23 CAR Part 4 — Companies’ Antifraud Assessment

Chapter I

Subchapter A

Subpart 1

23 CAR § 4-101 Purpose {#sec-23-car-4-101 omnilex-key=us-ar-regs-official--title-23-part-4--23 CAR § 4-101}

23 CAR § 4-101. Purpose.

The purpose of this rule is to implement the antifraud assessment specified in Arkansas Code § 23-100-104.

23 CAR § 4-102 Scope and application {#sec-23-car-4-102 omnilex-key=us-ar-regs-official--title-23-part-4--23 CAR § 4-102}

23 CAR § 4-102. Scope and application.

(a) Scope.

(1) This rule shall apply to all licensed insurers, including but not limited to all licensed:

(A) Stock and mutual insurance companies;

(B) Reinsurers;

(C) Health maintenance organizations;

(D) Fraternal benefit societies;

(E) Hospital and medical service corporations;

(F) Stipulated premium insurers;

(G) Farmers’ mutual aid associations; and

(H) Prepaid legal insurers.

(2) For purposes of this rule, “insurers” means any and all of the licensed or authorized insurers referenced in this rule and as defined in Arkansas Code § 23-60-102(11), and shall include the other limited licenses enumerated in this section and in Arkansas Code § 23-100-101 et seq., and not otherwise excluded.

(b) Application.

(1) The rule is not intended to and shall not apply to approved but nonadmitted:

(A) Surplus line insurers;

(B) Registered foreign and alien risk retention groups;

(C) Registered purchasing groups; or

(D) Licensed automobile clubs or associations.

(2) 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.

(3) This rule is not intended to apply to indemnity reinsurance premiums or other premiums which are not "direct written".

(4) The rule is intended to apply to companies that have not written any Arkansas premiums in the reported calendar year.

History

• Codification Notes: “NAIC” means National Association of Insurance Commissioners. Authorities: Arkansas Code § 23-100-104; Arkansas Code § 23-100-106

23 CAR § 4-103 Antifraud assessment {#sec-23-car-4-103 omnilex-key=us-ar-regs-official--title-23-part-4--23 CAR § 4-103}

23 CAR § 4-103. Antifraud assessment.

(a) The antifraud assessment of licensed insurers due under Arkansas Code § 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 1 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 Insurance Commissioner, and the assessment payment shall be tendered to the State Insurance Department using the OPTins (Online Premium Tax for Insurance) system.

(2)(A) 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.

(B) However, if by error any other fees, fines, or taxes accompany or are included with this fee payment, the unrelated payment or payments 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.