Ark. Code Ann. § 23-64-404 — AR Code / Title 23 / Chapter 64 / Subchapter 4 / Section 23-64-404
Agency contracts - Provisions
Status: in_force

No person, firm, association, limited liability company, or corporation acting in the capacity of a managing general agent shall place business with an insurer unless there is in force a written contract between the parties which sets forth the responsibilities of each party and, when both parties share responsibility for a particular function, specifies the division of the responsibilities, and which contains the following minimum provisions: (1) The insurer may terminate the contract for cause upon written notice to the managing general agent. The insurer may suspend the underwriting authority of the managing general agent during the pendency of any dispute regarding the cause for termination; (2) The managing general agent will render accounts to the insurer detailing all transactions and remit all funds due under the contract to the insurer on not less than a monthly basis; (3) All funds collected for the account of an insurer will be held by the managing general agent in a fiduciary capacity in a bank which is a member of the Federal Reserve System. This account shall be used for all payments on behalf of the insurer. The managing general agent may retain no more than three (3) months' estimated claims payments and allocated loss adjustment expenses; (4) Separate records of business written by the managing general agent will be maintained. The insurer shall have access and the right to copy all accounts and records related to its business in a form usable by the insurer, and the Insurance Commissioner shall have access to all books, bank accounts, and records of the managing general agent in a form usable to the commissioner; (5) The contract may not be assigned in whole or part by the managing general agent; (6) (A) Appropriate underwriting guidelines, including: (i) The maximum annual premium volume; (ii) The basis of the rates to be charged; (iii) The types of risks which may be written; (iv) Maximum limits of liability; (v) Applicable exclusions; (vi) Territorial limitations; (vii) Policy cancellation provisions; and (viii) The maximum policy period. (B) The insurer shall have the right to cancel or nonrenew any policy of insurance subject to the applicable laws and rules of this state concerning the cancellation and nonrenewal of insurance policies; (7) If the contract permits the managing general agent to settle claims on behalf of the insurer: (A) All claims must be reported to the company in a timely manner; (B) A copy of the claim file will be sent to the insurer at its request or as soon as it becomes known that the claim: (i) Has the potential to exceed an amount determined by the commissioner or exceeds the limit set by the company, whichever is less; (ii) Involves a coverage dispute; (iii) May exceed the managing general agent's claims settlement authority; (iv) Is open for more than six (6) months; or (v) Is closed by payment of an amount set by the commissioner or an amount set by the company, whichever is less; (C) All claim files will be the joint property of the insurer and managing general agent. However, upon an order of liquidation of the insurer, the files shall become the sole property of the insurer or its estate. The managing general agent shall have reasonable access to and the right to copy the files on a timely basis; and (D) Any settlement authority granted to the managing general agent may be terminated for cause upon the insurer's written notice to the managing general agent or upon the termination of the contract. The insurer may suspend the settlement authority during the pendency of any dispute regarding the cause for termination; (8) When electronic claims files are in existence, the contract must address the timely transmission of the data; (9) If the contract provides for a sharing of interim profits by the managing general agent, and the managing general agent has the authority to determine the amount of the interim profits by establishing loss reserves or controlling claim payments, or in any other manner, interim profits will not be paid to the managing general agent until one (1) year after they are earned for property insurance business and five (5) years after they are earned on casualty business and not until the profits have been verified pursuant to § 23-64-405 ; and (10) The managing general agent shall not: (A) Bind reinsurance or retrocessions on behalf of the insurer, except that the managing general agent may bind facultative reinsurance contracts pursuant to obligatory facultative agreements if the contract with the insurer contains reinsurance underwriting guidelines including, for both reinsurance assumed and ceded, a list of reinsurers with which such automatic agreements are in effect, the coverages and amounts or percentages that may be reinsured, and commission schedules; (B) Commit the insurer to participate in insurance or reinsurance syndicates; (C) Appoint any agent without assuring that the agent is lawfully licensed to transact the type of insurance for which appointed; (D) Without prior approval of the insurer, pay or commit the insurer to pay a claim over a specified amount, net of reinsurance, which shall not exceed one percent (1%) of the insurer's policyholder's surplus as of December 31 of the last completed calendar year; (E) Collect any payment from a reinsurer, or commit the insurer to any claim settlement with a reinsurer, without prior approval of the insurer. If prior approval is given, a report must be promptly forwarded to the insurer; (F) Permit its subagent to serve on the insurer's board of directors; (G) Jointly employ an individual who is employed with the insurer; or (H) Appoint a managing general subagent. Amended by Act 2019, No. 315,§ 2652, eff. 7/24/2019. Acts 1993, No. 1094, § 1; 1997, No. 1004, § 1.

