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State Insurance Department

Ark. Code Ann. tit. 23, ch. 61
in effect

Ark. Code Ann. § 23-61-101 State Insurance Department — Continuation — Assignment of space.

(a)(1) There is created the State Insurance Department. (2) The State Insurance Department is a division of the Department of Commerce. (b) Suitable space shall be assigned for the use of the State Insurance Department. (c)(1)(A) The purpose of the State Insurance Department is to serve and protect the public interest by the equitable enforcement of the state's laws and rules affecting the insurance industry. (B) The primary mission of the State Insurance Department shall be consumer protection through insurer solvency and market conduct regulation, and fraud prosecution and deterrence. (2) Nothing in this subsection shall be construed to limit the Insurance Commissioner's authority as enumerated in other provisions of the Arkansas Insurance Code.

Ark. Code Ann. § 23-61-102 Insurance Commissioner.

(a) The head of the State Insurance Department shall be the Insurance Commissioner appointed by the Governor with the advice and consent of the Senate. No person shall be eligible for appointment as commissioner unless a citizen of this state and at least thirty (30) years of age. (b) The commissioner shall serve at the pleasure of the Governor and shall report to the Secretary of the Department of Commerce. (c) The commissioner shall take and subscribe to the usual oath of office. (d) The commissioner shall receive the salary provided by law. (e)(1) At the time of taking office, the commissioner shall execute bond to the State of Arkansas in the sum of fifty thousand dollars ($50,000) for the faithful performance of his or her duties. (2) The form and surety of the bond shall be subject to the approval of the Secretary of the Department of Commerce and the Auditor of State. (3) An authorized surety insurer shall be the surety on the bond. (f)(1) The commissioner shall have an official seal. (2) All certificates issued by the commissioner shall bear his or her seal. (3) Every document executed by the commissioner pursuant to law and bearing his or her official seal shall be received as evidence in any court or other tribunal and may be recorded in the same manner and with like effect as deeds regularly acknowledged.

Ark. Code Ann. § 23-61-103 Insurance Commissioner — Powers and duties.

(a) The Insurance Commissioner shall enforce the provisions of the Arkansas Insurance Code and shall execute the duties imposed upon him or her by the Arkansas Insurance Code. (b) The commissioner shall have the powers and authority expressly conferred upon him or her by or reasonably implied from the provisions of the Arkansas Insurance Code. (c) The commissioner is authorized to enter into regulatory cooperation and coordination agreements with other governmental regulatory agencies within and outside of this state with respect to the regulation of the business of insurance, including, but not limited to: (1) Licensing of insurance companies; (2) Licensing of producers; (3) Regulation of premium rates and policy forms; (4) Regulation of insurer solvency and insurance receiverships; and (5) Other matters relating to the effective regulation of the business of insurance. (d)(1) The commissioner may conduct such examinations and investigations of insurance matters, in addition to examinations and investigations expressly authorized, as he or she may deem proper to determine whether any person has violated any provision of the Arkansas Insurance Code or to secure information useful in the lawful administration of any such provision. The cost of these additional examinations or investigations shall be borne by the state. (2) Notwithstanding any other provision of law, active investigatory or examination files as maintained by the State Insurance Department shall be deemed confidential and privileged and shall not be made open to the public until: (A) The matter under investigation or examination is deemed closed by the commissioner; or (B) Referred to any law enforcement authority and made subject to public disclosure by the authority. (3) At such time that any matter investigated or examined has been set for an administrative hearing pursuant to § 23-61-304 or § 25-15-208, investigation or examination information shall be made available as provided in § 25-15-208. (4) Unless otherwise exempted by subdivision (d)(5) of this section, actuarial formulas and assumptions certified by a qualified actuary are confidential and privileged when submitted to comply with a rate or form filing requirement of the department, including, but not limited to, any actuarial report: (A) Required, submitted, or attached to any filing made to the department under § 23-67-211, for rate and form filings of an insurer, or to those submitted under § 23-63-216 for annual statements of an insurer; or (B) Submitted to the department to comply with any form and rate filing requirement imposed by statute or rule upon licensed insurers, health maintenance organizations, fraternal benefit societies, and hospital and medical service corporations. (5)(A) Subdivisions (d)(2) and (d)(4) of this section do not prohibit release by the commissioner of active investigatory or examination files: (i) At the discretion of the commissioner, to a person or persons that the commissioner determines to be aggrieved or affected by the examination or investigation; or (ii) To state, federal, or local law enforcement or regulatory agencies or private organizations established for tracking or preventing insurance violations, or to the National Association of Insurance Commissioners. (B) [Repealed.] (6) Release of active investigatory or examination files under subdivision (d)(5) of this section does not abrogate or modify the confidential nature of investigatory or examination files under subdivision (d)(2) of this section. (e)(1) The commissioner may delegate to any assistant, deputy, examiner, or employee of the department the exercise or discharge in the commissioner's name of any power, duty, or function, whether ministerial, discretionary, or of whatever character which may be vested by the Arkansas Insurance Code in the commissioner. (2) The commissioner shall be responsible for the official acts of his or her deputy, assistant, examiner, or employee acting in the commissioner's name and by his or her authority. (f)(1)(A) To the extent not otherwise governed by the Trade Practices Act, § 23-66-201 et seq., § 23-65-101 et seq., or a law or rule providing specific injunctive powers to the commissioner, if it appears to the commissioner upon sufficient grounds or evidence that any person has engaged in or is about to engage in any act or practice constituting a violation of an insurance law, rule, or order of this state, the commissioner may summarily order the person to cease and desist from the act or practice. (B)(i) Upon the entry of the cease and desist order under subdivision (f)(1)(A) of this section, the commissioner shall promptly notify the person who is the subject of the order: (a) That the order has been entered; and (b) Of his or her right to a hearing concerning the order. (ii) The notification shall include a copy of the order or a detailed statement of the reasons for the order. (2)(A) A hearing shall be held under § 23-61-301 et seq. on the written request of the person aggrieved by the cease and desist order under subdivision (f)(1)(A) of this section if the request is received by the commissioner within thirty (30) days of the date of the entry of the order or if ordered by the commissioner. (B) If no hearing is requested and none is ordered by the commissioner, the order shall remain in effect until it is modified or vacated by the commissioner. (C) If a hearing is requested or ordered, the commissioner after notice and opportunity for hearing: (i) May affirm, modify, or vacate the order; and (ii) Shall conduct the hearing within ten (10) days of the date a hearing is requested or ordered by the commissioner. (3)(A) After issuance of an order under this subsection, the commissioner may apply to the Pulaski County Circuit Court to temporarily or permanently enjoin the act or practice and to enforce compliance with the insurance laws of this state. (B) However, without issuing such an order, the commissioner may apply directly to the Pulaski County Circuit Court for relief. (4) Upon a proper showing, a permanent or temporary injunction, restraining order, or writ of mandamus shall be granted. (5)(A) The commissioner may also seek and the appropriate court shall grant, upon proper showing, any other ancillary relief that may be in the public interest. (B) The relief may include: (i) The appointment of a receiver, temporary receiver, or conservator; (ii) A declaratory judgment; (iii) An accounting; (iv) A disgorgement of profits; (v) The assessment of a fine not to exceed the total amount of money, property, or other value received in connection with an insurance law violation; or (vi) Any other relief appropriate to protect the public interest. (6) The commissioner is not required to post a bond as a condition for obtaining relief under this subsection. (7) This subsection does not prohibit or restrict the informal disposition of a proceeding or allegations that might give rise to a proceeding by stipulation, settlement, consent, or default in lieu of a formal or informal hearing on the allegations or in lieu of the sanctions authorized by this subsection.

Ark. Code Ann. § 23-61-104 Deputies, assistants, and other employees — Appointment — Duties.

(a) The Insurance Commissioner, in consultation with the Secretary of the Department of Commerce, may appoint such assistants and deputies and such examiners, attorneys, clerks, stenographers, and other personnel as may be necessary to assist him or her in the discharge of the duties imposed upon him or her under the Arkansas Insurance Code and as may be authorized by law. All such personnel shall devote their entire business time to their duties in the State Insurance Department. (b) The commissioner, in consultation with the Secretary of the Department of Commerce, may employ an actuary on a consulting or full-time basis to perform such duties as the commissioner may designate. (c) The commissioner, in consultation with the Secretary of the Department of Commerce, may at any time terminate the appointment, designation, or employment of any assistant, deputy, examiner, attorney, actuary, clerk, or other employee. (d) The compensation for all such personnel so appointed or employed shall be as fixed by law. (e) The commissioner, in consultation with the Secretary of the Department of Commerce, may contract for and procure on a basis of fee such independently contracting examination, actuarial, technical, and other professional services as he or she may from time to time require for the discharge of his or her duties.

Ark. Code Ann. § 23-61-105 Insurance Commissioner, deputies, assistants, and other employees — Expense allowance.

(a) In addition to compensation for their services, the Insurance Commissioner, his or her deputies, assistants, and other Department of Commerce employees performing duties or working within the State Insurance Department shall be paid their actual and necessary expenses as authorized by the commissioner and incurred by them in the performance of their duties, subject to such limitations as may be otherwise applicable pursuant to law. (b) An itemized statement of all expenses for which payment is being claimed shall be certified by the claimant and attached to the expense voucher.

Ark. Code Ann. § 23-61-106 Insurance Commissioner, deputies, assistants, and other employees — Financial interest prohibited — Exception.

(a) The Insurance Commissioner, any deputy, examiner, assistant, or employee of the commissioner, or any employee of the Department of Commerce working for the State Insurance Department shall not be financially interested, directly or indirectly, in any insurer, insurance agency, or insurance transaction, except as: (1) A policyholder or claimant under a policy; (2) A grantor of a mortgage or similar instrument on the person's residence to an entity regulated under the Arkansas Insurance Code if done under customary terms and in the ordinary course of business; or (3) A settlor or beneficiary of a blind trust into which any otherwise impermissible holdings have been placed, provided that the commissioner may make reasonable exceptions upon full and complete written disclosure to the commissioner of the exact nature and extent of the otherwise impermissible financial interest and adhering to any and all reasonable restrictions as the commissioner may impose upon the terms and conditions of employment. (b) Notwithstanding the requirements of subsection (a) of this section, the commissioner may employ or retain, from time to time, insurance actuaries, technicians, or other professional personnel who are independently practicing their professions even though similarly employed or retained by insurers or others. (c) The commissioner, any assistant, deputy, examiner, or other employee of the commissioner, or any employee of the Department of Commerce working for the State Insurance Department shall not be given nor receive any fee, compensation, loan, gift, or other thing of value in addition to the compensation and expense allowance provided pursuant to law for any service rendered or to be rendered as commissioner, deputy, examiner, or employee, or in connection therewith.

Ark. Code Ann. § 23-61-107 Records.

(a)(1) The Insurance Commissioner shall enter, in permanent form, records of his or her official transactions, examinations, investigations, and proceedings and keep these records in his or her office. (2) These records and insurance filings in his or her office shall be open to public inspection, except as otherwise provided in the Arkansas Insurance Code with respect to particular records or filings. (3) Confidential data and reports provided to the commissioner by the National Association of Insurance Commissioners, including, but not limited to, insurers' Insurance Regulatory Information System ratios and examiner team synopses, shall be deemed privileged communications. These data and reports shall not be open to public inspection and shall not be admissible in evidence in any action or proceeding, other than those brought by the commissioner, nor shall any insurers, agents, or brokers, which may be the subject of the confidential reports, have a cause of action against the commissioner or his or her deputies, examiners, assistants, or employees or against the National Association of Insurance Commissioners, or its members, subscribers, officers, directors, assistants, or employees by reason of the furnishing of any such information to the commissioner. (4) The commissioner shall maintain as confidential, and not subject to subpoena, financial information regarding material transactions of insurers, as defined in § 23-63-1403 or other applicable laws or rules promulgated by the commissioner. (5)(A) In order to assist in the performance of the commissioner's duties, the commissioner may: (i) Share documents, materials, or other information, including confidential and privileged documents, materials, or information, with other state, federal, and international regulatory and legislative agencies, with the National Association of Insurance Commissioners and its affiliates and subsidiaries, and with state, federal, and international law enforcement authorities, provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material, communication, or other information; (ii) Receive documents, materials, communications, or information, including otherwise confidential and privileged documents, materials, or information, from the National Association of Insurance Commissioners and its affiliates and subsidiaries, and from regulatory, legislative, and law enforcement officials of other foreign, alien, or domestic jurisdictions, and shall maintain as confidential or privileged any documents, materials, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; and (iii) Enter into agreements governing sharing and use of information consistent with this subsection. (B) No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized by this subsection. (C) A privilege established under the law of any state or jurisdiction that is substantially similar to the privilege established under this subsection shall be available and enforced in any proceeding in, and in any court of, this state. (b) The commissioner may destroy or otherwise dispose of records and filings in his or her office in accordance with such rules and procedures as provided by other applicable laws. (c)(1) Upon request of any person and upon payment of the applicable fee, the commissioner shall give a certified copy of any record in his or her office which is then open to public inspection. (2) Copies of original records or documents in his or her office certified by the commissioner shall be received in evidence in all courts as if they were originals. (3) The commissioner's certificate as to the authority of any person to transact insurance shall be evidence in all courts of the facts set forth therein. (d) In lieu of original signatures of records and filings, as required by pertinent provisions of the Arkansas Insurance Code, which are permitted to be reproduced in electronic, diskette, or computer-readable form acceptable to the commissioner, the commissioner in his or her discretion may accept electronic, electronic facsimile-transmitted, or computer-readable signatures subject to such conditions and terms as he or she may determine.

Ark. Code Ann. § 23-61-108 Rules.

(a)(1) The Insurance Commissioner, in consultation with the Secretary of the Department of Commerce, may make reasonable rules necessary for or as an aid to the effectuation of any provision of the Arkansas Insurance Code. (2) No rule shall extend, modify, or conflict with any law of this state or the reasonable implications thereof. (3) Any rule affecting persons or matters other than the personnel or the internal affairs of the commissioner's office shall be made or amended only after a hearing thereon of which notice was given as required by § 23-61-304. (4) If reasonably possible, the commissioner shall set forth the proposed rule or amendment in or with the notice of hearing. (5) No rule as to which a hearing is required under this subsection shall be effective until after it has been on file as a public record in the commissioner's office, and otherwise as provided by law, for at least ten (10) days. (b)(1) The commissioner, in consultation with the Secretary of the Department of Commerce, shall have the authority to promulgate rules necessary for the effective regulation of the business of insurance or as required for this state to be in compliance with federal laws. (2) The commissioner shall have the authority to coordinate regulatory activities and administration with other states and their appropriate regulatory officials and with the federal government with respect to the regulation of insurance. (c) In addition to any other penalty provided, willful violation of any rule shall subject the violator to such denial, suspension, or revocation of certificate of authority or license as may be applicable under the Arkansas Insurance Code for violation of the provision to which the rule relates. (d)(1) The commissioner is authorized to employ the standards and requirements set forth in publications recited in the Arkansas Insurance Code, as those publications existed on January 1, 2001, and adopted and published by the National Association of Insurance Commissioners or by other authors in the regulation of insurance, including, but not limited to, the Valuation of Securities Manual, the examiners handbook, the Accounting Practices and Procedures Manual, and the Annual Statement Instructions as published by the National Association of Insurance Commissioners. (2) The publications identified in subdivision (d)(1) of this section and others recited in and throughout § 23-60-101 et seq. are hereby adopted as they existed on January 1, 2001. (3) The commissioner is authorized and empowered to promulgate rules for the purposes of adopting all or part of other publications of the National Association of Insurance Commissioners or publications by other authors if the commissioner determines that such an action is in the best interest of the public. (4) Upon the mailing of written notice by the commissioner to all domestic reporting entities of promulgation and publication by the National Association of Insurance Commissioners or other authors of amendments, revisions, or modifications to any publication previously adopted by the commissioner in the Arkansas Insurance Code, such published amendments, revisions, or modifications shall become effective on the date designated by the commissioner in the written notice, which date shall not be earlier than eight (8) months after the date of mailing of the notice. (e) The commissioner is authorized and empowered to adopt rules for the purpose of modifying, amending, or revising any publication promulgated by the National Association of Insurance Commissioners or other authors, or any published amendments, modifications, or revisions to any such publications if the commissioner determines that such an action is in the best interest of the public. In such an event the effective date of any modification, amendment, or revision shall be the effective date of the rule.

Ark. Code Ann. § 23-61-109 Orders and notices.

(a) Orders and notices of the Insurance Commissioner shall be effective only when in writing signed by the commissioner by his or her authority. (b) Every order shall state its effective date and shall concisely state: (1) Its intent or purpose; (2) The grounds on which based; and (3) The provisions of the Arkansas Insurance Code pursuant to which action is taken or proposed to be taken, but failure to so designate all applicable provisions shall not deprive the commissioner of the right to rely thereon. (c) Except as may be provided in the Arkansas Insurance Code respecting particular procedures, an order or notice may be given by service upon or delivery to the person to be ordered or notified or by mailing it, postage prepaid, addressed to the person at his or her principal place of business as last of record in the department.

Ark. Code Ann. § 23-61-110 Enforcement generally.

(a)(1)(A) The Insurance Commissioner may institute such suits or other legal proceedings as may be required for enforcement of any provisions of the Arkansas Insurance Code. (B) In addition, the commissioner may intervene in any civil suit or administrative hearing initiated by another party against any person or entity regulated by the commissioner under the Arkansas Insurance Code, which suit or proceeding directly relates to the financial condition and solvency of such a person or entity. (C) Nothing in this subsection shall be construed to limit the commissioner's authority as enumerated in other provisions of the Arkansas Insurance Code. (2) If the commissioner has reason to believe that any person has violated any provision of the Arkansas Insurance Code for which criminal prosecution would be in order, he or she shall so inform the prosecuting attorney in whose district any purported violation may have occurred or the Criminal Investigation Division. (3) If the commissioner finds that any person has violated any provision of the Arkansas Insurance Code, he or she may order restitution of actual losses to affected persons in addition to the denial, suspension, or revocation of any license or certificate or the imposition of any administrative or civil penalty. (b) The commissioner may proceed in the courts of this state or any reciprocal state to enforce an order or decision in any court proceeding or in any administrative proceeding before the commissioner.

Ark. Code Ann. § 23-61-111 Enforcement — Foreign decrees.

