23 CAR Part 21 — Companies’ Financial Regulation Fees

Chapter I

Subchapter A

Subpart 1

23 CAR § 21-101 Purpose {#sec-23-car-21-101 omnilex-key=us-ar-regs-official--title-23-part-21--23 CAR § 21-101}

23 CAR § 21-101. Purpose.

The purpose of this part is to implement administrative and financial regulation fees as established in the State Insurance Department Trust Fund Act, Arkansas Code § 23-61-701 et seq.

23 CAR § 21-102 Scope — Application {#sec-23-car-21-102 omnilex-key=us-ar-regs-official--title-23-part-21--23 CAR § 21-102}

23 CAR § 21-102. Scope — Application.

(a) Scope.

(1) This part shall apply to all licensed insurers, including without limitation all authorized domestic, foreign, and/or alien:

(A) Stock and mutual insurers;

(B) Mutual assessment life and disability insurers;

(C) Health maintenance organizations (HMOs);

(D) Fraternal benefit societies;

(E) Hospital and medical service corporations;

(F) Stipulated premium plan and reciprocal insurers;

(G) Title insurance companies;

(H) Prepaid legal insurance companies; and

(I) Farmers’ mutual aid associations (FMAAs).

(2) For purposes of this part, "insurers" means all and any of the licensed or authorized insurers of the Insurance Commissioner referenced in this part and as defined in Arkansas Code § 23-60-102(11).

(b) Application.

(1) This part is not intended to and shall not apply to approved but nonadmitted surplus line insurers, registered foreign and alien risk retention groups, registered purchasing groups, risk-based provider organizations, or to licensed automobile clubs or associations.

(2) This part is intended to apply to licensed or authorized insurers with no annual direct written Arkansas premiums in the reported calendar year.

23 CAR § 21-103 Administrative and financial regulation fees {#sec-23-car-21-103 omnilex-key=us-ar-regs-official--title-23-part-21--23 CAR § 21-103}

23 CAR § 21-103. Administrative and financial regulation fees.

(a) Fees due on or before June 1 of each calendar year.

(1)(A) All insurers are required by Arkansas Code § 23-61-703(a)(1) and by this part to forward to the State Insurance Department the nonrefundable administrative and financial regulation fee, payable to “The State Insurance Department Trust Fund”, based upon the insurer's direct written premiums or annuity considerations, both new and renewal, written in the State of Arkansas during the previous calendar year, as evidenced on the Annual Statement Schedule T page.

(B) For life, accident, and health companies this would include the total amount from "Total Columns 2 through 5" on the Schedule T.

(C) For property and casualty companies this would be the total from column "Direct Premiums Written".

(2) The fees are to be determined and paid in accordance with the following schedule:

(b) Manner and method of payment.

(1) The amount of the fee shall be reported on a form prescribed by the Insurance Commissioner, and the form and the assessment payment shall be tendered to the State Insurance Department using the OPTins (Online Premium Tax for Insurance) system.

(2)(A) No other required fees, licensure fees, fines, or taxes shall accompany the filing and payment of these fees and any penalties required under this part.

(B) However, if by error any other fees, fines, or taxes accompany or are included with this fee payment, the unrelated payment or payments shall be deposited pursuant to the other applicable law or rule.

(c) Payment upon voluntary withdrawal. Any insurer voluntarily withdrawing from the State of Arkansas, or voluntarily surrendering its Arkansas certificate of authority for cancellation, shall report and pay the fees owed under this part for the final report or calendar year of withdrawal before the department cancels or expires the Arkansas license and before the department releases any security deposit of the withdrawing insurer.

(d) Fees in addition to other required payments. The fees paid by insurers as required under this part are due and payable in addition to any other licensure, exam, appointment or registration, product or service fee, fine, or tax or assessment required by any other law or rule.

(e) Domestic insurers’ credits for fees paid in other jurisdictions.

(1) Pursuant to Arkansas Code § 23-63-116, insurers domiciled in Arkansas are entitled to list as a credit against their Arkansas premium taxes the retaliatory amount of fees paid in other states of licensure because of this state’s imposition of the administrative and financial regulation fee under this part.

(2) For fees paid for a calendar year, a credit may be taken on the insurer's annual premium tax report due March 1 the following calendar year.

(3) In no event shall any such credits be allowed against quarterly estimated premium tax payments or referenced in such reports.

(f) Fees in lieu of examiners’ compensation.

(1)(A) As to department examinations of insurers, after an insurer has paid the fee imposed by this part, proof of its payment of the fee in department records shall be evidence of its payment in lieu of insurers' remittance of examiners' salaries, wages, or compensation during or after a department examination.

(B) The examiners' salaries, wages, or compensation shall be due and payable as to any examination of any insurer that has not paid its fee imposed by this part.

(2)(A) This provision shall be in addition to any other section providing a remedy for nonpayment or noncompliance available to the commissioner under this part.

(B) Any insurer undergoing department examination shall continue to be liable for the payment of and shall pay the examiners' reasonable expenses for food, lodging, and travel pursuant to Arkansas Code § 23-61-201 et seq., regardless of payment or nonpayment of the fee or any penalties imposed under this part.

23 CAR § 21-104 Payment extensions and waivers — Penalty for noncompliance {#sec-23-car-21-104 omnilex-key=us-ar-regs-official--title-23-part-21--23 CAR § 21-104}

23 CAR § 21-104. Payment extensions and waivers — Penalty for noncompliance.

(a) Time extension. In his or her complete discretion and for good cause shown, the Insurance Commissioner may grant an extension for reporting and/or payment of the fee required by this part for any insurer applying for an extension with written notice received by the commissioner not less than ten (10) days prior to the due date prescribed by this part.

(b) Waiver — Cessation of waiver. The commissioner in his or her complete discretion may waive all or any part of the fee assessed under this part due from an insurer if the:

(1) Insurer’s Arkansas certificate of authority is suspended or revoked;

(2) Commissioner finds that the insurer is impaired or insolvent, or its continuing operations are hazardous to the insurance-buying public of the state; or

(3) Insurer is under domiciliary department supervision, or court-ordered conservation, rehabilitation, or liquidation in any state.

(c) Penalty. Upon failure of the insurer to report or pay the fees or penalties required by Arkansas Code § 23-61-703 and this part when due, the insurer shall be subject to a penalty of one hundred dollars ($100) per day for each day of delinquency.