Arkansas Administrative Code › Agency 054 - Arkansas Insurance Department › Rule 054.00.97-016 - Bulletin No. 14-97 - Recent Arkansas Legislation on Uninsured ("UM") and Underinsured Motorists ("UIM") Coverage's Under Acts 203 of 1997 and 284 of 1997

Current through Register Vol. 49, No. 6, June, 2024
ACT 203 of 1997
Act 203 of 1997, formerly House Bill 1272, is effective August 1,
			 1997, and amends Arkansas Code §
							23-89-403(a),
			 as to uninsured motorists coverage (UM) for personal auto policies. In new
			 Subsection (3), Act 203 requires the casualty insurer to have available
			 uninsured motorist (UM) coverage benefits up to the limits of the personal auto
			 policy's third party liability limits, when the applicant or insured has
			 purchased third party coverage amounts greater than Arkansas' statutory
			 minimums (S25.000/S50.000), and when the applicant or insured requests the
			 higher UM limits in writing.
The Department will require the personal auto application to
			 include a statement similar to the following:
"Please be advised uninsured motorist bodily injury limits are
			 available up to the liability limits for which you applied."
If possible, such statement should be placed adjacent to the
			 section offering UM coverage on the application. This requirement may be met by
			 re-filing the application with the mandated language or placing it on the
			 application via a sticker. The Department considers the signed personal auto
			 policy application containing the language, or sticker or endorsements signed
			 by the named insured if any insurer prefers that option, as sufficient for
			 conformity with Act 203.
Act 203 of 1997 stipulates that no insurer shall be required to
			 offer, provide, or make available UM coverage for conformity with this law in
			 connection with an umbrella policy or other contract which does not provide
			 primary vehicle insurance for liabilities for ownership or use of a
			 specifically identified vehicle.
ACT 284 of 1997
Arkansas Act 284 of 1997, formerly Senate Bill 271, adds new (e)
			 to Arkansas Code §
							23-89-209,
			 and is effective August 1, 1997. This section on personal auto policy's
			 underinsured motorists (UIM) coverage addresses the common situation where the
			 tortfeasor (party at fault) and the victim are both insured by the same
			 personal auto carrier. In this instance, the requirements of Subsections (c)
			 and (d) of §
							23-89-209
			 are waived.
Previously, the insured had to give notice to him UIM carrier
			 that he had reached a tentative settlement with the liability carrier for the
			 at-fault party, before he could receive any proceeds from his own insurance
			 company from his UIM coverage. Act 284 waives the written notice the UIM
			 insured must give his own carrier. Act 284 allows the UIM insured to proceed
			 against his UIM limits for payment at any time after settlement of the
			 liability claim, without the necessity of written notice to his UIM
			 carrier.
Please direct your mqurnes to Ms. Alexa Grissom, Rate and Form
			 Analyst,
Property and Casualty Division, at (501) 371-2800.
This Bulletin is intended to supplement but not replace
			 prior:
Bulletin No. 1-94, issued August 1,1994; or
Bulletin No. 16-93, issued September 10, 1993.
This Bulletin is intended to and does rescind prior:
Bulletin No. 4-86, issued January 13,1986; and
Bulletin No. 14-91, issued May 31,1991.