(a)

1. (1) Upon written application of any insurer, the Insurance Commissioner may grant an exemption from compliance with any and all provisions of this rule if the commissioner finds, upon review of the application, that compliance with this rule would constitute a financial or organizational hardship upon the insurer.
2. (2) An exemption may be granted at any time and from time to time for a specified period or periods.

3. (3)

   1. (A) Within ten (10) days from a denial of an insurer’s written request for an exemption from this rule, the insurer may request in writing a hearing on its application for an exemption.
   2. (B) The hearing shall be held in accordance with the Arkansas Administrative Procedure Act, Arkansas Code § 25-15-201 et seq., and Arkansas Code §§ 23-61-303 – 23-61-305.

(c) Domestic insurers not retaining a certified public accountant on the effective date of this rule who qualifies as independent may meet the following schedule for compliance unless the commissioner permits otherwise:

1. (1) As of December 31, 2010, file with the commissioner an audited financial report; and
2. (2) For the year ending December 31, 2010, and each year thereafter, such insurers shall file with the commissioner all reports and communication required by this rule.

(f)

1. (1) The requirements of 23 CAR § 12-113 are to be in effect January 1, 2010.
2. (2) An insurer or group of insurers that is not required to have independent audit committee members or only a majority of independent audit committee members, as opposed to a supermajority, because the total written and assumed premium is below the threshold and subsequently becomes subject to one (1) of the independence requirements due to changes in premium shall have one (1) year following the year the threshold is exceeded, but not earlier than January 1, 2010, to comply with the independence requirements.
3. (3) Likewise, an insurer that becomes subject to one (1) of the independence requirements as a result of a business combination shall have one (1) calendar year following the date of acquisition or combination to comply with the independence requirements.

(g)

1. (1) The requirements of 23 CAR § 12-116 are effective beginning with the reporting period ending December 31, 2010, and each year thereafter.
2. (2) An insurer or group of insurers that is not required to file a report because the total written premium is below the threshold and subsequently becomes subject to the reporting requirements shall have two (2) years following the year the threshold is exceeded, but not earlier than December 31, 2010, to file a report.
3. (3) Likewise, an insurer acquired in a business combination shall have two (2) calendar years following the date of acquisition or combination to comply with the reporting requirements.

(h)

1. (1) The requirements of 23 CAR § 12-114 are to be in effect January 1, 2020, and thereafter.
2. (2) If an insurer or group of insurers that is exempt from the requirements in 23 CAR § 12-114 no longer qualifies for that exemption, it shall have one (1) year after the year the threshold is exceeded to comply with the requirements of this article.