No person, firm, association, limited liability company, or corporation acting in the capacity of a managing general agent shall place business with an insurer unless there is in force a written contract between the parties which sets forth the responsibilities of each party and, when both parties share responsibility for a particular function, specifies the division of the responsibilities, and which contains the following minimum provisions:

(1) The insurer may terminate the contract for cause upon written notice to the managing general agent. The insurer may suspend the underwriting authority of the managing general agent during the pendency of any dispute regarding the cause for termination;

(2) The managing general agent will render accounts to the insurer detailing all transactions and remit all funds due under the contract to the insurer on not less than a monthly basis;

(3) All funds collected for the account of an insurer will be held by the managing general agent in a fiduciary capacity in a bank which is a member of the Federal Reserve System. This account shall be used for all payments on behalf of the insurer. The managing general agent may retain no more than three (3) months' estimated claims payments and allocated loss adjustment expenses;

(4) Separate records of business written by the managing general agent will be maintained. The insurer shall have access and the right to copy all accounts and records related to its business in a form usable by the insurer, and the Insurance Commissioner shall have access to all books, bank accounts, and records of the managing general agent in a form usable to the commissioner;

(5) The contract may not be assigned in whole or part by the managing general agent;

(6) (A) Appropriate underwriting guidelines, including: (i) The maximum annual premium volume; (ii) The basis of the rates to be charged; (iii) The types of risks which may be written; (iv) Maximum limits of liability; (v) Applicable exclusions; (vi) Territorial limitations; (vii) Policy cancellation provisions; and (viii) The maximum policy period. (B) The insurer shall have the right to cancel or nonrenew any policy of insurance subject to the applicable laws and rules of this state concerning the cancellation and nonrenewal of insurance policies;

(A) Appropriate underwriting guidelines, including: (i) The maximum annual premium volume; (ii) The basis of the rates to be charged; (iii) The types of risks which may be written; (iv) Maximum limits of liability; (v) Applicable exclusions; (vi) Territorial limitations; (vii) Policy cancellation provisions; and (viii) The maximum policy period.

(i) The maximum annual premium volume;

(ii) The basis of the rates to be charged;

(iii) The types of risks which may be written;

(iv) Maximum limits of liability;

(v) Applicable exclusions;

(vi) Territorial limitations;

(vii) Policy cancellation provisions; and

(viii) The maximum policy period.

(B) The insurer shall have the right to cancel or nonrenew any policy of insurance subject to the applicable laws and rules of this state concerning the cancellation and nonrenewal of insurance policies;

(7) If the contract permits the managing general agent to settle claims on behalf of the insurer: (A) All claims must be reported to the company in a timely manner; (B) A copy of the claim file will be sent to the insurer at its request or as soon as it becomes known that the claim: (i) Has the potential to exceed an amount determined by the commissioner or exceeds the limit set by the company, whichever is less; (ii) Involves a coverage dispute; (iii) May exceed the managing general agent's claims settlement authority; (iv) Is open for more than six (6) months; or (v) Is closed by payment of an amount set by the commissioner or an amount set by the company, whichever is less; (C) All claim files will be the joint property of the insurer and managing general agent. However, upon an order of liquidation of the insurer, the files shall become the sole property of the insurer or its estate. The managing general agent shall have reasonable access to and the right to copy the files on a timely basis; and (D) Any settlement authority granted to the managing general agent may be terminated for cause upon the insurer's written notice to the managing general agent or upon the termination of the contract. The insurer may suspend the settlement authority during the pendency of any dispute regarding the cause for termination;

(A) All claims must be reported to the company in a timely manner;

(B) A copy of the claim file will be sent to the insurer at its request or as soon as it becomes known that the claim: (i) Has the potential to exceed an amount determined by the commissioner or exceeds the limit set by the company, whichever is less; (ii) Involves a coverage dispute; (iii) May exceed the managing general agent's claims settlement authority; (iv) Is open for more than six (6) months; or (v) Is closed by payment of an amount set by the commissioner or an amount set by the company, whichever is less;

(i) Has the potential to exceed an amount determined by the commissioner or exceeds the limit set by the company, whichever is less;

(ii) Involves a coverage dispute;

(iii) May exceed the managing general agent's claims settlement authority;

(iv) Is open for more than six (6) months; or

(v) Is closed by payment of an amount set by the commissioner or an amount set by the company, whichever is less;

(C) All claim files will be the joint property of the insurer and managing general agent. However, upon an order of liquidation of the insurer, the files shall become the sole property of the insurer or its estate. The managing general agent shall have reasonable access to and the right to copy the files on a timely basis; and

(D) Any settlement authority granted to the managing general agent may be terminated for cause upon the insurer's written notice to the managing general agent or upon the termination of the contract. The insurer may suspend the settlement authority during the pendency of any dispute regarding the cause for termination;

(8) When electronic claims files are in existence, the contract must address the timely transmission of the data;

(9) If the contract provides for a sharing of interim profits by the managing general agent, and the managing general agent has the authority to determine the amount of the interim profits by establishing loss reserves or controlling claim payments, or in any other manner, interim profits will not be paid to the managing general agent until one (1) year after they are earned for property insurance business and five (5) years after they are earned on casualty business and not until the profits have been verified pursuant to § 23-64-405 ; and

