Arkansas Administrative Code › Agency 003 - DEPARTMENT OF COMMERCE › Division 22 - Insurance Department › Rule 003.22.22-003 - Proposed Amended Rule 5 "Companies Antifraud Assessment"

Current through Register Vol. 49, No. 6, June, 2024
RULE NO. 5
COMPANIES' ANTIFRAUD ASSESSMENT
§
								1.
PURPOSE.
The purpose of this Rule is to implement the antifraud
				assessment specified in Arkansas Code Annotated §
									23-100-104.
§
								2.
AUTHORITY AND
			 SCOPE.
(A) AUTHORITY. The Insurance
			 Commissioner ("Commissioner") hereby promulgates this rule under his authority
			 pursuant to Arkansas Code Annotated §
									23-100-106 and
			 §
									23-61-108.
(B) SCOPE. This rule shall apply to all
			 licensed insurers, including but not limited to all licensed stock and mutual
			 insurance companies, reinsurers, health maintenance organizations, fraternal
			 benefit societies, hospital and medical service corporations, stipulated
			 premium insurers, farmers' mutual aid associations, and pre-paid legal
			 insurers. For purposes of this rule, "insurers" shall mean any and all the
			 licensed or authorized insurers referenced in this rule and as defined in
			 Arkansas Code Annotated §
									23-60-102(11)
			 and shall include the other limited licenses enumerated in this section and in
			 ACA §
									23-100-101, et
			 seq., and not otherwise excluded.
(C) APPLICATION. The rule 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, or to licensed automobile clubs or associations. This rule is intended
			 to apply to annuity premiums and considerations, including annuity and other
			 fund deposit premiums listed on the NAIC Convention Blank Schedule T. This rule
			 is not intended to apply to indemnity reinsurance premiums or other premiums
			 which are not "direct written". The rule is intended to apply to companies who
			 have not written any Arkansas premiums in the reported calendar year.
§
								3.
ANTIFRAUD
			 ASSESSMENT.
(A) The antifraud
			 assessment of licensed insurers due under Arkansas Code Annotated §
									23-100-104
			 shall be due and payable in the amounts, methods and manner described in
			 subsections (B) and (C) of this section on or before June 1st of each calendar
			 year, based upon the direct premiums and/or annuity considerations written or
			 received from or in the State of Arkansas during the previous calendar year and
			 as reported in the pertinent annual statement.
(B) The antifraud assessment shall be
			 determined and paid in accordance with the following schedule:
ARKANSAS PREMIUMS
ANTIFRAUD ASSESSMENT
$ 0-2,499,999
$ 400
2,500,000-4,999,999
600
5,000,000-7,499,999
650
7,500,000-9,999,999
700
10,000,000-19,999,999
750
20,000,000-29,999,999
800
30,000,000-49,999,999
850
50,000,000-74,999,999
900
75,000,000-99,999,999
950
100,000,000 AND UP
1,000
(C)
			 MANNER AND METHOD OF PAYMENT.
(1) The amount
			 of the assessment shall be reported on a form prescribed by the Commissioner,
			 and the assessment payment shall be tendered to the Arkansas Insurance
			 Department using the OPT/ns (Online Premium Tax for Insurance)
			 system.
(2) No other code or rule
			 fees, licensure fees, fines or taxes shall accompany the filing and payment of
			 this assessment and any penalties required under this rule; however, if by
			 error any other fees, fines or taxes accompany or are included with this fee
			 payment, the unrelated payment(s) shall be deposited pursuant to the other
			 applicable law or rule, or refunded to the payor or other appropriate
			 party.
(3) Licensed insurers
			 failing to timely pay the antifraud assessment shall be subject to a penalty of
			 one hundred dollars ($100) per day for each day of delinquency.
(D) 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 assessment owed under this rule 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.