Arkansas Administrative Code › Agency 054 - Arkansas Insurance Department › Rule 054.00.95-006 - Reg. 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,
			 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
			 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
			 and §
								23-79-109,
			 subject to any exemptions the Commissioner may order pursuant to Ark. Code Ann.
			 §
								23-67-206.
Section 4. Effective Date
Pursuant to the Commissioner's authority under the emergency
			 provisions of Ark. Code Ann. §
								25-15-204(b),
			 it is hereby declared that the immediate adoption of this Rule is necessary to
			 prevent any imminent peril to the public health, safety or welfare of the
			 citizens of this State. Therefore, the effective date of this Rule is January
			 1, 1996: it shall expire one hundred and twenty days (120 days) from its
			 effective date, i.e., by April 30, 1996, unless sooner replaced by a permanent
			 rule and regulation adopted by the Commissioner, following public notice and
			 hearing.
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.
C. Expenses.
Expenses means that portion of a rate attributable to
			 acquisition, field supervision, collection expenses, 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 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.
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.