(a) As used in this section and § 23-61-110: (1) “Foreign decree” means any decree or order in equity of a court located in a reciprocal state, including a court of the United States located therein, against any insurer incorporated or authorized to do business in this state; and (2) “Reciprocal state” means any state or territory of the United States the laws of which contain procedures substantially similar to those specified in this section for the enforcement of decrees or orders in equity issued by the courts located in other states or territories of the United States against any insurer incorporated or authorized to do business in the state or territory. (b) The Insurance Commissioner shall determine which states and territories qualify as reciprocal states and shall maintain at all times an up-to-date list of the states. (c)(1) A copy of any foreign decree authenticated in accordance with the statutes of this state may be filed in the office of the clerk of any circuit court of this state. (2) The clerk, upon verifying with the commissioner that the decree or order qualifies as a foreign decree shall treat the foreign decree in the same manner as a decree of a circuit court of this state. (3) A foreign decree so filed has the same effect and shall be deemed as a decree of a circuit court of this state. The decree is subject to the same procedures, defenses, and proceedings for reopening, vacating, or staying as a decree of a circuit court of this state and may be enforced or satisfied in like manner. (d)(1) At the time of the filing of the foreign decree, the commissioner shall make and file with the clerk of the court an affidavit setting forth the name and last known post office address of the defendant. (2) Promptly upon the filing of the foreign decree and the affidavit, the clerk shall mail notice of the filing of the foreign decree to the defendant at the address given and to the commissioner of this state and shall make a note of the mailing in the docket. In addition, the commissioner may mail a notice of the filing of the foreign decree to the defendant and file proof of mailing with the clerk. Lack of mailing notice of filing by the clerk shall not affect the enforcement proceedings if proof of mailing by the commissioner has been filed. (3) No execution or other process for enforcement of a foreign decree filed pursuant to this section shall issue until thirty (30) days after the date the decree is filed. (e)(1) If the defendant shows the circuit court that an appeal from the foreign decree is pending or will be taken, or that a stay of execution has been granted, the court shall stay enforcement of the foreign decree until the appeal is concluded, the time for appeal expires, or the stay of execution expires or is vacated, upon proof that the defendant has furnished the security for the satisfaction of the decree required by the state in which it was rendered. (2) If the defendant shows the circuit court any ground upon which enforcement of a decree of any circuit court of this state would be stayed, the court shall stay enforcement of the foreign decree for an appropriate period, upon requiring the same security for satisfaction of the decree which is required in this state. (f) Any person filing a foreign judgment or decree shall pay to the clerk of the court the fee prescribed in § 21-6-402. Fees for docketing, transcription, or other enforcement proceedings shall be as provided for judgment or decrees of the circuit court of this state.

Ark. Code Ann. § 23-61-112 Annual report.

(a) As early in the calendar year as reasonably possible, the Insurance Commissioner annually shall prepare and deliver a report to the Secretary of the Department of Commerce showing, with respect to the preceding calendar year: (1) Names of the authorized insurers transacting insurance in this state, with a summary of their financial statements that the commissioner considers proper; (2) Names of admitted insurers that closed during the year or entered liquidation, a concise statement concerning the cause for each proceeding, and the amount of assets and liabilities as ascertainable; (3) The total receipts and expenses of the State Insurance Department for the year; (4) A summary of the department's activities to investigate and combat health insurance fraud, including without limitation information regarding: (A) Referrals received; (B) Investigations initiated; (C) Investigations completed; and (D) Other material necessary or desirable to evaluate the department's efforts to investigate and combat health insurance fraud; and (5) Other pertinent information and matters the commissioner considers proper. (b) If the information required under subsection (a) of this section is contained on the state or the department's website under § 25-19-108 or the Arkansas Financial Transparency Act, § 25-1-401 et seq., the report may refer to the web address where the information is located.

Ark. Code Ann. § 23-61-113 Disclosure of nonpublic personal information.

(a) A person shall not disclose any nonpublic personal information contrary to the provisions of Title V of the Gramm-Leach-Bliley Act, Pub. L. No. 106-102. (b)(1) The Insurance Commissioner shall adopt rules governing the treatment of consumer financial and protected health information by the Arkansas Comprehensive Health Insurance Pool and by all licensed insurers, health maintenance organizations, or other insuring health entities regulated by the commissioner, producers, and other persons licensed or required to be licensed, authorized or required to be authorized, or registered or required to be registered by the commissioner. (2)(A) An entity or person described in subdivision (b)(1) of this section or a legal entity engaged in the business of insurance, including without limitation an individual, corporation, association, partnership, reciprocal exchange, interinsurer, Lloyd's insurer, fraternal benefit society, agent, broker, and adjuster, shall: (i) Provide notification of a data breach to the commissioner in the same time and manner as required under § 4-110-105; and (ii) Comply with all requirements for disclosure and notification of a data breach as required under § 4-110-105. (B)(i) This section does not affect the right of the commissioner to impose other penalties provided for in the insurance laws of this state. (ii) The commissioner may promulgate rules necessary for or as an aid to the effectuation of any provision of the Arkansas Insurance Code. (c)(1) The commissioner shall waive any provision of this section that creates a conflict with similar federal laws or regulations, or which, due to the enactment of any similar federal laws or regulations, creates an undue burden or increased financial or operational demands upon a person or entity described in subdivision (b)(1) of this section in order to comply with this section, the rules to be promulgated by the commissioner, and similar federal laws and regulations. (2) A person or entity described in subdivision (b)(1) of this section may request a hearing before the commissioner to seek the waiver referenced in subdivision (c)(1) of this section. (3)(A) Under § 23-61-307, a person or entity described in subdivision (b)(1) of this section is entitled to appeal the commissioner's decision to deny a waiver. (B) In an appeal under this section, the commissioner shall be named as defendant. (C) In any such action, the commissioner may defend the action in his or her discretion.

Ark. Code Ann. § 23-61-115 Policyholder's Bill of Rights.

(a) The principles expressed in subsection (b) of this section shall serve as standards to be followed by the Insurance Commissioner in: (1) Exercising the commissioner's powers and duties; (2) Exercising administrative discretion; (3) Dispensing administrative interpretations of the law; and (4) Adopting rules. (b) Policyholders have the right to: (1) Competitive pricing practices and marketing methods that enable them to determine the best value among comparable policies; (2) Insurance advertising and other selling approaches that provide accurate and balanced information on the benefits and limitations of a policy; (3) An insurer that is financially stable; (4) Be serviced by a competent, honest insurance producer; (5) A readable policy; (6) An insurer that provides an economic delivery of coverage and that tries to prevent losses; (7) Balanced and positive regulation by the State Insurance Department; and (8) A reasonable expectation that the policyholder's nonpublic personal information is securely maintained. (c) This section shall not be construed as creating, extinguishing, repealing, or limiting any civil cause of action.

Ark. Code Ann. § 23-61-117 Risk-based provider organizations.

(a) The Insurance Commissioner shall regulate the licensing and financial solvency of risk-based provider organizations, as defined in § 20-77-2703, participating in the Medicaid provider-led organized care system for enrollable Medicaid beneficiary populations as defined in § 20-77-2703. (b) The commissioner may: (1) Issue rules to implement this section; (2) Impose and collect a reasonable fee from a risk-based provider organization for the regulation and licensing of the risk-based provider organization as established by rule of the State Insurance Department; and (3)(A) Administer collection of the quarterly tax imposed on risk-based provider organizations under § 26-57-603 pursuant to a rule issued by the department. (B) The commissioner shall prescribe the reporting, forms, and requirements related to the payment of the quarterly tax in a rule issued by the department.

Ark. Code Ann. § 23-61-201 Examination of insurers required.

(a)(1) The Insurance Commissioner shall examine the affairs, transactions, accounts, records, market conduct activity, and assets of each authorized insurer as often as in the commissioner's sole discretion he or she deems advisable. (2) The commissioner shall so examine each authorized insurer not less frequently than every five (5) years. (3) Examination of an alien insurer shall be limited to its insurance transactions and affairs in the United States. (4) In scheduling and determining the nature, scope, and frequency of the examinations, the commissioner shall consider such matters as the results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports of independent certified public accountants, and other criteria as set forth in the most current edition of the applicable examiners handbook and other standards adopted by the National Association of Insurance Commissioners and in effect when the commissioner exercises discretion to conduct an examination under subdivision (a)(1) of this section. (b) The commissioner may, in like manner, examine each insurer applying for an initial certificate of authority to transact insurance in this state. (c) In lieu of making his or her own examination of any foreign or alien insurer authorized in this state, the commissioner may, in his or her discretion, accept a full report of the last recent examination of a foreign or alien insurer as prepared by the insurance department for the company's state of domicile or port-of-entry state. After January 1, 1994, such reports may only be accepted by the commissioner if: (1) The insurance department preparing the report was at the time of the examination accredited under the National Association of Insurance Commissioners' Financial Regulation Standards and Accreditation Program; or (2) The examination was performed with the participation of one (1) or more examiners employed by such an accredited state insurance department, who, after a review of the examination work papers and report, state under oath that the examination was performed in a manner consistent with the standards and procedures required by their accredited insurance department. (d) As far as practical, the examination of a foreign or alien insurer shall be made in cooperation with the insurance supervisory officials of other states in which the insurer transacts business.

Ark. Code Ann. § 23-61-202 Examination of managers and promoters required.

For the purposes of completing an examination of any company under this subchapter, the Insurance Commissioner may, as often as he or she deems advisable, examine or investigate any person, or the business of any person, insofar as such an examination or investigation is, in the sole discretion of the commissioner, necessary or material to the examination of the company.

Ark. Code Ann. § 23-61-203 Examiners.

(a) Upon determining that an examination should be conducted, the Insurance Commissioner shall issue an examination certificate of authority appointing one (1) or more examiners to perform the examination and instructing them as to the scope of the examination. In conducting the examination, the examiner shall observe those guidelines and procedures set forth in the most current edition of the applicable examiners handbook adopted by the National Association of Insurance Commissioners. The commissioner may also employ such other guidelines or procedures as the commissioner may deem appropriate. (b) When making an examination under this subchapter, the commissioner may retain attorneys, appraisers, independent actuaries, independent certified public accountants, or other professionals and specialists as examiners, the cost of which shall be borne by the company which is the subject of the examination. (c)(1) The commissioner may also accept as a part of the State Insurance Department's examination of any insurer or person: (A) A report by an independent actuary deemed competent by the commissioner; or (B) A report of an audit made by an independent certified public accountant. (2) Neither those persons so designated nor any members of their immediate families shall be officers of, connected with, or financially interested in any insurer other than as policyholders, nor shall they be financially interested in any other corporation or person affected by the examination, investigation, or hearing.

Ark. Code Ann. § 23-61-204 Examination — Records and appraisals.

(a)(1) Every company or person from whom information is sought, its officers, directors, and agents, must provide to the examiners appointed under § 23-61-203 timely, convenient, and free access at all reasonable hours at its offices to all books, records, accounts, papers, documents, and any or all computer or other recordings relating to the property, assets, business, and affairs of the company being examined. The officers, directors, employees, and agents of the company or person must facilitate such an examination and aid in such an examination so far as it is in their power to do so. (2) The refusal of any company, by its officers, directors, employees, or agents, to submit to examination or to comply with any reasonable written request of the examiners shall be grounds for suspension, revocation, or refusal of, or nonrenewal of, any license or authority held by the company to engage in an insurance or other business subject to the Insurance Commissioner's jurisdiction. Any such proceedings for suspension, revocation, or refusal of any license or authority shall be conducted pursuant to § 23-63-213. (b) If the commissioner finds the accounts to be inadequate or inadequately kept or posted, he or she may employ experts to rewrite, post, or balance them at the expense of the person being examined if the person has failed to complete or correct the accounting after the commissioner has given the person notice and a reasonable opportunity to do so. (c)(1) If the commissioner deems it necessary to value any property involved in an examination, he or she may make written request of the person being examined to appoint one (1) or more competent appraisers, approved by the commissioner, for the purpose of appraising the property. (2) If no appointment is made within ten (10) days after this request was delivered to the person, then the commissioner may appoint the appraiser or appraisers. (3) Any such appraisal shall be promptly made, and a copy of the report shall be furnished to the commissioner. (4) The reasonable expense of the appraisal shall be borne by the person being examined. (d) Nothing contained in this subchapter shall be construed to limit the commissioner's authority to terminate or suspend any examination in order to pursue other legal or regulatory action pursuant to the insurance laws of this state. Findings of fact and conclusions made pursuant to any examination shall be prima facie evidence in any legal or regulatory action. (e) Nothing contained in this subchapter shall be construed to limit the commissioner's authority to use and, if appropriate, to make public any final or preliminary examination report, any examiner or company work papers or other documents, or any other information discovered or developed during the course of any examination in the furtherance of any legal or regulatory action which the commissioner may, in his or her sole discretion, deem appropriate.

Ark. Code Ann. § 23-61-205 Examination reports.

(a)(1) The Insurance Commissioner or his or her examiner shall make a full and true written report of each examination, which shall comprise only facts appearing upon the books, records, or other documents of the insurer, its agents, or other persons examined, or as ascertained from the sworn testimony of its officers or agents or other persons examined concerning its affairs, and shall include such conclusions and recommendations as may reasonably be warranted from the facts. (2)(A) No later than sixty (60) days following completion of the examination, the examiner in charge shall file with the State Insurance Department a verified written report of the examination under oath. (B) Upon receipt of the verified report, the department shall transmit the report to the company examined, together with a notice which shall afford the company examined twenty (20) days to make a written submission or rebuttal with respect to any matters contained in the examination report. (C) For good cause shown, the commissioner may grant an extension of time to the company to review the verified report. (3) Within thirty (30) days after the end of the period allowed for the receipt of written submissions or rebuttals, the commissioner shall fully consider and review the report, together with any written submissions or rebuttals and any relevant portions of the examiners' work papers, and enter an order: (A) Adopting the examination report as filed or with modification or corrections. If the examination report reveals that the company is operating in violation of any law, rule, or prior order of the commissioner, the commissioner may order the company to take any action the commissioner considers necessary and appropriate to cure such a violation; (B) Rejecting the examination report with directions to the examiners to reopen the examination for purposes of obtaining additional data, documentation, or information, and refiling pursuant to subdivision (a)(2) of this section; or (C) Calling for an investigatory hearing with no less than twenty (20) days' notice to the company for purposes of obtaining additional documentation, data, information, and testimony. (b)(1) All orders entered pursuant to subdivision (a)(3)(A) of this section shall be accompanied by findings and conclusions resulting from the commissioner's consideration and review of the examination report, relevant examiner work papers, and any written submissions or rebuttals. Any such order shall be considered a final administrative decision and may be appealed, pursuant to § 23-61-307, and shall be served upon the company by certified mail, together with a copy of the adopted examination report. Within twenty (20) days of the issuance of the adopted report, the company shall file affidavits executed by each of its directors stating under oath that they have received a copy of the adopted report and related orders. (2) Any hearing conducted under subdivision (a)(3)(C) of this section by the commissioner or authorized representative shall be conducted as a nonadversarial confidential investigatory proceeding as necessary for the resolution of any inconsistencies, discrepancies, or disputed issues apparent upon the face of the filed examination report or raised by or as a result of the commissioner's review of relevant work papers or by the written submission or rebuttal of the company. Within thirty (30) days of the conclusion of any such hearing, the commissioner shall enter an order pursuant to subdivision (a)(3)(A) of this section. (3) The hearing shall proceed expeditiously with discovery by the company limited to the examiner's work papers which tend to substantiate any assertions set forth in any written submission or rebuttal. The commissioner may issue subpoenas for the attendance of any witnesses or the production of any documents deemed relevant to the investigation, whether under the control of the department, the company, or other persons. The documents produced shall be included in the record, and testimony taken by the commissioner or his or her representative shall be under oath and preserved for the record at the cost of the company. Nothing contained herein shall require the department to disclose any information or records which would indicate or show the existence or content of any investigation or activity of a criminal justice agency. (c)(1) Upon the adoption of the examination report under subdivision (a)(3)(A) of this section, the commissioner shall continue to hold the content of the examination report as private and confidential information for thirty (30) days from the date the company received the order issued by the commissioner to adopt the examination report, except as provided in subdivision (a)(2) of this section. (2) After the expiration of thirty (30) days, the commissioner may open the report for public inspection if a court of competent jurisdiction has not stayed its publication. (d) Nothing contained in this subchapter shall prevent or be construed as prohibiting the commissioner from disclosing the content of an examination report, preliminary examination report or results, or any matter relating thereto, to the insurance department of this or any other state or country, or to law enforcement officials of this or any other state or agency of the federal government at any time, so long as the agency or office receiving the report or matters relating thereto agrees in writing to hold it confidential and in a manner consistent with this subchapter.

Ark. Code Ann. § 23-61-206 Examination expense.

(a)(1) Each person examined shall pay to the State Insurance Department the actual travel expenses, reasonable living expense allowance, and compensation for examiners and other persons assisting in the examination according to the examination guidance section in the most current edition of the examiners handbook adopted by the National Association of Insurance Commissioners. (2) Except as provided in subdivision (a)(1) of this section, the cost of independent professionals used as examiners to assist in an examination under subsection (b) of this section is paid directly by the person examined. (b)(1) Payments for travel expenses and living expense allowance received by the department for each examination shall be deposited as cash funds. (2) Reimbursement shall be made from these funds to examiners and others assisting in the examination. (3)(A) Per diem charges of examiners and others assisting in the examination shall be computed beginning at the time of reporting for duty at the office of the company to be examined and terminating upon completion of the examination or the examiner's active participation therein and to include actual days for travel as certified by the Insurance Commissioner. (B) If air travel is used, only one (1) day's travel time will be authorized. (C) If an automobile is used, travel time allowed shall be computed at the rate of not less than four hundred (400) miles per day as determined by the Rand McNally Road Atlas, with the actual mileage traveled compensated at the most current rate per mile according to the examination guidance section in the most current edition of the Financial Condition Examiner's Handbook published by the National Association of Insurance Commissioners. (4) Examiners and others assisting in the examination shall not be reimbursed for travel time or travel expenses not actually incurred in connection with an assignment, nor shall they be reimbursed for dual living expenses while on branch office assignments. (5) Examiners and others assisting in the examination, when participating in or conducting an examination of a foreign company, shall be authorized to return to their state of domicile every other weekend. Their expenses will be paid based upon the lesser of airfare or mileage. The reimbursement shall be made in lieu of the per diem allowance. The travel shall be accomplished with a minimum amount of work time lost. (c) Payments for employee compensation received by the department shall be deposited by the commissioner into the State Treasury to be credited to the State Insurance Department Trust Fund used for the maintenance, operation, and support of the department. (d) No person shall pay, and no examiner shall accept, any additional emolument on account of any examination.

Ark. Code Ann. § 23-61-207 Confidentiality of ancillary information.

All working papers, recorded information, documents, and copies produced by, obtained by, or disclosed to the Insurance Commissioner or any other person in the course of an examination made under this subchapter must be given confidential treatment and are not subject to subpoena and may not be made public by the commissioner or any other person, except to the extent provided in § 23-61-205 . In addition, all workpapers, financial statement analyses, ratio calculations, and any other materials produced by State Insurance Department financial examiners or analysts, or documents submitted or disclosed to the department by an insurer in response to a request from the commissioner or a department financial examiner or analyst during the course of reviewing or investigating the financial solvency, condition, or affairs of an insurer, shall be confidential and not subject to subpoena, except to the extent as provided in § 23-61-205 . Access may also be granted to the National Association of Insurance Commissioners. The parties must agree in writing prior to receiving the information to provide to it the same confidential treatment as required by this section, unless the prior written consent of the company to which it pertains has been obtained.

Ark. Code Ann. § 23-61-208 Immunity from liability.

