Arkansas Code
Chapter 70 - Reciprocal Insurers
§ 23-70-114. Method of determining financial condition

In determining the financial condition of a reciprocal insurer, the Insurance Commissioner shall apply the following rules:
(1) He or she shall charge as liabilities the same reserves as are required of incorporated insurers issuing nonassessable policies on a reserve basis;
(2) The surplus deposits of subscribers shall be allowed as assets, except that any premium deposits delinquent for ninety (90) days shall first be charged against the surplus deposit;
(3) The surplus deposits of subscribers shall not be charged as a liability;
(4) All premium deposits delinquent less than ninety (90) days shall be allowed as assets;
(5) An assessment levied upon subscribers, and not collected, shall not be allowed as an asset;
(6) The contingent liability of subscribers shall not be allowed as an asset; and
(7) The computation of reserves shall be based upon premium deposits other than membership fees and without any deduction for expenses and the compensation of the attorney.

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