DRAFT 


LINE OF BUSINESS:

Property

LINE(S) OF INSURANCE

CODES

 

 

Commercial Property

1.0001

 

 

 

 

Code:

 

1.0000

 

 

 

 

 

 

 

 

 

 

IF CHECKLIST IS NOT APPLICABLE, PLEASE EXPLAIN:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVIEW REQUIREMENTS

REFERENCE

DESCRIPTION OF REVIEW

STANDARDS REQUIREMENTS

LOCATION OF STANDARD IN FILING

GENERAL REQUIREMENTS

 

 

 

FOR  ALL FILINGS

 

 

 

 

 

 

 COPIES, RETURN ENVELOPES, ETC.

Rule & Reg 23—12/18/02. This reg is scheduled to change in 2003. WORD   PDF

Include 1 copy of transmittal header (or cover letter) for each company included in filing and a return copy for the company.  Include a self-addressed, postage paid envelope large enough to accommodate the return copy.

 

 

 

 

 

 COVER LETTER AND EXPLANATORY MEMORANDUM

Rule & Reg 23—12/18/02. This reg is scheduled to change in 2003. WORD   PDF

12/18/02—At this time Arkansas will accept the abstracts required in current Rule and Reg 23 or the NAIC Uniform Transmittal Document and its related forms.  If the Uniform Transmittal document is used, no cover letter is necessary.

 

 

 

 

 

 Effective Date Wording

23-67-219WORD PDF

(C)(i)  Every filing must be submitted for approval to the commissioner at least thirty (30) days prior to the proposed effective date. 

(ii)  Upon written request of the filer, the commissioner may authorize an earlier effective date. 

 

 

 

 

 

FILING SUBMISSION

Rule & Reg 67 WORD  PDF

 

 

 

 

 

 

FREE CONTRACT PROHIBITED

 

 

 

 

 

 

 

 Highly Protected Risks

 

 

 

 

 

 

 

LIMITATIONS/RESTRICTIONS ON TRANSACTING BUSINESS

 

 

 

 

 

 

 

 Line of Authority

23-62-104  WORD  PDF

As used in the Arkansas Insurance Code, unless the context otherwise requires, "property insurance" is insurance on real or personal property of every kind and of every interest therein, whether on land, water, or in the air, against loss or damage from any and all hazard or cause and against loss consequential upon the loss or damage, other than noncontractual legal liability for the loss or damage.

 

 

 

 

 

 NAIC #

Bulletin 8-90  WORD  PDF

NAIC #s are required on all correspondence, documents, reports, etc. filed by the insurer with the AR Insurance Dept.

 

 

 

 

 

NO FILE OR FILING EXEMPTIONS

23-67-206   WORD  PDF

   23-67-206. Exemptions.

 (a)  In a competitive market, property and casualty insurance for commercial risks, excluding workers' compensation, employers' liability, and professional liability insurance, including, but not limited to, medical malpractice insurance, are exempted from the rate filing and review provisions set forth in this chapter. 

(b)  Risks or portions thereof which are not rated according to manuals, rating plans, or schedules including "a" rates, risks rated under the "referral to company" or "individual risk situations" rules, are exempted from the rate filing and review provisions set forth in this chapter. Insurers must maintain complete files on how they determined the rate for such risks and make these files available to the Insurance Commissioner upon request. 

(c)  The commissioner, upon his or her own initiative or upon request of any person, by order, may exempt any market, segment, or line from any or all of the provisions of this chapter if and to the extent that he or she finds the exemption necessary to achieve the purposes of this chapter. 

 

 

 

 

 

THIRD PARTY FILERS AUTHORITY

 

A third party filer must be given permission by insurer to file on their behalf.  No specific code cite.

 

 

 

 

 

 TRANSACTING OTHER BUSINESS

 

 

 

 

 

 

 

FORMS: POLICY

PROVISIONS:

 

 

 

 

 

 

 

 ACCESS TO COURTS

23-79-203  WORD  PDF

23-79-203. Trial by jury.(a)  No insurance policy or annuity contract shall contain any condition, provision, or agreement which directly or indirectly deprives the insured or beneficiary of the right to trial by jury on any question of fact arising under the policy or contract. (b)  All such provisions, conditions, or agreements shall be void.

 

 

 

 

 

 AMBIGUOUS & MISLEADING

 

 

 

 

 

 

 

APPLICATIONS

23-79-109(a)  WORD  PDF

23-79-109. Filing and approval of forms. (a)(1)(A)  No basic insurance policy, or annuity contract form, or application form where written application is required and is to be made a part of the policy or contract, or printed rider or endorsement form or form of renewal certificate, shall be issued, delivered, or used as to a subject of insurance resident, located, or to be performed in this state unless the form has been filed with and approved by the Insurance Commissioner and, in the case of individual accident and health contracts, the rates have been filed with and approved by the commissioner. 

