Arkansas Administrative Code › Agency 054 - Arkansas Insurance Department › Rule 054.00.93-004 - Rule #56 - Companies' Financial Regulation Fees

Current through Register Vol. 49, No. 6, June, 2024
SECTION 1. PURPOSE. The purpose of this Rule
		  and Regulation is to implement and clarify Sections 3, 4 and 5 of Arkansas Act
		  652 of 1993, The State Insurance Department Trust Fund Act ("Trust Fund Act"),
		  and Section 44 and others of Act 901 of 1993, the Department Omnibus Act of
		  1993 ("Omnibus Act"), which specify the method and manner of payment of
		  nonrefundable administrative and financial regulatory fees payable by licensed
		  or authorized insurers and others to The State Insurance Department Trust Fund
		  ("Trust Fund") for the support of the operations of the Arkansas Insurance
		  Department ("Department"). Further, it is to clarify that fees imposed under
		  this Rule pursuant to the provisions of Section 3 of Act 652 of 1993 are in
		  addition to any other fee, assessment, tax or premium tax or penalty due and
		  payable under other Arkansas laws or rules by insurers as defined in Act 652.
		  The Rule is to detail the credit provision available to domestic insurers under
		  Section 44 of the Omnibus Act of 1993.
SECTION
		  2. AUTHORITY AND SCOPE.
(A)
		  AUTHORITY. The Insurance Commissioner ("Commissioner") hereby promulgates this
		  Rule under his authority pursuant to Section 10(a) of the Trust Fund Act; Ark.
		  Code Ann. §
								23-51-108;
		  §§
								25-15-201, et
		  seq.; and other applicable sections of Arkansas- law. Credits for domestic
		  insurers referenced in Section 4 of this Rule are based on the provisions of
		  Section 44 of the Omnibus Act.
(B)
		  SCOPE. This Rule shall apply to all licensed or authorized domestic, foreign,
		  and/or alien stock and mutual insurers, mutual assessment life and disability
		  insurers, health maintenance organizations ("HMO's"), fraternal benefit
		  societies, hospital and medical service corporations, stipulated premium plan
		  and reciprocal insurers, title insurance companies, prepaid legal insurance
		  companies, and farmers' mutual aid associations ("FMAA's"), pursuant to Section
		  3 of Act 652 of 1993. For purposes of this Rule, "insurers" shall mean all and
		  any of the licensed or authorized insurers of the Commissioner referenced in
		  this Rule, in Section 3 of Act 652 of 1993, and as defined in Ark. Code Ann.
		  §
								23-60-102(11).
(C) APPLICATION. The Rule is not intended to
		  and shall not apply to approved but non-admitted 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; the fee
		  imposed by the Act in that situation is the nominal sum of $500.