(10) The managing general agent shall not: (A) Bind reinsurance or retrocessions on behalf of the insurer, except that the managing general agent may bind facultative reinsurance contracts pursuant to obligatory facultative agreements if the contract with the insurer contains reinsurance underwriting guidelines including, for both reinsurance assumed and ceded, a list of reinsurers with which such automatic agreements are in effect, the coverages and amounts or percentages that may be reinsured, and commission schedules; (B) Commit the insurer to participate in insurance or reinsurance syndicates; (C) Appoint any agent without assuring that the agent is lawfully licensed to transact the type of insurance for which appointed; (D) Without prior approval of the insurer, pay or commit the insurer to pay a claim over a specified amount, net of reinsurance, which shall not exceed one percent (1%) of the insurer's policyholder's surplus as of December 31 of the last completed calendar year; (E) Collect any payment from a reinsurer, or commit the insurer to any claim settlement with a reinsurer, without prior approval of the insurer. If prior approval is given, a report must be promptly forwarded to the insurer; (F) Permit its subagent to serve on the insurer's board of directors; (G) Jointly employ an individual who is employed with the insurer; or (H) Appoint a managing general subagent.

(A) Bind reinsurance or retrocessions on behalf of the insurer, except that the managing general agent may bind facultative reinsurance contracts pursuant to obligatory facultative agreements if the contract with the insurer contains reinsurance underwriting guidelines including, for both reinsurance assumed and ceded, a list of reinsurers with which such automatic agreements are in effect, the coverages and amounts or percentages that may be reinsured, and commission schedules;

(B) Commit the insurer to participate in insurance or reinsurance syndicates;

(C) Appoint any agent without assuring that the agent is lawfully licensed to transact the type of insurance for which appointed;

(D) Without prior approval of the insurer, pay or commit the insurer to pay a claim over a specified amount, net of reinsurance, which shall not exceed one percent (1%) of the insurer's policyholder's surplus as of December 31 of the last completed calendar year;

(E) Collect any payment from a reinsurer, or commit the insurer to any claim settlement with a reinsurer, without prior approval of the insurer. If prior approval is given, a report must be promptly forwarded to the insurer;

(F) Permit its subagent to serve on the insurer's board of directors;

(G) Jointly employ an individual who is employed with the insurer; or

(H) Appoint a managing general subagent.

Amended by Act 2019, No. 315,§ 2652, eff. 7/24/2019.

Acts 1993, No. 1094, § 1; 1997, No. 1004, § 1.
Ark. Code Ann. § 23-84-103 — AR Code / Title 23 / Chapter 84 / Section 23-84-103
Minimum standard for valuation generally
Status: in_force

