Arkansas residents looking to purchase a life insurance policy should be made aware of some key issues regarding life insurance in the state. Life every other state in the country, Arkansas has laws and regulations that each consumer should know about in order to make informed decisions on their life insurance coverage.
Arkansas Life Insurance Rules And Regulations
Life insurance is regulated by Title 23 and subtitle 3 (chapters 60-109) of the Arkansas Code. If you would like to inspect the fine print of the state’s insurance mandate, you can view the Insurance Code at the Arkansas Insurance Department.
Free Look Periods
The state of Arkansas does not have a legally mandated “free look” period. This means that insurance providers are not legally required to let their policyholders out of their policy if they change their mind after purchasing. With that being said, most life insurance companies in Arkansas still will give their customers a reasonable time to “test drive” their policy (usually between 7 and 30 days). If you cancel the policy during the free look period, you are entitled to a full refund.
All life insurance policies in Arkansas have a 30 day grace period included. This means that all life insurance policyholders have a thirty day window to make a late payment on their premium with no risk of cancellation by the insurer.
All life insurers are given two months to make payment on a claim. This means that whenever a life insurance claim is made, life insurance companies in the state of Arkansas only have a two month window to make payment to the beneficiary. If life insurance companies do not pay out on time, they are subject to severe penalties by the state.
State Insurance Department
The Arkansas Insurance Department can be reached at:
The Arkansas Life Insurance Guaranty
If your life insurance company goes out of business in the state of Arkansas, your policy is still backed by the Arkansas Life and Disability Insurance Guaranty Association. In the event your insurer goes insolvent, you are still protected for up to $100,000 for lost cash and $300,000 for death benefits. You can collect on these amounts only if you have been up to day on your premiums and your insurer is legally licensed in the state of Arkansas.
You can contact the Arkansas Life And Health Insurance Guaranty Association at:
425 West Capitol Avenue, Suite 3700
Little Rock, AR 72201