Arkansas Administrative Code

23 CAR § 106-105. Existing agreements. (a) Insurers subject to this part shall reduce to zero (0) by December 31, 1997, any reserve credits or assets established with respect to reinsurance agreements entered into prior to the effective date of this part that, under the provision…

23 CAR § 107-101. Purpose. The purpose of this part is to implement the requirements of Acts 1991, No. 238, in order to: (1) Provide minimum standards for basic benefit disability insurance; (2) Regulate the development of basic benefit disability insurance for qualified: (A) Gro…

23 CAR § 107-102. Definitions. As used in this part: (1) "Children's preventive healthcare services" means physician-delivered or physician-supervised services for eligible dependents from birth through age six (6), with periodic physical examinations including medical history, p…

23 CAR § 107-103. Required policy provisions. All minimum basic benefit policies issued pursuant to Acts 1991, No. 238, and this part and filed with the Insurance Commissioner for approval shall at the minimum contain coverage at the following levels for the benefits prescribed: …

23 CAR § 107-104. Prohibited policy provisions. (a) No policy issued pursuant to this part and Acts 1991, No. 238, as a minimum basic benefit policy shall provide for coverage or benefits required to be offered pursuant to the following provisions of the Arkansas Code: (1) Sectio…

23 CAR § 107-105. Required options. Every policy offered for sale as a basic benefit policy shall give the insured the option of purchasing the following coverages, subject to underwriting guidelines: (1) Children's preventive healthcare coverage for services rendered at the foll…

23 CAR § 107-106. Waiting periods — Limitations. (a) Except as provided in 23 CAR § 107-103(6), there shall be no probationary or waiting period during which no coverage is provided under the policy. (b) However, 23 CAR § 107-103(7) shall not apply to a basic benefit policy that …

23 CAR § 107-107. Rates — Filing requirements. (a) Rates pertaining to basic benefit policies shall be: (1) Filed with the Insurance Commissioner no less than sixty (60) days prior to intended use; and (2) Approved by the commissioner prior to implementation. (b) All rates submit…

23 CAR § 107-108. Underwriting guidelines. (a)(1) No claim shall be reduced or denied on the ground that the disease or physical condition for which a claim is made preexisted the effective date of the policy coverage and was not disclosed by the insured unless: (A) The insurer h…

23 CAR § 107-109. Cancellations — Renewals. All basic benefit policies issued to a qualified group or trust shall contain a "noncancellable", "guaranteed renewable", or "noncancellable and guaranteed renewable" provision that provides that the policy shall not be subject to termi…

23 CAR § 107-110. Disclosure and notice. (a) Insurers offering for approval a basic benefit policy shall provide, separate from the policy, a disclosure to the insured that contains the following information: (1) An outline of the extent of coverage; (2) A specific list of the ma…

23 CAR § 107-111. Notice to employees. Employers not providing a portion of the cost of health insurance for their employees shall post the notice provided in Appendix A of this part for the benefit of their employees at the place of employment or in any other reasonable manner.…

23 CAR § 107-112. Qualified trusts — Formation and regulation. (a)(1) Two (2) or more qualified individuals, qualified families, or qualified groups may make application for a certificate of approval to the Insurance Commissioner in order to form a qualified trust pursuant to Act…

23 CAR § 107-113. Record keeping — Annual statements. (a) Each insurer issuing a minimum basic insurance policy in this state shall maintain a separate annual record of information as to its business in minimum basic insurance policies, the form for which shall be provided by the…

23 CAR § 107-114. Advertising. (a) Every insurer marketing a minimum basic benefit policy in this state shall provide a copy of any advertisement intended for use whether through written, radio, or television medium to the Insurance Commissioner for review and approval by the com…

23 CAR § 107-115. Conversion to Medicare supplement. Every insurer shall offer a qualified insured who reaches the age of sixty-five (65) and who is covered as a named insured or a covered dependent under that insurer's basic benefit policy, conversion to a Medicare supplement po…

23 CAR § 108-101. Purpose. The purpose of this part is to provide rules for a modified guaranteed annuity, a variable annuity whose assets are placed in a separate account.

