Claim Notice Pack (Policyholder) — Arkansas

CLAIM NOTICE PACK — POLICYHOLDER (ARKANSAS)

Prepared for: [________________________________] ("Policyholder" or "Insured")
Prepared by: [________________________________] ("Counsel for Policyholder")
Date Prepared: [__/__/____]

ARKANSAS PRACTICE NOTE: Arkansas insurance law has distinct notice
requirements. Under Arkansas Insurance Department Rule 43, insurers must
acknowledge claims within 15 working days, complete investigations within
45 calendar days, and accept or deny claims within 15 working days
after receipt of proof of loss. Insurers must provide proof of loss forms
within 20 calendar days of loss notification or waive the requirement.
Notice to an insurer's agent constitutes notice to the insurer. Arkansas
courts construe ambiguous policy provisions against the insurer and in favor
of the insured. For claims-made policies, Arkansas has held that late notice
bars coverage without a showing of prejudice. Dardanelle & Russellville
R.R., Inc. v. Certain Underwriters at Lloyd's London (Ark. Ct. App. 2010).

DOCUMENT 1: INITIAL CLAIM NOTICE LETTER

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [________________________________]

Date: [__/__/____]

[________________________________]
Claims Department
[________________________________] ("Insurer")
[________________________________]
[________________________________]

Re: Notice of Claim / Notice of Circumstances — Arkansas Policy
Insured: [________________________________]
Policy No.: [________________________________]
Policy Type: [________________________________] (e.g., Property, CGL, D&O, EPLI, Professional Liability, Auto)
Policy Period: [__/__/____] to [__/__/____]
Date of Loss/Occurrence: [__/__/____]
Claim No. (if assigned): [________________________________]

Dear Claims Department:

This firm represents [________________________________] ("Insured") in connection with the above-referenced insurance policy issued by [________________________________] ("Insurer"). This letter constitutes formal written notice of a claim and/or circumstances that may give rise to a claim under the Policy, as required by the Policy's notice provisions and applicable Arkansas law, including the Arkansas Insurance Code (Ark. Code Ann. Title 23) and Arkansas Insurance Department Rule 43.

I. DESCRIPTION OF LOSS OR OCCURRENCE

A. Nature of Claim

☐ First-party property damage claim
☐ Third-party liability claim / suit
☐ Directors & Officers (D&O) claim
☐ Employment Practices Liability (EPLI) claim
☐ Professional Liability / Errors & Omissions claim
☐ Automobile / vehicle claim
☐ Business interruption / loss of income claim
☐ Other: [________________________________]

B. Date and Location

• Date of loss, occurrence, or wrongful act: [__/__/____]
• Date claim or suit was first made against insured (if applicable): [__/__/____]
• Location of loss or occurrence: [________________________________]
• County: [________________________________]
• Location of insured's principal place of business: [________________________________]

C. Factual Summary

[________________________________]
[________________________________]
[________________________________]
[________________________________]
[Provide a clear, factual narrative of the incident or circumstances. Include what happened, when, where, who was involved, the nature of the damages or allegations, and any immediate actions taken. For liability claims, attach the complaint or demand letter. For property claims, describe the nature and extent of damage. For Arkansas-specific issues such as tornado, severe storm, or flood damage, provide weather event details and distinguish between covered perils.]

D. Parties Involved

E. Injuries / Damages

• Nature of bodily injury (if applicable): [________________________________]
• Nature of property damage (if applicable): [________________________________]
• Estimated amount of loss or demand: $[________________________________]
• Whether suit has been filed: ☐ Yes ☐ No
• Court and case number (if suit filed): [________________________________]
• Court location: ☐ Arkansas Circuit Court, [________________________________] County
• Response / answer deadline: [__/__/____]

II. POLICY IDENTIFICATION AND COVERAGE TRIGGER

A. Policies Potentially Providing Coverage

B. Coverage Trigger

• Policy type: ☐ Occurrence ☐ Claims-Made ☐ Claims-Made-and-Reported
• For occurrence policies: The occurrence took place on [__/__/____], within the policy period.
• For claims-made policies: The claim was first made on [__/__/____], within the policy period. The retroactive date is [__/__/____].
• For claims-made-and-reported policies: The claim was first made on [__/__/____] and is being reported on [__/__/____], both within the policy period (or applicable extended reporting period).

C. Related Claims or Circumstances

☐ No prior related claims or circumstances have been reported.
☐ The following related claims or circumstances were previously reported:

• [________________________________] (Date reported: [__/__/____]; Claim No.: [____])

D. Other Insurance

☐ No other insurance is believed to apply.
☐ The following other insurance may apply (concurrent notice is being provided):

• [________________________________] (Policy No.: [____]; Insurer: [________________________________])

III. REQUESTS

The Insured respectfully requests the following:

1. Claim Number and Adjuster Assignment. Please assign a claim number and adjuster, and provide their name and direct contact information within 15 working days, as required by Arkansas Insurance Department Rule 43.

