(a) For all lines other than workers’ compensation and employers’ liability.

1. (1) Property and casualty transmittal documents.

   1. (A)

(i) If a copy of the filing, bearing the appropriate stamp of the State Insurance Department, is to be returned to the filer, two (2) copies of the Property and Casualty Transmittal Document and filing are required together with a postage-paid envelope large enough to accommodate the return filing and addressed to the filing insurer, insurance holding company or group, or advisory organization.

1. (ii) Insurance holding company groups submitting rate filings simultaneously for affiliated companies must file a Property and Casualty Transmittal Document for each affiliated company.

   1. (iii) A copy of the Property and Casualty Transmittal Document shall be included for each company.

      1. (iv)

(b) (b) However, if there are any deviations between or among affiliated companies, supporting information must be submitted for each company along with separate cover letters outlining the deviations.

1. (v) Each company must submit in the Property and Casualty Transmittal Document or attached explanatory memorandum:

(b) (b) The location of the supporting information within the filing; and

1. (c) (c) The conclusion of the data.

   1. (B)

      1. (i) Except for those lines covered by Arkansas Code § 23-67-501 et seq., after May 1, 2006, in a competitive market, as defined under Arkansas Code § 23-67-202(3), insurers shall submit to the department filings with a proposed effective date.
      2. (ii) Such proposed effective date shall not be less than twenty (20) days after the filing and all information required by subdivision (a)(2) of this section has been received by the department, or sooner if approved by the Insurance Commissioner.
      3. (iii) If the information required by Arkansas Code § 23-67-201 et seq., and this part is not included with the filing, the filing shall be disapproved.

   2. (C)

      1. (i) In a competitive market, if the department determines after a hearing or by agreement that an insurer's rates require closer supervision because of the insurer's financial condition or its rating practices, the insurer shall file with the department at least sixty (60) days prior to the effective date all such rates and such supplementary rate information and supporting information as prescribed by the department.
      2. (ii) Upon application by the filer, the department may authorize an earlier effective date.
      3. (iii) A filing shall be deemed to meet the requirements of Arkansas Code § 23-67-201 et seq., and to be effective upon the expiration of the waiting period.

   3. (D)

      1. (i) In a noncompetitive market, insurers shall file with the department rates, supplementary rate information, and supporting information required by the department at least sixty (60) days prior to the effective date.
      2. (ii) Written applications for the department’s approval of an earlier effective date, stating clearly the insurer's reasons for the request, must accompany the filing.
      3. (iii) A filing shall be deemed to meet the requirements of Arkansas Code § 23-67-201 et seq., and to be effective upon the expiration of the waiting period.

   4. (E)

      1. (i) Effective May 1, 2006, for those lines of insurance covered by Arkansas Code § 23-67-501 et seq., comprising the professional malpractice lines, except for officers and directors liability and fiduciary insurance, all rates must be either approved and disapproved within sixty (60) days from filing.
      2. (ii) No rate may be used until it is approved by the commissioner, pursuant to Acts 2005, No. 1697.

2. (2) Supporting information required to supplement a filing.

   1. (A)

      1. (i) Each rate and rule filing submitted shall include the rate and rule transmittal documents.
      2. (ii) If you are making a loss cost reference filing, see subdivision (a)(3) of this section.
      3. (iii) Rate and rule filings for homeowners insurance and private passenger automobile insurance must also include the Private Passenger Automobile Abstract (Form A-1), Survey Form APCS or Homeowners Abstract (Form H-1), and Survey Form HPCS.
      4. (iv) If the filing does not affect the APCS or HPCS previously filed, then a statement in a cover letter or on the transmittal document to that effect is acceptable.
      5. (v)

(b) (b) See 23 CAR § 200-106, procedures for form filings.

1. (vi)

(b) (b) If an item required is not available or is inapplicable, a statement should be included that specifies the inapplicability or unavailability of the particular item.

1. (B)

   1. (i) Explain the type of loss information utilized in this rate filing.

      1. (ii) Specify whether the data reflects a:

(b) (b) Accident period; or

1. (c) (c) Policy period.

   1. (iii)

(b) (b) If a provision for incurred but not reported estimated loss liabilities is included, specify the calculation changes over the experience period, and the distribution among coverages and states.