(a) Except as provided in §§ 23-84-104 , 23-84-105 , and 23-84-114 , the minimum standard for the valuation of all policies and contracts issued prior to the operative date of § 23-81-213(a) shall be provided by the laws in effect immediately prior to January 1, 1960. (b) Except as otherwise provided in §§ 23-84-104 , 23-84-105 , and 23-84-114 , the minimum standard for the valuation of all policies and contracts issued on or after the operative date of § 23-81-213(a) shall be the Insurance Commissioner's reserve valuation methods defined in §§ 23-84-106 , 23-84-107 , 23-84-110 , and 23-84-114 , three and one-half percent (3.5%) interest, or in the case of policies and contracts, other than annuity and pure endowment contracts, five and one-half percent (5.5%) interest for single premium life insurance policies and four and one-half percent (4.5%) interest for all other policies issued on and after March 18, 1977, and the following tables: (1) For all ordinary policies of life insurance issued on the standard basis, excluding any disability and accidental death benefits in the policies: (A) The Commissioner's 1941 Standard Ordinary Mortality Table for policies issued prior to the operative date of § 23-81-213(b) ; (B) (i) For policies issued on or after the operative date of § 23-81-213(b) and prior to the operative date of § 23-81-213(d) , the Commissioner's 1958 Standard Ordinary Mortality Table. (ii) For any category of policies issued on female risks under this subdivision (b)(1)(B), all modified net premiums and present values referred to in this chapter may be calculated according to an age not more than six (6) years younger than the actual age of the insured; or (C) For policies issued on or after the operative date of § 23-81-213(d) : (i) The Commissioner's 1980 Standard Ordinary Mortality Table; (ii) At the election of the insurer, for any one (1) or more specified plans of life insurance, the Commissioner's 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors; or (iii) Any ordinary mortality table adopted after 1980 by the National Association of Insurance Commissioners that is approved by rules promulgated by the commissioner for the use in determining the minimum standard of valuation for the policies; (2) For industrial life insurance policies issued on the standard basis, excluding any disability and accidental death benefits in such policies, the Commissioner's 1941 Standard Industrial Mortality Table for policies issued prior to the operative date of § 23-81-213(c) and, for policies issued on or after the operative date of § 23-81-213(c) , the Commissioner's 1961 Standard Industrial Mortality Table or any industrial mortality table adopted after 1980 by the National Association of Insurance Commissioners that is approved by rules promulgated by the commissioner for use in determining the minimum standard of valuation for the policies; (3) For individual annuity and pure endowment contracts, excluding any disability and accidental death benefits in the policies, the 1937 Standard Annuity Mortality Table, or, at the option of the insurer, the Annuity Mortality Table for 1949, Ultimate, or any modification of either of these tables approved by the commissioner; (4) For group annuity and pure endowment contracts, excluding any disability and accidental death benefits in the policies, the Group Annuity Mortality Table for 1951, any modification of the table approved by the commissioner, or, at the option of the insurer, any of the tables or modifications of tables specified for individual annuity and pure endowment contracts; (5) For total and permanent disability benefits in or supplementary to ordinary policies or contracts, for policies or contracts issued on or after January 1, 1966, the tables of Period 2 disablement rates and the 1930 to 1950 termination rates of the 1952 Disability Study of the Society of Actuaries, with due regard to the type of benefit, or any tables of disablement rates and termination rates adopted after 1980 by the National Association of Insurance Commissioners that are approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the policies and, for policies or contracts issued on or after January 1, 1961, and prior to January 1, 1966, either such tables, or, at the option of the insurer, the Class (3) Disability Table (1926) and, for policies issued prior to January 1, 1961, the Class (3) Disability Table (1926). Any table, for active lives, shall be combined with a mortality table permitted for calculating the reserves for life insurance policies; (6) For accidental death benefits in or supplementary to policies, for policies issued on or after January 1, 1966, the 1959 Accidental Death Benefits Table or any accidental death benefits table adopted after 1980 by the National Association of Insurance Commissioners, that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the policies and, for policies issued on or after January 1, 1961, and prior to January 1, 1966, either such table, or, at the option of the insurer, the Inter-Company Double Indemnity Mortality Table and, for policies issued prior to January 1, 1961, the Inter-Company Double Indemnity Mortality Table. Either table shall be combined with a mortality table permitted for calculating the reserves for life insurance policies; and (7) For group life insurance, life insurance issued on the substandard basis, and other special benefits, such tables as may be approved by the commissioner. Amended by Act 2019, No. 315,§ 2734, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 2733, eff. 7/24/2019. Amended by Act 2015, No. 1223,§ 39, eff. 7/22/2015. Amended by Act 2015, No. 1223,§ 38, eff. 7/22/2015. Amended by Act 2015, No. 1223,§ 37, eff. 7/22/2015. Acts 1959, No. 148, § 92; 1961, No. 466, § 1; 1965, No. 439, § 1; 1977, No. 551, § 2; 1981, No. 535, § 1; A.S.A. 1947, § 66-2511; Acts 2005, No. 506, § 44.

(a) Except as provided in §§ 23-84-104 , 23-84-105 , and 23-84-114 , the minimum standard for the valuation of all policies and contracts issued prior to the operative date of § 23-81-213(a) shall be provided by the laws in effect immediately prior to January 1, 1960.

(b) Except as otherwise provided in §§ 23-84-104 , 23-84-105 , and 23-84-114 , the minimum standard for the valuation of all policies and contracts issued on or after the operative date of § 23-81-213(a) shall be the Insurance Commissioner's reserve valuation methods defined in §§ 23-84-106 , 23-84-107 , 23-84-110 , and 23-84-114 , three and one-half percent (3.5%) interest, or in the case of policies and contracts, other than annuity and pure endowment contracts, five and one-half percent (5.5%) interest for single premium life insurance policies and four and one-half percent (4.5%) interest for all other policies issued on and after March 18, 1977, and the following tables: (1) For all ordinary policies of life insurance issued on the standard basis, excluding any disability and accidental death benefits in the policies: (A) The Commissioner's 1941 Standard Ordinary Mortality Table for policies issued prior to the operative date of § 23-81-213(b) ; (B) (i) For policies issued on or after the operative date of § 23-81-213(b) and prior to the operative date of § 23-81-213(d) , the Commissioner's 1958 Standard Ordinary Mortality Table. (ii) For any category of policies issued on female risks under this subdivision (b)(1)(B), all modified net premiums and present values referred to in this chapter may be calculated according to an age not more than six (6) years younger than the actual age of the insured; or (C) For policies issued on or after the operative date of § 23-81-213(d) : (i) The Commissioner's 1980 Standard Ordinary Mortality Table; (ii) At the election of the insurer, for any one (1) or more specified plans of life insurance, the Commissioner's 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors; or (iii) Any ordinary mortality table adopted after 1980 by the National Association of Insurance Commissioners that is approved by rules promulgated by the commissioner for the use in determining the minimum standard of valuation for the policies; (2) For industrial life insurance policies issued on the standard basis, excluding any disability and accidental death benefits in such policies, the Commissioner's 1941 Standard Industrial Mortality Table for policies issued prior to the operative date of § 23-81-213(c) and, for policies issued on or after the operative date of § 23-81-213(c) , the Commissioner's 1961 Standard Industrial Mortality Table or any industrial mortality table adopted after 1980 by the National Association of Insurance Commissioners that is approved by rules promulgated by the commissioner for use in determining the minimum standard of valuation for the policies; (3) For individual annuity and pure endowment contracts, excluding any disability and accidental death benefits in the policies, the 1937 Standard Annuity Mortality Table, or, at the option of the insurer, the Annuity Mortality Table for 1949, Ultimate, or any modification of either of these tables approved by the commissioner; (4) For group annuity and pure endowment contracts, excluding any disability and accidental death benefits in the policies, the Group Annuity Mortality Table for 1951, any modification of the table approved by the commissioner, or, at the option of the insurer, any of the tables or modifications of tables specified for individual annuity and pure endowment contracts; (5) For total and permanent disability benefits in or supplementary to ordinary policies or contracts, for policies or contracts issued on or after January 1, 1966, the tables of Period 2 disablement rates and the 1930 to 1950 termination rates of the 1952 Disability Study of the Society of Actuaries, with due regard to the type of benefit, or any tables of disablement rates and termination rates adopted after 1980 by the National Association of Insurance Commissioners that are approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the policies and, for policies or contracts issued on or after January 1, 1961, and prior to January 1, 1966, either such tables, or, at the option of the insurer, the Class (3) Disability Table (1926) and, for policies issued prior to January 1, 1961, the Class (3) Disability Table (1926). Any table, for active lives, shall be combined with a mortality table permitted for calculating the reserves for life insurance policies; (6) For accidental death benefits in or supplementary to policies, for policies issued on or after January 1, 1966, the 1959 Accidental Death Benefits Table or any accidental death benefits table adopted after 1980 by the National Association of Insurance Commissioners, that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the policies and, for policies issued on or after January 1, 1961, and prior to January 1, 1966, either such table, or, at the option of the insurer, the Inter-Company Double Indemnity Mortality Table and, for policies issued prior to January 1, 1961, the Inter-Company Double Indemnity Mortality Table. Either table shall be combined with a mortality table permitted for calculating the reserves for life insurance policies; and (7) For group life insurance, life insurance issued on the substandard basis, and other special benefits, such tables as may be approved by the commissioner.