 

 

 

 

 

 APPRAISALS

23-79-203(a),   WORD  PDF                  Bulletin 19-89  WORD  PDF

23-79-203. Trial by jury.(a)  No insurance policy or annuity contract shall contain any condition, provision, or agreement which directly or indirectly deprives the insured or beneficiary of the right to trial by jury on any question of fact arising under the policy or contract. 

(b)  All such provisions, conditions, or agreements shall be void. 

 

 

 

 

 

ARBITRATION

23-79-203(a),    WORD  PDF                  Bulletin 19-89  WORD  PDF

23-79-203. Trial by jury.(a)  No insurance policy or annuity contract shall contain any condition, provision, or agreement which directly or indirectly deprives the insured or beneficiary of the right to trial by jury on any question of fact arising under the policy or contract. 

(b)  All such provisions, conditions, or agreements shall be void. 

 

 

 

 

 

ASSESSIBLE POLICIES

 

 

 

 

 

 

 

BANKRUPTCY PROVISIONS

23-89-102 Word    PDF;

Jarboe v. Shelter Ins. Co., 317 Ark. 395,877 S.W.2d 930 (1994)

Insurer’s liability is not affected by the insured’s insolvency; the filing of a petition in bankruptcy is not the type of immunity contemplated by this section.

 

 

 

 

 

BLANK ENDORSEMENTS

23-79-109  WORD   PDF

Forms must be filed. A form without specific language is not a complete form and can't be approved.  However, we will consider approving a "blank" form if the company will provide a detailed description of how the form will be used.

 

 

 

 

 

CANCELLATION & NON-RENEWAL

23-66-206(11)  WORD  PDF

 

See “Permissible Reasons for Cancellation” below 

 

Cancellation-indiscriminate & capricious cancellation or nonrenewal by insurers

Directive 1-85 

Bulletin 13-85  WORD  PDF

Directive 1-85 primarily states the Dept. position on cancellations & nonrenewals. It deals with policies in effect more than 60 days, policyholders forced to suffer cancellation or nonrenewal when a company decides they wish to restrict writing in an area, termination of agent/agency contracts, etc.  Bulletin 13-85 emphasizes the Dept. position stated in Directive 1-85.  Both Directive and Bulletin are too long to provide here but are available by email or fax by contacting the P&C Division (501-371-2800).

 

 Calculation of Unearned/Return Premium

23-79-112(h)  WORD   PDF

“(h)  On and after January 1, 1990, every property and casualty policy shall contain a provision stating the method to be utilized in computing premium refunds in the event of cancellation of the policy by the insured or the insurer.”

 

Conditional Renewal

23-79-307   WORD   PDF

(6)(A)  When an insurer revises its rates or rules and the revision results in a premium increase equal to or greater than twenty-five percent (25%) on any renewal policy issued for a term of twelve (12) months or less, the insurer shall mail or deliver to the insured's agent not less than thirty (30) days prior to the effective date of renewal, and to the insured not less than ten (10) days prior to the effective date of renewal, notice specifically stating the insurer's intention to increase the premium by an amount equal to or greater than twenty-five percent (25%). 

(B)  If the notice is not given as stated in subdivision (6)(A) of this section, the insurer is required to extend the existing policy thirty (30) days from the date such notice is mailed or delivered. The premium for the policy as extended in such circumstances

 

Minimum Retained Premium

23-79-112(b)(7)  WORD   PDF

   23-79-112. Contents.

 (a)  The written instrument in which a contract of insurance is set forth is the policy. 

(b)  Every policy shall specify: 

(1)  The names of the parties to the contract; 

(2)  The subject of the insurance; 

(3)  The risks insured against; 

(4)  The time when the insurance thereunder takes effect and the period during which the insurance is to continue; 

(5)  The premium or premium deposit; 

(6)  The policy fee, if any; 

(7)  The minimum premium to be retained, if any, by a property or casualty insurer in the event of cancellation of the policy by the insured; and 

(8)  The conditions pertaining to the insurance. 

