Conversion Policy Forms And Rates

ARKANSAS INSURANCE DEPARTMENT LEGAL DIVISION 1200 West Third Street Little Rock, AR 72201-1904 501-371-2820 FAX 501-371-2629 BULLETIN 6-91 CONVERSION POLICY FORMS AND RATES May 31, 1991 The Department has become aware that companies are issuing “conversion” policies to former group members without obtaining the Department’s prior approval of either the policy form or the policy rate for these “conversion” policies. For purposes of this Bulletin, “conversion” policy includes policies, certificates and contracts. The purpose of this Bulletin is to remind companies that Ark. Code Ann. §§ 23-74-404, 23-75-111, 23-76-112 and 23-79-109 mandate that no “conversion” policy form can be issued, and no rate can be charged without this Department’s prior approval. Companies who violate these Code provisions are subject to administrative action by this Department pursuant to Ark. Code Ann. § 23-63-213. “Conversion” policies and rates filed with the Department will be reviewed for compliance with Ark. Code Ann. § 23-86-115 and Department Rule and Regulation 32 as to benefit levels and rate charges. Inquiries concerning this Bulletin should be directed to the Life and Health Division of this Department at (501) 371-1346. Lee Douglass INSURANCE COMMISSIONER