1. (c) (c) Loss development factors should be shown by coverage both for Arkansas and countrywide for the past five (5) years.

   1. (iv)

(b) (b) Loss development factors should be shown by coverage both for Arkansas and countrywide for the past five (5) years.

1. (C) If the methods used in this filing differ from those used in the insurer's last rate filing for this coverage in Arkansas, or if the Arkansas methods differ from those used countrywide, attach an explanation of the differences.

   1. (D) Explain any adjustments for large or catastrophic losses that were made in the statistical information on losses.
   2. (E) Display the calculation of the estimate of investment income on net unearned premiums and loss reserves.
   3. (F) Display the calculation of any loading or contingency factor that is used in this filing.

   4. (G)

      1. (i) Display underwriting expenses.
      2. (ii) State procedures used in the filing to recognize the distinction between expenses that vary directly with losses and expenses such as general expenses, which do not vary.
   5. (H) State steps taken to control losses for the coverages included in this filing.

   6. (I)

      1. (i) Explain any adjustments made by the trending components of the filing.
      2. (ii) If significant trends within this state are utilized, a narrative describing the basis of the trend must be included.
   7. (J) The determination of the weighting of credibility assigned to Arkansas must be fully explained.
   8. (K) If common classes are grouped together for ratemaking purposes because the data for one (1) particular class is not credible either for Arkansas or countrywide, all class codes utilized in developing credibility must be stated with Arkansas experience for each class affected shown separately.
   9. (L) Any additional information the department may require pursuant to Arkansas Code § 23-67-202(11) and (12) and Arkansas Code §§ 23-67-401 – 23-67-415 must be included.

2. (3) Reference filings.

   1. (A)

      1. (i) If an insurer is a participating insurer in an advisory organization and decides to use the prospective loss costs in a reference filing in support of its own filing, the insurer shall make a filing using the Reference Filing Adoption Form (Form RF-2), in addition to the applicable rate and rule transmittal document.
      2. (ii) The insurer's rates are the combination of the prospective loss costs and the loss cost adjustments contained in Form RF-2.
      3. (iii) Reference filings for homeowners must also include the Homeowners Abstract (Form H-1) and Survey Form HPCS.
      4. (iv) Private passenger automobile reference filings shall include the Private Passenger Automobile Abstract (Form A-1) and Survey Form APCS.

   2. (B)

      1. (i) Any participating insurer in an advisory organization may satisfy its obligation to file rates, the prospective loss costs portion of its rates, supplementary rate information, or supporting information by filing a reference to a filing made by the advisory organization.
      2. (ii) Such reference filings must include the advisory organization's reference document number.

3. (4) Deviations.

   1. (A) An insurer may file a deviation from the reference document as filed by the advisory organization.

   2. (B) Such filings shall:

      1. (i) Specify the basis for and adequately justify the request for the deviation; and
      2. (ii) Be accompanied by the information required in subdivision (a)(2) of this section.

4. (5) Loss cost filings.

   1. (A) An insurer wishing to adopt an advisory organization's current loss cost filing must:

      1. (i) Provide the documentation required in subdivision (a)(2) of this section, indicating whether or not the loss cost multiplier is to be applicable to future filings;
      2. (ii) Provide documentations to support the development of the company's loss cost adjustments;
      3. (iii) Pay the appropriate fees; and
      4. (iv) Indicate the insurer's proposed effective date.

   2. (B) Upon subsequent revision by an advisory organization of a loss cost filing, an insurer having requested to have its loss cost adjustment applicable to subsequent filings must:

      1. (i) Give notice of its intent to adopt by submitting a letter so stating and provide the advisory organization's reference document number;
      2. (ii) Pay the appropriate fees; and
      3. (iii) Provide a copy of the previously filed Form RF-2 indicating that the loss cost modifier will be applicable to future filings.

   3. (C)

      1. (i) If an insurer who has filed to have its loss cost adjustments remain on file with the department intends to delay, modify, or not adopt a particular advisory organization's loss cost reference filing, the insurer must notify the department in writing.
      2. (ii) The insurer's on-file loss cost adjustments shall remain in effect until disapproved by the department, withdrawn by the insurer, or until the insurer files and receives approval of a requested change submitted on a revised Form RF-2.