(1) For all ordinary policies of life insurance issued on the standard basis, excluding any disability and accidental death benefits in the policies: (A) The Commissioner's 1941 Standard Ordinary Mortality Table for policies issued prior to the operative date of § 23-81-213(b) ; (B) (i) For policies issued on or after the operative date of § 23-81-213(b) and prior to the operative date of § 23-81-213(d) , the Commissioner's 1958 Standard Ordinary Mortality Table. (ii) For any category of policies issued on female risks under this subdivision (b)(1)(B), all modified net premiums and present values referred to in this chapter may be calculated according to an age not more than six (6) years younger than the actual age of the insured; or (C) For policies issued on or after the operative date of § 23-81-213(d) : (i) The Commissioner's 1980 Standard Ordinary Mortality Table; (ii) At the election of the insurer, for any one (1) or more specified plans of life insurance, the Commissioner's 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors; or (iii) Any ordinary mortality table adopted after 1980 by the National Association of Insurance Commissioners that is approved by rules promulgated by the commissioner for the use in determining the minimum standard of valuation for the policies;

(A) The Commissioner's 1941 Standard Ordinary Mortality Table for policies issued prior to the operative date of § 23-81-213(b) ;

(B) (i) For policies issued on or after the operative date of § 23-81-213(b) and prior to the operative date of § 23-81-213(d) , the Commissioner's 1958 Standard Ordinary Mortality Table. (ii) For any category of policies issued on female risks under this subdivision (b)(1)(B), all modified net premiums and present values referred to in this chapter may be calculated according to an age not more than six (6) years younger than the actual age of the insured; or

(i) For policies issued on or after the operative date of § 23-81-213(b) and prior to the operative date of § 23-81-213(d) , the Commissioner's 1958 Standard Ordinary Mortality Table.

(ii) For any category of policies issued on female risks under this subdivision (b)(1)(B), all modified net premiums and present values referred to in this chapter may be calculated according to an age not more than six (6) years younger than the actual age of the insured; or

(C) For policies issued on or after the operative date of § 23-81-213(d) : (i) The Commissioner's 1980 Standard Ordinary Mortality Table; (ii) At the election of the insurer, for any one (1) or more specified plans of life insurance, the Commissioner's 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors; or (iii) Any ordinary mortality table adopted after 1980 by the National Association of Insurance Commissioners that is approved by rules promulgated by the commissioner for the use in determining the minimum standard of valuation for the policies;

(i) The Commissioner's 1980 Standard Ordinary Mortality Table;

(ii) At the election of the insurer, for any one (1) or more specified plans of life insurance, the Commissioner's 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors; or

(iii) Any ordinary mortality table adopted after 1980 by the National Association of Insurance Commissioners that is approved by rules promulgated by the commissioner for the use in determining the minimum standard of valuation for the policies;

