054.00.99 Ark. Code R. 005 - Rule and Regulation 57 Insurance Department Administrative and Regulatory Fees

SECTION 1. PURPOSE.

The purpose of this Rule and Regulation Is to implement and clarify the pertinent fee provisions of Act 652 of 1993, "The State Insurance Department Trust Fund Act" [codified at Ark. Code Ann. §§ 23-61-701 et seq.]; Act 901 of 1993, the Department's "Omnibus Act"; Act 787 of 1993, the "Life Care Providers Act" [codified at Ark. Code Ann. §§ 23-93-201 et seq.] and others. This Rule is designed to specify the amount, method and manner of payment of nonrefundable administrative and regulatory fees of insurers, agents and other licensees or registrants, as well as other filing fees for various Arkansas Insurance Department ("Department") products and services, all of which are payable to "The State Insurance Department Trust Fund" ("Trust Fund").

a convenience to the reader, certain statutory fees are referenced within this Regulation to assist the reader in determining the appropriate fee amount, when both the statute and this Regulation charge different fees for the same services. Note also, that a few fees referenced herein list an annual or biennial fee amount but may be due on an annual or biennial schedule.

(3) The Commissioner in his discretion may waive all or any part of any fee assessed under this if:

(A) the Certificate of Authority, license, permit or registration is suspended or revoked;

(B) if the Commissioner finds that the licensee, permittee or registrant is impaired or insolvent, or its continuing operations are hazardous to the public of this State; or

(C) if the licensee, permittee or registrant is under domiciliary department supervision of this or another State, or court-ordered conservation, rehabilitation, liquidation or has filed for bankruptcy under Chapter 11 of Title 11, United States Code. Any licensee, permittee, registrant or its domiciliary conservator, rehabilitator, liquidator, or trustee in bankruptcy may request a fee waiver in writing; but the Commissioner may not consider waivers for those failing to file a written request therefor. Upon activation or reinstatement of any suspended certificate of authority, license, permit or registration, or upon approval of a bankruptcy reorganization plan or successful release from conservation or rehabilitation, then the licensee, permittee, or registrant shall automatically commence reporting and payment of any of the fees in this Rule applicable to resumed Arkansas operations under the license, permit or registration. Trust Fund reimbursement for fees which would have been required and assessed but for the waiver during that period shall not be required. Upon failure of any such person, firm, or corporation to file for waiver or pay the fees when due, or upon the Commissioner's denial of the requested waiver, the Commissioner may file his claim on behalf of the Trust Fund against any deposit or other asset of the person, firm or corporation as permitted by insurance and other applicable laws of this State.

(4) It is the intent of the Commissioner not to charge fees for filings which are made with the Department for "informational purposes only", and which are otherwise exempt from filing or not expressly required to be filed by statute, regulation, or order. The Commissioner in his reasonable discretion, reserves the right to determine whether, in fact, a particular filing is truly for informational purposes only.

SECTION 3. EFFECTIVE DATE.

The provisions of this Rule shall become effective December 1, 1999, upon statutory filing per Arkansas law.

SECTION 4. DERIVATION AND CLASSES OF FEES.

(a) Ark. Code Ann. §§ 23-61-701 et seq. provides the Department's authority to generate revenue to support its operations by the imposition of fees; it also divides certain of those fees into two categories, i.e. Category A and Category B. Fees in Category A are those involving material or substantive corporate transactions or those which consume substantial time of Department staff; those fees are capped at a maximum of $1,500 per transaction. Category B fees, on the other hand, are those involving other Departmental filings, transactions or services which do not require a substantial effort by Department staff; those fees are capped at a maximum of $50 per transaction.

(b) Caution: §§ 23-61-701 et seq. and other acts/statutes referenced above, authorize the imposition of other fees set forth in the Rule and Regulation and which are not subject to the respective Category A and Category B "caps".

SECTION 5. INSURERS (See Section 2(b)(1)(A).

SUBSECTION I. CATEGORY "A" FEES (Maximum $1500)

(b) Approved Non-Admitted Surplus Line Insurer. Annual continuation of foreign surplus line company registration (DUE MARCH 1st)----------------------------------------------------	$ 500
(c) Accredited/Trusteed Reinsurer Initial registration and annual renewal for Accredited or Trusteed Status	$500

SUBSECTION II. CATEGORY "B" - MAXIMUM $50 (Per Covered Entity, Filing or Transaction)