 

Notice of Cancellation

23-66-206(9)(B)  WORD  PDF

(B)  Cancellations of property and casualty policies shall only be effective when notice of cancellation is mailed or delivered by the insurer to the named insured and to any lienholder or loss payee named in the policy at least twenty (20) days prior to the effective date of cancellation. However, where cancellation is for nonpayment of premium, at least ten (10) days' notice of cancellation accompanied by the reason for cancellation shall be given

 

Notice of Non-renewal

23-79-307(7)  WORD   PDF

(7)  Except in the case of nonpayment of premium, an insurer shall renew a policy, unless a written notice of nonrenewal is mailed at least sixty (60) days prior to the expiration date of the policy or, for a policy for a term longer than one (1) year and not having a fixed expiration date, sixty (60) days prior to the anniversary date

 

Permissible Reasons for Cancellation

23-66-206(9)(A)  WORD  PDF

(9)(A)  "Policy cancellations" are cancellations of insurance coverage on a property or casualty risk which has been in force over sixty (60) days or after the effective date of a renewal policy or an annual anniversary date, unless the cancellation is based upon at least one (1) of the following reasons: 

(i)  Nonpayment of premium; 

(ii)  Fraud or material misrepresentation made by or with the knowledge of the named insured in obtaining the policy, continuing the policy, or in presenting a claim under the policy; 

(iii)  The occurrence of a material change in the risk which substantially increases any hazard insured against after policy issuance; 

(iv)  Violation of any local fire, health, safety, building, or construction regulation or ordinances with respect to any insured property or the occupancy of the property, which substantially increases any hazard insured against under the policy; 

(v)  Nonpayment of membership dues in those cases where the bylaws, agreements, or other legal instruments of the insurer issuing the policy require payment as a condition of the issuance and maintenance of the policy; or 

(vi)  A material violation of a material provision of the policy. 

(B)  Cancellations of property and casualty policies shall only be effective when notice of cancellation is mailed or delivered by the insurer to the named insured and to any lienholder or loss payee named in the policy at least twenty (20) days prior to the effective date of cancellation. However, where cancellation is for nonpayment of premium, at least ten (10) days' notice of cancellation accompanied by the reason for cancellation shall be given. 

(C)  The provisions of subdivision (9) of this section shall not be applicable to any policy providing coverage for workers' compensation or employers' liability or to any policy providing coverage for personal automobile liability, automobile physical damage, or automobile collision, or any combination thereof; 

 

Permissible Reasons for Non-renewal

Directive 1-85

Bulletin 13-85  WORD  PDF

There is nothing SPECIFIC to this line of business but Directive 1-85 primarily states the Dept. position on cancellations & nonrenewals. It deals with policies in effect more than 60 days, policyholders forced to suffer cancellation or nonrenewal when a company decides they wish to restrict writing in an area, termination of agent/agency contracts, etc.  Bulletin 13-85 emphasizes the Dept. position stated in Directive 1-85.  Both Directive and Bulletin are too long to provide here but are available by email or fax by contacting the P&C Division (501-371-2800).

 

Required Policy Period

23-79-112(b)(4)  WORD   PDF

   23-79-112. Contents.

 (a)  The written instrument in which a contract of insurance is set forth is the policy. 

(b)  Every policy shall specify: 

(1)  The names of the parties to the contract; 

(2)  The subject of the insurance; 

(3)  The risks insured against; 

(4)  The time when the insurance thereunder takes effect and the period during which the insurance is to continue; 

(5)  The premium or premium deposit; 

(6)  The policy fee, if any; 

(7)  The minimum premium to be retained, if any, by a property or casualty insurer in the event of cancellation of the policy by the insured; and 

(8)  The conditions pertaining to the insurance. 

 

Return Premium

23-79-112(h)  WORD   PDF

“(h)  On and after January 1, 1990, every property and casualty policy shall contain a provision stating the method to be utilized in computing premium refunds in the event of cancellation of the policy by the insured or the insurer.”

 

 

 

 

 

 CERTIFICATIONS

 

AR is a pilot state for self-certification.  However, the forms required have not been developed.  Contact Property & Casualty for additional info at (501)-371-2800.

 

 

 

 

 

COINSURANCE

 

 

 

 

 

 

 

 CONSUMER INFORMATION

 

 

 

Credit Scoring Notice

 

 

 

Privacy notice

 

 

 

 Notification Form

Bulletin 6-87  WORD PDF

Requires the address & phone # of the Arkansas Insurance Dept in every policy.  The correct address is: Arkansas Insurance Dept., Consumer Services Division, 1200 W. 3rd St., Little Rock, AR  72201-1904;  Telephone 800-852-5494 or 501-371-2640

 

 

 

 

 

CONTENT OF POLICIES

23-79-111  WORD   PDF

23-79-112  WORD   PDF

Too large to include entire code cite here.  Refer to the links to the left

 

 

 

 

 

COUNTERSIGNATURES

Not Applicable

Resident countersignature requires were repealed several years ago.

 

 

 

 

 

 DECLARATIONS PAGE

No specific requirements

 

 

 

 

 

 

 DISCLOSURES