2. Written Acknowledgment. Please provide written acknowledgment of this claim within 15 working days of receipt, as required by Rule 43. Payment of the claim within this period constitutes acknowledgment.

3. Proof of Loss Forms. If the insurer requires a sworn proof of loss, please provide the necessary forms within 20 calendar days of this notification. Under Rule 43, failure to furnish proof of loss forms within this timeframe constitutes a waiver of the proof of loss requirement.

4. Complete Policy. Please provide a complete, certified copy of the Policy, including all endorsements, declarations pages, and any amendatory endorsements.

5. Defense and Indemnity (Liability Claims). If this is a liability claim, the Insured tenders the defense of the underlying action to the Insurer pursuant to the Policy's duty to defend. Please:
   - ☐ Appoint defense counsel per the Policy terms
   - ☐ Consent to the Insured's selection of counsel: [________________________________]
   - ☐ Advance defense costs pending coverage determination (if applicable)

6. Indemnity / Loss Payment (First-Party Claims). If this is a first-party claim, please proceed with investigation and adjustment. Under Rule 43, the Insurer must:
   - ☐ Complete investigation within 45 calendar days (extensions require written notice)
   - ☐ Accept or deny the claim within 15 working days after receipt of properly executed proof of loss
   - ☐ Mail or deliver payment within 10 days after investigation closes
   - ☐ Provide status updates every 45 calendar days if investigation remains incomplete

7. Coverage Position. Please provide a written coverage position within the timeframes required by Arkansas law. Denials must be in writing and reference the specific policy provisions relied upon.

8. Statute of Limitations Notice. Under Rule 43, the insurer must notify the insured at least 30 days before any applicable statute of limitations or time limit expires.

IV. TIMELINESS OF NOTICE

This notice is being provided promptly after the Insured became aware of the claim, occurrence, or circumstances described herein.

Arkansas Notice Law: Under Arkansas law, notification given to an agent of an insurer constitutes notification to the insurer. Arkansas courts have held that where a policy provides that giving notice of a loss, claim, or lawsuit is a condition precedent to recovery, the insured must comply with the notice requirement. For claims-made policies, Arkansas does not require the insurer to show prejudice before denying coverage for late notice. Dardanelle & Russellville R.R., Inc. v. Certain Underwriters at Lloyd's London (Ark. Ct. App. 2010). For occurrence policies, Arkansas courts may apply a notice-prejudice analysis.

Proof of Loss — Important Note: Under Arkansas Rule 43, insurers must furnish proof of loss forms within 20 calendar days after a loss has been reported, or thereafter waive proof of loss requirements. Additionally, insurers shall not require a claimant to calculate depreciated value of personal property on proof of loss forms.

• Policy notice provision located at: Section [________________________________]
• Method of notice required by Policy: [________________________________]
• This notice is being sent to: [________________________________] (as required by the Policy)

V. RESERVATION OF RIGHTS — INSURED

The Insured expressly reserves all rights under the Policy and applicable Arkansas law, including but not limited to:

• All coverage arguments under every potentially applicable insuring agreement
• Rights under any additional insured endorsement
• Rights to supplementary payments, defense costs, and pre-judgment interest
• Rights to challenge any reservation of rights or coverage denial
• Rights to an independent counsel if a conflict of interest exists
• All rights under Ark. Code Ann. § 23-66-206 (unfair claims practices)
• All rights under Arkansas Insurance Department Rule 43
• All bad faith remedies available under Arkansas law
• The right to pursue statutory penalties under Ark. Code Ann. § 23-66-206(14)
• Rights to file a complaint with the Arkansas Insurance Department

Nothing in this notice, or any subsequent communication, shall be deemed a waiver of any right, defense, or coverage argument available to the Insured.

VI. COOPERATION

The Insured will cooperate with the Insurer's reasonable investigation of this claim. All requests for information or documentation should be directed to:

[________________________________]
[________________________________]
[________________________________]
Phone: [________________________________]
Email: [________________________________]

VII. ATTACHMENTS

The following documents are enclosed with this notice:

☐ Copy of complaint / petition / demand letter / EEOC charge / regulatory notice
☐ Incident report
☐ Police report
☐ Photographs / video of loss
☐ Preliminary damage estimate or repair estimate
☐ Board minutes or corporate resolution (D&O / EPLI)
☐ Prior related correspondence
☐ Other: [________________________________]

VIII. NOTICE DELIVERY CONFIRMATION

This notice is being sent via the following method(s):

☐ Certified mail, return receipt requested (Tracking No.: [________________________________])
☐ Email to: [________________________________]
☐ Insurer's online claims portal (Confirmation No.: [________________________________])
☐ Hand delivery
☐ Overnight courier (Tracking No.: [________________________________])

