Arkansas P&C Law & Coverage Requirements
The state portion of the Arkansas property & casualty exam tests the coverage rules that differ from the national fundamentals: Arkansas's compulsory auto insurance limits, how injury claims are settled, cancellation and nonrenewal protections, and the dwelling/homeowners products used for Arkansas property. These sit on top of the shared national P&C bank.
Compulsory Auto Liability Limits in Arkansas
Arkansas requires every registered vehicle to carry at least the state minimum liability coverage. Under Ark. Code 27-19-605 (Motor Vehicle Safety Responsibility Act), the minimums are $25,000 for bodily injury per person, $50,000 per accident, and $25,000 for property damage — commonly written 25/50/25. These are floors, not recommendations; higher limits and optional coverages (uninsured/underinsured motorist, collision, comprehensive) are available. Confirm the current statutory figures with the Arkansas Insurance Department before quoting them.
How Arkansas Settles Auto Injury Claims
Arkansas is a tort ('at-fault') state, not a no-fault state; however, Arkansas insurers must offer personal injury protection (PIP) as an add-on, which the applicant may reject in writing. Knowing whether Arkansas is a tort or no-fault state tells the producer which coverage responds first and how an injured party recovers. Uninsured/underinsured motorist coverage protects the insured when the at-fault party has no or too little insurance.
Cancellation, Nonrenewal, and Dwelling/Homeowners Coverage
Arkansas protects personal-lines policyholders by regulating when and how an insurer may cancel a policy midterm or decline to renew it, generally requiring advance written notice with a stated reason; the exact number of days is fixed by state law and should be verified with the Arkansas Insurance Department. For property, homeowners (HO) forms require owner-occupancy, while a Dwelling (DP) policy covers rental or non-owner-occupied dwellings — a national distinction the exam applies to Arkansas risks.