(a)

1. (1) Every insurance company, when submitting a policy form for approval by the Insurance Commissioner shall submit therewith the schedule of rates applicable to such policy form.

2. (2) The face page of each such form or schedule submitted shall have added to its identifying form, symbol, or figure (by printing, typewriter, or rubber stamp) the following identification:

   1. (A) "Credit Life"; or
   2. (B) "Credit Disability".
3. (3) Such additional identification may but need not appear on issued copies of such forms.

(b)

1. (1) As the basic test of the reasonableness of the relation of benefits to the premium charged, as provided in Arkansas Code § 23-87-112(b), to be applied separately by policy form number, it is hereby declared that the benefits for credit life or credit disability insurance, individual or group, shall be considered to be reasonable in relation to the premium charged either if:

   1. (A) The premium charged is the premium or premium rate authorized by 23 CAR § 83-105 or 23 CAR § 83-106; or
   2. (B) A loss ratio of fifty percent (50%) will or can reasonably be expected to be developed.
2. (2) The reporting forms required to be filed annually under 23 CAR § 83-113(a) will be used to determine if the basic test is being met.