ADMINISTRATIVE AND REGULATORY FEES	FEE AMOUNTS
(a) Compliance. (1) Filing or review of policy/contract, endorsements or certificates, riders, applications, or annuity forms, per submission (not perform)--------------------------------------------- *Note that a Service purchaser of an Advisory Organization must file the purchased Form for review.	$ 50
(2) Filing/review of each Life and/or Disability rate filing or loss ratio guarantee filing, per insurer-------------------------------	$ 50
(3) Filing of an independent rule filing or to adopt a reference or item filing of Advisory Organization, per item (excluding loss cost reference filing)------------------------------------	$ 25
(4) Filing each set of new/amended or restated By-laws, per insurer, per filing---------------------------------------------------------	$ 25
(5) Life and/or Disability: Filing/review of insurer's advertisements, per advertisement, per each insurer--------------	$ 25
(6) Policy, contract or annuity forms: Filing and review of each life and/or disability certificate rider, application, or endorsement, if filed separately from basic form, per insurer----------------------------------------------------------------------	$ 20
(7) Policy and contract forms, all lines, filing corrections in previously filed policy and contract forms------------------------------	$ 20
(8) Filing of each insurer address change, not involving an amendment to a Certificate of Authority or Articles of Incorporation, per filing, per insurer--------------------------------------	$ 10
(9) Filing of Department Forms 1-71 as to cancellation/nonrenewal of ail appointed insurance agents and agencies after a Name change or after Merger or Consolidation of two or more insurers--------------------	-$ 10
(10) Each filing of an individual Department Form 1-71 as to canceilations/nonrenewals of agent appointments, each appointment, each insurer------------------------------------------	$ 10
(11) Preparation and execution of Certificates of Compliance for insurers----------------------------------------------------- (Coupled with the $5 fee in Ark. Code Ann. § 23-61-401(14)(B) the total fee due is $20.)	$ 15
(12) Filing biographical affidavits on insurer officers and directors per Rule and Regulation 7 (DOMESTIC INSURERS ONLY)-----------------------------------------	$ 10

(2) ANNUAL RENEWAL FEES: CURRENT LICENSEES AND FIRST TIME RENEWALS.

(A) For the fiscal year beginning July 1, 1998, all Individuals holding any one or more valid and subsisting resident or nonresident AGENT licenses, shall pay the annual regulatory renewal fee on or before their birthday, and annually on their birthday thereafter.

(B) For the fiscal year beginning July 1, 1998, all entities holding any one or more valid and subsisting resident or nonresident AGENCY licenses, shall pay the annual regulatory renewal fee on or before October 1 and annually on the same day thereafter.

(3) TYPE OF LICENSE: The phrase "type of license" refers to the particular kind of license held by the licensee rather than the type or line of business the license authorizes the licensee to transact Thus, an agent authorized to transact one or more lines of insurance still has only one license, and the applicable fee is $35. If however, the same licensee also hold a broker's license and a surplus line broker's license (a total of 3 licenses), the licensee would owe three (3) separate fees of $35 each, for a total of $105.

(4) INSURER CHECKS PROHIBITED. Section 1 of Act 901 of 1993 prohibits insurers from paying the $35 annual fee per license of agents and others described in Subsection (a) of this Section. Each agent or other licensee will have to submit his own separate check or money order, or pay cash for payment of these license fees. Fees may be paid by licensing bureaus which, in turn, must charge this cost back to the agent/licensee. The Department will reject or refund any insurer checks. [This does not prohibit insurer payment of agent examination fees.]

(b) Agents.

(1) Filing application for each examination, per applicant, shall be as determined by the Commissioner or Vendor of the Commissioner.

(2) Licensing: Letters of Clearance or Letters of Certification, per each license, per each letter---------------------------------------------$ 5

(c) Agents, Agencies, Brokers, Viatical Settlement Agents and Brokers, Adjusters, Limited Adjusters, Consultants, Risk Retention Group Agents, Purchasing Group Brokers, Surplus Line Brokers, Surplus Line Brokers for Purchasing Groups only, HMO Agents, Prepaid Legal Insurance Agents, Fraternal Benefit Society Agents, FMAA Agents, and any other applicant, or licensee, registrant or permittee with records in the Department:

Review, processing, and retrieval for copying, certifying, or other distribution upon written request for information regarding individual agents (resident & nonresident), per each agent/agency, (exempting governmental agencies, insurance buying public, or others upon Commissioner's discretion)----------$ 10

(d) Agencies.

(1) Filing and review of change of name or business address---------$ 10

(2) Adding/deleting individual agents from agency licenses------------$ 10

SECTION 7. INSURANCE HOLDING COMPANY TRANSACTIONS.

(Fees below are per each holding company, not per each licensed insurer.)

(a) Filing and review of each Form A on Acquisitions/Change in Control (DOMESTIC ONLY)-------------------------------------------------------$1000

(b) Filing and review of each Request for Exemption from Filing Rule, or fees imposed under other sections of Arkansas law.

The fees imposed under this Section and any others as required shall accompany the TPA application for the initial registration, or renewal of registration due no later than

December 15 annually.-----------------------------------------------------------------$ 75

(Coupled with the $25 fee in Ark. Code Ann. § 23-92-203 the total fee due is $100.)