23 CAR § 108-102. Applicability and scope. This part shall apply to the: (1) Qualifications of agents who sell modified guaranteed annuity contracts in this state; (2) Qualification of insurers who issue such contracts; (3) Required contract form and provisions for issue of such …

23 CAR § 108-103. Definitions. As used in this part, the following terms and phrases shall mean: (1) "Commissioner" means the Insurance Commissioner of the State of Arkansas; (2) "Interest credits" means all interest that is credited to the contract; (3)(A) "Modified guaranteed a…

23 CAR § 108-104. Authority of insurers. (a) The following requirements apply to all insurers either seeking or having authority to issue modified guaranteed annuities in this state. (b) Licensing and approval to do business. (1)(A) No insurer shall deliver or issue for delivery …

23 CAR § 108-105. Filing of contracts. (a) The filing requirements applicable to modified guaranteed annuities shall be those filing requirements otherwise applicable under existing statutes and rules of this state with respect to individual and group life insurance and annuity c…

23 CAR § 108-106. Modified guaranteed annuity contract requirements. (a) Mandatory contract benefit and design requirements. (1) Any modified guaranteed annuity contract delivered or issued for delivery in this state shall contain a statement of the essential features of the proc…

23 CAR § 108-107. Reserve liabilities. (a) Reserve liabilities for modified guaranteed annuities shall be established in accordance with actuarial procedures that recognize: (1) The assets of the separate account are based on market values; (2) The variable nature of benefits pro…

23 CAR § 108-108. Separate accounts. The following requirements apply to the establishment and administration of modified guaranteed annuity separate accounts by any domestic insurer: (1) Establishment and administration of separate accounts. Any domestic insurer issuing modified…

23 CAR § 108-109. Reports to policyholders. (a) Companies will annually provide their contract holders with a report showing both the account value and the cash surrender value. (b) The report shall clearly indicate that the account value is prior to the application of any surren…

23 CAR § 108-110. Foreign companies. If the law or regulation in the place of domicile of a foreign company provides a degree of protection to the policyholders and the public that is substantially similar to that provided by this part, the Insurance Commissioner to the extent de…

23 CAR § 108-111. Authorization of agents. No person, corporation, partnership, or other legal entity may sell or offer for sale in this state any modified guaranteed annuity contract unless licensed to sell variable annuities under the insurance laws of this state.

23 CAR § 109-101. Purpose. The purpose of this part is to: (1) Regulate accelerated benefit provisions of individual and group life insurance policies; and (2) Provide required standards of disclosure.

23 CAR § 109-102. Scope. (a) This part shall apply to all licensed domestic, foreign, and alien life insurers. (b) This part shall apply to all accelerated benefits provisions of individual and group life insurance policies and riders attached thereto issued or issued for deliver…

23 CAR § 109-103. Definitions. As used in this part: (1) "Accelerated benefits" covered under this part are benefits payable under a life insurance contract: (A) To a policy owner or certificate holder, during the lifetime of the insured, in anticipation of death or upon the occu…

23 CAR § 109-104. Type of product. (a) Accelerated benefit riders and life insurance policies with accelerated benefit provisions are primarily mortality risks rather than morbidity risks. (b) They are life insurance benefits subject to Arkansas Code § 23-79-101 et seq., and § 23…

23 CAR § 109-105. Assignee/beneficiary. (a) Prior to the payment of the accelerated benefit, the insurer is required to obtain from any assignee or irrevocable beneficiary a signed acknowledgement of concurrence for payout. (b) If the insurer making the accelerated benefit paymen…

23 CAR § 109-106. Criteria for payment. (a) Lump sum settlement option required. (1) Contract payment options shall include the option to take the benefit as a lump sum. (2) The benefit shall not be made available as an annuity contingent upon the life of the insured. (b) Restric…

23 CAR § 109-107. Disclosures. (a) Descriptive title. (1) The terminology "accelerated benefit" shall be included in the descriptive title. (2) Products regulated under this part shall not be described or marketed as long-term care insurance or as providing long-term care benefit…