Date of transmission: [__/__/____]

Sincerely,

________________________________________
[________________________________]
[Title]
[________________________________] (Insured Entity)
[________________________________]
[________________________________]
Phone: [________________________________]
Email: [________________________________]

DOCUMENT 2: SWORN PROOF OF LOSS (ARKANSAS)

SWORN STATEMENT IN PROOF OF LOSS

To: [________________________________] ("Insurer")
Policy No.: [________________________________]
Claim No.: [________________________________]

Arkansas Note: Under Arkansas Insurance Department Rule 43, if the insurer
fails to furnish proof of loss forms within 20 calendar days after a loss has
been reported, the proof of loss requirement is waived. Insurers shall not
require a claimant to calculate depreciated value of personal property on
proof of loss forms.

The undersigned, being duly sworn, deposes and says:

1. Insured Information

2. Policy Information

3. Loss Information

4. Occupancy and Use (Property Claims)

5. Amount of Loss Claimed

Note: Under Arkansas Rule 43, the insurer shall not require the claimant to calculate depreciated value of personal property.

6. Other Insurance

☐ No other insurance covers this loss.
☐ The following other insurance may cover all or part of this loss:

7. Changes Since Policy Inception

☐ There have been no changes in title, use, occupancy, possession, or exposures since the policy inception.
☐ The following changes have occurred: [________________________________]

8. Encumbrances

☐ There are no liens, mortgages, or other encumbrances on the property.
☐ The following encumbrances exist:

9. Prior Losses

☐ No prior losses have occurred at this location in the past five years.
☐ The following prior losses have occurred: [________________________________]

10. Statement of Truth

The above statements are true and correct to the best of my knowledge and belief. I understand that any willful false statement or concealment of a material fact may void this claim and the policy, and may subject me to criminal penalties under Arkansas law, including Ark. Code Ann. § 23-66-510 (Insurance Fraud).

The Insured expressly reserves all rights under the policy and applicable Arkansas law. Submission of this proof of loss does not waive any coverage arguments or limit the Insured's claim in any way.

Sworn and subscribed before me this [____] day of [________________________________], 20[____].

________________________________________
Signature of Insured / Authorized Representative

________________________________________
Printed Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

NOTARIZATION

State of Arkansas
County of [________________________________]

Subscribed and sworn to before me this [____] day of [________________________________], 20[____], by [________________________________], who is personally known to me or who produced [________________________________] as identification.

________________________________________
Notary Public, State of Arkansas
My Commission Expires: [__/__/____]
[SEAL]

SUPPORTING DOCUMENTATION CHECKLIST

☐ Itemized inventory of damaged / lost property with values
☐ Receipts, invoices, or proof of purchase
☐ Repair estimates from licensed contractors (minimum two recommended)
☐ Photographs / video of damaged property (before and after, if available)
☐ Police report or fire marshal report
☐ Building permits or inspection reports
☐ Financial records (business interruption claims)
☐ Tax returns (if relevant to valuation)
☐ Appraisal or professional valuation
☐ Contractor / vendor invoices for emergency repairs
☐ Temporary housing or relocation receipts (ALE claims)
☐ Medical records and bills (bodily injury claims)
☐ Death certificate (wrongful death / life insurance claims)
☐ Mortgage / loan statements
☐ Title or deed
☐ National Weather Service storm reports (severe weather claims)
☐ Other: [________________________________]

DOCUMENT 3: FOLLOW-UP DEMAND FOR CLAIM ACKNOWLEDGMENT (ARKANSAS)

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [________________________________]

Date: [__/__/____]

[________________________________]
Claims Department
[________________________________] ("Insurer")
[________________________________]
[________________________________]

Re: Demand for Claim Acknowledgment — Failure to Respond to Notice of Claim
Insured: [________________________________]
Policy No.: [________________________________]
Date of Loss: [__/__/____]
Date of Initial Notice: [__/__/____]

Dear Claims Department:

This firm represents [________________________________] in connection with the above-referenced claim. We write because more than 15 working days have passed since our initial notice of claim dated [__/__/____], and the Insurer has failed to acknowledge receipt of the claim, assign a claim number, or otherwise respond.

I. VIOLATION OF ARKANSAS LAW AND REGULATIONS

The Insurer's failure to respond violates the following Arkansas statutes and regulations:

Ark. Code Ann. § 23-66-206 — Unfair Claims Settlement Practices:

• § 23-66-206(10)(A): Prohibits misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue.
• § 23-66-206(10)(B): Prohibits failing to acknowledge and act reasonably promptly upon communications with respect to claims.
• § 23-66-206(10)(C): Prohibits failing to adopt and implement reasonable standards for the prompt investigation of claims.
• § 23-66-206(10)(D): Prohibits refusing to pay claims without conducting a reasonable investigation.
• § 23-66-206(10)(E): Prohibits failing to affirm or deny coverage within a reasonable time.
• § 23-66-206(10)(F): Prohibits not attempting in good faith to effectuate prompt, fair, and equitable settlements when liability is reasonably clear.

