Section 23-65-304 - DefinitionsAs used in this subchapter:
(1) "Affiliated group" means a group of entities in which each entity, with respect to an insured, controls, is controlled by, or is under common control with the insured;(2) "Alien insurer" means an insurance company incorporated or formed under the laws of a country other than the United States;(3) "Authorized insurer" means an insurance company qualified and licensed to transact business under Arkansas Code Title 23, Subtitle 3;(4) "Control" means: (A) To own, control, or have the power of an entity directly, indirectly, or acting through one (1) or more other persons to vote twenty-five percent (25%) or more of any class of voting securities of another entity; or(B) To direct by an entity, in any manner, the election of a majority of the directors or trustees of another entity;(5)(A) "Exempt commercial purchaser" means a person purchasing commercial insurance that, at the time of placement, meets the following requirements: (i)(a) The person employs or retains a qualified risk manager to negotiate insurance coverage.(b) A qualified risk manager with respect to a policyholder of commercial insurance means a person who meets the definition of qualified risk manager in section 527 of the Nonadmitted and Reinsurance Reform Act of 2010, Pub. L. No. 111-203;(ii) The person has paid aggregate nationwide commercial property and casualty insurance premiums in excess of one hundred thousand dollars ($100,000) in the immediately preceding twelve (12) months; and(iii) The person meets at least one (1) of the following criteria: (a) The person possesses a net worth in excess of twenty million dollars ($20,000,000), as the amount is adjusted under subdivision (5)(B) of this section;(b) The person generates annual revenue in excess of fifty million dollars ($50,000,000), as the amount is adjusted under subdivision (5)(B) of this section;(c) The person employs more than five hundred (500) full-time or full-time-equivalent employees per individual insured or is a member of an affiliated group employing more than one thousand (1,000) employees in the aggregate;(d) The person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least thirty million dollars ($30,000,000), as the amount is adjusted under subdivision (5)(B) of this section; or(e) The person is a municipal corporation with a population in excess of fifty thousand (50,000) inhabitants.(B) Beginning on January 1, 2015, and one (1) time every five (5) years thereafter, the Insurance Commissioner shall by rule adjust the amounts in subdivisions (5)(A)(iii)(a) and (b) and (5)(A)(iii)(d) of this section to reflect the percentage change in the Consumer Price Index for All Urban Consumers published by the United States Bureau of Labor Statistics for the five-year period immediately preceding January 1 of the year of adjustment;(6)(A) "Home state" means, except as provided in subdivision (6)(B) of this section, with respect to an insured:(i)(a) The state in which an insured maintains its principal place of business or the state that is an individual's principal residence.(b) As used in subdivision (6)(A)(i)(a) of this section, "principal place of business" means the state in which the insured maintains its headquarters and where the insured's high-level officers direct, control, and coordinate the business activities of the insured; or(ii) If one hundred percent (100%) of the insured risk is located out of state as referred to in subdivision (6)(A)(i) of this section, the state to which the greatest percentage of the insured's taxable premium for the insurance contract is allocated.(B) If more than one (1) insured from an affiliated group are named insureds on a single nonadmitted insurance contract, "home state" means the home state of the member of the affiliated group that has the largest percentage of premium attributed to it under the insurance contract as determined under subdivision (6)(A) of this section;(7) "Nonadmitted insurance" or "surplus lines insurance" means property and casualty insurance policies permitted to be placed directly or through a surplus lines broker with a nonadmitted insurer eligible to accept the insurance;(8) "Premium tax" means, with respect to surplus lines or independently procured insurance coverage, any tax, fee, assessment, or other charge imposed by a government entity directly or indirectly based on any payment made as consideration for an insurance contract for the insurance, including premium deposits, assessments, registration fees, and any other compensation given in consideration for a contract of insurance;(9) "Qualified risk manager" means, with respect to a policyholder of commercial insurance, a person who meets the definition in section 527 of the Nonadmitted and Reinsurance Reform Act of 2010, Pub. L. No. 111-203, and the following requirements:(A) The person is an employee of or third-party consultant retained by the commercial policyholder;(B) The person provides skilled services in loss prevention, loss reduction, risk and insurance coverage analysis, or purchase of insurance; and(C) The person has:(i) A bachelor's degree or higher from an accredited college or university in: (b) Business administration;(e) Any other field determined by a state insurance commissioner or other state regulatory official or entity to demonstrate minimum competence in risk management;(ii) Three (3) years of experience in: (b) Claims administration;(d) Risk and insurance analysis; or(e) Purchasing commercial lines of insurance;(iii) A designation as:(a) A Chartered Property Casualty Underwriter issued by the American Institute for Chartered Property Casualty Underwriters of the Insurance Institute of America;(b) An Associate in Risk Management issued by the American Institute for Chartered Property Casualty Underwriters of the Insurance Institute of America;(c) A Certified Risk Manager issued by the National Alliance for Insurance Education & Research;(d) A RIMS Fellow issued by the Global Risk Management Institute; or(e) Any other designation, certification, or license determined by the Insurance Commissioner to demonstrate minimum competency in risk management;(iv) At least seven (7) years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance and any one (1) of the designations specified in subdivision (9)(C)(iii) of this section;(v) At least ten (10) years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; or(vi) A graduate degree from an accredited college or university in: (b) Business administration;(e) Any other field determined by a state insurance commissioner or other state regulatory official or entity to demonstrate minimum competence in risk management;(10) "State" includes any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, the United States Virgin Islands, and American Samoa;(11) "Surplus lines broker" means an individual, firm, or corporation that is licensed in a state to sell, solicit, or negotiate insurance when this state is the home state of the insured;(12) "Surplus lines insurer" means an unauthorized company in which nonadmitted insurance coverage may be placed; and(13) "Unauthorized insurer" means an insurance company that is not licensed to engage in the business of insurance in this state.Acts 1959, No. 148, § 189; A.S.A. 1947, § 66-2909; Acts 2011, No. 1055, § 2.