Arkansas Administrative Code › Agency 054 - Arkansas Insurance Department › Rule 054.00.05-001 - Rule 84: Prepaid Funeral Benefits Contracts Recovery Funds Fees

Current through Register Vol. 49, No. 6, June, 2024
SECTION 1.
PURPOSE
The purpose of this Rule is to maintain for one year the one-time
			 per-contract fee of ten dollars ($10.00) charged on the sale of each prepaid
			 funeral benefits contract in this state. On June 30, 2004, the Commissioner
			 increased the five dollar ($5.00) per contract fee in Rule and Regulation 84,
			 "Prepaid Funeral Benefit Contracts Recovery Fund Fees," to ten dollars ($10.00)
			 on the sale of each prepaid funeral benefits contract in the state. Under Rule
			 and Regulation 84, the ten dollar ($10.00) fee was designed to expire on August
			 1, 2005 and revert to a five dollar ($5.00) per contract fee. The Commissioner
			 desires to maintain the ten dollar ($10.00) fee for another year to meet
			 current and anticipated requests for potential reparation claims transfers for
			 purchasers from organizations found deficient under Ark. Code Ann. §
								23-40-119(f)(1)(A)
			 and Ark. Code Ann. §
								23-40-119(f)(1)(B).
			 The ten dollar ($10.00) fee is needed to adequately fund the Prepaid Funeral
			 Contracts Recovery Program Fund under Ark. Code Ann. §
								23-40-119(d)(1)(A)(i)(a).
SECTION 2.
AUTHORITY &
		  EFFECTIVE DATE
Authority for this Rule is given to the Insurance Commissioner
			 for the State of Arkansas by Ark. Code Ann. §
								23-40-119(d)(2)(A)(i)
			 which states that the Insurance Commissioner, on and after July 1, 2001, may by
			 rule or regulation eliminate, reduce, suspend, or increase the per-contract fee
			 or the portion of the per-contract fee allotted to the Prepaid Funeral
			 Contracts Recovery Program Fund. In addition, this Rule and Regulation is
			 promulgated and adopted by the Insurance Commissioner for the State of Arkansas
			 ("Commissioner") pursuant to the authority vested in the Commissioner under
			 Arkansas Code Annotated §§
								23-61-108 and
			 25-15-201, et
			 seq. 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 and
			 Regulation is August 1, 2005. This Rule replaces Emergency Rule 84. This Rule
			 shall be effective on November 21, 2005.
SECTION 3.
APPLICABILITY AND
		  SCOPE
This Rule shall apply to all persons engaged in the business of
			 selling prepaid funeral benefits contracts under Ark. Code Ann. §
								23-40-101,
			 et seq., as amended by Act 852 of 1995.
SECTION 4.
PER CONTRACT FEE
		  AMOUNTS
Effective for all prepaid funeral benefits contracts executed on
			 and after August 1, 2005, until August 1, 2006, each licensee selling a prepaid
			 funeral benefits contract shall remit to the State Insurance Department a
			 one-time per-contract fee of not less than ten dollars ($10.00) for each
			 prepaid funeral benefits contract, including any amendments thereto, entered
			 into by the licensee whether cash or trust funded or funded by an insurance
			 policy or annuity contract. However, on and after August 1, 2006, each licensee
			 selling a prepaid funeral benefits contract shall remit to the State Insurance
			 Department a one-time per-contract fee of not less than five dollars ($5.00)
			 for each prepaid funeral benefits contract, including any amendments thereto,
			 entered into by the licensee whether cash or trust funded or funded by an
			 insurance policy or annuity contract. A five dollar increase in the per
			 contract fees is needed during the above described period, from August 1, 2005
			 to August 1, 2006, to increase funds in the Prepaid Funeral Contracts Recovery
			 Program to safely meet potential reparation claims transfers for purchasers
			 from organizations found deficient under Ark. Code Ann. §
								23-40-119(f)(1)(A)
			 and Ark. Code Ann. §
								23-40-119(f)(1)(B).
SECTION 5.
SEVERABILITY
If any provision of this Rule and Regulation, or the application
			 thereof to any person or circumstance, is held invalid, such invalidity shall
			 not affect other provisions or applications of this Rule and Regulation which
			 can be given effect without the invalid provision or application, and to that
			 end the provisions of this Rule and Regulation are severable.
(Signed by Julie Benafield Bowman)
___________________________________
JULIE BENAFIELD BOWMAN
INSURANCE COMMISSIONER
STATE OF ARKANSAS
(November 21, 2005)
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DATE