Opinion ID: 2459998
Heading Depth: 1
Heading Rank: 1

Heading: Action Against Bledsoe

Text: It is Appellant's theory that Bledsoe was negligent in failing to advise him about underinsured motorist coverage at the time he obtained his policy from Shelter, and that Ark.Code Ann. § 23-89-209 (Supp.1987) required insurance companies and their agents to make such coverage available to the named insured. The parties to this suit agree that the applicable statute of limitations for negligent acts of an insurance agent is three years. See Ark.Code Ann. § 16-56-105 (1987); Flemens v. Harris, 323 Ark. 421, 915 S.W.2d 685 (1996). The question then is when did the action against Bledsoe accrue. Appellant contends that the cause of action accrued on the date that he settled his claim with the tortfeasor. He claims that prior to such settlement, he was not in fact underinsured. Appellant relies on the cases of State Farm Mut. Auto. Ins. Co. v. Beavers, 321 Ark. 292, 901 S.W.2d 13 (1995), and State Farm Mut. Auto. Ins. Co. v. Thomas, 316 Ark. 345, 871 S.W.2d 571 (1994), in support of his argument. Appellant's reliance on those cases is misplaced, as neither case presented a question involving the statute of limitations. In Flemens, 323 Ark. 421, 915 S.W.2d 685, which was relied upon by the court of appeals, this court held that in an action for negligence against an insurance agent, the three-year-limitations period begins to run, absent concealment of the wrong, on the date that the negligent act was committed, rather than the date that it was discovered. This court recognized the harshness of this rule to insurance clients, but nevertheless concluded that it would be up to the General Assembly to effect a change in the well-settled principle that an action for negligence accrues at the time the negligent act is committed. Here, the alleged negligent act, Bledsoe's failure to make underinsured motorist coverage available to Appellant, occurred on the date that Appellant obtained his insurance policy, which was sometime prior to January 11, 1990. Appellant's initial complaint was not filed until February 23, 1993. Applying the holding in Flemens , it is clear that Appellant's claim for the alleged negligent actions of Bledsoe is precluded by the statute of limitations.