SECTION 14. EMPLOYEE LEASING FIRMS.

(a) Initial or annual renewal of licensure of Employee Leasing Firms or Groups, each firm or group*-----------------------------------------------------	$500
(b) Initial or annual renewal of licensure of Employee Leasing Firms or Groups without substantial presence in this State------------------------ * Either resident or nonresident firms or groups with "substantial presence" in this State as defined in Department Rule and Regulation 58.	$ 50

SECTION 15. CONTINUING CARE FACILITIES AND LIFE CARE PROVIDERS.

(a) Filing Annual Disclosure Statement, each statement, per each facility/provider and/or appointing Commissioner as agent for service of process, each provider----------------	$ 100
(b) Filing and review of initial registration application, for each facility/provider-----------------------------------------------------------------------------	$250

SECTION 16. REINSURANCE INTERMEDIARIES.

(a) Filing initial application for license as reinsurance intennediary manager-----------------------------------------------------------------------------------	$ 500
(b) Filing initial application as reinsurance intermediary-broker----------------	$ 300
(c) Annual renewal fee for reinsurance intermediary-manager-----------------	$ 100
(d) Annual renewal fee for reinsurance intermediary-broker--------------------	$ 75
(e) Designation of Commissioner as Agent for service of process for non-resident manager or broker------------------------------------------------	$ 75

SECTION 17. COURSE PROVIDERS FOR AGENT PRE-LICENSING AND CONTINUING EDUCATION: ANNUAL REGISTRATION AND FEES.

(a) Annual Registration. Pursuant to Ark. Code Ann. §§ 23-61-701 et seq., all approved course providers for agent pre-licensing and continuing education shall register on September 1st annually with the Department on forms prescribed by the Insurance Commissioner

(b) Fees.

(1) Pre-Licensing Education. Each original registration and/or annual renewal of a course provider for agent pre-licensing education---------------------	-$ 100
(2) Continuing Education. Each original registration and/or annual renewal of a course provider for agent continuing education------------------------	$ 100

SECTION 18. MANAGING GENERAL AGENTS/AGENCIES.

Filing application for initial licensure and annual renewal--------------------

$ 500

12. Health Maintenance Orgs.	$5
13. Auto Clubs or Assns.	$5
14. Surety Insurers	$5
15. Notary Bond Surety Cos.	$5
16. Workers' Comp. Cos.	$5
17. Employee Leasing Cos.	$5
18. Acc./Trust. Reinsurers	$5
19. Viatical Providers	$5

(c) Licensed Agent Listings With Company Appointments

Paper	Disk/CD/E-Mail
1. Life & Disability Agents	$240	$170
2. Property & Casualty Agents	$240	$170
3. Single Agents	$10	$5

(d) Licensed Agent Listings Without Company Appointments

Paper	Disk/CD/E-Mail
1. All Agents	$80	$70
2. Life & Disability Agents	$30	$20
3. Life Agents	$15	$15
4. Disability Agents	$15	$15
5. Multi-line Agents	$30	$20
6. Brokers	$10	$10
7. Consultants	$5	$5
8. RRG Agents	$5	$5
9. Purchasing Group Brokers	$5	$5
10. Adjusters	$5	$5
11. Surplus Lines Brokers	$5	$5
12. Managing General Agents	$5	$5
13. Reinsurance Intermediaries	$5	$5
14. Viatical Brokers	$5	$5

(e) Licensed Agency Listings With Company Appointments

Paper	Disk/CD/E-Mail
All Agencies	$240	$170

(f) Licensed Agency Listings Without Company Appointments

Paper	Disk/CD/E-Mail
All Agencies	$75	$50

If partial lists of licensees or licensees of a limited line or category are requested, the Commissioner may charge a reasonable fee less than the foregoing amounts.

*Large reports will only be done on CDs. *Reports on labels will be $4 extra per 1.000.

SECTION 22. TRUST FUND DEPOSIT REQUIRED.

All fees imposed pursuant to this Rule and Regulation SHALL BE DUE AND PAYABLE TO THE "STATE INSURANCE DEPARTMENT TRUST FUND". Fees paid pursuant to this Rule shall whenever possible, be directed to the specific Division of the Department handling the filing, or as otherwise directed by the Department.

(d) DOCTRINE OF ELECTION OF REMEDIES. The doctrine of election of remedies shall not be imposed against the Commissioner; i.e. he is entitled to seek all appropriate administrative and judicial remedies in protection of "The State Insurance Department Trust Fund" and the public interest.

SECTION 26. SEVERABILITY.

If any provision of this Rule or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Rule which can be given effect without the invalid provisions or application, and to this end, the provisions of this Rule are declared to be severable.

Notes

054.00.99 Ark. Code R. 005

12/2/1999