(a) No cause of action shall arise nor shall any liability be imposed against the Insurance Commissioner, the commissioner's authorized representatives, or any examiner appointed by the commissioner for any statements made or conduct performed in good faith while carrying out the provisions of this subchapter. (b) No cause of action shall arise, nor shall any liability be imposed against any person for the act of communicating or delivering information or data to the commissioner or the commissioner's authorized representative or examiner pursuant to an examination made under this subchapter, if such an act of communication or delivery was performed in good faith and without fraudulent intent or the intent to deceive. (c) This section does not abrogate or modify in any way any common law or statutory privilege or immunity heretofore enjoyed by any person identified in subsection (a) of this section. (d) A person identified in subsection (a) of this section shall be entitled to an award of attorney's fees and costs, if that person is the prevailing party in a civil cause of action for libel, slander, or any other relevant tort arising out of his or her activities in carrying out the provisions of this subchapter, and the party bringing the action was not substantially justified in doing so. For purposes of this section, a proceeding is “substantially justified” if it had a reasonable basis in law or fact at the time it was initiated.

Ark. Code Ann. § 23-61-301 Examination, investigation, or hearing — Witnesses and evidence.

(a) With respect to the subject of any examination, investigation, or hearing being conducted by the Insurance Commissioner, the commissioner may subpoena witnesses and administer oaths or affirmations and examine any individual under oath and may require and compel the production of records, books, papers, contracts, and other documents. (b)(1) Witness fees and mileage shall not be allowed as to any licensee of the commissioner. (2) Witness fees and mileage of persons or entities not licensees of the commissioner, if claimed, shall be allowed the same as for testimony in a circuit court. Provided, however, that such a claim must be made at the time, date, and place of the hearing to which the person or entity has been summoned, and the amount thereof shall be processed in the same manner as are State Insurance Department employees' requests for expense reimbursement from the State of Arkansas. (3) Witness fees, mileage, and the actual expense necessarily incurred in securing attendance of witnesses and their testimony shall be itemized and shall be paid by the person being examined or investigated if, in the proceedings in which the witness is called, the person is found to have been in violation of the law, or paid by the person, if other than the commissioner, at whose request the hearing is held. (c)(1) Subpoenas of witnesses shall be served in the same manner as if issued by a circuit court and may be served by certified mail. (2) If any individual fails to obey a subpoena issued and served pursuant to this section with respect to any matter concerning which he or she may be lawfully interrogated, upon application of the commissioner, the circuit court of the county in which is pending the proceeding at which the individual was required to appear may issue an order requiring the individual to comply with the subpoena and to testify. (3) Any failure to obey the order of the court may be punished by the court as a contempt thereof. (d) If any officer, director, or manager of an insurer has refused, in connection with examination of the insurer by the commissioner, to be examined under oath concerning its affairs, then the commissioner is authorized to conduct and enforce by all appropriate and available means any examination under oath in any state or territory of the United States in which any officer, director, or manager may then presently be to the full extent permitted by the laws of the state or territory, this special authorization considered. (e) Any person willfully testifying falsely under oath in this state as to any matter material to any examination, investigation, or hearing shall, upon conviction, be guilty of perjury and punished accordingly.

Ark. Code Ann. § 23-61-302 Examination, investigation, or hearing — Testimony compelled.

(a)(1) An individual may execute, acknowledge, and file in the State Insurance Department a statement expressly waiving immunity or privilege for any transaction, matter, or thing specified in the statement. (2) If a statement is filed under subdivision (a)(1) of this section, the testimony of the person or the evidence in relation to the transaction, matter, or thing may be received or produced before any judge or justice, court, tribunal, grand jury, or otherwise. (b) If testimony or evidence is received or produced under subdivision (a)(2) of this section, the individual is not entitled to any immunity or privilege on account of any testimony he or she may give or evidence produced.

Ark. Code Ann. § 23-61-303 Hearing — Generally.

(a) The Insurance Commissioner may hold hearings for any purpose within the scope of the insurance laws of this state. (b)(1) The commissioner shall hold a hearing if required by any provision or upon written demand for a hearing by a person aggrieved by any act, threatened act, or failure of the commissioner to act, or by any report, rule, or order of the commissioner, other than an order for the holding of a hearing, or an order on hearing or pursuant thereto. (2) Any demand shall specify the grounds to be relied upon as a basis for the relief to be demanded at the hearing, and unless postponed by mutual consent, the hearing shall be held within thirty (30) days after receipt by the commissioner of the demand. (3) If the commissioner has a conflict or is otherwise unable to serve, the commissioner may appoint and compensate a person, including without limitation an attorney or retired judge, from outside the State Insurance Department to act as a hearing officer. (c) Pending the hearing and decision thereon, the commissioner may suspend or postpone the effective date of the commissioner's previous action.

Ark. Code Ann. § 23-61-304 Hearing — Notice.

(a) Not less than ten (10) days in advance, the Insurance Commissioner shall give notice of the time and place of the hearing, stating the matters to be considered at the hearing. (b) If the persons to be given notice are not specified in the provisions pursuant to which the hearing is held, the commissioner shall give notice to all persons to be directly and immediately affected by the hearing.

Ark. Code Ann. § 23-61-305 Hearing — Procedures.

(a) Hearings may be closed to the public at the Insurance Commissioner's discretion, except that a hearing shall be open to the public if so requested in writing by any party to the hearing. (b) The commissioner shall allow any party to the hearing to appear in person and by counsel, to be present during the giving of all evidence, to have a reasonable opportunity to inspect all documentary evidence and to examine witnesses, to present evidence in support of his or her interest, and to have subpoenas issued by the commissioner to compel attendance of witnesses and production of evidence in his or her behalf. (c) The commissioner shall permit to become a party to the hearing by intervention, if timely, only those persons who were not original parties to the hearing and whose pecuniary interests are to be directly and immediately affected by the commissioner's order made upon the hearing. (d) Formal rules of pleading or evidence need not be observed at any hearing. (e)(1) Upon written request timely made by a party to the hearing and at that person's expense, the commissioner shall cause a full stenographic record of the proceedings to be made by a competent reporter. (2) If transcribed, a copy of the stenographic record shall be furnished to the commissioner. Notwithstanding the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq., the transcribed stenographic record shall be furnished to the commissioner without cost to the commissioner or the state and shall be a part of the commissioner's record of the hearing. (3) If so transcribed, a copy of the stenographic record shall be furnished to any other party to the hearing at the request and expense of the other party. (4) If no stenographic record is made or transcribed, the commissioner shall prepare an adequate record of the evidence and of the proceedings. (f) Upon written request of a party to a hearing filed with the commissioner within thirty (30) days after any order made pursuant to a hearing has been mailed or delivered to the persons entitled to receive the order, the commissioner, in his or her discretion, may grant a rehearing or reargument of the matters involved in the hearing, and notice of the rehearing or reargument shall be given as provided in § 23-61-304.

Ark. Code Ann. § 23-61-306 Hearing — Order.

(a) In the conduct of any hearing under the Arkansas Insurance Code and making his or her order thereon, the Insurance Commissioner shall act in a quasi-judicial capacity. (b) Within thirty (30) days after termination of the hearing or of any rehearing thereof or reargument thereon, the commissioner shall make his or her order on hearing, covering matters involved in that hearing and in any rehearing or reargument and shall give a copy of the order to the same persons given notice of the hearing and to all parties to the hearing. (c) The order shall contain a concise statement of the facts as found by the commissioner and of his or her conclusions from those facts and the matters required by § 23-61-109. (d) The order may affirm, modify, or nullify action theretofore taken and may constitute the taking of new action within the scope of the notice of hearing.

Ark. Code Ann. § 23-61-307 Hearing — Appeal.

(a) An appeal from the Insurance Commissioner shall be taken only from an order on hearing or with respect to a matter as to which the commissioner has refused or failed to grant or hold a hearing after demand therefor under § 23-61-303 or as to a matter as to which the commissioner has refused or failed to make his or her order on hearing as required by § 23-61-306. (b) Any person who was a party to the hearing, or whose pecuniary interests are directly and immediately affected by the refusal or failure to grant a hearing, and who is aggrieved by the order, refusal, or failure may appeal from the order on hearing or as to any such matter within thirty (30) days after: (1) The order on hearing has been mailed or delivered to the persons entitled to receive it; (2) The commissioner's order denying rehearing or reargument has been so mailed or delivered; (3) The commissioner has refused or failed to make his or her order on hearing as required under § 23-61-306; or (4) The commissioner has refused or failed to grant or hold a hearing as required under § 23-61-303. (c) The appeal shall be granted as a matter of right and shall be taken to the Pulaski County Circuit Court by filing written notice of appeal in the court and by filing a copy of the notice with the commissioner, except that, in appeals from the refusal, suspension, or revocation of the license of an agent, broker, solicitor, or surplus line broker, the person taking the appeal may at his or her option take the appeal to the circuit court of the county in which the person resides instead of to the Pulaski County Circuit Court. (d) Upon filing of the notice of appeal therein, the court shall have full jurisdiction and shall determine whether the filing shall operate as a stay of the order or action appealed from and shall have the right at any time thereafter to issue such other temporary or preliminary orders as to it may seem proper until a final decree is rendered. (e) Within thirty (30) days after filing of the copy of notice of appeal in his or her office, or within such further time as the court may allow, the commissioner shall make, certify, and deposit in the office of the clerk of the court in which the appeal is pending a full and complete transcript of all proceedings had before the commissioner and all evidence before him or her in the matter, including all his or her files therein. (f) Upon receipt of the transcript, evidence, and files, the court, as soon as reasonably possible thereafter, shall review the action of the commissioner appealed from. (g)(1) Any appeal shall be upon the basis of the record so presented. (2) In any review the findings of the commissioner as to the facts, if supported by substantial evidence, shall be conclusive. (3) If any party shall apply to the court for leave to adduce additional evidence and shall show to the satisfaction of the court that the additional evidence is material and that there were reasonable grounds for the failure to adduce the evidence in the proceedings before the commissioner, the court may order the additional evidence to be taken before the commissioner and to be adduced upon the hearing in such manner and upon such terms and conditions as the court may deem proper. (4) The commissioner may modify his or her findings of fact or make new findings by reason of the additional evidence taken pursuant to subdivision (g)(3) of this section. The commissioner shall file the modified or new findings, which, if supported by substantial evidence, shall be conclusive, and his or her recommendation, if any, for the modification or setting aside of his or her original order with the return of the additional evidence. (h) After hearing the appeal the court may affirm, modify, or reverse the order or action of the commissioner in whole or in part, or may remand the action to the commissioner for further proceedings in accordance with the court's direction. (i) Costs shall be awarded as in civil actions. (j)(1) Appeal may be taken to the Supreme Court or the Court of Appeals from the judgment of the circuit court as in other civil cases. (2) The circuit court judgment appealed from shall not be subject to supersedeas, and a stay of the effectiveness of any judgment may be made only by order of the Supreme Court or the Court of Appeals upon the giving of such security as the court deems proper.

Ark. Code Ann. § 23-61-401 License and miscellaneous fees.

The Insurance Commissioner shall collect annually or biennially as prescribed by rule of the commissioner and pay to the Treasurer of State the following fees, licenses, and miscellaneous charges: (1) Admission fees: (A) Filing and reviewing all documents necessary for issuance of certificate of incorporation for domestic companies $100.00 (B) Issuance of an original certificate of incorporation for domestic companies 50.00 (C) Reviewing all documents necessary for issuance of original certificate of authority 500.00 (D) Issuance of original certificate of authority for all companies 150.00 (E) Issuance of original license for rate service organiza- tions and employer service assurance organizations 500.00 (F) Filing and reviewing all documents of a nonadmitted company seeking to be placed on the “approved” list for the writing of surplus lines insurance 500.00 (2) Annual renewal fees: (A) Filing an annual statement for all companies 50.00 (B) Renewal of a certificate of authority for all companies 100.00 (C) Rate service organizations and employer service as- surance organizations, annual continuation of license 100.00 (3) Other miscellaneous fees: (A) Amendment to articles of incorporation 25.00 (B) Reinstatement of certificate of authority 50.00 (C) Amending an existing certificate of authority 100.00 (4) Agent's license for resident agents: (A) Property, casualty, surety agents: Original issuance of each license 15.00 Annual continuation of appointment, each insurer 10.00 Appointment of agent by insurer, each insurer 10.00 (B) Life and accident and health insurance agents: Appointment of agent by insurer, each insurer 10.00 Annual continuation of appointment, each insurer 10.00 (C) Each vending machine licensed under § 23-64-221 , each year 10.00 (5) Broker's license for resident brokers: (A) Original license 30.00 (B) Annual continuation of license 30.00 (6) Nonresident broker (corporate) license: (A) Original license 30.00 (B) Annual continuation of license 30.00 (7) Nonresident broker license: (A) Original license 30.00 (B) Annual continuation of license 30.00 (8) Nonresident agent license fees: As established by rule of the commissioner (9) Temporary license: (A) As resident agent 10.00 (B) As resident broker 25.00 (10) Examination for agent or broker license: (A) Filing application for examination for agent or broker 10.00 (B) Filing application for reexamination for agent or broker 5.00 (11) Surplus line broker license: (A) Original license, individual 1,000.00 (B) Original license, firms and corporations plus one (1) qualifying individual 1,000.00 (C) Each additional individual 100.00 (D) Annual continuation of license 25.00 (12) Adjuster's license, each year 25.00 (13) Consultants: (A) Original license 25.00 (B) Annual renewal 25.00 (14) Miscellaneous services: (A) For copies of documents and records on file in State Insurance Department, per page 0.25 (B) For each certificate of the commissioner other than certificates of authority 5.00 Click to view form.

Ark. Code Ann. § 23-61-402 Disposition.

(a) The Insurance Commissioner shall deposit all fees collected under § 23-61-401 into the State Treasury as special revenues. Unless specifically authorized by law, order, or consent decree for collection and deposit into other accounts or other trust funds as general or special revenues, including, but not limited to, the State Insurance Department Trust Fund under the State Insurance Department Trust Fund Act, § 23-61-701 et seq., the Insurance Continuing Education Trust Fund under § 23-64-307, and the State Insurance Department Criminal Investigation Division Trust Fund under § 23-100-103, all fees, penalties and fines, gifts, grants and endowments and awards, restitution payments, interest and investment income, and dividends paid or payable to or collected by the commissioner, or both, and not otherwise appropriated shall be deposited into the State Insurance Department Trust Fund as special revenues for the maintenance, operation, and support of and improvements to the State Insurance Department. (b) On the last business day of each month, the State Treasury shall credit the net amount of the fees collected under § 23-61-401 to the Constitutional Officers Fund and the State Central Services Fund to be used for the maintenance, operation, and improvement of the respective agencies and services receiving support from the Constitutional Officers Fund and the State Central Services Fund as authorized by law.

Ark. Code Ann. § 23-61-501 Purpose.

The purpose of this subchapter is to: (1) Enable the State of Arkansas to determine jurisdiction over the providers of health care benefits described in § 23-61-503; (2) Allow examinations by this state unless the provider of health care benefits is able to show it is not subject to the jurisdiction of the State Insurance Department; and (3) Make the provider of health care benefits subject to the applicable laws of this state unless it can show that it is not subject to the jurisdiction of the department.

Ark. Code Ann. § 23-61-502 Exempt health care plans.

The provisions of this subchapter shall not apply to those health care plans which are maintained: (1) Pursuant to a collective bargaining agreement; (2) By a tax exempt rural electric cooperative; (3) By The Poultry Federation; or (4) By any nonprofit vision service plan corporation composed of at least fifty (50) participating optometrists or ophthalmologists licensed by the State of Arkansas to provide vision care services on a prepaid basis when each licensed optometrist or ophthalmologist is subject to the rules of the professional's respective state board and when each participating licensed optometrist or ophthalmologist agrees to assume responsibility for completion of the provisions of the vision care services contracted for so that no element of risk is incurred by any subscriber group or person.

Ark. Code Ann. § 23-61-503 Jurisdiction of State Insurance Department — Application of Arkansas Insurance Code.

(a) Notwithstanding any other provision of law and except as provided in this subchapter, any person, entity, or plan that provides coverage in this state for medical, surgical, chiropractic, physical therapy, speech pathology, audiology, professional mental health, dental, hospital, or optometric expenses, whether the coverage is by direct payment, reimbursement, or otherwise, shall be presumed to be subject to the jurisdiction of the State Insurance Department and to all other applicable provisions of the Arkansas Insurance Code unless the person, entity, or plan described in this section shows that it is not subject to the jurisdiction of the department. (b) This subchapter shall not apply to a trust established under §§ 14-54-101 and 25-20-104 to provide benefits such as accident and health benefits, death benefits, dental benefits, and disability income benefits .

Ark. Code Ann. § 23-61-504 Examination required — Exception.

Any person, entity, or other provider described in § 23-61-503 that fails to show it is not subject to the jurisdiction of the State Insurance Department shall submit to an examination or investigation by the Insurance Commissioner to determine its organization, solvency, and compliance with the Arkansas Insurance Code.

Ark. Code Ann. § 23-61-508 Rules.

The Insurance Commissioner is authorized to promulgate rules which may be necessary for the implementation and enforcement of this subchapter.

Ark. Code Ann. § 23-61-602 Purpose.

(a) It is the purpose of this subchapter to reduce the cost to the state of insurance coverage, including surety bonds, by establishing the Risk Management Division. (b) It is also the purpose of this subchapter that the division analyze and make recommendations as to cost-effective loss control and safety programs for the various state agencies. (c) It is also the purpose of this subchapter to authorize the division to advise and give assistance to municipalities, counties, school districts, and improvement districts as to the procurement of insurance coverage and other risk management techniques.

Ark. Code Ann. § 23-61-603 Definitions.

As used in this subchapter, unless the context otherwise requires: (1) “Risk management” means the minimization of loss through the discovery of loss sources, evaluation of the impact of a possible loss on the organization, and the selection of the most effective and efficient technique of dealing with risk of loss; (2) “Risk manager” means the Administrator of the Risk Management Division; and (3) “State agencies” means any agencies, boards, bureaus, commissions, councils, departments, institutions, or other establishments of this state.

Ark. Code Ann. § 23-61-604 Risk Management Division — Creation.

There is created a Risk Management Division within the State Insurance Department.

Ark. Code Ann. § 23-61-605 Risk manager — Appointment — Authority.

(a)(1) The Administrator of the Risk Management Division will be appointed by the Insurance Commissioner. (2) The risk manager shall be knowledgeable and experienced in risk management techniques. (b) The risk manager shall have the authority to: (1) Establish standardized specifications for insurance coverage of all state agencies; (2) Determine all specifications for insurance coverage of state agencies; (3) Assist and advise state agencies in the procurement of insurance coverage; (4) Establish a system for reporting insured or uninsured losses incurred by state agencies and purchases of insurance by state agencies within guidelines established by the risk manager; (5) Develop and promote programs to control losses and encourage safety; and (6) Perform any other function of risk management as directed by the commissioner.

Ark. Code Ann. § 23-61-606 Procurement of insurance or surety bonding.

(a) The State Procurement Director shall procure insurance or surety bonding in accordance with the Arkansas Procurement Law, § 19-61-101 et seq., unless the risk manager determines that it is in the best interest of the state for the director to procure insurance or surety bonding by negotiation, or for any state agency to procure all or part of its own insurance or surety bonding. (b) When the Administrator of the Risk Management Division authorizes state agencies to procure insurance or surety bonding, the authorization shall be made in writing and approved by the Insurance Commissioner. The authorization may be made for, but not limited to, purchases not exceeding an amount established by rules, particular lines of insurance, and purchases by state agencies with a demonstrated expertise in the field of risk management. (c) Upon approval of the risk manager and the director, a state agency may be authorized to procure insurance or surety bonding under emergency conditions. Emergency conditions exist when life, health, welfare, assets, or functional operations of an agency are or may be threatened or impaired. (d) The director shall not have jurisdiction over the procurement of surety bonding or insurance coverage for state agencies except as provided by this subchapter.

