(a) Advisory organizations — Permitted activity.

1. (1)

   1. (A) Every advisory organization shall file with the State Insurance Department every advisory document thirty (30) days prior to the effective date.
   2. (B) The department may extend the review period an additional thirty (30) days by written notice to the filer before the thirty-day period expires.

2. (2) Any advisory organization, in addition to other activities permitted, is authorized to:

   1. (A)

(i) Prepare and distribute rates, supplementary rate information, and supporting information in accordance with Arkansas Code §§ 23-67-216 and 23-67-219.

1. (ii) However, such filings are for advisory purposes only and shall not be made on behalf of any insurer; and

   1. (B)

      1. (i) Prepare and file, on behalf of members and subscribers, policy forms and endorsements and consult with members, subscribers, and others relative to their use and application.
      2. (ii) Every company that is a member or subscriber shall use these forms as filed on its behalf unless it advises the Insurance Commissioner of either its intention not to adopt, to delay one (1) or more of the forms filed, or to file its own forms.
      3. (iii) If its intention is to adopt, not adopt, or delay implementation, then a letter stating its intention is sufficient.

2. (3)

   1. (A) An advisory organization may develop and make reference filings containing advisory prospective loss costs in accordance with Arkansas Code § 23-67-216.
   2. (B) Such filings shall contain the statistical data and supporting information for any calculations or assumptions underlying those prospective loss costs.
3. (4) The commissioner may require members and subscribers to provide information regarding their use of specific advisory organization forms.
4. (5) Final rates for residual markets may be prepared and filed by plan administrators as directed by the department.

(b) Advisory organizations — Prohibited activity.

1. (1) An advisory organization cannot file any plan of rates or supplementary rate information on behalf of an insurer.

2. (2)

   1. (A) An advisory organization cannot file, distribute, or compile recommendations relating to rates that include expenses, other than loss adjustment expenses, or profit except in the lines of insurance as may be designated by the commissioner.
   2. (B) An advisory organization may, however, provide insurers with an annual study of aggregate average expense data and investment income.