(2) For industrial life insurance policies issued on the standard basis, excluding any disability and accidental death benefits in such policies, the Commissioner's 1941 Standard Industrial Mortality Table for policies issued prior to the operative date of § 23-81-213(c) and, for policies issued on or after the operative date of § 23-81-213(c) , the Commissioner's 1961 Standard Industrial Mortality Table or any industrial mortality table adopted after 1980 by the National Association of Insurance Commissioners that is approved by rules promulgated by the commissioner for use in determining the minimum standard of valuation for the policies;

(3) For individual annuity and pure endowment contracts, excluding any disability and accidental death benefits in the policies, the 1937 Standard Annuity Mortality Table, or, at the option of the insurer, the Annuity Mortality Table for 1949, Ultimate, or any modification of either of these tables approved by the commissioner;

(4) For group annuity and pure endowment contracts, excluding any disability and accidental death benefits in the policies, the Group Annuity Mortality Table for 1951, any modification of the table approved by the commissioner, or, at the option of the insurer, any of the tables or modifications of tables specified for individual annuity and pure endowment contracts;

(5) For total and permanent disability benefits in or supplementary to ordinary policies or contracts, for policies or contracts issued on or after January 1, 1966, the tables of Period 2 disablement rates and the 1930 to 1950 termination rates of the 1952 Disability Study of the Society of Actuaries, with due regard to the type of benefit, or any tables of disablement rates and termination rates adopted after 1980 by the National Association of Insurance Commissioners that are approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the policies and, for policies or contracts issued on or after January 1, 1961, and prior to January 1, 1966, either such tables, or, at the option of the insurer, the Class (3) Disability Table (1926) and, for policies issued prior to January 1, 1961, the Class (3) Disability Table (1926). Any table, for active lives, shall be combined with a mortality table permitted for calculating the reserves for life insurance policies;

(6) For accidental death benefits in or supplementary to policies, for policies issued on or after January 1, 1966, the 1959 Accidental Death Benefits Table or any accidental death benefits table adopted after 1980 by the National Association of Insurance Commissioners, that is approved by rule promulgated by the commissioner for use in determining the minimum standard of valuation for the policies and, for policies issued on or after January 1, 1961, and prior to January 1, 1966, either such table, or, at the option of the insurer, the Inter-Company Double Indemnity Mortality Table and, for policies issued prior to January 1, 1961, the Inter-Company Double Indemnity Mortality Table. Either table shall be combined with a mortality table permitted for calculating the reserves for life insurance policies; and

(7) For group life insurance, life insurance issued on the substandard basis, and other special benefits, such tables as may be approved by the commissioner.

Amended by Act 2019, No. 315,§ 2734, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 2733, eff. 7/24/2019.

Amended by Act 2015, No. 1223,§ 39, eff. 7/22/2015.

Amended by Act 2015, No. 1223,§ 38, eff. 7/22/2015.

Amended by Act 2015, No. 1223,§ 37, eff. 7/22/2015.

Acts 1959, No. 148, § 92; 1961, No. 466, § 1; 1965, No. 439, § 1; 1977, No. 551, § 2; 1981, No. 535, § 1; A.S.A. 1947, § 66-2511; Acts 2005, No. 506, § 44.
Ark. Code Ann. § 23-16-301 — AR Code / Title 23 / Chapter 16 / Subchapter 3 / Section 23-16-301
Definitions
Status: in_force

(a) As used in this subchapter, unless the context otherwise requires, "common carrier" means any person, firm, or corporation which undertakes, either directly or indirectly, to transport members of the general public as passengers for compensation whether over regular or irregular routes. (b) For the purposes of this subchapter and subject to the terms and conditions of coverage, the term "uninsured motor vehicle" shall be deemed to include an insured motor vehicle where the liability insurer thereof is unable to make payment with respect to the legal liability of its insured within the limits specified therein because of insolvency. Acts 1975, No. 893, §§ 1, 3; A.S.A. 1947, §§ 73-2401, 73-2403.

(a) As used in this subchapter, unless the context otherwise requires, "common carrier" means any person, firm, or corporation which undertakes, either directly or indirectly, to transport members of the general public as passengers for compensation whether over regular or irregular routes.

(b) For the purposes of this subchapter and subject to the terms and conditions of coverage, the term "uninsured motor vehicle" shall be deemed to include an insured motor vehicle where the liability insurer thereof is unable to make payment with respect to the legal liability of its insured within the limits specified therein because of insolvency.

Acts 1975, No. 893, §§ 1, 3; A.S.A. 1947, §§ 73-2401, 73-2403.
Ark. Code Ann. § 23-18-607 — AR Code / Title 23 / Chapter 18 / Subchapter 6 / Section 23-18-607
Monthly grid charge
Status: in_force

(a) (1) If an electric utility follows the rate structure in § 23-18-606(a)(2) , the electric utility shall apply a monthly grid charge to: (A) Collect any of the fixed charges that are collected through volumetric charges, including without limitation any riders and surcharges; and (B) Exclude the cost of fuel and purchased energy. (2) The monthly grid charge shall be calculated based upon the: (A) Currently approved rates; and (B) Cost-of-service study underlying the electric utility's currently approved rates adjusted for any commission-approved: (i) Formula rate plan adjustments under the Formula Rate Review Act, § 23-4-1201 et seq.; or (ii) Adjustments under § 23-4-901 et seq. (b) The monthly grid charge under this section shall be calculated for each customer class as follows: (1) (A) Calculate the sum of all fixed costs collected through volumetric rates. (B) The fixed costs collected through volumetric rates shall be any demand-related or customer-related costs collected in rates stated in dollars per kilowatt hour; and (2) (A) Convert the fixed costs calculated in subdivision (b)(1) of this section into a rate, expressed in dollars per kilowatt hour, by dividing the total of the fixed costs under subdivision (b)(1) of this section for each customer class by the electric utility's sales during the test-year used to develop the retail rates approved by the commission in the electric utility's most recent application for a general change or modification in rates under § 23-4-401 et seq. (B) The monthly grid charge for each customer class shall be determined by multiplying the fixed costs expressed under subdivision (b)(2)(A) of this section by the expected monthly output of a one-kilowatt alternating current solar photovoltaic solar system determined under subsection (c) of this section. (c) (1) The expected monthly output of a one-kilowatt alternating current solar photovoltaic solar system shall be: (A) Expressed in kilowatt hours; and (B) Calculated by dividing the expected average annual output for a one-kilowatt alternating current solar photovoltaic solar system using the process described in subdivisions (c)(2) and (3) of this section by twelve (12). (2) For a fixed-tilt solar photovoltaic system, the average annual output for a one-kilowatt alternating current solar photovoltaic solar system shall be: (A) Expressed in kilowatt hours; and (B) Determined using the National Renewable Energy Laboratory PVWatts Calculator using a direct current to alternating current (DC/AC) ratio of one and one-tenth (1.1) using a single location central to the electric utility's service territory. (3) For a single-axis tracking solar photovoltaic solar system, the average annual output for a one-kilowatt alternating current solar photovoltaic solar system shall be: (A) Expressed in kilowatt hours; and (B) Determined using the National Renewable Energy Laboratory PVWatts Calculator using a direct current to alternating current (DC/AC) ratio of one and three-tenths (1.3) using a single location central to the electric utility's service territory. (d) The monthly grid charge shall not be less than the amount of any electric utility fixed costs that are collected through volumetric charges, including without limitation any riders, and excluding the cost of fuel and purchased energy that the net-metering customer avoids. Added by Act 2023, No. 278,§ 1, eff. 3/13/2023.

(a) (1) If an electric utility follows the rate structure in § 23-18-606(a)(2) , the electric utility shall apply a monthly grid charge to: (A) Collect any of the fixed charges that are collected through volumetric charges, including without limitation any riders and surcharges; and (B) Exclude the cost of fuel and purchased energy. (2) The monthly grid charge shall be calculated based upon the: (A) Currently approved rates; and (B) Cost-of-service study underlying the electric utility's currently approved rates adjusted for any commission-approved: (i) Formula rate plan adjustments under the Formula Rate Review Act, § 23-4-1201 et seq.; or (ii) Adjustments under § 23-4-901 et seq.

(1) If an electric utility follows the rate structure in § 23-18-606(a)(2) , the electric utility shall apply a monthly grid charge to: (A) Collect any of the fixed charges that are collected through volumetric charges, including without limitation any riders and surcharges; and (B) Exclude the cost of fuel and purchased energy.

(A) Collect any of the fixed charges that are collected through volumetric charges, including without limitation any riders and surcharges; and

(B) Exclude the cost of fuel and purchased energy.

(2) The monthly grid charge shall be calculated based upon the: (A) Currently approved rates; and (B) Cost-of-service study underlying the electric utility's currently approved rates adjusted for any commission-approved: (i) Formula rate plan adjustments under the Formula Rate Review Act, § 23-4-1201 et seq.; or (ii) Adjustments under § 23-4-901 et seq.

(A) Currently approved rates; and

(B) Cost-of-service study underlying the electric utility's currently approved rates adjusted for any commission-approved: (i) Formula rate plan adjustments under the Formula Rate Review Act, § 23-4-1201 et seq.; or (ii) Adjustments under § 23-4-901 et seq.

(i) Formula rate plan adjustments under the Formula Rate Review Act, § 23-4-1201 et seq.; or

(ii) Adjustments under § 23-4-901 et seq.

(b) The monthly grid charge under this section shall be calculated for each customer class as follows: (1) (A) Calculate the sum of all fixed costs collected through volumetric rates. (B) The fixed costs collected through volumetric rates shall be any demand-related or customer-related costs collected in rates stated in dollars per kilowatt hour; and (2) (A) Convert the fixed costs calculated in subdivision (b)(1) of this section into a rate, expressed in dollars per kilowatt hour, by dividing the total of the fixed costs under subdivision (b)(1) of this section for each customer class by the electric utility's sales during the test-year used to develop the retail rates approved by the commission in the electric utility's most recent application for a general change or modification in rates under § 23-4-401 et seq. (B) The monthly grid charge for each customer class shall be determined by multiplying the fixed costs expressed under subdivision (b)(2)(A) of this section by the expected monthly output of a one-kilowatt alternating current solar photovoltaic solar system determined under subsection (c) of this section.