Ark. Code Ann. § 23-61-607 Rules.

(a) The Administrator of the Risk Management Division shall have the authority to promulgate rules consistent with this subchapter. (b) All rules shall be subject to the approval of the Insurance Commissioner and conform with the requirements of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

Ark. Code Ann. § 23-61-608 Advice and assistance for certain political subdivisions.

(a) At the request of any municipality, county, school district, or improvement district, the risk manager may give advice and assistance on the purchase of insurance coverage and other risk management techniques. (b) However, counties, municipalities, school districts, and improvement districts may be required to reimburse the State Insurance Department for expenses incurred by providing the assistance. Reimbursements shall not include salary and benefit expenses for full-time state employees. (c) The reimbursements shall be deposited into the State Treasury as nonrevenue receipts refund to expenditures. (d) This section shall only be used in the event that budgetary constraint dictates this action to prevent undue fiscal hardships on the department.

Ark. Code Ann. § 23-61-609 Reports by state agencies.

State agencies shall report to the Administrator of the Risk Management Division information that the risk manager determines to be necessary to analyze and manage the risk of loss of state assets.

Ark. Code Ann. § 23-61-702 State Insurance Department Trust Fund — Creation.

(a) There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the State Insurance Department Trust Fund to be used to: (1) Defray the expenses of the State Insurance Department in the discharge of its administrative and regulatory powers and duties as prescribed by law; (2) Defray the administrative expenses and losses incurred by the Arkansas Comprehensive Health Insurance Pool or its successor; and (3) Fund capital expenditures and training for fire departments certified by the Arkansas Department of Emergency Management. (b) No money is to be appropriated from this fund for any purpose except: (1) As provided in subsection (a) of this section; (2) For the personal services and operating expenses, maintenance and operations, and support of and improvements to the State Insurance Department; or (3) At the direction of the Insurance Commissioner for the use, benefit, and support of the State Insurance Department. (c) The fund established pursuant to this section shall be administered, disbursed, and invested under the direction of the commissioner and the Treasurer of State. (d) All income derived through grants, refunds, and gifts to the fund shall be credited as income to the fund and deposited therein. (e) Further, all moneys deposited to the fund shall not be subject to any deduction, tax, levy, or any other type of assessment except as may be provided in this subchapter.

Ark. Code Ann. § 23-61-703 Insurers' administrative and financial regulation fees.

(a) Notwithstanding § 26-57-602 and other provisions of Arkansas law, all licensed insurers, including without limitation all licensed stock and mutual insurance companies, health maintenance organizations, fraternal benefit societies, hospital and medical service corporations, stipulated premium insurers, reinsurers, and farmers' mutual aid associations annually in the manner prescribed by the Insurance Commissioner shall pay to the State Insurance Department Trust Fund a nonrefundable administrative and financial regulation fee no later than: (1) June 1; or (2) A date or dates established by rule of the commissioner. (b)(1) This fee shall be based upon the insurer's direct premiums and copayments written in the State of Arkansas during the preceding calendar year, as evidenced by the insurer's annual statement filed March 1 annually with the State Insurance Department pursuant to the Arkansas Insurance Code. (2) Insurers and reinsurers with no annual direct written Arkansas premiums shall pay the minimum fee of five hundred dollars ($500). (c) Such administrative and financial regulation fees shall be paid in the following amounts based upon the following schedule: (d) In no event shall the annual financial regulation fee imposed in this section and assessed to support the maintenance and operation of the department exceed twenty-five thousand dollars ($25,000) for any one (1) insurer or reinsurer in any one (1) year. ARKANSAS DIRECT WRITTEN ANNUAL ADMINISTRATIVE PREMIUMS AND COPAY- AND FINANCIAL REGULA- MENTS OF INSURERS, HMO'S, TION FEE DUE STATE OF FMAA'S, AND OTHERS (total for ARKANSAS preceding calendar year) $0 $ 500 01-499,999 750 500,000-2,499,999 1,000 2,500,000-4,999,999 2,500 5,000,000-7,499,999 5,000 7,500,000-9,999,999 7,500 10,000,000-19,999,999 10,000 20,000,000-29,999,999 12,000 30,000,000-49,999,999 15,000 50,000,000-74,999,999 17,500 75,000,000-99,999,999 20,000 100,000,000 AND UP 25,000 Click to view table.

Ark. Code Ann. § 23-61-704 Insurers' payment extensions — Penalties for noncompliance — Commissioner's waiver for impaired or insolvent insurers.

(a)(1) The Insurance Commissioner may grant any licensed insurer an extension for reporting and payment of the annual administrative and financial regulation fee for good cause shown upon the written application of the licensed insurer received at the State Insurance Department on or before each annual due date. (2) Absent the commissioner's approval of such time extensions for good cause, licensed insurers failing timely to report or pay the administrative and financial regulation fee shall be subject to a penalty of one hundred dollars ($100) a day for each day of delinquency, payable to the State Insurance Department Trust Fund. (3)(A) The commissioner may pursue any appropriate legal remedies on behalf of the State Insurance Department Trust Fund to collect the administrative and financial regulation fees and penalties due and unpaid from any delinquent insurer. (B) Further, the commissioner may in his or her discretion order suspension of the delinquent insurer's Arkansas certificate of authority after notice and hearing until payment of all such fees and penalties is remitted to the State Insurance Department Trust Fund. (4) Absent a grant of his or her waiver for good cause shown, the commissioner may revoke the Arkansas certificate of authority of any delinquent insurer consistently refusing and failing without good cause to remit payment of those fees and penalties to the fund pursuant to this subchapter. (b)(1) The commissioner may in his or her discretion waive all or any part of the administrative and financial regulation fee due annually from a licensed insurer upon the suspension or revocation of the insurer's Arkansas certificate of authority, or upon issuance of a court order placing the company into conservation, rehabilitation, or liquidation in any state, or upon the commissioner's finding that the insurer is impaired or insolvent, or that its operations are hazardous to the insurance-buying public of this state. (2) Upon the reinstatement or activation of the insurer's Arkansas certificate of authority in good standing, the commissioner's waiver automatically terminates and the insurer shall be liable for payment of the administrative and financial regulation fee on the next succeeding March 1 without retroactive reimbursement for the amount of the fees which would normally have accrued during the waiver period.

Ark. Code Ann. § 23-61-705 Insurers' regulation fees — Deposit into the State Insurance Department Trust Fund as special revenues.

The Insurance Commissioner shall deposit all administrative and financial regulation fees and any penalties assessed under this subchapter directly into the State Insurance Department Trust Fund as special revenues.

Ark. Code Ann. § 23-61-706 Administrative and regulatory fees — Other licensees.

(a) In addition to and notwithstanding all other current and future statutory fees, assessments, or penalties paid by licensees or registrants in connection with the issuance and renewal of their Arkansas licenses or registrations as required under the Arkansas Insurance Code or other Arkansas laws, new and additional or increased nonrefundable administrative and regulatory fees are hereby imposed against all licensed resident and nonresident agents, agencies, brokers, surplus line and purchasing group brokers, risk retention agents, third party administrators, and similar licensees or registrants for each and every individual, firm, or corporation licensed or registered by the State Insurance Department pursuant to the provisions of the Arkansas Insurance Code and, in particular, the provisions of § 23-64-101 et seq., § 23-64-201 et seq., the Surplus Lines Insurance Law, § 23-65-301 et seq., § 23-73-101 et seq., § 23-74-101 et seq., § 23-76-101 et seq., the Arkansas Legal Insurance Act, § 23-91-201 et seq., § 23-92-201 et seq., and the Risk Retention and Purchasing Groups Act, § 23-94-201 et seq., excluding insurers, health maintenance organizations, hospital and medical service corporations, fraternal benefit societies, and farmers' mutual aid associations, risk retention and purchasing groups, stipulated premium insurers, and similar insurer-type entities. (b) The fees shall be payable to the State Insurance Department Trust Fund for the support and operation of the State Insurance Department, and in no event shall any one (1) fee required by subsection (a) of this section exceed a maximum of fifty dollars ($50.00) per license or registration. The fees due per license as required by this section commencing on and after July 1, 1994, and annually thereafter, shall be due in an amount and at such times or upon such schedule as the Insurance Commissioner shall prescribe in a companion rule to this chapter after notice and a public hearing, so long as the companion rule does not provide for any one (1) fee set pursuant to this section to exceed the maximum amount of fifty dollars ($50.00) per license. (c) Commencing immediately on and after March 24, 1993, all new applicants for original or initial licensure or registration pursuant to the provisions of any of the Arkansas Insurance Code subchapters recited in subsection (a) of this section shall pay the annual administrative and regulatory fee per license or registration to accompany the application for the license or registration upon filing with the department. (d)(1) Upon the failure of the applicant or licensee or registrant timely to report or pay any of the additional administrative and regulatory fees assessed in this section, the fee payable to the State Insurance Department Trust Fund shall be twice the amount required in this section. (2) Additionally, without an abuse of discretion, the commissioner in his or her discretion may deny licensure or renewal licensure or registration or renewal registration to a new applicant, licensee, or registrant, or may suspend or revoke current licensees or registrants required by this section to pay the administrative and regulatory fee. (3) The commissioner may also pursue other civil legal remedies for collection of the fees and penalties due and unpaid from applicants and licensees and registrants pursuant to this section. (e) Upon collection, the Insurance Commissioner shall deposit all such administrative and regulatory fees and penalties directly into the State Insurance Department Trust Fund as special revenues. (f) For the licensees enumerated in this section whose licenses are subsequently suspended for violations of Arkansas laws or the commissioner's rules or orders, the administrative and regulatory fees are due and owing upon the normal due date prescribed in the commissioner's companion rule to this subchapter, including those licensees under a license suspension ordered by the commissioner for timely failure to pay this regulatory fee, and license reinstatement shall not proceed, automatically or otherwise, pursuant to the Arkansas Insurance Code unless and until the licensee pays all outstanding and owing regulatory fees imposed by this chapter.

Ark. Code Ann. § 23-61-708 Fees for various other departmental services and products.

(a)(1) Notwithstanding other provisions of this subchapter and notwithstanding other provisions of the Arkansas Insurance Code or other applicable Arkansas laws, the Insurance Commissioner shall by companion rule to this subchapter prescribe the amount and manner of payment of new, additional, or increased but nonrefundable fees due as special revenues to the State Insurance Department Trust Fund for the following services, documents, or publications provided by the State Insurance Department, including, but not limited to: (A) Filing by insurers of each agent appointment termination form; (B) Application for or issuance of original certification to be a course provider for agent prelicensing or continuing education in this state; (C) Application for or issuance of renewal certification to be a course provider for agent prelicensing or continuing education in this state; (D) Filing fees for applications filed for original examinations and retake examinations administered by the department; (E) Filing of initial and renewal insurer appointments of resident insurance agencies, corporations, or firms and partnerships; (F) Annual renewal of each certificate of registration issued to a third party administrator; (G) A filing and processing fee for filing legal process with the department wherein the commissioner is serving as official agent for service of process; (H) Filing and processing fees for filing specimen insurance policy and contract forms of all types with the department; (I) A filing fee for obtaining department lists of various kinds of licensees or registrants; and (J) Similar department services and products. (2) In the event the commissioner is required by laws enacted contemporaneous with or subsequent to this subchapter to perform other duties or incur other obligations, and in the event current revenues of the department, including, but not limited to, those revenues produced by this subchapter, are not sufficient for the commissioner to perform those new or additional duties efficiently and promptly or to the extent the commissioner deems necessary, then the commissioner shall enact new or additional or increased fees for departmental services, documents, and publications, but such fees shall only be adopted and imposed in a rule promulgated by the commissioner after notice and a hearing pursuant to the Arkansas Administrative Procedure Act, § 25-15-201 et seq., and other applicable sections of the Arkansas Insurance Code and other laws. (3) The fees described in this section and prescribed in amount and frequency of payment in the commissioner's companion rule to this subchapter shall be payable to the State Insurance Department Trust Fund as special revenues for the support and operation of the State Insurance Department. (b)(1)(A) The fees for various department services, documents, or publications shall be divided into two (2) categories, Category A fees and Category B fees, and shall be so specified in the companion rule to this subchapter. (B) Category A fees at a maximum of one thousand five hundred dollars ($1,500) per transaction shall consist of those fees representing material or substantive corporate transactions of licensees, including, but not limited to, holding company changes in control of insurers or similar entities, corporate mergers and consolidation, bulk, or assumptive reinsurance transactions, as well as department products and services which would require a substantial commitment of department resources per transaction. (C) Category B fees at a maximum of fifty dollars ($50.00) per transaction shall consist of those fees representing other transactions of licensees, as well as department products and services which would not require a substantial commitment of department resources per transaction. (2) In no event shall any one (1) Category A fee or Category B fee for any department service, document, or publication per transaction pursuant to this section and the commissioner's companion rule and regulation exceed the maximums listed herein. (c) The commissioner may from time to time alter the fee amounts by rule amendment pursuant to the Arkansas Administrative Procedure Act, § 25-15-201 et seq., but in no event shall such fee amendments necessary for continued support and operation of the department exceed the limitations set forth in this section. (d) Insurers obligated to secure or renew agent appointments using department forms one through forty-eight (1-48) for their agent representatives on the licensing records of the State Insurance Department pursuant to the provisions of § 23-64-514 on a new or biennial renewal basis shall no longer collect such licensure expenses, directly or indirectly, from the agent licensee, or exact any form of reimbursement for the statutory appointment fees, or pass such costs along to the agent licensee, directly or indirectly, as any other type of charge, notwithstanding the provision of any agency, brokerage, or employment contract or agreement with the agent to the contrary.

Ark. Code Ann. § 23-61-709 Insurance Commissioner's authority, powers, and duties.

(a) The Insurance Commissioner shall be duly authorized to promulgate rules necessary to effectuate the purposes of this subchapter. (b) Upon his or her determination and finding that State Insurance Department appropriations or funding is insufficient to operate the department efficiently or to allow the commissioner to perform all of his or her statutorily mandated duties and tasks, the commissioner may, in his or her discretion, by rule following notice and a public hearing, increase the amounts of the fees, license fees, fines, penalties, and revenues as provided in this subchapter for deposit into the State Insurance Department Trust Fund as special revenues. (c)(1) Further, in his or her discretion the commissioner may establish and collect as special revenues additional or increased fees and penalties not otherwise specified in this subchapter, for direct deposit into the State Insurance Department Trust Fund as special revenues if the fees and revenues provided by this subchapter are insufficient, in connection with all other revenues appropriated to and funded for the department, to defray all the expenses of the department in the efficient discharge of its administrative and regulatory powers and duties as prescribed by law. (2) Any special revenues and fees established by the commissioner by the authority of this section shall be classified in and meet the criteria of the Category A fees or Category B fees specified by § 23-61-708. (3) Upon collection by the commissioner, these funds shall be deposited as special revenues directly into the State Insurance Department Trust Fund. (4) The commissioner may from time to time alter the amounts of the fees specified in the companion rules to this subchapter by amending the rules pursuant to the procedures of the Arkansas Administrative Procedure Act, § 25-15-201 et seq., as necessary to the continued support and operation of the department.

Ark. Code Ann. § 23-61-710 Trust fund — State Insurance Department vouchers and Auditor of State.

(a) All fees, license fees, and additional or increased license or registration fees, fines, penalties, and revenues provided for in this subchapter received as special revenues for the State Insurance Department Trust Fund and deposited therein shall be deemed for all purposes revenues of the State Insurance Department Trust Fund and of the State Insurance Department for the sole support, operation, and maintenance of the department, and, when paid into the State Treasury by the Insurance Commissioner, shall be maintained by the State Treasury as the State Insurance Department Trust Fund, separate from all other funds, and available only for the payment of the expenses of the department pursuant to the appropriations therefor. (b) The Auditor of State shall, upon proper voucher from the commissioner, issue his or her warrant on the Treasurer of State in payment of all salaries and other expenses incurred in the administration of this subchapter. (c) The commissioner shall at the end of each biennium period cause to be transferred into the General Revenue Fund Account of the State Apportionment Fund the excess of the State Insurance Department Trust Fund moneys over an amount equal to one (1) fiscal-year budget for the department.

Ark. Code Ann. § 23-61-711 Fees additional to all others currently payable — Exception.

The fees assessed or imposed by this subchapter upon insurers, as defined or referenced in § 23-61-703 , and the fees assessed or imposed in § 17-19-301 and §§ 23-61-706 — 23-61-709 upon professional bail bond companies, insurers, insurance agents, brokers, and other licensees or registrants are imposed in addition to all other fees, assessments, premium and privilege taxes, penalties, and other such payments such licensees or registrants pay the State of Arkansas through the State Insurance Department or other state or governmental agencies pursuant to applicable Arkansas laws, except that insurers' payments of these administrative and financial regulation fees in § 23-61-703 are expressly and in pertinent part to be paid in lieu of payment of department examiners' salaries, wages, and compensation due at or after each examination conducted on the insurer by the department's examiners pursuant to the provisions of § 23-61-201 et seq., and, in particular, § 23-61-206 . Therefore, insurers shall still be liable for payment of and shall pay department examiners' expenses for food, lodging, and travel as directed under § 23-61-201 et seq.

Ark. Code Ann. § 23-61-801 Title.

This subchapter shall be known and may be cited as the “Arkansas Health Insurance Marketplace Act”.

Ark. Code Ann. § 23-61-802 Definitions.