   4. (D)

      1. (i) To the extent that an insurer's final rates are determined solely by applying its loss cost adjustments to the prospective loss costs contained in an advisory organization's reference filing, the insurer need not develop or file its final rate pages with the department.
      2. (ii) If an insurer chooses to print and distribute final rate pages for its own use, based solely upon the application of its filed loss cost adjustments to an advisory organization's prospective loss costs, the insurer must file pages with the department.
      3. (iii) If the advisory organization does not print the loss costs in its rating manual, the insurer must submit its rates to the department.

   5. (E)

      1. (i) Nothing in these procedures shall be construed to require advisory organizations or their participating insurers to immediately refile rates previously implemented.
      2. (ii) Any participating insurer of an advisory organization is authorized to continue to use all rates and deviations filed for its use until disapproved, or the insurer makes its own filing, or files Form RF-2 adopting the advisory organization's prospective loss costs or a modification thereof.
5. (6) Property and Casualty Transmittal Documents. All filings made under subdivisions (a)(1), (3), (4), and (5) of this section, unless otherwise stated, must include the Property and Casualty Transmittal Document.

(b) Procedures for rate and supplementary rate information filings for workers’ compensation and employers’ liability insurance.

1. (1)

   1. (A) All classification manuals, rules and rates, rating plans, and every modification of any of the foregoing that an insurer proposes to use for workers' compensation and employers' liability insurance shall be approved, or deemed approved, by this department before such manuals, rules, rates, or rating plan can be used.
   2. (B) Insurers may file independently or by reference to the loss costs, supporting information, or supplementary rate information filed by an advisory organization.
   3. (C) Insurers may file deviations to the loss costs filed by an advisory organization.

2. (2) Filing cover.

   1. (A) If a copy of the filing, bearing the appropriate stamp of the department, is to be returned to the filer, two (2) copies of the filing cover Property and Casualty Transmittal Document are required, together with a postage-paid envelope large enough to accommodate the return filing and addressed to the filing insurer, insurance holding company or group, or advisory organization.
   2. (B) Insurance holding company groups submitting rate filings simultaneously for affiliated companies must file a Property and Casualty Transmittal Document for each affiliated company.
   3. (C) A copy of the Property and Casualty Transmittal Document shall be included for each company.

   4. (D)

      1. (i) Only one (1) complete copy of the rate documents and supporting information need be filed for departmental records, if the documents are applicable to all affiliated companies.
      2. (ii) However, if there are any deviations between or among affiliated companies, supporting information must be submitted for each company along with separate Property and Casualty Transmittal Documents outlining the deviations.

   5. (E) Each company must submit in the cover letter or attached explanatory memorandum:

      1. (i) A synopsis of each exhibit;
      2. (ii) The location of the supporting information within the filing; and
      3. (iii) The conclusion of the data.

3. (3) Supporting information required to supplement a filing.

   1. (A)

      1. (i) Each rate and rule filing submitted shall be accompanied by the Rate Filing Abstract (Form RF-1).
      2. (ii) If you are making a loss cost reference filing, see subdivision (b)(6) of this section.
      3. (iii) Rate and form filings must be made separately.
      4. (iv) The following required documentation should be identified as an exhibit to the filing, and the exhibits should be numbered to correspond directly with the listing of documentation.
      5. (v) If an item required is not available or is inapplicable, a statement should be included that specifies the inapplicability or unavailability of the particular item.

   2. (B)

      1. (i)

(b) (b) Specify whether the data reflects a calendar period, accident period, or policy period.

1. (ii)

(b) (b) If a provision for incurred but not reported estimated loss liabilities is included, specify the calculation changes over the experience period and the distribution among coverages and states.

1. (c) (c) Loss development factors should be shown by coverage both for Arkansas and countrywide for the past five (5) years.

   1. (iii)

(b) (b) Loss development factors should be shown by coverage both for Arkansas and company-wide for the past five (5) years.

1. (C) If the methods used in this filing differ from those used in the insurer's last rate filing for this coverage in Arkansas, or if the Arkansas methods differ from those used countrywide, attach an explanation of the differences.

   1. (D) Explain any adjustments for large or catastrophic losses that were made in the statistical information on losses.
   2. (E) Display the calculation of the estimate of investment income on net unearned premiums and loss reserves.
   3. (F) Display the calculation of any loading or contingency factor used in this filing.

