Arkansas Life Insurance
- Find out some of the key points of Arkansas life insurance laws that protect your rights as a consumer. Then learn where to get help with common issues.
Life insurance companies sell policies to the more than 3 million residents of Arkansas and must comply with laws established by the state's legislature. Becoming familiar with your rights under Arkansas life insurance laws can help you spot potential scams and better communicate with an insurance company if a dispute over a premium payment, rider or claim ever arises.
Arkansas Life Insurance Rules and Specifics
Chapter 81, Title 23 of the Arkansas Code sets the standards for policies sold in the state and includes all the following rights.
Free Look Period
Life insurance companies must give you 10 days to cancel a new policy and receive a full refund of premium payments. This free look period begins as soon as you have the full policy information in hand.
Insurers must give Arkansas residents a grace period of 30 days beyond scheduled due dates to pay their premiums. After 30 days, companies can begin the process of canceling delinquent policies for nonpayment of premiums.
Accelerated Benefit Provisions
Arkansas Rule 60 establishes guidelines for accelerated benefit riders on life insurance policies. It requires insurers to honor payouts requested for any covered condition once the policy is in effect for 60 days. Companies must also offer a lump sum payment option, so they can't require you to accept the proceeds as an annuity.
Life Insurance Resources in Arkansas
Whether you need advice about how to use the value of your life insurance policy or need help resolving a dispute with your insurer, you can find government agencies in Arkansas to assist you.
Arkansas State Insurance Department
The Arkansas State Insurance Department administers the rules and regulations governing life insurance policies sold in the state. You can contact the government agency to file a complaint about an insurer or to locate an insurance company.
Arkansas Consumer Protection Division
Part of the office of the Secretary of State, the Consumer Protection Division provides warnings about common life insurance scams and assists those who fall victim to them. In addition, you can seek help from the agency if your personal information is leaked due to a data breach at your insurance company.
Arkansas Life and Health Insurance Guaranty Association
The Arkansas Life and Health Insurance Guaranty Association consists of every insurer licensed to operate in Arkansas. If your insurer becomes unable to meet its financial obligations, the association will take over the payment of death benefits within certain limits.
Choices in Living Resource Center
Operated by Arkansas's local Area Agency on Aging offices, the Choices in Living Resource Center helps older adults weigh their options for long-term care. As a part of its counseling services, it can provide advice about using policy loans, accelerated benefits riders and life insurance cash values to cover the costs associated with care.