As used in this subchapter: (1) “Federal act” means the federal healthcare laws established by Pub. L. No. 111-148, as amended by Pub. L. No. 111-152, and any amendments to or regulations or guidance issued under those statutes existing on April 23, 2013; (2)(A) “Health benefit plan” means a policy, contract, certificate, or agreement offered or issued by a health insurer to provide, deliver, arrange for, pay for, or reimburse any of the costs of healthcare services. (B) “Health benefit plan” does not include: (i) Coverage only for accident or disability income insurance, or both; (ii) Coverage issued as a supplement to liability insurance; (iii) Liability insurance, including without limitation general liability insurance and automobile liability insurance; (iv) Workers' compensation or similar insurance; (v) Automobile medical payment insurance; (vi) Credit-only insurance; (vii) Coverage for on-site medical clinics; or (viii) Other similar insurance coverage, specified in federal regulations issued under the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and existing on April 23, 2013, under which benefits for healthcare services are secondary or incidental to other insurance benefits. (C) “Health benefit plan” does not include the following benefits if they are provided under a separate policy, certificate, or contract of insurance or are otherwise not an integral part of the plan: (i) Limited scope dental or vision benefits; (ii) Benefits for long-term care, nursing home care, home health care, community-based care, or a combination of these; or (iii) Other similar limited benefits specified in federal regulations issued under the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and existing on April 23, 2013. (D) “Health benefit plan” does not include the following benefits if the benefits are provided under a separate policy, certificate, or contract of insurance, there is no coordination between the provision of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and the benefits are paid with respect to an event without regard to whether benefits are provided with respect to such an event under any group health plan maintained by the same plan sponsor: (i) Coverage only for a specified disease or illness; or (ii) Hospital indemnity or other fixed indemnity insurance. (E) “Health benefit plan” does not include the following if offered as a separate policy, certificate, or contract of insurance: (i) Medicare supplemental health insurance as defined under section 1882(g)(1) of the Social Security Act, Pub. L. No. 74-271, as existing on April 23, 2013; (ii) Coverage supplemental to the coverage provided to military personnel and their dependents under Chapter 55 of Title 10 of the United States Code and the Civilian Health and Medical Program of the Uniformed Services, 32 C.F.R. Part 199; or (iii) Similar supplemental coverage provided to coverage under a group health plan; (3) “Health insurance” means insurance that is primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease or amounts paid for the purpose of affecting any structure of the body, including transportation that is essential to obtaining health insurance, but excluding: (A) Coverage only for accident or disability income insurance, or any combination thereof; (B) Coverage issued as a supplement to liability insurance; (C) Liability insurance, including general liability insurance and automobile liability insurance; (D) Workers' compensation or similar insurance; (E) Automobile medical payment insurance; (F) Credit-only insurance; (G) Coverage for on-site medical clinics; (H) Coverage only for limited scope vision benefits; (I) Benefits for long-term care, nursing home care, home health care, community-based care, or any combination thereof; (J) Coverage for specified disease or critical illness; (K) Hospital indemnity or other fixed indemnity insurance; (L) Medicare supplement policies; (M) Medicare, Medicaid, or the Federal Employee Health Benefit Program; (N) Coverage only for medical and surgical outpatient benefits; (O) Excess or stop-loss insurance; and (P) Other similar insurance coverage: (i) Under which benefits for health insurance are secondary or incidental to other insurance benefits; or (ii) Specified in federal regulations issued under the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and existing on April 23, 2013, under which benefits for healthcare services are secondary or incidental to other insurance benefits; (4) “Health insurer” means an entity that provides health insurance or a health benefit plan in the State of Arkansas, including without limitation an insurance company, medical services plan, hospital plan, hospital medical service corporation, health maintenance organization, fraternal benefits society, or any other entity providing a plan of health insurance or health benefits subject to state insurance regulation; (5) “Qualified employer” means a small employer that elects to make its full-time employees eligible for one (1) or more qualified health plans offered through the small business health options program, and at the option of the employer, some or all of its part-time employees, provided that the employer: (A) Has its principal place of business in this state and elects to provide coverage through the small business health options program to all of its eligible employees, wherever employed; or (B) Elects to provide coverage through the small business health options program to all of its eligible employees who are principally employed in this state; (6) “Qualified health plan” means a health benefit plan that has in effect a certification that the plan meets the criteria for certification described in section 1311(c) of the federal act; and (7)(A) “Small employer” means an employer that employed an average of not more than fifty (50) employees during the preceding calendar year. (B) For purposes of this subdivision (7): (i) All persons treated as a single employer under subsection (b), subsection (c), subsection (m), or subsection (o) of section 414 of the Internal Revenue Code of 1986 as existing on April 23, 2013, shall be treated as a single employer; (ii) An employer and any predecessor employer shall be treated as a single employer; (iii) All employees shall be counted, including part-time employees and employees who are not eligible for coverage through the employer; (iv) If an employer was not in existence throughout the preceding calendar year, the determination of whether that employer is a small employer shall be based on the average number of employees that is reasonably expected that the employer will employ on business days in the current calendar year; and (v) An employer that makes enrollment in qualified health plans available to its employees through the small business health options program and would cease to be a small employer because of an increase in the number of its employees shall continue to be treated as a small employer for purposes of this subchapter as long as it continuously makes enrollment through the small business health options program available to its employees.

Ark. Code Ann. § 23-61-803 Arkansas Health Insurance Marketplace.

(a) The Arkansas Health Insurance Marketplace is created as a division within the State Insurance Department. (b) The State Insurance Department shall plan and administer the Arkansas Health Insurance Marketplace and employ necessary staff. (c) The State Insurance Department shall keep an accurate accounting of all activities, receipts, and expenditures on behalf of the Arkansas Health Insurance Marketplace and report to the Legislative Council as requested by the Legislative Council. (d) The State Insurance Department may apply for and expend on behalf of the Arkansas Health Insurance Marketplace any state, federal, or private grant funds available to assist with the implementation and operation of the Arkansas Health Insurance Marketplace. (e)(1) The State Insurance Department may contract with eligible entities to assist with the planning, implementation, and operation of the Arkansas Health Insurance Marketplace. (2) For the purposes of this subsection: (A) An eligible entity includes without limitation an entity that has experience in individual and small group health insurance, benefit administration, or other experience relevant to the responsibilities to be assumed by the entity; and (B) A health insurer or an affiliate of a health insurer is not an eligible entity. (3) In contracting with an eligible entity under subdivision (e)(1) of this section, the State Insurance Department shall give preference to eligible entities that have relevant experience. (f) The State Insurance Department may enter into information-sharing agreements with federal and state agencies and other state marketplaces to carry out its responsibilities under this subchapter, provided such agreements: (1) Include adequate protections with respect to the confidentiality of the information to be shared; and (2) Comply with all applicable state and federal laws and regulations. (g) As a condition of participating in the Arkansas Health Insurance Marketplace, a health insurer shall pay the assessments, submit the reports, and provide the information required by the Insurance Commissioner to implement this subchapter. (h) The State Insurance Department and any eligible entity under subdivision (e)(2) of this section shall provide claims and other plan and enrollment data to the Department of Human Services upon request to: (1) Facilitate compliance with reporting requirements under state and federal law; and (2) Assess the performance of the Arkansas Health and Opportunity for Me Program established by the Arkansas Health and Opportunity for Me Act of 2021, § 23-61-1001 et seq., including without limitation the program's quality, cost, and consumer access. (i)(1) The Legislative Council may study matters pertaining to this subchapter that the Legislative Council considers necessary to fulfill its mandate under this subchapter. (2) The Legislative Council may request reports from the Arkansas Health Insurance Marketplace pertaining to the operations, programs, or finances of the Arkansas Health Insurance Marketplace as it deems necessary. (3) Annually by December 15, the Legislative Council shall provide to the General Assembly any analysis or findings resulting from its activities under this section that the Legislative Council deems relevant. (4)(A) During a regular, fiscal, or extraordinary session of the General Assembly, the Joint Budget Committee shall perform the functions assigned to the Legislative Council under this subchapter. (B) This subsection does not limit the authority of the Legislative Council and its subcommittees to meet during a recess as authorized by § 10-2-223 or § 10-3-211. (5) The Legislative Council and the Joint Budget Committee may: (A) Establish or utilize one (1) or more subcommittees to assist in the duties of the Legislative Council or the Joint Budget Committee, respectively, under this subchapter; (B) Assign information filed with the Legislative Council under this subchapter to one (1) or more subcommittees of the Legislative Council or the Joint Budget Committee, respectively, including without limitation a subcommittee created under subdivision (i)(5)(A) of this section; and (C) Delegate the duties of the Legislative Council or the Joint Budget Committee, respectively, under this subchapter to one (1) or more subcommittees of the Legislative Council or the Joint Budget Committee, respectively, subject to the final review and approval of the Legislative Council or the Joint Budget Committee, respectively.

Ark. Code Ann. § 23-61-805 Funding — Publication of costs.

(a) The General Assembly shall establish a reasonable initial assessment or user fee and reasonable increases or decreases in the amount of future assessments or user fees and penalties and interest charges for nonpayment of an assessment or user fee charged to participating health insurers for the efficient operation of the Arkansas Health Insurance Marketplace. (b)(1) All assessments and fees shall be due and payable upon receipt in the matter required by the Insurance Commissioner and shall be delinquent if not paid within thirty (30) days of the receipt of notice of the assessment by the health insurer. (2)(A) Failure to timely pay the assessment shall automatically subject the health insurer to a penalty not to exceed ten percent (10%) of the assessment plus interest as established under subsection (a) of this section. (B) The penalty and interest is due and payable within the next thirty-day period. (3) The commissioner may enforce the collection of the assessment and penalty and interest in accordance with this subchapter and the Arkansas Insurance Code. (4) The commissioner may waive the penalty and interest authorized by this subsection if the commissioner determines that compelling circumstances exist that justify a waiver. (c)(1) The department shall publish the average costs of licensing, regulatory fees, and any other payments required by the Arkansas Health Insurance Marketplace and the administrative costs of the Arkansas Health Insurance Marketplace on an internet website to educate consumers on such costs. (2) Information published under subdivision (c)(1) of this section shall include information on moneys lost to waste, fraud, and abuse.

Ark. Code Ann. § 23-61-806 Rules.

(a) The Insurance Commissioner may promulgate rules to implement this subchapter. (b) Rules promulgated under this section shall not conflict with or prevent the application of regulations promulgated by the Secretary of the United States Department of Health and Human Services under the federal act.

Ark. Code Ann. § 23-61-807 Relation to other laws.

(a) This subchapter is amendatory to the Arkansas Insurance Code. (b) Provisions of the Arkansas Insurance Code that are not in conflict with this subchapter are applicable to this subchapter. (c) This subchapter and actions taken by the Arkansas Health Insurance Marketplace under this subchapter shall not be construed to preempt or supersede the authority of the Insurance Commissioner to regulate the business of insurance within this state. (d) Except as expressly provided to the contrary in this subchapter, a health insurer offering a qualified health plan in this state shall comply fully with all applicable health insurance laws of this state and rules adopted and orders issued by the commissioner.

Ark. Code Ann. § 23-61-901 Title.

This subchapter shall be known and may be cited as the “Arkansas Healthcare Transparency Initiative Act of 2015”.

Ark. Code Ann. § 23-61-902 Legislative intent and purpose.

(a) It is the intent of the General Assembly to create and maintain an informative source of healthcare information to support consumers, researchers, and policymakers in healthcare decisions within the state, including decisions by the State Insurance Department to regulate the business of insurance in this state. (b) The purpose of this subchapter is to: (1) Empower Arkansans to drive, deliver, and seek out value in the healthcare system; (2) Create the Arkansas Healthcare Transparency Initiative; (3) Establish governance of the Arkansas Healthcare Transparency Initiative; (4) Provide authority to collect healthcare information from insurance carriers and other entities; and (5) Establish appropriate methods for collecting, maintaining, and reporting healthcare information, including privacy and security safeguards.

Ark. Code Ann. § 23-61-903 Definitions.

As used in this subchapter: (1) “Arkansas Healthcare Transparency Initiative” means an initiative to create a database, including ongoing all-payer claims database projects funded through the State Insurance Department, that receives and stores data from a submitting entity relating to medical, dental, and pharmaceutical and other insurance claims information, unique identifiers, and geographic and demographic information for covered individuals as permitted in this subchapter, and provider files, for the purposes of this subchapter; (2) “Arkansas resident” means an individual for whom the submitting entity has identified an Arkansas address as the individual's primary place of residence; (3) “Claims data” means information included in an institutional, professional, or pharmacy claim or equivalent information transaction for a covered individual, including the amount paid to a provider of healthcare services plus any amount owed by the covered individual; (4) “Covered individual” means a natural person who is an Arkansas resident and is eligible to receive medical, dental, or pharmaceutical benefits under any policy, contract, certificate, evidence of coverage, rider, binder, or endorsement that provides for or describes coverage; (5)(A) “Direct personal identifiers” means information relating to a covered individual that contains primary or obvious identifiers, such as the individual's name, street address, e-mail address, telephone number, and Social Security number. (B) “Direct personal identifiers” does not include geographic or demographic information that would not allow the identification of a covered individual; (6) “Enrollment data” means demographic information and other identifying information relating to covered individuals, including direct personal identifiers; (7) “Protected health information” means health information as protected by the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, as it existed on January 1, 2015; (8) “Provider” means an individual or entity licensed by the state to provide healthcare services; (9)(A) “Submitting entity” means: (i) An entity that provides health or dental insurance or a health or dental benefit plan in the state, including without limitation an insurance company, medical services plan, managed care organization, hospital plan, hospital medical service corporation, health maintenance organization, or fraternal benefit society, provided that the entity has covered individuals and the entity had at least two thousand (2,000) covered individuals in the previous calendar year; (ii) A health benefit plan offered or administered by or on behalf of the state or an agency or instrumentality of the state, including without limitation benefits administered by a managed care organization whether or not the managed care organization had two thousand (2,000) covered individuals in the previous year; (iii) A health benefit plan offered or administered by or on behalf of the federal government with the agreement of the federal government; (iv) The Workers' Compensation Commission; (v) Any other entity providing a plan of health insurance or health benefits subject to state insurance regulation, a third-party administrator, or a pharmacy benefits manager, provided that the entity has covered individuals and the entity had at least two thousand (2,000) covered individuals in the previous calendar year; (vi) A health benefit plan subject to the Employee Retirement Income Security Act of 1974, Pub. L. No. 93-406, and that is fully insured; (vii) A risk-based provider organization licensed by the State Insurance Department; and (viii) An entity that contracts with institutions of the Division of Correction or the Division of Community Correction to provide medical, dental, or pharmaceutical care to inmates. (B) “Submitting entity” does not include: (i) An entity that provides health insurance or a health benefit plan that is accident-only, specified disease, hospital indemnity, long-term care, disability income, or other supplemental benefit coverage; (ii) An employee of a welfare benefit plan as defined by federal law that is also a trust established pursuant to collective bargaining subject to the Labor Management Relations Act, 1947, Pub. L. No. 80-101; or (iii) A health benefit plan subject to the Employee Retirement Income Security Act of 1974, Pub. L. No. 93-406, that is self-funded; and (10) “Unique identifier” means any identifier that is guaranteed to be unique among all identifiers for covered individuals but does not include direct personal identifiers.

Ark. Code Ann. § 23-61-904 Arkansas Healthcare Transparency Initiative.

(a) The Arkansas Healthcare Transparency Initiative is established with the purpose to create a database, including ongoing all-payer claims database projects funded through the State Insurance Department, that receives and stores data from a submitting entity relating to medical, dental, and pharmaceutical and other insurance claims information, unique identifiers, and geographic and demographic information for covered individuals as permitted in this subchapter, and provider files, for the purposes of this subchapter. (b) The Arkansas Healthcare Transparency Initiative shall be governed by the department and advised by the Arkansas Healthcare Transparency Initiative Board.

Ark. Code Ann. § 23-61-905 Arkansas Healthcare Transparency Initiative Board — Membership — Duties.

(a)(1) There is created the Arkansas Healthcare Transparency Initiative Board, which shall be composed of the following members: (A) A representative of the Department of Human Services; (B) A representative of the Department of Health; (C) A representative of the Office of Health Information Technology or its successor entity as provided by state law; (D) The Surgeon General; (E) Nine (9) members appointed by the Governor as follows: (i) Two (2) representatives from the health insurance industry, one (1) of whom shall be a multistate representative and one (1) of whom shall be a domestic representative; (ii) Two (2) representatives from the healthcare provider community; (iii) A representative from a self-insured employer; (iv) A representative from an employer of fewer than one hundred (100) full-time employees that provides healthcare coverage to employees through a fully-insured product; (v) A representative from a healthcare consumer organization; (vi) A representative from the academic research community with expertise in healthcare claims data analysis; and (vii) A representative with expertise in health data privacy and security; and (F) A representative from the Arkansas Biosciences Institute who shall serve as an ex-offico, nonvoting member. (2) A Governor-appointed member of the board in subdivision (a)(1)(E) of this section shall serve for a term of three (3) years. (3) The board shall appoint one (1) member as Chair of the Arkansas Healthcare Transparency Initiative Board and determine the qualifications, duties, and the term of office of the chair. (4) Seven (7) members present constitute a quorum. (5) The board shall hold its first meeting no later than July 1, 2015. (b) The State Insurance Department shall: (1) Have the authority to: (A) Collect, validate, analyze, and present health data, including claims data; (B) Assess penalties for noncompliance with this subchapter; and (C) Establish and convene additional subcommittees to carry out the purposes of this subchapter; (2) Designate the Arkansas Center for Health Improvement as the Administrator of the Arkansas Healthcare Transparency Initiative, which shall be responsible for development and implementation of a sustainability plan subject to data use and disclosure requirements of this subchapter and any rules promulgated under this subchapter; (3) With the assistance of the Administrator of the Arkansas Healthcare Transparency Initiative, establish and convene the following subcommittees: (A) The Data Oversight Subcommittee of the Arkansas Healthcare Transparency Initiative, which shall: (i) Consist of: (a) Three (3) Governor-appointed board members; and (b) One (1) individual healthcare consumer; and (ii) Review and make recommendations to the State Insurance Department regarding: (a) Data requests for consistency with the intent and purpose of this subchapter, including whether the data request contains the minimum required information; and (b) Reports and publications generated from data requests to ensure compliance with this subchapter; and (B) The Scientific Advisory Subcommittee of the Arkansas Healthcare Transparency Initiative, which shall: (i) Consist of: (a) The Governor-appointed member of the board from the academic research community; and (b) Two (2) nonmembers of the board who are academic researchers; and (ii) Serve as peer review for academic researchers and provide advice regarding data requests for academic proposals and the scientific rigor of analytic work; and (4) Adopt any rules necessary to implement this subchapter under the Arkansas Administrative Procedure Act, § 25-15-201 et seq. (c) In consultation with the board, the State Insurance Department shall exercise its powers and duties under this subchapter to: (1) Establish policies and procedures necessary for the administration and oversight of the Arkansas Healthcare Transparency Initiative, including procedures for the collection, processing, storage, analysis, use, and release of data; (2) Identify and explore the key healthcare issues, questions, and problems that may be improved through more transparent information, including without limitation data required to be disclosed to patients related to provider relationships or affiliations with payers and providers, financial interests in healthcare businesses, and payments or items of any value given to providers from pharmaceutical or medical device manufacturers or agents thereof; and (3) Provide a biennial report to the General Assembly on the operations of the Arkansas Healthcare Transparency Initiative.

Ark. Code Ann. § 23-61-906 Data submission.

(a) Except as provided in subsection (d) of this section, every quarter thereafter, a submitting entity shall submit health and dental claims data, unique identifiers, and geographic and demographic information for covered individuals as permitted in this subchapter, nonclaims-based payments made to providers, and provider files to the Arkansas Healthcare Transparency Initiative in accordance with standards and procedures adopted by the State Insurance Department. (b) Data submitted under this subchapter shall be treated as confidential and are exempt from disclosure under the Freedom of Information Act of 1967, § 25-19-101 et seq., and are not subject to subpoena, except to the extent provided in § 23-61-205. (c) The collection, storage, and release of data and other information under this section is subject to applicable state and federal data privacy and security law. (d) No later than July 1, 2015, a submitting entity shall submit health and dental claims data, unique identifiers, and geographic and demographic information for covered individuals as permitted in this subchapter to the Arkansas Healthcare Transparency Initiative to support deliberations of the Arkansas Health Reform Legislative Task Force.

Ark. Code Ann. § 23-61-907 Data release.

