Arkansas Life Insurance

Arkansas life insurance laws deal primarily with claims issues. However, familiarizing yourself with some basic regulations is still key to making wise coverage decisions.

This page:

  • Briefly describes Arkansas life insurance regulations.

  • Explains the protection of the Arkansas Guaranty Association.

  • Links to more information about life insurance in Arkansas

Save up to 75% on life insurance. The key to saving on life insurance lies in comparing quotes and policies from as many carriers as possible. Use our fast and free comparison service to get quotes from all the major carriers in your state, and see how much you can save! Start here.

Arkansas life insurance rights and regulations

The insurance industry in Arkansas is regulated by Title 23 of the state's code. Here, Arkansas life insurance claims procedures and policy requirements are outlined by the state for your protection.

One consumer protection is contained in the 30-day "grace period" provision all Arkansas life insurance policies must include. This provision allows the policyholder a minimum of thirty days to make a late premium payment before the insurer can cancel the policy.

The code also states that life insurance companies should pay claims within two months of receiving proof of death. If sufficient proof is provided without settlement, the claim is considered overdue.

However, insurers are offered some protections as well. If an applicant purposely misrepresents herself on an insurance application or policy, it may be considered fraud and prosecuted accordingly.

If information is omitted from or inaccurately stated on the application, the insurer has a right to investigate any claim made within two years of the policy's issue. Cancellation may result.

If the age of the insured, which is used in setting the premium, has been misstated, the death benefit will be adjusted to reflect the correct age.

Sidebar
If you are ready to apply for an Arizona term life insurance policy, or if you just want a quick online quote, visit Efinancial now.
If you are not sure about what type of life coverage you want, you can also try InsureME. They will put you in touch with agents who can answer any questions that you might have.

The Arkansas Life Insurance Guaranty

The Arkansas Life and Disability Insurance Guaranty Association helps protect you against an insurance company's financial failure.

Insurance companies in Arkansas pay fees to belong to this organization, which, in return, agrees to make some compensation for a death benefit or cash surrender should the insurance company go bankrupt. Death benefit protection in Arkansas is limited to $300,000, and cash surrender coverage is limited to $100,000.

However, in order to receive the protection this organization offers, your coverage must be guaranteed by a licensed insurance company. To find out if your insurance company is licensed, contact the Department of Insurance at (501) 371-2640.

Sidebar
Apply for a quote with confidence at Efinancial
(for Arkansas term life insurance), or InsureME.
Your insurer will be licensed in Arkansas.

Viatical settlements

Viatical settlements, which are purchasing agreements between an insured and a viatical agent, are regulated in Arkansas. These settlements allow a third party to purchase a life insurance policy from the insured, take over the premium payments, and become the policy's beneficiary. Talk to an licensed agent before you arrange one.

More AR life insurance help

If you want more help getting the best value on your AR life insurance policy, start with our guide to term life insurance or sign-up for our free life insurance course (see below).

To find out more about AR life insurance laws and regulations, visit the state's official website at the Arkansas Insurance Department.

Learn even more:

Getting the lowest possible premium on your life insurance is almost like an art form. There are many variables to consider, and to get the right balance of term length, benefit amounts, and policy riders and illustrations, you need to take a careful step-by-step approach to the buying process.

Our free life insurance course is designed to help you do just that.

Subscribe here: