Arkansas Administrative Code › Agency 054 - Arkansas Insurance Department › Rule 054.00.05-004 - Rule 23 - Property, Casualty, Surety and Marine Rate and Form Filings

Current through Register Vol. 49, No. 6, June, 2024
Section 1. Purpose
The purpose of this Rule is to set forth rules and procedural
			 requirements which the commissioner deems necessary to carry out the provisions
			 of Ark. Code Ann. §§
								23-67-201, et
			 seq., §
								23-67-219,
			 §
								23-79-109
			 and §
								23-79-110,
			 as to rate and form filings of property, casualty, surety, and marine
			 insurers.
Section 2.
		  Authority
This Rule is issued pursuant to the authority vested in the
			 commissioner by Ark. Code Ann. §
								23-61-108,
			 §§
								25-15-202
			 et seq., §
								23-67-218,
			 Act 1697 of 2005, and Act 506 of 2005, and other applicable provisions of
			 Arkansas law.
Section 3.
		  Applicability and Scope
This Rule applies to insurance described in Ark. Code Ann. §
								23-67-203, and
			 §
								23-67-501, and
			 insurers, rate service or advisory organizations, joint underwriting
			 associations and joint reinsurance organizations making filings under Ark. Code
			 Ann. §§
								23-67-201, et
			 seq., §
								23-67-219,
			 §§
								23-67-501, et seq.,
			 and §§
								23-79-109,
			 et seq., subject to any exemptions the commissioner may order pursuant to Ark.
			 Code Ann. §
								23-67-206.
Section 4. Emergency
Pursuant to the Commissioner's authority under Ark. Code Ann.
			 §
								23-61-108,
			 §§
								25-15-201, et
			 seq., and other applicable laws and rules, the effective date of this Rule is
			 January 1, 2006.
Section 5.
		  Definitions
A. Form Filing.
A "form filing" is documentation setting forth the policy forms,
			 endorsements or other forms to be used in the State of Arkansas by an
			 insurer.
B. Insurance
		  Holding Company Group.
An "insurance holding company" group or system consists of two
			 (2) or more affiliated companies, one or more of which is an insurer as defined
			 in Ark. Code Ann. §
									23-63-503(3)
			 and Arkansas Insurance Department ("Department") Rule 15.
C. Expenses.
"Expenses" mean those parts of a rate attributable to
			 acquisition, commissions, selling, inspection, audit, field supervision,
			 collection, general expenses, taxes, licenses and fees.
D. Rate.
"Rate" means the cost of insurance per exposure unit, whether
			 expressed as a single number or as prospective loss cost, and an adjustment to
			 account for the treatment of expenses, profit and variations in loss
			 experience, prior to any application of individual risk variations based on
			 loss or expense considerations, and does not include minimum premiums.
E. Supplementary Rate Information
"Supplementary rate information" means any manual, minimum
			 premium, rating schedule or plan of policy writing rules, rating rules,
			 classification system, territory codes and descriptions, rating plans and any
			 other similar information needed to determine, clarify or support the
			 applicable premium for an insured. Supplementary rate information includes
			 factors and relativities, such as increased limits factors, classification
			 relativities, deductible relativities or similar factors.
F. Supporting Information.
"Supporting information" means information, including supporting
			 actuarial data, which includes (i) the experience and judgment of the insurer
			 and the experience or data of other insurers or advisory organizations relied
			 upon by the insurer, (ii) the interpretation of any statistical data relied
			 upon by the insurer, (iii) descriptions of methods used in making the rates,
			 and (iv) actuarial, technical or other services made available by an advisory
			 organization, or other similar information required to be filed by the
			 commissioner to explain, clarify or justify a filing.
G. Prospective Loss Costs.
"Prospective loss costs" means that portion of a rate that does
			 not include provisions for expenses (other than loss adjustment expenses) or
			 profit, and are based on historical aggregate losses and loss adjustment
			 expenses adjusted through development to their ultimate value and projected
			 through trending to a future point in time.
H. Participating Insurer.
" Participating insurer" means any member, subscriber or service
			 purchaser of an advisory organization.