§ 23-61-704 - Insurers' payment extensions -- Penalties for noncompliance -- Commissioner's waiver for impaired or insolvent insurers.
23-61-704. Insurers' payment extensions -- Penalties for noncompliance -- Commissioner's waiver for impaired or insolvent insurers.
(a) (1) The Insurance Commissioner may grant any licensed insurer an extension for reporting and payment of the annual administrative and financial regulation fee for good cause shown upon the written application of the licensed insurer received at the State Insurance Department on or before each annual due date.
(2) Absent the commissioner's approval of such time extensions for good cause, licensed insurers failing timely to report or pay the administrative and financial regulation fee shall be subject to a penalty of one hundred dollars ($100) a day for each day of delinquency, payable to the State Insurance Department Trust Fund.
(3) (A) The commissioner may pursue any appropriate legal remedies on behalf of the State Insurance Department Trust Fund to collect the administrative and financial regulation fees and penalties due and unpaid from any delinquent insurer.
(B) Further, the commissioner may in his or her discretion order suspension of the delinquent insurer's Arkansas certificate of authority after notice and hearing until payment of all such fees and penalties is remitted to the State Insurance Department Trust Fund.
(4) Absent a grant of his or her waiver for good cause shown, the commissioner may revoke the Arkansas certificate of authority of any delinquent insurer consistently refusing and failing without good cause to remit payment of those fees and penalties to the fund pursuant to this subchapter.
(b) (1) The commissioner may in his or her discretion waive all or any part of the administrative and financial regulation fee due annually from a licensed insurer upon the suspension or revocation of the insurer's Arkansas certificate of authority, or upon issuance of a court order placing the company into conservation, rehabilitation, or liquidation in any state, or upon the commissioner's finding that the insurer is impaired or insolvent, or that its operations are hazardous to the insurance-buying public of this state.
(2) Upon the reinstatement or activation of the insurer's Arkansas certificate of authority in good standing, the commissioner's waiver automatically terminates and the insurer shall be liable for payment of the administrative and financial regulation fee on the next succeeding March 1 without retroactive reimbursement for the amount of the fees which would normally have accrued during the waiver period.