Arkansas Claims Compliance

Key regulatory requirements, correspondence deadlines, and mandated forms for Arkansas (AR).

Quick Reference

Key Deadlines

Acknowledgment
15 business/working days
Accept/Deny
15 business/working days
Investigation
45 calendar days
Payment
10 business/working days
Status Updates
45 calendar days

Requirements

  • Mandated Forms
  • Catastrophe Rules
  • Separate P&C / Life & Health
  • Fraud Warning
  • Depreciation Notice
  • E-Delivery (conditional)

Regulatory Authority

Arkansas Insurance Department (AID)

Phone: (800) 852-5494 or (501) 371-2640; Email: Insurance.Consumers@Arkansas.gov; Website: https://insurance.arkansas.gov/pages/consumer-services/consumer-services/file-a-complaint/

Bad Faith: Ark. Code Ann. § 23-79-208; common law tort of bad faith

Key Statutes

  • Ark. Code Ann. §§ 23-66-201 to 23-66-216 (Trade Practices Act)
  • 054.00.15 Ark. Code R. 005 (Rule 43)
Last reviewed: April 1, 2026

Arkansas handles claims correspondence according to specific state regulations. Requirements vary depending on the line of business and specific claim circumstances.

Acknowledgment

Every claim must be acknowledged within 15 business days of receipt. The acknowledgment should identify the insurance policy and coverage at issue.

Denial

A written denial must be issued within 15 business days. The denial must reference the specific policy provisions, conditions, or exclusions relied upon.

Statutory Language

Specific fraud warning required (Ark. Code Ann. § 23-66-206).

LOB-Specific Requirements

Regulatory requirements for Arkansas, grouped by line of business. Select a chip to filter.

SOL Notice In Denial Required
Yes
Unfair Claims Practices Act RefStatutory
Ark. Code Ann. § 23-66-206(13)
Prompt Payment Statute RefStatutory
Ark. Code Ann. § 23-63-107 (excludes personal lines); 054.00.15 Ark. Code R. 005 § 9; Ark. Code Ann. § 23-79-208
HO Specific Requirements
For homeowners policies specifically, the right to reasonable attorney's fees arises if the amount recovered is within 30% of the amount demanded in the suit
Depreciation Notice Required
Insurers shall not require a claimant to calculate the depreciated value of personal property on forms for proof of loss
Proof Of Loss Requirements
Insurers must furnish forms for proof of loss within 20 calendar days after a loss has been reported, or they thereafter waive proof of loss requirements
Suit Limitation PeriodStatutory
5 years (statutory limitation for written contracts); policy provisions requiring shorter time are void (Ark. Code Ann. § 23-79-202)

Arkansas Case Law

Published decisions that shape claim-handling and correspondence practice in Arkansas. Pair these with the statutory deadlines above.

StatutoryCase LawReg. Bulletin

  • Unum Life Ins. Co. of Am. v. Edwards

    210 S.W.3d 84 (2005)

    Case Law
    Bad FaithWorkers' Comp

    Failure to Communicate: Merely failing to explain the reason for an initial denial does not rise to the level of maliciousness required for bad faith .

  • State Auto Prop. & Cas. Ins. Co. v. Swaim, 338 Ark. 49

    991 S.W.2d 555 (1999)

    Case Law
    Status UpdatesGeneral Liability

    The Arkansas Supreme Court held that mere negligence, bad judgment, bureaucratic red tape, or a failure to provide a reason for the company's initial refusal of payment does not constitute bad faith. An insurance company commits bad faith only when it affirmatively engages in dishonest, malicious, or oppressive conduct.

  • S. Farm Bureau Cas. Ins. Co. v. Allen

    934 S.W.2d 527 (1996)

    Case Law
    Bad FaithCommercial Auto

    Bureaucratic Red Tape and Confusion: "Nightmarish red tape," the use of multiple confusing adjusters, foot-dragging in payment, and miscommunications about what to do with damaged property do not rise to the level of bad faith (State Auto Property and Casualty Ins. Co. v. Swaim, 338 Ark. 49 (1999)) .

