23 CAR § 203-113 – Small deductible policy option

(a) The Insurance Commissioner deems a small deductible policy option to be "feasible" within the meaning of Arkansas Code § 11-9-813(d), and, accordingly, a small deductible policy rating plan, which shall be applicable to both the voluntary market and to the WCIP shall be made effective, under which each employer shall have the option, in accordance with the dictates of Arkansas Code § 11-9-813, of applying for coverages that incorporate deductible amounts of no less than one thousand dollars ($1,000) per incident and further deductibles in further increments of five hundred dollars ($500) each up to a maximum of five thousand dollars ($5,000) per incident.
(b) The plan administrator shall develop an appropriate application incorporating the deductible option and policy form, along with an actuarially sound premium adjustments for submission to and approval by the Insurance Commissioner.
(c) The commissioner hereby determines under the dictates of Arkansas Code § 11-9-813(d), however, that it is not feasible to require insurers or the plan administrator and servicing carriers to ignore claim frequency and/or severity if losses happen to be within the deductible limit chosen by an employer, and, accordingly, there shall be no prohibition against insurers, the plan administrator, or servicing carriers using true loss data, including frequency and severity of losses even within deductibles, for purposes of experience rating.