23 CAR § 109-108. Effective date of the accelerated benefits. (a) The accelerated benefit provision shall be effective for accidents on the effective date of the policy or rider. (b) The accelerated benefit provision shall only be effective for illnesses which first manifest them…

23 CAR § 109-109. Waiver of premiums. (a) The insurer may offer a waiver of premium for the accelerated benefit provision in the absence of a regular waiver of premium provision being in effect. (b) At the time the benefit is claimed, the insurer shall explain any continuing prem…

23 CAR § 109-110. Discrimination. (a) Insurers shall not unfairly discriminate among insureds with differing qualifying events covered under the policy or among insureds with similar qualifying events covered under the policy. (b) Insurers shall not apply further conditions on th…

23 CAR § 109-111. Actuarial standards. (a) Financing options. (1)(A) The insurer may require a premium charge or cost of insurance charge for the accelerated benefit. (B) These charges shall be based on sound actuarial principles. (C) In the case of group insurance, the additiona…

23 CAR § 109-112. Actuarial disclosure and reserves. (a) Actuarial memorandum. (1) An actuary qualified under Actuaries, 23 CAR pt. 10, should describe the accelerated benefits, the risks, the expected costs, and the calculation of statutory reserves in an actuarial memorandum ac…

23 CAR § 109-113. Filing requirement. (a) Notwithstanding other sections to the contrary, the filing and prior approval of forms for both individual and group life insurance policies containing an accelerated benefit are required, under the provisions of Arkansas Code § 23-79-109…

23 CAR § 110-101. Purpose. The purpose of this part is to promulgate guidelines for the voluntary establishment of reserves for funeral expense insurance as referenced in Arkansas Code § 23-64-206(g)(8) and defined in Funeral Expense Insurance, 23 CAR pt. 91.

23 CAR § 110-102. Definitions. As used in this part: (1) "Funeral expense insurance" means that form of insurance as defined in Funeral Expense Insurance, 23 CAR pt. 91; and (2) "Insurer" means any: (A) Authorized life insurer; (B) Fraternal benefit society; (C) Stipulated premiu…

23 CAR § 110-103. Reserves. (a) Subject to the prior written approval of the Insurance Commissioner, any life insurer licensed and doing business in this state and still having outstanding and in force funeral expense contracts issued prior to January 1, 1968, or reinsured therea…

23 CAR § 111-101. Scope. (a) 23 CAR §§ 111-103 – 111-107 apply to insurers and insurance producers involved in the replacement of preneed insurance as defined in 23 CAR § 111-103. (b) 23 CAR § 111-103 and 23 CAR §§ 111-106 – 111-113 apply to all persons engaged in the business of…

23 CAR § 111-102. Purpose. (a) The purpose of this part is to increase written notice and disclosure to insureds who are replacing life insurance policies, certificates of life insurance coverage, or annuities that fund prepaid funeral benefits contracts. (b) This part also provi…

23 CAR § 111-103. Definitions. For the purposes of this part: (1) "Cancellation" means the termination or transfer of a prepaid funeral benefits contract by the purchaser, prior to the seller's performance of the contract, as a result of action by the purchaser or his or her agen…

23 CAR § 111-104. Replacement standards for life insurance policies, certificates, and annuity contracts funding prepaid funeral benefits contracts. (a) The requirements in this section shall not apply to the replacement or cancellations of prepaid funeral benefits contracts fund…

23 CAR § 111-105. Violations and penalties. (a) Any failure to comply with 23 CAR § 111-104 may be considered a violation of Arkansas Code § 23-66-206(2), subjecting the licensee to the penalties under Arkansas Code § 23-66-206(10). (b) Examples of violations include, but are not…

23 CAR § 111-106. Cancellation or transfer of prepaid funeral benefits contracts. (a) State Insurance Department Rule 63, "Trust Fund Release Forms for Prepaid Funeral Benefits Contracts", is hereby repealed and replaced by this part. (b)(1) The following release and cancellation…

23 CAR § 111-107. Requirements of preneed insurers on cancellation or transfer requests of prepaid funeral benefits contracts. (a)(1) For prepaid funeral benefits contracts that are funded by a life insurance policy, certificate, or an annuity contract in which cancellation is so…