   4. (G)

      1. (i) Display underwriting expenses.
      2. (ii) State procedures used in the filing to recognize the distinction between expenses that vary directly with losses, and expenses such as general expenses, which do not vary.
   5. (H) State steps taken to control losses for the coverages included in this filing.

   6. (I)

      1. (i) Explain any adjustments made by the trending components of the filing.
      2. (ii) If significant trends within this state are utilized, a narrative describing the basis of the trend must be included.
   7. (J) The determination of the weighting of credibility assigned to Arkansas must be fully explained.
   8. (K) If common classes are grouped together for rate making purposes because the data for one (1) particular class is not credible either for Arkansas or countrywide, all class codes utilized in developing credibility must be stated with Arkansas experience for each class affected shown separately.
   9. (L) Any additional information the department may require.

2. (4) Rate filing deadlines.

   1. (A) The proposed effective date of the filing shall be not less than thirty (30) days after the filing has been received by the department.
   2. (B) If the information that supplements the filing in accordance with subdivision (b)(3) of this section is not sufficient for the department to determine whether the filing meets the requirements of Arkansas Code § 23-67-219, the department will notify the filing insurer or advisory organization.
   3. (C) If the insurer or advisory organization is required to submit additional information, the effective date of the proposed filing shall not be less than thirty (30) days after such information is received by the department.
3. (5) Maintenance of uniform database. Independent filings based upon a classification system other than the classification system filed by a designated advisory organization must be accompanied by an explanation of the method the insurer will utilize to compile and report data in compliance with Arkansas Code § 23-67-219(2)(B).

4. (6) Reference filings.

   1. (A) Any participating insurer in an advisory organization may satisfy its obligation to file the prospective loss cost portion of its rates, supplementary rate information, or supporting information, by adopting a reference document filing made by an advisory organization, using Forms RF-WC and RF-1.
   2. (B) Workers' compensation and employers' liability insurance filings by advisory organizations are advisory only, and any insurer desiring to use those filings shall submit a filing indicating its intent to file rates, supplementary rate, and supporting information, by reference to the filing of the licensed advisory organization.
   3. (C) This Property and Casualty Transmittal Document shall contain the advisory organization's reference document number applicable to this filing.

5. (7) Deviations.

   1. (A) An insurer shall file all deviations from an advisory organization's most recent loss cost filing.
   2. (B) These deviations may be accomplished through the use of the Form RF-WC and attachments thereto.
   3. (C) The Form RF-1 should accompany the deviation request.
   4. (D) The department shall approve or disapprove deviations within thirty (30) days after receipt of the completed deviation filing.
   5. (E) The deviation shall be effective upon approval by the department.

6. (8) Loss costs filings.

   1. (A) An insurer wishing to adopt an advisory organization's current loss cost filing must:

      1. (i) Provide the documentation required in subdivision (b)(3) of this section, indicating whether or not the loss cost multiplier is to be applicable to future filings;
      2. (ii) Provide documentation to support the development of the company's loss cost adjustments;
      3. (iii) Pay the appropriate fees; and
      4. (iv) Indicate the insurer's proposed effective date.

   2. (B) Upon subsequent revision by an advisory organization of a loss cost filing, an insurer having requested to have its loss cost adjustment applicable to subsequent filings must:

      1. (i) Give notice of its intent to adopt, by submitting a cover letter so stating, and by providing the advisory organization's reference document number;
      2. (ii) Pay the appropriate fees; and
      3. (iii) Provide a copy of the previously filed Form RF-WC, indicating that the loss cost modifier will be applicable to future filings.

   3. (C)

      1. (i) If an insurer that has filed to have its loss cost adjustments remain on file with the department intends to delay, modify, or not adopt a particular advisory organization's loss cost reference filing, the insurer must notify the department in writing.
      2. (ii) The insurer's on-file loss cost adjustments will remain in effect until disapproved by the department, withdrawn by the insurer, or until the insurer files and receives approval of a revised Form RF-WC.

   4. (D)

      1. (i) Nothing in these procedures shall be construed to require advisory organizations or their participating insurers to immediately refile rates previously implemented.
      2. (ii) Any participating insurer of an advisory organization is authorized to continue to use all rates and deviations filed for its use until disapproved, or the insurer makes its own filing, or files Form RF-WC adopting the advisory organization's prospective loss costs or a modification thereof.