(1) (A) Calculate the sum of all fixed costs collected through volumetric rates. (B) The fixed costs collected through volumetric rates shall be any demand-related or customer-related costs collected in rates stated in dollars per kilowatt hour; and

(A) Calculate the sum of all fixed costs collected through volumetric rates.

(B) The fixed costs collected through volumetric rates shall be any demand-related or customer-related costs collected in rates stated in dollars per kilowatt hour; and

(2) (A) Convert the fixed costs calculated in subdivision (b)(1) of this section into a rate, expressed in dollars per kilowatt hour, by dividing the total of the fixed costs under subdivision (b)(1) of this section for each customer class by the electric utility's sales during the test-year used to develop the retail rates approved by the commission in the electric utility's most recent application for a general change or modification in rates under § 23-4-401 et seq. (B) The monthly grid charge for each customer class shall be determined by multiplying the fixed costs expressed under subdivision (b)(2)(A) of this section by the expected monthly output of a one-kilowatt alternating current solar photovoltaic solar system determined under subsection (c) of this section.

(A) Convert the fixed costs calculated in subdivision (b)(1) of this section into a rate, expressed in dollars per kilowatt hour, by dividing the total of the fixed costs under subdivision (b)(1) of this section for each customer class by the electric utility's sales during the test-year used to develop the retail rates approved by the commission in the electric utility's most recent application for a general change or modification in rates under § 23-4-401 et seq.

(B) The monthly grid charge for each customer class shall be determined by multiplying the fixed costs expressed under subdivision (b)(2)(A) of this section by the expected monthly output of a one-kilowatt alternating current solar photovoltaic solar system determined under subsection (c) of this section.

(c) (1) The expected monthly output of a one-kilowatt alternating current solar photovoltaic solar system shall be: (A) Expressed in kilowatt hours; and (B) Calculated by dividing the expected average annual output for a one-kilowatt alternating current solar photovoltaic solar system using the process described in subdivisions (c)(2) and (3) of this section by twelve (12). (2) For a fixed-tilt solar photovoltaic system, the average annual output for a one-kilowatt alternating current solar photovoltaic solar system shall be: (A) Expressed in kilowatt hours; and (B) Determined using the National Renewable Energy Laboratory PVWatts Calculator using a direct current to alternating current (DC/AC) ratio of one and one-tenth (1.1) using a single location central to the electric utility's service territory. (3) For a single-axis tracking solar photovoltaic solar system, the average annual output for a one-kilowatt alternating current solar photovoltaic solar system shall be: (A) Expressed in kilowatt hours; and (B) Determined using the National Renewable Energy Laboratory PVWatts Calculator using a direct current to alternating current (DC/AC) ratio of one and three-tenths (1.3) using a single location central to the electric utility's service territory.

(1) The expected monthly output of a one-kilowatt alternating current solar photovoltaic solar system shall be: (A) Expressed in kilowatt hours; and (B) Calculated by dividing the expected average annual output for a one-kilowatt alternating current solar photovoltaic solar system using the process described in subdivisions (c)(2) and (3) of this section by twelve (12).

(A) Expressed in kilowatt hours; and

(B) Calculated by dividing the expected average annual output for a one-kilowatt alternating current solar photovoltaic solar system using the process described in subdivisions (c)(2) and (3) of this section by twelve (12).

(2) For a fixed-tilt solar photovoltaic system, the average annual output for a one-kilowatt alternating current solar photovoltaic solar system shall be: (A) Expressed in kilowatt hours; and (B) Determined using the National Renewable Energy Laboratory PVWatts Calculator using a direct current to alternating current (DC/AC) ratio of one and one-tenth (1.1) using a single location central to the electric utility's service territory.

(A) Expressed in kilowatt hours; and

(B) Determined using the National Renewable Energy Laboratory PVWatts Calculator using a direct current to alternating current (DC/AC) ratio of one and one-tenth (1.1) using a single location central to the electric utility's service territory.

(3) For a single-axis tracking solar photovoltaic solar system, the average annual output for a one-kilowatt alternating current solar photovoltaic solar system shall be: (A) Expressed in kilowatt hours; and (B) Determined using the National Renewable Energy Laboratory PVWatts Calculator using a direct current to alternating current (DC/AC) ratio of one and three-tenths (1.3) using a single location central to the electric utility's service territory.

(A) Expressed in kilowatt hours; and

(B) Determined using the National Renewable Energy Laboratory PVWatts Calculator using a direct current to alternating current (DC/AC) ratio of one and three-tenths (1.3) using a single location central to the electric utility's service territory.

(d) The monthly grid charge shall not be less than the amount of any electric utility fixed costs that are collected through volumetric charges, including without limitation any riders, and excluding the cost of fuel and purchased energy that the net-metering customer avoids.

Added by Act 2023, No. 278,§ 1, eff. 3/13/2023.