State Codes and Statutes
Statutes > Arkansas > Title-23 > Subtitle-3 > Chapter-95 > 23-95-10423-95-104. Plan for coverage -- Requirement.
(a) (1) If the Insurance Commissioner finds after a hearing that in all or in any part of this state, any amount or kind of insurance authorized by 23-62-104 and 23-62-105 is not reasonably available in the voluntary market and that the public interest requires the availability of that insurance, the commissioner shall direct insurers doing business within this state to prepare a voluntary plan which will provide that insurance coverage.
(2) The plan shall be submitted to the commissioner within the time he or she designates and, if approved by him or her, may be put into operation.
(3) If the plan is not approved by the commissioner or if the plan is not submitted as required, the commissioner may promulgate a plan to provide insurance coverage for any risks in this state which, based on reasonable underwriting standards, are entitled to obtain coverage, but are otherwise unable to obtain coverage in the voluntary market.
(b) All orders of the commissioner finding that a line of insurance is not reasonably available in the voluntary market shall consider, to the extent practicable, historical data from the past five (5) years regarding:
(1) Market availability;
(2) Major trends in policy forms, limits, and deductibles offered;
(3) Filed rates for the line if available;
(4) Loss ratios, claims severity, and claims frequency on both the state and national levels;
(5) Availability of surplus lines coverage;
(6) The types of insurers offering the line of insurance in the state;
(7) The existence of any residual market programs, market assistance programs, and captive insurance; and
(8) Whether alternatives to the creation of a risk-sharing plan are feasible.
(c) The commissioner may require licensed insurers and surplus lines companies to report historical data to assist the consideration of the factors contained in subsection (b) of this section.
(d) The commissioner shall afford any interested party an opportunity to submit written or oral testimony to assist in the determination required by subsection (a) of this section.
(e) The commissioner shall report to the Legislative Council all lines of insurance that he or she determines are not reasonably available in the voluntary market.