  • Reynolds v. Shelter Mut. Ins. Co., 313 Ark. 145

    852 S.W.2d 799 (1993)

    Case Law
    Status UpdatesCyberGeneral Liability

    Held that an insurance company waiting three months to investigate a claim, or failing to act promptly, does not rise to the level of malicious or oppressive conduct required for a bad faith claim. Current Status: Good law; frequently cited to dismiss bad faith claims based on communication delays or lack of investigation. - Moffit v. State Farm Mut. Auto. Ins. Co., 14 F.4th 874 (8th Cir.

  • Cato v. Arkansas Mun. League Mun. Health Ben. Fund

    688 S.W.2d 720 (1985)

    Case Law
    Bad FaithCommercial Auto

    ) . If an insurer can demonstrate a good faith legal or factual defense to coverage—even if that defense is ultimately unsuccessful at trial—the bad faith claim must be dismissed as a matter of law .

  • Aetna Cas. & Sur. Co. v. Broadway Arms Corp., 281 Ark. 128

    664 S.W.2d 463 (1984)

    Case Law
    Closing LettersStatus UpdatesCyberGeneral Liability

    Established the standard for first-party bad faith in Arkansas.

Show 11 more cases

  • Southern Farm Bureau Cas. Ins. Co. v. Parker, 254 Ark. 329

    341 S.W.2d 36 (1960)

    Case Law
    Status UpdatesGeneral Liability

    Established elements for third-party bad faith/negligence for failure to settle within policy limits, noting that under a duty to defend, the insurer acts as a fiduciary and must act in the best interest of the insured, which implicates a duty to communicate settlement opportunities. Current Status: Good law.

  • Southern Farm Bureau Casualty Insurance Co. v. Parker

    341 S.W.2d 36 (1960)

    Case Law
    Bad FaithInland / Ocean Marine

    . https://law.justia.com/cases/federal/appellate-courts/F2/312/485/53656/

  • Aetna Casualty & Surety Co. v. Simpson

    306 S.W.2d 117 (1957)

    Case Law
    Reservation of RightsAuto

    : https://law.justia.com/cases/arkansas/supreme-court/1957/5-1305-0.html

  • Aetna Cas. & Sur. Co. v. Broadway Arms. Corp

    1984

    Case Law
    Closing LettersCommercial AutoGeneral Liability

    and Parker v. S. Farm Bureau Cas. Ins. Co. (1996) established that the misconduct must be malicious or oppressive .

  • Bayer CropScience LP v. Schafer

    2011

    Case Law
    Bad FaithGeneral Liability

    ruling that the cap violated Article 5, Section 32 of the Arkansas Constitution . As a result, there is no statutory ceiling on punitive damages in Arkansas, and awards are restricted only by federal constitutional due process limitations .

  • Dunn v. American Family Insurance

    2010

    Case Law
    Status UpdatesHomeowners

    the court examined a scenario where an insured's home was flooded, and the insurer failed to communicate with the insured's mold remediation contractor regarding coverage confirmation . Because the insurer would not communicate, the contractor delayed the work, causing the mold to worsen .

  • Medical Liability Mutual Insurance Co. v. Alan Curtis Enterprises, Inc

    2008

    Case Law
    Reservation of RightsAuto

    the Arkansas Supreme Court answered a certified question from the federal court regarding whether an insurer may rely on a unilateral reservation of rights letter to recoup attorney's fees and costs after winning a declaratory judgment action .

  • Parker v. S. Farm Bureau Cas. Ins. Co

    1996

    Case Law
    Closing LettersCommercial Auto

    established that the misconduct must be malicious or oppressive .

  • Pine Bluff Sch. Dist. v. ACE Am. Ins. Co

    2019

    Case Law
    Reservation of RightsCyberProfessional Liability

    . In that case, an insured school district failed to report a claim within the policy's reporting period. The insurer initially provided a defense but later denied coverage. The insured argued that the insurer waived its right to deny coverage by providing the defense and delaying its denial.

  • Reynolds v. Shelter Mutual Insurance Co

    1993

    Case Law
    Status UpdatesHomeowners

    In Reynolds, the policyholders filed a claim after their property was damaged, allegedly by the weight of ice and snow . Shelter Mutual Insurance initially failed to investigate the claim entirely .

  • Watkins v. Southern Farm Bureau Cas. Ins. Co

    2009

    Case Law
    Bad FaithGeneral Liability

    State Auto Prop. & Cas. Ins. Co. v. Swaim, 338 Ark. 49 (1999), FindLaw.

Historical court cases are for reference only and may be superseded, distinguished, or abrogated.

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