(a) Data in the Arkansas Healthcare Transparency Initiative shall: (1) To the extent authorized by the State Insurance Department, be available: (A) When disclosed in a form and manner that ensures the privacy and security of protected health information as required by state and federal laws, as a resource to insurers, employers, purchasers of health care, researchers, state agencies, and healthcare providers to allow for assessment of healthcare utilization, expenditures, and performance in this state, including without limitation as a resource for hospital community health needs assessments; and (B) To state programs regarding healthcare quality and costs for use in improving health care in the state, subject to rules prescribed by the department conforming to state and federal privacy laws or limiting access to limited-use data sets; and (2) Not be used to: (A) Disclose trade secrets of submitting entities; (B) Reidentify or attempt to reidentify an individual who is the subject of any submitted data without obtaining the individual's consent; or (C) Create or augment data contained in a national claims database. (b) Notwithstanding the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, or any other provision of law, the Arkansas Healthcare Transparency Initiative shall not publicly disclose any data that contains direct personal identifiers.

Ark. Code Ann. § 23-61-908 Penalties for failure to submit data.

(a) Except for state or federal agencies that are submitting entities, a submitting entity that fails to submit data as required by this subchapter or the rules of the State Insurance Department may be subject to a penalty. (b) The department shall adopt a schedule of penalties not to exceed one thousand dollars ($1,000) per day of violation, determined by the severity of the violation. (c) A penalty imposed under this section may be remitted or mitigated upon such terms and conditions as the department considers proper and consistent with the public health and safety. (d) A penalty remitted under this section shall be used for Arkansas Healthcare Transparency Initiative operations.

Ark. Code Ann. § 23-61-909 Data collected under State Health Data Clearinghouse Act.

(a) The Department of Health shall submit data collected under the State Health Data Clearinghouse Act, § 20-7-301 et seq., to the Arkansas Healthcare Transparency Initiative for integration into the Arkansas Healthcare Transparency Initiative database created under § 23-61-904. (b) The data submitted under subsection (a) of this section: (1) Shall be assigned a unique identifier as defined in § 23-61-903; and (2) May be used in accordance with the purposes of the Arkansas Healthcare Transparency Initiative and the rules promulgated under this subchapter.

Ark. Code Ann. § 23-61-910 Data collected regarding hospital discharge and emergency department records.

(a) The Department of Health shall submit data collected regarding hospital discharge and emergency department records for the uninsured, birth and death records, and disease registry data under the State Health Data Clearinghouse Act, § 20-7-301 et seq., § 20-15-201 et seq., and § 20-18-201, to the Arkansas Healthcare Transparency Initiative Board for integration into the Arkansas Healthcare Transparency Initiative database created under § 23-61-904. (b) The data submitted under subsection (a) of this section: (1) Shall be assigned a unique identifier as defined in § 23-61-903; and (2) May be used in accordance with the purposes of the Arkansas Healthcare Transparency Initiative and the rules promulgated under this subchapter.

Ark. Code Ann. § 23-61-1001 Title.

This subchapter shall be known and may be cited as the “ Arkansas Health and Opportunity for Me Act of 2021”.

Ark. Code Ann. § 23-61-1002 Legislative intent.

Notwithstanding any general or specific laws to the contrary, it is the intent of the General Assembly for the Arkansas Health and Opportunity for Me Program to be a fiscally sustainable, cost-effective, and opportunity-driven program that: (1) Achieves comprehensive and innovative healthcare reform that reduces the rate of growth in state and federal obligations for providing healthcare coverage to low-income adults in Arkansas; (2) Reduces the maternal and infant mortality rates in the state through initiatives that promote healthy outcomes for eligible women with high-risk pregnancies; (3) Promotes the health, welfare, and stability of mothers and their infants after birth through hospital-based community bridge organizations; (4) Encourages personal responsibility for individuals to demonstrate that they value healthcare coverage and understand their roles and obligations in maintaining private insurance coverage; (5) Increases opportunities for full-time work and attainment of economic independence, especially for previously incarcerated individuals, to reduce long-term poverty that is associated with additional risk for disease and premature death; (6) Addresses health-related social needs of Arkansans in rural counties through hospital-based community bridge organizations and reduces the additional risk for disease and premature death associated with living in a rural county; (7) Strengthens the financial stability of the critical access hospitals and other small, rural hospitals; (8) Fills gaps in the continuum of care for individuals in need of services for serious mental illness and substance use disorders; and (9) Recognizes that rebates are an important instrument to ensure affordability and access to pharmaceutical products by eligible individuals and to maximize the use of rebates when available to ensure the fiscal sustainability of the program. 23-61-1003. Definitions. As used in this subchapter: (1) “Acute care hospital” means a hospital that: (A) Is licensed by the Department of Health under § 20-9-201 et seq., as a general hospital or a surgery and general medical care hospital; and (B) Is enrolled as a provider with the Arkansas Medicaid Program; (2) “Birthing hospital” means a hospital in this state or in a border state that: (A) Is licensed as a general hospital; (B) Provides obstetrics services; and (C) Is enrolled as a provider with the Arkansas Medicaid Program; (3) “Community bridge organization” means a hospital, federally qualified health center, or another organization that is authorized by the Department of Human Services to participate in the economic independence initiative or the health improvement initiative to: (A) Screen and refer Arkansans to resources available in their communities to address health-related social needs; and (B) Assist eligible individuals identified as target populations most at risk of disease and premature death and who need a higher level of intervention to improve their health outcomes and succeed in meeting their long-term goals to achieve independence, including economic independence; (4) “Cost sharing” means the portion of the cost of a covered medical service that is required to be paid by or on behalf of an eligible individual; (5) “Critical access hospital” means an acute care hospital that is: (A) Designated by the Centers for Medicare & Medicaid Services as a critical access hospital; and (B) Is enrolled as a provider in the Arkansas Medicaid Program; (6) “Economic independence initiative” means an initiative developed by the Department of Human Services that is designed to promote economic stability by encouraging participation of program participants to engage in full-time, full-year work, and to demonstrate the value of enrollment in an individual qualified health insurance plan through incentives and disincentives; (7) “Eligible individual” means an individual who is in the eligibility category created by section 1902(a)(10)(A)(i)(VIII) of the Social Security Act, 42 U.S.C. § 1396a, as existing on January 1, 2025; (8) “Employer health insurance coverage” means a health insurance benefit plan offered by an employer or, as authorized by this subchapter, an employer self-funded insurance plan governed by the Employee Retirement Income Security Act of 1974, Pub. L. No. 93-406, as amended; (9) "Federally qualified health center” means an entity as defined by 42 C.F.R. § 405.2401, as existing on January 1, 2025, and that has entered into an agreement with the Centers for Medicare & Medicaid Services to meet Medicare program requirements under 42 C.F.R. § 405.2434, as existing on January 1, 2025; (10) “Health improvement initiative” means an initiative developed by an individual qualified health insurance plan or the Department of Human Services that is designed to encourage the participation of eligible individuals in health assessments and wellness programs, including fitness programs and smoking or tobacco cessation programs; (11) “Health insurance benefit plan” means a policy, contract, certificate, or agreement offered or issued by a health insurer to provide, deliver, arrange for, pay for, or reimburse any of the costs of healthcare services, but not including excepted benefits as defined under 42 U.S.C. § 300gg-91(c), as it existed on January 1, 2025; (12) “Health insurance marketplace” means the applicable entities that were designed to help individuals, families, and businesses in Arkansas shop for and select health insurance benefit plans in a way that permits comparison of available plans based upon price, benefits, services, and quality, and refers to either: (A) The Arkansas Health Insurance Marketplace created under the Arkansas Health Insurance Marketplace Act, § 23-61-801 et seq., or a successor entity; or (B) The federal health insurance marketplace or federal health benefit exchange created under the Patient Protection and Affordable Care Act, Pub. L. No. 111-148; (13) “Health insurer” means an insurer authorized by the State Insurance Department to provide health insurance or a health insurance benefit plan in the State of Arkansas, including without limitation: (A) An insurance company; (B) A medical services plan; (C) A hospital plan; (D) A hospital medical service corporation; (E) A health maintenance organization; (F) A fraternal benefits society; (G) Any other entity providing health insurance or a health insurance benefit plan subject to state insurance regulation; or (H) A risk-based provider organization licensed by the Insurance Commissioner under § 20-77-2704; (14) “Healthcare coverage” means coverage provided under this subchapter through either an individual qualified health insurance plan, a risk-based provider organization, employer health insurance coverage, or the fee-for-service Arkansas Medicaid Program; (15) “Individual qualified health insurance plan” means an individual health insurance benefit plan offered by a health insurer that participates in the health insurance marketplace to provide coverage in Arkansas that covers only essential health benefits as defined by Arkansas rule and 45 C.F.R. § 156.110 and any federal insurance regulations, as they existed on January 1, 2025; (16) "Medical-loss ratio” means the percentage of premium income that health insurers spend on medical care and quality improvement as opposed to administration, marketing, and, if applicable, profit; (17) “Member” means a program participant who is enrolled in an individual qualified health insurance plan; (18)(A) ”Pharmacy rebate” means a discount, other price concession, or a payment that is: (i) Based on utilization of a prescription drug; and (ii) Paid by a manufacturer or third party, directly or indirectly, to a pharmacy benefits manager, pharmacy services administrative organization, or pharmacy after a claim has been processed and paid at a pharmacy. (B) "Pharmacy rebate" includes without limitation incentives, disbursements, and reasonable estimates of a volume-based discount; (19) “Premium” means: (A) A monthly fee that is required to be paid by or on behalf of an eligible individual to maintain some or all health insurance benefits; and (B) The amount paid by the Department of Human Services to a health insurer on behalf of a program participant for cost-sharing obligations in excess of or other than the program participant's cost-sharing obligations; (20) “Program participant” means an eligible individual who: (A) Is at least nineteen (19) years of age and no more than sixty-four (64) years of age with an income that meets the income eligibility standards established by rule of the Department of Human Services; (B) Is authenticated to be a United States citizen or documented qualified alien according to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L. No. 104-193; (C) Is not eligible for Medicare or advanced premium tax credits through the health insurance marketplace; and (D) Is not determined by the Department of Human Services to be medically frail or eligible for services through a risk-based provider organization; (21) “Risk-based provider organization” means the same as defined in § 20-77-2703; and (22) “Small rural hospital” means a critical access hospital or a general hospital that: (A) Is located in a rural area; (B) Has fifty (50) or fewer staffed beds; and (C) Is enrolled as a provider in the Arkansas Medicaid Program.

Ark. Code Ann. § 23-61-1003 Definitions.

As used in this subchapter: (1) "Acute care hospital" means a hospital that: (A) Is licensed by the Department of Health under § 20-9-201 et seq., as a general hospital or a surgery and general medical care hospital; and (B) Is enrolled as a provider with the Arkansas Medicaid Program; (2) "Birthing hospital" means a hospital in this state or in a border state that: (A) Is licensed as a general hospital; (B) Provides obstetrics services; and (C) Is enrolled as a provider with the Arkansas Medicaid Program; (3) "Community bridge organization" means an organization that is authorized by the Department of Human Services to participate in the economic independence initiative or the health improvement initiative to: (A) Screen and refer Arkansans to resources available in their communities to address health-related social needs; and (B) Assist eligible individuals identified as target populations most at risk of disease and premature death and who need a higher level of intervention to improve their health outcomes and succeed in meeting their long-term goals to achieve independence, including economic independence; (4) “Cost sharing” means the portion of the cost of a covered medical service that is required to be paid by or on behalf of an eligible individual; (5) "Critical access hospital" means an acute care hospital that is: (A) Designated by the Centers for Medicare and Medicaid Services as a critical access hospital; and (B) Is enrolled as a provider in the Arkansas Medicaid Program; (6) "Economic independence initiative" means an initiative developed by the Department of Human Services that is designed to promote economic stability by encouraging participation of program participants to engage in full-time, full-year work, and to demonstrate the value of enrollment in an individual qualified health insurance plan through incentives and disincentives; (7) “Eligible individual” means an individual who is in the eligibility category created by section 1902(a)(10)(A)(i)(VIII) of the Social Security Act, 42 U.S.C. § 1396a; (8) “Employer health insurance coverage” means a health insurance benefit plan offered by an employer or, as authorized by this subchapter, an employer self-funded insurance plan governed by the Employee Retirement Income Security Act of 1974, Pub. L. No. 93-406, as amended; (9) "Health improvement initiative" means an initiative developed by an individual qualified health insurance plan or the Department of Human Services that is designed to encourage the participation of eligible individuals in health assessments and wellness programs, including fitness programs and smoking or tobacco cessation programs; (10) “Health insurance benefit plan” means a policy, contract, certificate, or agreement offered or issued by a health insurer to provide, deliver, arrange for, pay for, or reimburse any of the costs of healthcare services, but not including excepted benefits as defined under 42 U.S.C. § 300gg-91(c), as it existed on January 1, 2021; (11) “Health insurance marketplace” means the applicable entities that were designed to help individuals, families, and businesses in Arkansas shop for and select health insurance benefit plans in a way that permits comparison of available plans based upon price, benefits, services, and quality, and refers to either: (A) The Arkansas Health Insurance Marketplace created under the Arkansas Health Insurance Marketplace Act, § 23-61-801 et seq., or a successor entity; or (B) The federal health insurance marketplace or federal health benefit exchange created under the Patient Protection and Affordable Care Act, Pub. L. No. 111-148; (12) “Health insurer” means an insurer authorized by the State Insurance Department to provide health insurance or a health insurance benefit plan in the State of Arkansas, including without limitation: (A) An insurance company; (B) A medical services plan; (C) A hospital plan; (D) A hospital medical service corporation; (E) A health maintenance organization; (F) A fraternal benefits society; (G) Any other entity providing health insurance or a health insurance benefit plan subject to state insurance regulation; or (H) A risk-based provider organization licensed by the Insurance Commissioner under § 20-77-2704; (13) "Healthcare coverage" means coverage provided under this subchapter through either an individual qualified health insurance plan, a risk-based provider organization, employer health insurance coverage, or the fee-for-service Arkansas Medicaid Program; (14) “Individual qualified health insurance plan” means an individual health insurance benefit plan offered by a health insurer that participates in the health insurance marketplace to provide coverage in Arkansas that covers only essential health benefits as defined by Arkansas rule and 45 C.F.R. § 156.110 and any federal insurance regulations, as they existed on January 1, 2021; (15) "Member" means a program participant who is enrolled in an individual qualified health insurance plan; (16) “Premium” means a monthly fee that is required to be paid by or on behalf of an eligible individual to maintain some or all health insurance benefits; (17) “Program participant” means an eligible individual who: (A) Is at least nineteen (19) years of age and no more than sixty-four (64) years of age with an income that meets the income eligibility standards established by rule of the Department of Human Services; (B) Is authenticated to be a United States citizen or documented qualified alien according to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L. No. 104-193; (C) Is not eligible for Medicare or advanced premium tax credits through the health insurance marketplace; and (D) Is not determined by the Department of Human Services to be medically frail or eligible for services through a risk-based provider organization; (18) "Risk-based provider organization" means the same as defined in § 20-77-2703; and (19) "Small rural hospital" means a critical access hospital or a general hospital that: (A) Is located in a rural area; (B) Has fifty (50) or fewer staffed beds; and (C) Is enrolled as a provider in the Arkansas Medicaid Program.

Ark. Code Ann. § 23-61-1004 Administration .

