary relies on the certification of others on matters concerning the accuracy or completeness of any data underlying the actuarial opinion, or the appropriateness of any other information…

23 CAR § 24-306. Alternate option. (a) The Standard Valuation Law for Life Insurance and Annuities, Arkansas Code § 23-84-101 et seq., gives the Insurance Commissioner broad authority to accept the valuation of a foreign insurer when that valuation meets the requirements applicab…

23 CAR § 24-401. General. (a)(1) In accordance with Arkansas Code § 23-84-112, the appointed actuary shall prepare a memorandum to the company describing the analysis done in support of his or her opinion regarding the reserves. (2) The memorandum shall be made available for exam…

23 CAR § 24-402. Details of the memorandum section documenting asset adequacy analysis. (a) When an actuarial opinion is provided, the memorandum shall demonstrate that the analysis has been done in accordance with the standards for asset adequacy referred to in 23 CAR § 24-204 a…

23 CAR § 24-403. Details of the regulatory asset adequacy issues summary. (a) The regulatory asset adequacy issues summary shall include: (1)(A) Descriptions of the scenarios tested (including whether those scenarios are stochastic or deterministic) and the sensitivity testing do…

23 CAR § 24-404. Conformity to Actuarial Standards of Practice. The memorandum shall include the following statement: “Actuarial methods, considerations and analyses used in the preparation of this memorandum conform to the appropriate Actuarial Standards of Practice as promulgat…

23 CAR § 24-405. Use of assets supporting the interest maintenance reserve and the asset valuation reserve. (a)(1) An appropriate allocation of assets in the amount of the interest maintenance reserve (IMR), whether positive or negative, shall be used in any asset adequacy analys…

23 CAR § 24-406. Documentation. The appointed actuary shall retain on file, for at least seven (7) years, sufficient documentation so that it will be possible to determine the: (1) Procedures followed; (2) Analyses performed; (3) Bases for assumptions; and (4) Results obtained.…

23 CAR § 24-501. Disciplinary actions. (a) The Insurance Commissioner may impose sanctions on companies which have failed to comply with the provisions of this part in: (1) Completing the annual statement with the appropriate actuarial certification and opinion; or (2) Failing to…

23 CAR § 25-101. Authority. This part is promulgated pursuant to the authority granted by Arkansas Code §§ 23-61-108 and 23-62-308, the Arkansas Administrative Procedure Act, Arkansas Code § 25-15-201 et seq., and other applicable laws.

23 CAR § 25-102. Purpose. (a) The purpose of this part is to set forth guidelines and procedural requirements that the Insurance Commissioner deems necessary to carry out the provisions of the Arkansas Credit for Reinsurance Law, Arkansas Code § 23-62-301 et seq. (b) The actions …

23 CAR § 25-103. Severability. If any provision of this part, or the application of the provision to any person or circumstance, is held invalid, the remainder of the part and the application of the provision to persons or circumstances other than those to which it is held invali…

23 CAR § 25-104. Credit for reinsurance — Reinsurer licensed in this state. Pursuant to Arkansas Code § 23-62-305(a)(4), the Insurance Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that was licensed in this state as of any date…

23 CAR § 25-105. Credit for reinsurance — Accredited reinsurers. (a)(1) Pursuant to Arkansas Code § 23-62-305(a)(5), the Insurance Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that is accredited as a reinsurer in this state as…

23 CAR § 25-106. Credit for reinsurance — Reinsurer domiciled in another state. (a) Pursuant to Arkansas Code § 23-62-305(b), the Insurance Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that as of any date on which statutory fi…

23 CAR § 25-107. Credit for reinsurance — Reinsurers maintaining trust funds. (a)(1) Pursuant to Arkansas Code § 23-62-305(c) – (d), the Insurance Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer which, as of any date on which sta…

23 CAR § 25-108. Credit for reinsurance — Certified reinsurers. (a)(1) Pursuant to Arkansas Code § 23-62-305(e), the Insurance Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that has been certified as a reinsurer in this state a…

23 CAR § 25-109. Credit for reinsurance –– Reciprocal jurisdictions. (a) Pursuant to Arkansas Code § 23-62-305(f), the Insurance Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that is licensed to write reinsurance by, and has it…

23 CAR § 25-110. Credit for reinsurance required by law. (a) Pursuant to Arkansas Code § 23-62-305(f)(5), the Insurance Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of Arkansas Code § 23-62-305 but…

23 CAR § 25-111. Asset or reduction from liability for reinsurance ceded to an unauthorized assuming insurer not meeting the requirements of 23 CAR §§ 25-104 – 25-110. (a)(1) Pursuant to Arkansas Code § 23-62-306, the Insurance Commissioner shall allow a reduction from liability …

23 CAR § 25-112. Trust agreements qualified under 23 CAR § 25-111. (a) As used in this section: (1)(A) “Beneficiary” means the entity for whose sole benefit the trust has been established and any successor of the beneficiary by operation of law. (B) If a court of law appoints a s…

23 CAR § 25-113. Letters of credit qualified under 23 CAR § 25-111. (a)(1) The letter of credit must be clean, irrevocable, unconditional and issued or confirmed by a qualified United States financial institution as defined in Arkansas Code § 23-62-307(b). (2) The letter of credi…

23 CAR § 25-114. Other security. A ceding insurer may take credit for unencumbered funds withheld by the ceding insurer in the United States subject to withdrawal solely by the ceding insurer and under its exclusive control.

23 CAR § 25-115. Reinsurance contract. Credit will not be granted, nor an asset or reduction from liability allowed, to a ceding insurer for reinsurance effected with assuming insurers meeting the requirements of 23 CAR § 25-104, 23 CAR § 25-105, 23 CAR § 25-106, 23 CAR § 25-107,…

23 CAR § 25-116. Contracts affected. All new and renewal reinsurance transactions entered into on or after February 15, 2022, shall conform to the requirements of the Arkansas Credit for Reinsurance Law, Arkansas Code § 23-62-301 et seq., and this part if credit is to be given to…

23 CAR § 26-101. Purpose. The purpose of this part is to assist insurers in complying with the antifraud initiative requirements of Arkansas Code § 23-66-510.

23 CAR § 26-102. Applicability and scope. This part applies to all licensed insurers in the State of Arkansas.

23 CAR § 26-103. Definitions. The definitions set forth in Arkansas Code § 23-66-501 shall apply to this part.

23 CAR § 26-104. Antifraud initiative requirements. The antifraud initiative requirements of Arkansas Code § 23-66-510(a) may be satisfied by an insurer by means of: (1) Fraud investigators, who: (A) May be insurer employees or independent contractors; and (B) Are in full complia…

23 CAR § 26-105. Fraud investigators and independent contractors. (a) Fraud investigators who are employees of an insurer shall: (1) Be qualified by education, experience, or training in the detection, investigation, and proper reporting of suspected fraudulent insurance acts, an…

23 CAR § 26-106. Antifraud plans. (a) Antifraud plans shall be submitted to the Insurance Commissioner for approval and shall outline specific procedures to: (1) Prevent, detect, and investigate suspected fraudulent insurance acts; (2) Educate and train appropriate employees in t…

23 CAR § 26-107. 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 § 27-101. Purpose. The purpose of this part is to assist persons in the business of insurance having knowledge or a reasonable belief that a fraudulent insurance act is being, will be, or has been committed in complying with the mandatory reporting requirement of Arkansas …

23 CAR § 27-102. Applicability and scope. This part applies to any person engaged in the business of insurance in the State of Arkansas who has knowledge or a reasonable belief that a fraudulent insurance act is being, will be, or has been committed.

23 CAR § 27-103. Definitions. The definitions set forth in Arkansas Code § 23-66-501 shall apply to this part.

23 CAR § 27-104. Method of reporting suspected fraudulent insurance acts. (a)(1) The reporting requirement of Arkansas Code § 23-66-505(a) may be satisfied by filing a completed fraud referral form with the Criminal Investigation Division of the State Insurance Department. (2) Th…

23 CAR § 27-105. 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 § 28-101. Purpose. (a) The purpose of this part is to set out the minimum qualifications for optional and permissive licensure of limited adjusters from applicants desiring but not required to obtain this license under the provisions of Arkansas Code § 23-64-102(4)(E), as …

23 CAR § 28-102. Scope. (a) This part shall apply to all applicants for license as a limited adjuster on and after the effective date of this part. (b) Exemptions. This part shall not be applicable to, and no limited adjuster license shall be required of: (1) Third-party administ…

23 CAR § 28-103. Definitions. As used in this part: (1) “Commissioner” means the Insurance Commissioner of the State of Arkansas; (2) “Department” means the State Insurance Department; (3) “Limited adjusters” means individual persons who are sponsored by and are employees of self…

23 CAR § 28-104. License available and optional but not required. (a) Eligibility. (1)(A) On and after the effective date of this part, self-insured or self-funded entities may sponsor their employees for limited adjusters’ licenses with the State Insurance Department. (B) In ord…

23 CAR § 28-105. License termination or nonrenewal. (a)(1) The Insurance Commissioner may suspend or revoke upon notice and a hearing or nonrenew or refuse to continue without notice and a hearing the license of any limited adjuster who has failed to comply with the license conti…

23 CAR § 28-106. TPA registration not required. (a) The applicants or renewal applicants for the limited adjuster’s license shall not be: (1) Deemed to be “third-party administrators” (TPAs) under the provisions of Arkansas Code § 23-92-201 et seq.; or (2) Required to obtain the …