(a) Voluntary coverage.

1. (1) Any employer assigned under this plan and desiring workers' compensation insurance for operations in states other than Arkansas may request its servicing carrier to furnish such insurance in such additional states.
2. (2) Workers' compensation insurance in such additional states may be written by the servicing carrier on a voluntary basis and in accordance with the law, rates, rules, classifications, and regulations applicable to the voluntary workers' compensation market in those states.

(b) Assigned risk coverage.

1. (1) Similar assigned risk states.

   1. (A) If the servicing carrier does not wish to provide coverage in the additional states on a voluntary basis, if those states have a workers’ compensation insurance plan that is similar to this plan and if such other plan allows employers applying for coverage thereunder to obtain coverage for their operations in Arkansas, then the servicing carrier must provide assigned risk coverage in such additional states as follows:

(d) (d) A copy of the policy Information Page and all endorsements, properly stamped "AR WCIP", shall be submitted to the appropriate plan administrator having jurisdiction in the state where the coverage is effected;

1. (ii) The rates, rating plans, classifications, and policy forms used to provide coverage in such additional states shall be those applicable to residual market risks that are on file and approved by the regulators in those additional states; and

   1. (iii) The servicing carrier must also be a signatory to an agreement providing reinsurance for residual market risks similar to the Articles of Agreement in each state where the coverage will be provided.
   2. (B) A servicing carrier unable to provide insurance for an employer in additional states in accordance with this subsection or unwilling to write voluntary coverage in accordance with subsection (a) of this section, shall refer the request to the plan administrator, which shall reassign the employer to a servicing carrier or carriers that is/are able to provide coverage in accordance with subsection (a) of this section and this subsection.

2. (2) All other states.

   1. (A) If the servicing carrier does not wish to provide coverage in an additional state on a voluntary basis, and if the state in question does not have a workers’ compensation insurance plan that is similar to this plan, then the servicing carrier must provide coverage for operations of an Arkansas employer in such additional state if and only if:

      1. (i) The employer has made application to no fewer than two (2) voluntary workers' compensation insurers authorized to insure such risks in such state and has been declined, if such state in fact has a voluntary workers’ compensation insurance market; and
      2. (ii) The employer has made application to either an unsimilar assigned risk plan or to either a competitive or mandatory state workers' compensation fund in such state and has been declined for coverage.
   2. (B) In the event coverage in another state cannot be obtained in the fashion as set forth above, then the services as rendered by employees of the Arkansas employer shall be deemed to be services rendered pursuant to a contract of employment in this state as provided by Arkansas Code § 11-9-102(11) and as amended by Acts 1993, No. 796, § 2, and the servicing carrier shall provide coverage for such operations under this plan and under the mandate of Arkansas Code § 11-9-404(a)(1).

   3. (C) Provided, however, that in the event any employee of any such employer incurs an injury or occupational disease compensable under the law of such other state, elects to recover under such laws and is finally successful in so doing, the servicing carrier shall be entitled to recoup from such employer the additional premium, if any, that would have been billed to that employer for the services of that employee in that other state by:

      1. (i) Either the risk plan or competitive or monopolistic fund operating in such state; or
      2. (ii) A licensed workers’ compensation insurer legally providing coverage to an employer in such state pursuant to the laws thereof.

   4. (D) Such carrier recouping premium in this manner shall be entitled to recoup premium for a period of coverage equal to the period of time the injured employee performed services in such state, subject to the maximum differential, if any, between the Arkansas rates and the other state rates for a period of one (1) policy year, and shall be entitled to bill and collect from the employer the said premiums as premium due hereunder and subject to the cancellation procedures set forth in 23 CAR § 203-104.

      1. (c) Foreign employers.

3. (1) From similar assigned risk state.

   1. (A) Employers who make application for workers' compensation insurance under another state's workers’ compensation insurance plan may purchase coverage for operations in Arkansas without meeting the application requirements of this plan, provided:

      1. (i) The employer qualifies for such insurance under the other state's plan;
      2. (ii) The employer is in good faith entitled to insurance under this plan;
      3. (iii) The other state's plan is similar to this plan;
      4. (iv) That plan also provides for interstate assignments; and
      5. (v) The payroll for the employer's operation in this state is not greater than the payroll in the other state.
   2. (B) The rates, rating plans, classifications, and policy forms used to provide coverage in Arkansas shall be those that are applicable to residual market risks in this state and are on file and have been approved by the Insurance Commissioner.

   3. (C) The administrator of the other plan is authorized to assign employers with operations in Arkansas to the other plan’s servicing carriers subject to the following conditions:

      1. (i)

(b) (b) In addition, if the payroll for the employer's operation in this state is greater than two hundred fifty thousand dollars ($250,000), the assigned carrier must also be a servicing carrier in this state; and

1. (ii) The other state's plan must give the plan administrator in this state similar authority to make interstate assignments.

2. (2) From all other states. Employers who are either insured under an assigned risk plan not similar to that of this state, insured voluntarily by a workers’ compensation insurer from such other state, or insured under or by a competitive or monopolistic state fund in such other state, shall be eligible for coverage under this plan as to its known and anticipated operations in this state if it is otherwise eligible for coverage under the terms of 23 CAR § 203-103.

   1. (d) Jurisdiction.
3. (1) With regard to interstate assignments and policies, this plan shall have jurisdiction over all disputes resulting from the application of rules, programs, and procedures that are specific to this state.
4. (2) Disputes regarding application requirements shall be under the jurisdiction of the state's plan where the application was filed.