(a)(1) The Department of Human Services, in coordination with the State Insurance Department and other state agencies, as necessary, shall: (A) Provide healthcare coverage under this subchapter to eligible individuals; (B) Create and administer the Arkansas Health and Opportunity for Me Program by: (i) Applying for any federal waivers, Medicaid state plan amendments, or other authority necessary to implement the Arkansas Health and Opportunity for Me Program in a manner consistent with this subchapter; and (ii) Administering the Arkansas Health and Opportunity for Me Program as approved by the Centers for Medicare and Medicaid Services; (C)(i) Administer the economic independence initiative designed to reduce the short-term effects of the work penalty and the long- term effects of poverty on health outcomes among program participants through incentives and disincentives. (ii) The Department of Human Services shall align the economic independence initiative with other state-administered work- related programs to the extent practicable; (D) Screen, refer, and assist eligible individuals through community bridge organizations under agreements with the Department of Human Services; (E) Offer incentives to promote personal responsibility, individual health, and economic independence through individual qualified health insurance plans and community bridge organizations; and (F) Seek a waiver to reduce the period of retroactive eligibility for an eligible individual under this subchapter to thirty (30) days before the date of the application. (2) The Governor shall request the assistance and involvement of other state agencies that he or she deems necessary for the implementation of the Arkansas Health and Opportunity for Me Program. (b) Healthcare coverage under this subchapter shall be provided through enrollment in: (1) An individual qualified health insurance plan through a health insurer; (2) A risk-based provider organization; (3) An employer-sponsored health insurance coverage; or (4) Fee-for-service Medicaid program. (c) Annually, the Department of Human Services shall develop purchasing guidelines that: (1) Describe which individual qualified health insurance plans are suitable for purchase in the next demonstration year, including without limitation: (A) The level of the plan; (B) The amounts of allowable premiums; (C) Cost sharing; (D) Auto-assignment methodology; and (E) The total per-member-per-month enrollment range; and (2) Ensure that: (A) Payments to an individual qualified health insurance plan do not exceed budget neutrality limitations in each demonstration year; (B) The total payments to all of the individual qualified health insurance plans offered by the health insurers for eligible individuals combined do not exceed budget targets for the Arkansas Health and Opportunity for Me Program in each demonstration year that the Department of Human Services may achieve by: (i) Setting in advance an enrollment range to represent the minimum and a maximum total monthly number of enrollees into all individual qualified health insurance plans no later than April 30 of each demonstration year in order for the individual qualified health insurance plans to file rates for the following demonstration year; (ii) Temporarily suspending auto-assignment into the individual qualified health insurance plans at any time in a demonstration year if necessary, to remain within the enrollment range and budget targets for the demonstration year; and (iii) Developing a methodology for random auto- assignment of program participants into the individual qualified health insurance plans after a suspension period has ended; (C) Individual qualified health insurance plans meet and report quality and performance measurement targets set by the Department of Human Services; and (D) At least two (2) individual qualified health insurance plans are offered in each county in the state. (d)(1) The Department of Human Services, the State Insurance Department, and each of the individual qualified health insurance plans shall enter into a memorandum of understanding that shall specify, consistent with this subchapter, the duties and obligations of each party in the operation of the Arkansas Health and Opportunity for Me Program, including provisions necessary to effectuate the purchasing guidelines and reporting requirements, at least thirty (30) calendar days before the annual open enrollment period. (2) If a memorandum of understanding is not fully executed with a health insurer by January 1 of each new demonstration year, the Department of Human Services shall suspend auto-assignment of new members to the health insurers until the first day of the month after the new memorandum of understanding is fully executed. (3) The memorandum of understanding shall include financial sanctions determined appropriate by the Department of Human Services that may be applied if the Department of Human Services determines that an individual qualified health insurance plan has not met the quality and performance measurement targets or any other condition of the memorandum of understanding. (4)(A) If the Department of Human Services determines that the individual qualified health insurance plans have not met the quality and health performance targets for two (2) years, the Department of Human Services shall develop additional reforms to achieve the quality and health performance targets. (B) If legislative action is required to implement the additional reforms described in subdivision (d)(4)(A) of this section, the Department of Human Services may take the action to the Legislative Council or the Executive Subcommittee of the Legislative Council for immediate action. (e) The Department of Human Services shall: (1) Adopt premiums and cost sharing levels for individuals enrolled in the Arkansas Health and Opportunity for Me Program, not to exceed aggregate limits under 42 C.F.R. § 447.56; (2)(A) Establish and maintain a process for premium payments, advanced cost-sharing reduction payments, and reconciliation payments to health insurers. (B) The process described in subdivision (e)(2)(A) of this section shall attribute any unpaid member liabilities as solely the financial obligation of the individual member. (C) The Department of Human Services shall not include any unpaid individual member obligation in any payment or financial reconciliation with health insurers or in a future premium rate. (D) The Department of Human Services shall establish and maintain a process for tracking all pharmacy rebates obtained by participating health plans from pharmaceutical companies and ensure that an amount equal to the pharmacy rebates is remitted to this state on a quarterly basis; and (3)(A) Calculate a total per-member-per-month amount for each individual qualified health insurance plan based on all payments made by the Department of Human Services on behalf of an individual enrolled in the individual qualified health insurance plan. (B)(i) The amount described in subdivision (e)(3)(A) of this section shall include premium payments, advanced cost-sharing reduction payments for services provided to covered individuals during the demonstration year, and any other payments accruing to the budget neutrality target for plan-enrolled individuals made during the demonstration year and the member months for each demonstration year. (ii) The total per-member-per-month upper limit is the budget neutrality per-member-per-month limit established in the approved demonstration for each demonstration year. (C) If the Department of Human Services calculates that the total per-member-per-month for an individual qualified health insurance plan for that demonstration year exceeds the budget neutrality per-member- per-month limit for that demonstration year, the Department of Human Services shall not make any additional reconciliation payments to the health insurer for that individual qualified health insurance plan. (D) If the Department of Human Services determines that the budget neutrality limit has been exceeded, the Department of Human Services shall recover the excess funds from the health insurer for that individual qualified health insurance plan. (f)(1) If the federal medical assistance percentages for the Arkansas Health and Opportunity for Me Program are reduced to below ninety percent (90%), the Department of Human Services shall present to the Centers for Medicare and Medicaid Services a plan within thirty (30) days of the reduction to terminate the Arkansas Health and Opportunity for Me Program and transition eligible individuals out of the Arkansas Health and Opportunity for Me Program within one hundred twenty (120) days of the reduction . (2) An eligible individual shall maintain coverage during the process to implement the plan to terminate the Arkansas Health and Opportunity for Me Program and the transition of eligible individuals out of the Arkansas Health and Opportunity for Me Program. (g)(1) A health insurer that is providing an individual qualified health insurance plan or employer health insurance coverage for an eligible individual shall submit claims and enrollment data to the Department of Human Services to facilitate reporting required under this subchapter or other state or federally required reporting or evaluation activities. (2) A health insurer may utilize existing mechanisms with supplemental enrollment information to fulfill requirements under this subchapter, including without limitation the state's all-payer claims database established under the Arkansas Healthcare Transparency Initiative Act of 2015, § 23-61-901 et seq., for claims and enrollment data submission. (3) A health insurer shall seek all available pharmacy rebates from pharmaceutical companies for products covered through qualified health plans participating in the Arkansas Health and Opportunity for Me Program. (h)(1) The Governor shall request a block grant under relevant federal law and regulations for the funding of the Arkansas Medicaid Program as soon as practical if the federal law or regulations change to allow the approval of a block grant for this purpose. (2)(A) The Governor shall request a waiver under relevant federal law and regulations for a work requirement as a condition of maintaining coverage in the Arkansas Medicaid Program as soon as practical if the federal law or regulations change to allow the approval of a waiver for this purpose. (B) An eligible individual enrolled in the Arkansas Health and Opportunity for Me Program shall: (i) Comply with any and all federal and state work requirements under the Arkansas Medicaid Program, including providing required information to demonstrate compliance; and (ii) Be exempt from the work requirement under this section if the eligible individual: (a) Volunteers twenty (20) hours or more per week as determined by the Department of Human Services; (b) Meets any combination of working and participating in a work program for a total of twenty (20) hours or more per week as determined by the Department of Human Services; (c) Participates and complies with the requirements of a workfare program; (d) Receives unemployment compensation and complies with work requirements that are a part of the unemployment compensation system; (e) Participates in a drug addiction or alcoholic treatment or rehabilitation program; (f) Provides care for a dependent child who: (1) Has a serious medical condition or a disability; or (2) Is under six (6) years of age; or (g) Is at least one (1) of the following: (1) Medically certified as physically or mentally unfit for employment; (2) Pregnant; (3) Under nineteen (19) years of age; or (4) Over fifty-nine (59) years of age. (C)(i) An individual who is not exempt under subdivision (h)(2)(B) of this section and who refuses to cooperate and declines to make efforts to comply with the work requirements under this section shall have coverage under the Arkansas Health and Opportunity for Me Program suspended for the remainder of the plan year. (ii) An individual who has coverage suspended under subdivision (h)(2)(C)(i) of this section may regain active coverage under the Arkansas Health and Opportunity for Me Program if he or she cooperates and demonstrates a clear intention to comply with the work requirements under this section. (iii) The Department of Human Services shall not make monthly premium payments or advanced cost-sharing reduction payments to a health insurer during a period of suspended coverage of the individual under this subdivision (h)(2)(C).

Ark. Code Ann. § 23-61-1005 Requirements for eligible individuals.

(a) An eligible individual is responsible for all applicable cost- sharing and premium payment requirements as determined by the Department of Human Services. (b) An eligible individual may participate in a health improvement initiative, as developed and implemented by either the eligible individual's individual qualified health insurance plan or the department. (c)(1)(A) An eligible individual who is determined by the department to meet the eligibility criteria for a risk-based provider organization due to serious mental illness or substance use disorder shall be enrolled in a risk-based provider organization under criteria established by the department. (B) An eligible individual who is enrolled in a risk-based provider organization is exempt from the requirements of subsections (a) and (b) of this section. (2)(A) An eligible individual who is determined by the department to be medically frail shall receive healthcare coverage through fee-for-service Medicaid. (B) An eligible individual who is enrolled in the fee-for- service Medicaid program is exempt from the requirements of subsection (a) of this section. (d) An eligible individual shall receive notice that: (1) The Arkansas Health and Opportunity for Me Program is not a perpetual federal or state right or a guaranteed entitlement; (2) The Arkansas Health and Opportunity for Me Program is subject to cancellation upon appropriate notice; (3) Enrollment in an individual qualified health insurance plan is not a right; and (4) If the individual chooses not to participate or fails to meet participation goals in the economic independence initiative, the individual may lose incentives provided through enrollment in an individual qualified health insurance plan or be unenrolled from the individual qualified health insurance plan after notification by the department.

Ark. Code Ann. § 23-61-1006 Requirements for program participants.

(a) The economic independence initiative applies to all program participants in accordance with the implementation schedule of the Department of Human Services. (b) Incentives established by the department for participation in the economic independence initiative and the health improvement initiative may include, without limitation, the waiver of premium payments and cost-sharing requirements as determined by the department for participation in one (1) or more initiatives. (c) Failure by a program participant to meet the cost-sharing and premium payment requirement under § 23-61-1005(a) may result in the accrual of a personal debt to the health insurer or provider. (d)(1)(A) Failure by the program participant to meet the initiative participation requirements of subsection (b) of this section may result in: (i) Being unenrolled from the individual qualified health insurance plan; or (ii) The loss of incentives, as defined by the department. (B) However, an individual who is unenrolled shall not lose Medicaid healthcare coverage based solely on disenrollment from the individual qualified health insurance plan. (2) The department shall develop and notify program participants of the criteria for restoring eligibility for incentive benefits that were removed as a result of the program participants' failure to meet the initiative participation requirements of subsection (b) of this section. (3)(A) A program participant who also meets the criteria of a community bridge organization target population may qualify for additional incentives by successfully completing the economic independence initiative provided through a community bridge organization. (B) If successfully completing the initiative results in an increase in the program participant’s income that exceeds the program’s financial eligibility limits, a program participant may receive, for a specified period of time, financial assistance to pay: (i) The individual’s share of employer-sponsored health insurance coverage not to exceed a limit determined by the department; or (ii) A share of the individual’s cost sharing obligation, as determined by the department, if the individual enrolls in a health insurance benefit plan offered through the Arkansas Health Insurance Marketplace.

Ark. Code Ann. § 23-61-1007 Insurance standards for individual qualified health insurance plans.

(a) Insurance coverage for a member enrolled in an individual qualified health insurance plan shall be obtained, at a minimum, through silver-level metallic plans as provided in 42 U.S.C. § 18022(d) and 42 U.S.C. § 18071, as they existed on January 1, 2025, that restrict out-of-pocket costs to amounts that do not exceed applicable out-of-pocket cost limitations. (b) As provided under § 23-61-1004(e)(2), health insurers shall track the applicable premium payments and cost sharing collected from members to ensure that the total amount of an individual's payments for premiums and cost sharing does not exceed the aggregate cap imposed by 42 C.F.R. § 447.56. (c) All health benefit plans purchased by the Department of Human Services shall: (1) Conform to the requirements of this section and applicable insurance rules; (2) Be certified by the State Insurance Department; (3)(A) Maintain a medical-loss ratio of at least eighty-five percent (85%) for an individual qualified health insurance plan as permitted under 45 C.F.R. § 158.211, as it existed on January 1, 2025, or rebate the difference between the health insurer’s actual medical-loss ratio and eighty-five percent (85%) to the Department of Human Services for members. (B) However, the Department of Human Services may approve up to one percent (1%) of revenues as community investments and as benefit expenses in calculating the medical-loss ratio of a plan in accordance with 45 C.F.R. § 158.150; (4) Develop: (A) An annual quality assessment and performance improvement strategic plan to be approved by the Department of Human Services that aligns with federal quality improvement initiatives and quality and reporting requirements of the Department of Human Services; and (B) Targeted initiatives based on requirements established by the Department of Human Services in consultation with the Department of Health; and (5) Make reports to the Department of Human Services regarding quality and performance metrics in a manner and frequency established by a memorandum of understanding. (d) A health insurer offering individual qualified health insurance plans for members shall participate in the Arkansas Patient-Centered Medical Home Program, including: (1) Attributing enrollees in individual qualified health insurance plans, including members, to a primary care physician; (2) Providing financial support to patient-centered medical homes to meet practice transformation milestones; and (3) Supplying clinical performance data to patient-centered medical homes, including data to enable patient-centered medical homes to assess the relative cost and quality of healthcare providers to whom patient- centered medical homes refer patients. (e)(1) Each individual qualified health insurance plan shall provide for a health improvement initiative, subject to the review and approval of the Department of Human Services, to provide incentives to its enrolled members to participate in one (1) or more health improvement programs as defined in § 23-61-1003(9). (2)(A) The Department of Human Services shall work with health insurers offering individual qualified health insurance plans to ensure the economic independence initiative offered by the health insurer includes a robust outreach and communications effort which targets specific health, education, training, employment, and other opportunities appropriate for its enrolled members. (B) The outreach and communications effort shall recognize that enrolled members receive information from multiple channels, including without limitation: (i) Community service organizations; (ii) Local community outreach partners; (iii) Email; (iv) Radio; (v) Religious organizations; (vi) Social media; (vii) Television; (viii) Text message; and (ix) Traditional methods such as newspaper or mail. (f) On or before January 1, 2022, the State Insurance Department and the Department of Human Services may implement through certification requirements or rule, or both, the applicable provisions of this section.

Ark. Code Ann. § 23-61-1010 Community bridge organizations.

(a) The Department of Human Services shall develop requirements and qualifications for community bridge organizations to provide assistance to one (1) or more of the following target populations (1) Individuals who become pregnant with a high-risk pregnancy and the child, throughout the pregnancy and up to twenty-four (24) months after birth; (2) Individuals in rural areas of the state in need of treatment for serious mental illness or substance use disorder; (3) Individuals who are young adults most at risk of poor health due to long-term poverty and who meet criteria established by the Department of Human Services, including without limitation the following: (A) An individual between nineteen (19) and twenty-four (24) years of age who has been previously placed under the supervision of the: (i) Division of Youth Services; or (ii) Department of Corrections; (B) An individual between nineteen (19) and twenty-seven (27) years of age who has been previously placed under the supervision of the Division of Children and Family Services; or (C) An individual between nineteen (19) and thirty (30) years of age who is a veteran; and (4) Any other target populations identified by the Department of Human Services. (b)(1) Each community bridge organization shall be administered by a hospital under conditions established by the Department of Human Services. (2) A hospital is eligible to serve eligible individuals under subdivision (a)(1) of this section if the hospital: (A) Is a birthing hospital; (B) Provides or contracts with a qualified entity for the provision of a federally recognized evidence-based home visitation model to a woman during pregnancy and to the woman and child for a period of up to twenty-four (24) months after birth; and (C) Meets any additional criteria established by the Department of Human Services. (3)(A) A hospital is eligible to serve eligible individuals under subdivision (a)(2) of this section if the hospital: (i) Is a small rural hospital; (ii) Screens all Arkansans who seek services at the hospital for health-related social needs; (iii) Refers Arkansans identified as having health- related social needs for social services available in the community; (iv) Employs local qualified staff to assist eligible individuals in need of treatment for serious mental illness or substance use disorder in accessing medical treatment from healthcare professionals and supports to meet health-related social needs; (v) Enrolls with Arkansas Medicaid Program as an acute crisis unit provider; and (vi) Meets any additional criteria established by the Department of Human Services. (B) The hospital may use funding available through the Department of Human Services to improve the hospital’s ability to deliver care through coordination with other healthcare professionals and with the local emergency response system that may include training of personnel and improvements in equipment to support the delivery of medical services through telemedicine. (4) A hospital is eligible to serve eligible individuals under subdivision (a)(3) of this section if the hospital: (A) Is an acute care hospital; (B) Administers or contracts for the administration programs using proven models, as defined by the Department of Human Services, to provide employment, training, education, or other social supports; and (C) Meets any additional criteria established by the Department of Human Services. (c) An individual is not required or entitled to enroll in a community bridge organization as a condition of Medicaid eligibility. (d) A hospital is not: (1) Required to apply to become a community bridge organization; or (2) Entitled to be selected as a community bridge organization.

Ark. Code Ann. § 23-61-1011 Health and Economic Outcomes Accountability Oversight Advisory Panel.

(a) There is created the Health and Economic Outcomes Accountability Oversight Advisory Panel. (b) The advisory panel shall be composed of the following members: (1) The following members of the General Assembly: (A) The Chair of the Senate Committee on Public Health, Welfare, and Labor; (B) The Chair of the House Committee on Public Health, Welfare, and Labor; (C) The Chair of the Senate Committee on Education; (D) The Chair of the House Committee on Education; (E) The Chair of the Senate Committee on Insurance and Commerce; (F) The Chair of the House Committee on Insurance and Commerce; (G) An at-large member of the Senate appointed by the President Pro Tempore of the Senate; (H) An at-large member of the House of Representatives appointed by the Speaker of the House of Representatives; (I) An at-large member of the Senate appointed by the minority leader of the Senate; and (J) An at-large member of the House of Representatives appointed by the minority leader of the House of Representatives; (2) The Secretary of the Department of Human Services; (3) The Arkansas Surgeon General; (4) The Insurance Commissioner; (5) The heads of the following executive branch agencies or their designees; (A) Department of Health; (B) Department of Education; (C) Department of Corrections; (D) Department of Commerce; and (E) Department of Finance and Administration; (6) The Director of the Arkansas Minority Health Commission; and (7)(A) Three (3) community members who represent health, business, or education and who have demonstrated a commitment to improving the health and welfare of Arkansans, appointed as follows: (i) One (1) member shall be appointed by and serve at the will of the Governor; (ii) One (1) member shall be appointed by and serve at the will of the President Pro Tempore of the Senate; and (iii) One (1) member shall be appointed by and serve at the will of the Speaker of the House of Representatives. (B) Members serving under subdivision (b)(6)(A) of this section may receive mileage reimbursement. (c)(1) The Secretary of the Department of Human Services and one (1) legislative member shall serve as the co-chairs of the Health and Economic Outcomes Accountability Oversight Advisory Panel and shall convene meetings quarterly of the advisory panel. (2) The legislative member who serves as the co-chair shall be selected by majority vote of all legislative members serving on the advisory panel. (d)(1) The advisory panel shall review, make nonbinding recommendations, and provide advice concerning the proposed quality performance targets presented by the Department of Human Services for each participating individual qualified health insurance plan. (2) The advisory panel shall deliver all nonbinding recommendations to the Secretary of the Department of Human Services. (3)(A) The Secretary of the Department of Human Services, in consultation with the State Medicaid Director, shall determine all quality performance targets for each participating individual qualified health insurance plan. (B) The Secretary may consider the nonbinding recommendations of the advisory panel when determining quality performance targets for each participating individual qualified health insurance plan. (e) The advisory panel shall review: (1) The annual quality assessment and performance improvement strategic plan for each participating individual qualified health insurance plan; (2) Financial performance of the Arkansas Health and Opportunity for Me Program against the budget neutrality targets in each demonstration year; (3) Quarterly reports prepared by the Department of Human Services, in consultation with the Department of Commerce, on progress towards meeting economic independence outcomes and health improvement outcomes, including without limitation: (A) Community bridge organization outcomes; (B) Individual qualified health insurance plan health improvement outcomes; (C) Economic independence initiative outcomes; and (D) Any sanctions or penalties assessed on participating Individual qualified health insurance plans; (4) Quarterly reports prepared by the Department of Human Services on the Arkansas Health and Opportunity for Me Program, including without limitation: (A) Eligibility and enrollment; (B) Utilization; (C) Premium and cost-sharing reduction costs; and (D) Health insurer participation and competition; and (5) Any other topics as requested by the Secretary of the Department of Human Services. (f)(1) The advisory panel may furnish advice, gather information, make recommendations, and publish reports. (2) However, the advisory panel shall not administer any portion of the Arkansas Health and Opportunity for Me Program or set policy. (g) The Department of Human Services shall provide administrative support necessary for the advisory panel to perform its duties. (h) The Department of Human Services shall produce and submit a quarterly report incorporating the advisory panel's recommendations to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the public on the progress in health and economic improvement resulting from the Arkansas Health and Opportunity for Me Program, including without limitation: (1) Eligibility and enrollment; (2) Participation in and the impact of the economic independence initiative and the health improvement initiative of the eligible individuals, health insurers, and community bridge organizations; (3) Utilization of medical services; (4) Premium and cost-sharing reduction costs; and (5) Health insurer participation and completion.

Ark. Code Ann. § 23-61-1101 Definitions.

As used in this subchapter: (1) “Burial association” means: (A) A person, firm, association, copartnership, corporation, company, or other organization that, from and after February 18, 1953: (i) Undertakes for consideration paid by or on behalf of its members to defray all or a part of the funeral expenses of the members; (ii) Furnishes or undertakes to furnish merchandise, supplies, and services or any other character of burial benefits to the members; or (iii) Issues a certificate that provides for the payment of funeral benefits to the members in services, merchandise, or supplies, including the services of funeral directors and embalmers; and (B) Every person, firm, association, copartnership, corporation, or company that, before February 18, 1953, has: (i) Undertaken for a consideration to pay money to its contributors for the purpose of defraying all or part of the funeral expenses of a deceased person; (ii) Furnished or has undertaken to furnish supplies and services or any other character of burial benefits to the contributing person or to his or her beneficiaries or members of his or her family; or (iii) Issued any form of contract or certificate that, under its terms, provides for the payment of funeral benefits in money, services, or supplies, including the services of undertakers or embalmers; (2) “Care and maintenance” means the continual maintenance of the cemetery grounds and graves in keeping with a properly maintained cemetery; (3)(A) “Cemetery” means any land or structure in this state dedicated to and used or intended to be used for interment of human remains. (B) “Cemetery” includes a: (i) Burial park for earth interments; (ii) Mausoleum for vault or crypt interments; or (iii) Combination of one (1) or more burial parks for earth internments and mausoleums for vault or crypt interments; (4) “Cemetery company” means an individual, partnership, corporation, limited liability company, or association owning or controlling cemetery lands or property and conducting the business of a cemetery or making an application with the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services to own or control the lands or conduct the business; (5) “Permit holder” means a cemetery company that holds a permit issued by the board to own or operate a perpetual care cemetery; and (6) “Perpetual care cemetery” means a cemetery for the benefit of which a permanent maintenance fund has been established in accordance with this subchapter.

Ark. Code Ann. § 23-61-1102 Creation — Members.

(a) There is created within the State Insurance Department the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services. (b) The members of the board shall be: (1) Residents of this state; (2) At least twenty-one (21) years of age; and (3) Of good moral character. (c) The board shall be composed of nine (9) members as follows: (1)(A) The Insurance Commissioner or his or her designated deputy. (B) The commissioner or his or her designated deputy shall be a voting member of the board; and (2)(A) Eight (8) members appointed by the Governor and subject to confirmation by the Senate who shall serve terms of five (5) years. (B) Six (6) of the board members under subdivision (c)(2)(A) of this section shall include: (i)(a) Two (2) licensed embalmers or funeral directors, each of whom has had at least five (5) consecutive years of experience as an embalmer or funeral directors in this state immediately preceding his or her appointment to the board. (b) The Governor shall consult licensed embalmers and funeral directors before making an appointment under subdivision (c)(2)(B)(i)(a) of this section. (c) The Arkansas Funeral Directors Association, Incorporated, or its successor shall submit to the Governor a list containing the names of at least four (4) professionals under subdivision (c)(2)(B)(i)(a) of this section; (ii) Two (2) owners or operators of a licensed perpetual care cemetery in this state; and (iii) Two (2) professionals engaged in the operation of a burial association for at least five (5) consecutive years preceding his or her appointment to the board. (C)(i) The remaining two (2) members of the board shall be: (a) One (1) person from this state, appointed at large, to represent the consumer community; and (b) One (1) person from this state who is at least sixty (60) years of age, appointed at large, to represent the elderly community. (ii) The members of the board under subdivision (c)(2)(C)(i) of this section shall not be actively engaged in or retired from the profession of embalming or funeral directing, the business of operating a burial association, or any other profession or occupation that is regulated by the board. (iii) The members of the board under subdivision (c)(2)(C)(i) shall be full voting members of the board. (d) The members of the board shall hold the first meeting within five (5) days after membership appointment and select one (1) member under subdivision (c)(2)(B) of this section as Chair of the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services who shall serve a one-year term or until his or her successor is selected and qualified. (e) Each congressional district shall be represented by membership on the board. (f)(1) The length of the term for an initial member of the board under this section shall be staggered and set by the Governor. (2) After the completion of the terms of the initial members of the board under subdivision (f)(1) of this section, a member of the board shall serve for a term of five (5) years, and shall serve on the board until a successor is appointed and qualified. (3) A member of the board shall not be appointed to more than two (2) consecutive full terms. (g) A vacancy on the board due to the death, resignation, or other cause of an appointed member of the board shall be filled by appointment by the Governor for the unexpired portion of the term in the same manner as required for an initial appointment. (h) The presence of five (5) or more members of the board shall constitute a quorum. (i) A member of the board who has a financial interest in a matter before the board shall be disqualified from: (1) Participating in discussion pertaining to the matter; and (2) Voting on the matter. (j) A board member is eligible to receive expense reimbursement and stipends under § 25-16-901 . (k) The Governor may remove any member of the board for incompetence, improper conduct, gross neglect, or malfeasance. (l)(1) Before entering upon duties of the board, members of the board shall take and subscribe to the oath prescribed by the Arkansas Constitution for state officers and shall file the subscribed oath in the office of the Secretary of State. (2) The Secretary of State shall issue a certificate of appointment for the new member of the board. (m) The board may make reimbursement of the necessary and reasonable travel, board, and lodging expenses of the board's employees, Executive Secretary of the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services, and auditors incurred in the performance of their official duties.

Ark. Code Ann. § 23-61-1103 Powers and duties.

(a) The State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services may: (1)(A) Hold a meeting no less than one (1) time each calendar quarter. (B) The meeting shall be held at a time and place as the board or Insurance Commissioner may determine, after notice of such meeting has been given to the general public at least thirty (30) days before the meeting. (C) The board shall meet upon written demand of any two (2) members of the board or upon the call of the commissioner; (2) Make examinations required by § 17-29-301 et seq. available to applicants at least two (2) times annually at suitable locations during normal business hours; (3) Promulgate appropriate rules: (A) For the transaction of business of the board; (B) For the betterment and promotion of the standards of service and practice; (C) To establish the standards of practice and a code of ethics for persons licensed or authorized under this subchapter, § 17-29-301 et seq.; the Cemetery Act for Perpetually Maintained Cemeteries, § 20-17-1001 et seq.; or § 23-78-101 et seq.; and (D) To establish qualifications necessary to: (i) Practice the science of embalming; (ii) Engage in the business of funeral directing; (iii) Practice cremation; (iv) Transport human remains; and (v) Operate a funeral establishment, mortuary service, crematorium, retort, or transport service firm to transport human remains; (4)(A) Develop, establish by rule, and administer a mandatory or voluntary continuing education program and its requirements for persons licensed or authorized by the board. (B) The board may excuse licensees, as a group or as individuals, from a continuing education program, if any unusual circumstances, emergency, or hardship prevents participation in the program; (5) Promulgate rules and publish forms to enforce and administer laws governing: (A) Embalmers, funeral directors, and funeral establishments, under § 17-29-301 et seq.; § 17-29-401 et seq.; and § 17-29-501 et seq.; (B) Burial associations under § 23-78-101 et seq.; and (C) Cemetery companies under the Cemetery Act for Perpetually Maintained Cemeteries, § 20-17-1001 et seq.; and the Insolvent Cemetery Grant Fund Act, § 20-17-1301 et seq.; (6) Suspend or revoke permits or licenses or impose a civil penalty not to exceed five hundred dollars ($500) per violation when a licensee fails to comply with any of the laws governing the licensee or when a licensee fails to comply with a rule or order of the board; (7) Upon application, grant permits, licenses, or certificates of authority to applicants and licensees; (8) When appropriate, amend permits, licenses, or certificates of authority; (9)(A) Apply to Pulaski County Circuit Court to enjoin any act or practice and to enforce compliance with relevant laws and the rules and orders of the board when it appears that any person has engaged in or will engage in an act or practice that constitutes a violation of any provision of this subchapter or rule or order of the board. (B) The court shall not require the board or commissioner to post a bond; (10) Apply to Pulaski County Circuit Court or the circuit court in the county in which the licensee is located for the appointment of a receiver or conservator of the cemetery corporation or its permanent maintenance fund when it appears to the board or commissioner that a cemetery corporation is insolvent or that the cemetery corporation, its officers, directors, agents, or the trustees of its permanent maintenance fund, have violated this subchapter, relevant laws, or the rules or orders of the board; (11)(A) Conduct hearings and subpoena witnesses, books, and records in connection with alleged violations of this subchapter, relevant laws, and the rules or orders of the board. (B)(i) In case of contumacy or refusal to obey a subpoena issued to a person, the Pulaski County Circuit Court, upon application by the board, may issue to the person an order requiring him or her to appear before the board or the person designated by the board. (ii) Failure to obey the order of the court may be punished by the court as a contempt of court. (C) An order by the board under this subchapter shall be subject to review by the Pulaski County Circuit Court or by the circuit court of the county in which any part of the cemetery lies if an application for review of an order by the board is made within thirty (30) days of the date of the order; and (12) Establish and collect reasonable fees. (b) The board shall adopt bylaws and rules in connection with the care and disposition of human remains in this state. (c)(1) The commissioner, in consultation with the Secretary of the Department of Commerce, may appoint assistants and deputies and examiners, inspectors, attorneys, clerks, stenographers, and other personnel as may be necessary to assist him or her in the discharge of the duties imposed upon him or her in overseeing the board. (2) Personnel under subdivision (c)(1) of this section shall devote their entire business time to carrying out official duties concerning the board, or if appropriate, the State Insurance Department. (d) The powers and authority under subsection (a) of this section shall not be in dimunition or limitation of the powers and authority vested in the board by the various sections of this subchapter, but the board shall possess all powers and authority, whether set forth in this section or not, to enable it to carry out the intent and purpose of this subchapter. (e)(1) The board, when it shall deem necessary, shall be represented by the State Insurance Department. (2)(A) If deemed necessary by the board, the board may employ special counsel whose services shall be paid for from funds of the board. (B) Special counsel shall be retained only with the prior approval of the commissioner.

Ark. Code Ann. § 23-61-1104 Executive Secretary of the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services.

(a)(1) The Insurance Commissioner, in consultation with the Secretary of the Department of Commerce, may appoint and employ a person as the Executive Secretary of the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services who shall serve at the pleasure of the commissioner. (2) The executive secretary shall devote the necessary time to the performance of his or her duties under this section. (3) The duties of the executive secretary shall include: (A) Collection of fees and charges under this subchapter; § 17-29-301 et seq.; the Cemetery Act for Perpetually Maintained Cemeteries, § 20-17-1001 et seq.; and the Insolvent Cemetery Grant Fund Act, § 20-17-1301 et seq.; and § 23-78-101 et seq.; (B) Keeping record of the proceedings of the board; (C) Keeping an accurate account of all moneys received and disbursed by the commissioner; and (D) Any other duties defined and designated by the board. (b) The board shall maintain its main office location in Little Rock and transact the business of the board at the main office.

Ark. Code Ann. § 23-61-1105 Embalmers and funeral directors.

(a) The Insurance Commissioner or a person appointed or employed by the commissioner shall: (1) Have general supervision over field inspection and enforcement of this subchapter and § 17-29-301 et seq.; (2) Make public the procedures for making inquiries into the practice of funeral directors or embalmers and for making complaints concerning the practices; (3) Maintain a record of the licensee and business name and address of every person licensed under § 17-29-301 et seq., including the license number, date of the license, and the renewal date of the license; (4) On request, supply a list of every person and funeral establishment licensed under § 17-29-301 et seq., to a person licensed as an embalmer or funeral director, to a common carrier in this state, to a hospital licensed in this state, or to any other person authorized by law to receive the list; (5) Hold all moneys received by the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services to pay the necessary and allowable expenses for the operation of the board in carrying out the provisions of this subchapter, § 17-29-301 et seq.; the Cemetery Act for Perpetually Maintained Cemeteries, § 20-17-1001 et seq.; and the Insolvent Cemetery Grant Fund Act, § 20-17-1301 et seq.; and § 23-78-101 et seq.; (6) If applicable, receive and be paid an annual salary not to exceed the amount authorized by law; and (7) Charge and collect a criminal background check processing fee in an amount necessary to recover the charge imposed by the Division of Arkansas State Police to conduct a criminal background check for a person applying for an initial license under § 17-29-301 et seq. (b) The board may promulgate rules reasonably necessary to reflect any changes in the law as adopted by the United States Congress or any appropriate agency of the United States Government as it affects funeral establishments, funeral directors, or embalmers and for the purpose of keeping this law consistent with, and compatible to, the laws of the United States.

Ark. Code Ann. § 23-61-1106 Inspector of the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services — Funeral directing — Embalming, cremating, or transporting human remains.

(a)(1) The Insurance Commissioner may request that the Department of Commerce employ an agent or agents as Inspector of the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services. (2) A person is not eligible for appointment as inspector under subdivision (a)(1) of this section unless he or she has not fewer than five (5) consecutive years of active experience as an embalmer and funeral director licensed in this state. (b) The inspector shall hold office at the pleasure of the commissioner, who shall determine his or her duties. (c)(1) The inspector, with proper identification, may enter any office, premises, establishment, or place of business in this state where the practice of embalming, funeral directing, cremation, or transportation of human remains is carried on, or where the practice is advertised as being carried on, to: (A) Inspect the office, premises, crematory, or establishment; (B) Inspect the license and registration of a licensee; (C) Inspect the manner and scope of training given to an apprentice; and (D) Ensure compliance with all state laws and rules pertaining to funeral service. (2) By accepting a license under § 17-29-301 et seq., the licensee grants permission for the inspector or other State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services designee to enter the licensee's business premises without prior notice. (d) The inspector may serve and execute any process issued by a court under this subchapter, serve and execute any papers or process issued by the board under the authority of this subchapter and § 17-29-301 et seq., and perform such other duties as prescribed or ordered by the board. (e) The inspector shall not accept any employment, salary, fees, or other remuneration from a funeral establishment or wholesale firm dealing in funeral supplies and equipment. (f) The inspector shall receive such compensation as the board may determine within the maximum authorized by law.

Ark. Code Ann. § 23-61-1107 Crematoriums.

(a) The State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services may promulgate reasonable rules for the licensing of crematoriums. (b) A crematorium shall not be operated in this state unless licensed by the board, and a dead human body shall not be cremated in this state except at a licensed crematorium. (c) A violation of this section is a Class A misdemeanor.

Ark. Code Ann. § 23-61-1108 Transportation of dead human bodies.

(a) In the interest of public health and to ensure the safe, secure, and timely transportation of dead human bodies in and through Arkansas, the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services may license, inspect, and promulgate reasonable rules for any person, partnership, corporation, association, society, or other legal entity engaged in the business of transporting dead human bodies over public streets and highways of this state. (b)(1) A violation of the licensing and inspection requirements established by the board under this section is a Class A misdemeanor. (2) A violation of rules promulgated by the board under this section is a Class A misdemeanor.

Ark. Code Ann. § 23-61-1109 Cemeteries and cemetery companies.

(a) The State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services may: (1)(A) Conduct periodic, special, or other examinations of a cemetery or cemetery company, including without limitation an examination of the physical condition or appearance of the cemetery, the financial condition of the cemetery company and any trust funds maintained by the cemetery company, and other examinations that the board or Insurance Commissioner deems necessary or appropriate in the public interest. (B) An examination under subdivision (a)(1)(A) of this section shall be carried out by: (i) A member or representative of the board; (ii) A certified public accountant or registered public accountant as authorized under § 20-17-1007; or (iii) The State Insurance Department; (2) Issue or amend permits to operate a cemetery under this subchapter; (3) Suspend or revoke permits to operate a cemetery when a cemetery fails to comply with this subchapter, rules promulgated under this subchapter, or any order of the board; (4) Make rules and forms to enforce this subchapter; (5) Require cemetery companies to observe minimum accounting principles and practices and make and keep the books and records for a period of time as the board may prescribe by rule; (6) Require a cemetery company to properly care for, maintain, and preserve a cemetery; (7) Require additional contributions to the permanent maintenance fund of the cemetery under this subchapter, including without limitation contributions not to exceed three thousand dollars ($3,000) whenever a cemetery company fails to properly care for and maintain or preserve the cemetery; (8) Apply to Pulaski County Circuit Court or the circuit court of the county in which the cemetery is located for appointment of a receiver or conservator of the cemetery company or its permanent maintenance fund when it appears to the board that a cemetery company is insolvent or that the cemetery company, its officers, directors, agents, or the trustees of its permanent maintenance fund, have violated this subchapter and the rules promulgated under this subchapter or have failed to comply with any board order; (9) Increase by rule the amount of a deposit required under § 20-17-1016 if the board determines that a greater sum is necessary to assure that the permanent maintenance fund will earn sufficient income to provide for the care and maintenance of the cemetery; and (10)(A) Purchase insolvent, licensed perpetual care cemeteries that have been in court-ordered receivership or conservatorship for at least five (5) years. (B) If the taking of legal possession of the cemetery under subdivision (a)(10)(A) of this section requires the payment of consideration, any payment made by the board shall not exceed one thousand dollars ($1,000). (b) A violation of this section is a Class A misdemeanor.

Ark. Code Ann. § 23-61-1110 Burial associations.

(a) The State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services may: (1) Grant certificates of authority to burial associations; (2) Revoke certificates of authority, charters, or other authority granted to burial associations in this state; (3) Fix the minimum assessments or minimum membership dues for which burial associations may issue certificates for benefits in specified amounts; (4) Supervise the affairs of all burial associations organized or operating in this state; (5) Conduct hearings as provided in this subchapter and collect, receive, hold, and expend annual license fees under this subchapter and § 23-78-101 et seq.; (6) Adopt and enforce such rules as the board deems necessary and expedient for the proper operation of the burial association and the carrying out of the objects and purposes of this subchapter; (7) Establish actuarial rates and reserve requirements necessary to ensure the financial integrity of all burial associations; (8) Approve requests from burial associations that have excess financial resources, as determined by the board, to adopt a plan to pay death benefits in excess of the face value of a certificate of benefits issued by the burial association to members of the burial association; and (9) Approve or disapprove an application for the dissolution, merger, or reorganization of a burial association organized and operating in this state. (b) The board may determine issues between different burial associations and between burial associations and their respective members, and render binding decisions, subject to appeal.

Ark. Code Ann. § 23-61-1111 Duties of State Insurance Department.

(a) The State Insurance Department shall assist the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services in the performance of the duties of the board. (b) Assistance under subsection (a) of this section shall include without limitation: (1) Receiving and disseminating filings, questions, and requests on behalf of the board to the members of the board in advance of each meeting; (2) Reviewing all filings, questions, and requests on behalf of the board and offering the department's opinion on the resolution of the matter; (3) Issuing written responses regarding complaints received by the board; (4) Scheduling all meetings in conjunction with the Chair of the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services; (5) Providing appropriate legal notices for all scheduled meetings; (6) Establishing a site where meetings of the board may be held; (7) When necessary, scheduling the services of a court reporter for all meetings of the board; (8) Providing legal representation and assistance through the legal staff of the department to the board in matters pertaining to this subchapter; (9) Acting as a liaison between the board and any court involved in the administration of any perpetual care cemetery placed in receivership; (10) Performing inspections at burial associations, cemeteries, funeral homes, funeral establishments and crematoriums for which complaints have been received by the board; (11) Performing special audits and examinations as necessary; (12) Scheduling, performing, and assisting in performing regular audits and examinations of cemeteries, funeral homes, funeral establishments, and crematoriums; (13) Administering or assisting in administering the annual reporting for all perpetual care cemeteries; and (14) Assisting in the formulation of legislation on behalf of the board.
Source: Public.Resource.Org / UniCourt, Official Code of Arkansas Annotated, Release 78 (2020) (unicourt.github.io/cic-code-ar)URL: https://unicourt.github.io/cic-code-ar/transforms/ar/ocar/r78/gov.ar.code.title.23.htmlFetched: 11/8/2026

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