ARK LEG Motor Vehicle Coverage

Published on: Mar 25, 2025

On Mar. 20, ARK LEG enacted bill, financial responsibility requirements

  • ARK LEG enacted bill SB 276 to clarify surplus lines insurance is an acceptable coverage for financial responsibility of motor vehicle cover and for other purposes.
  • Amended ARK LEG 27-2-19 (vehicle safety) and ARK INS 27-2-22 (vehicle liability).
  • Bill Provisions
  • Allows vehicle owner/operator to demonstrate proof of insurance through policy issued by an insurance company that is not licensed or authorized to do business in the State.
  • In addition, a policy or bond will not be effective unless issued by an insurance company or surety company that is either authorized/eligible to operate in Arkansas.
  • Office of Driver Services can rely on accuracy of accident reports regarding coverage.
  • Legislative History
  • On Feb. 24, 2025, bill introduced in Senate; on Mar. 10, 2025, bill passed the Senate.
  • On Mar. 10, 2025, bill introduced in House; on Mar. 17, 2025, bill passed in the House.
  • On Mar. 20, 2025, bill was approved by the governor and was assigned as Act 345.
  • Effectiveness
  • Act effective 91 days after legislature adjourned sine die (May 5), so Aug. 4, 2025.
Regulators
ARK LEG
Entity Types
Ins
Reference
Act 345, Bill SB276, 3/20/2025; Citation: ARK INS 27-2-22; ARK LEG 27-2-19;
Functions
Compliance; Legal; Product Administration; Underwriting
Countries
United States of America
Category
State
N/A
Products
Insurance; Insurance-Casualty; Insurance-Property; Surplus Lines
Rule Type
Final
Regions
Am
Rule Date
Mar 20, 2025
Effective Date
Aug 4, 2025
Rule ID
247966
Linked to
N/A
Reg. Last Update
Mar 20, 2025
Report Section
US Insurance