Arkansas Insurance Department Rule 43 — Minimum Standards:

• Acknowledgment of claim required within 15 working days of receipt.
• Proof of loss forms must be provided within 20 calendar days of report, or requirement is waived.
• Investigation must be completed within 45 calendar days.
• Updates required every 45 calendar days if investigation remains incomplete.
• Acceptance or denial within 15 working days after receipt of properly executed proof of loss.
• Payment must be mailed or delivered within 10 days after investigation closes.
• Response to pertinent communications within 15 working days.

II. DEMAND

The Insured demands that the Insurer, within ten (10) business days of this letter:

1. Acknowledge receipt of the claim in writing
2. Assign a claim number and adjuster, and provide contact information
3. Provide a complete copy of the policy, including all endorsements
4. Commence investigation of the claim
5. Provide proof of loss forms (if required under the policy) — noting that the 20-calendar-day deadline may have passed, potentially waiving this requirement
6. Advise of any additional information or documentation needed

III. CONSEQUENCES OF CONTINUED FAILURE TO RESPOND

If the Insurer fails to respond within the timeframe above, the Insured intends to:

☐ File a complaint with the Arkansas Insurance Department — Consumer Services Division, (501) 371-2640 or (800) 852-5494, [email protected]. The Department investigates all complaints and works with the insurance company and consumer to determine appropriate corrective action.

☐ Pursue all available remedies for unfair claims settlement practices — Under Ark. Code Ann. § 23-66-206, unfair claims settlement practices committed with such frequency as to indicate a general business practice are actionable. The Arkansas Insurance Commissioner may impose penalties and take enforcement action.

☐ Pursue bad faith remedies — Arkansas recognizes a cause of action for bad faith refusal to pay insurance claims. Aetna Cas. & Surety Co. v. Broadway Arms Corp., 281 Ark. 128, 664 S.W.2d 463 (1984).

☐ Seek statutory penalties — including 12% penalty for vexatious delay under Ark. Code Ann. § 23-79-208, plus reasonable attorney's fees.

The Insured expressly preserves all rights and remedies under the Policy and applicable Arkansas law.

IV. CONTACT INFORMATION

All future communications regarding this claim should be directed to:

[________________________________]
[________________________________]
Phone: [________________________________]
Email: [________________________________]

Sincerely,

________________________________________
[________________________________]
Counsel for [________________________________]

DOCUMENT 4: DOCUMENT PRODUCTION COVER LETTER (ARKANSAS)

Date: [__/__/____]

[________________________________]
Claims Adjuster
[________________________________] ("Insurer")
[________________________________]
[________________________________]

Re: Document Production — Claim No. [________________________________]
Insured: [________________________________]
Policy No.: [________________________________]
Date of Loss: [__/__/____]

Dear [________________________________]:

Enclosed please find the documents listed below, submitted in support of the above-referenced claim.

DOCUMENT INDEX

Total Documents Produced: [____]
Total Pages: [____]

PRIVILEGE LOG

☐ No documents are being withheld on privilege grounds.
☐ The following documents are being withheld as privileged:

REQUESTS

1. Confirmation of Receipt. Please confirm receipt of these documents in writing within five (5) business days.
2. Sufficiency. Please advise within 15 working days whether any additional documentation is needed.
3. Preservation. Please preserve all documents produced in their original form.

RESERVATION OF RIGHTS

This document production does not constitute a waiver of any right, privilege, or coverage argument.

Sincerely,

________________________________________
[________________________________]
Counsel for [________________________________]

Enclosures: As listed above

DOCUMENT 5: NOTICE TO ALL POTENTIALLY LIABLE INSURERS (ARKANSAS)

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

Date: [__/__/____]

Re: Concurrent Notice of Claim to All Potentially Applicable Insurers
Insured: [________________________________]
Date of Loss/Occurrence: [__/__/____]

To the Claims Department of Each Addressee:

This letter constitutes formal notice of a claim under each of the insurance policies identified below, pursuant to the respective policy terms and applicable Arkansas law.

I. LOSS / OCCURRENCE SUMMARY

[________________________________]
[________________________________]
[________________________________]

II. POLICIES NOTICED

III. CONCURRENT AND EXCESS / UMBRELLA NOTICE

☐ Multiple policies may provide concurrent coverage for the same loss
☐ The loss may exceed primary policy limits, triggering excess/umbrella coverage
☐ The loss spans multiple policy periods
☐ Multiple lines of coverage may be implicated
☐ "Other insurance" clauses in one or more policies require concurrent notice
☐ Other: [________________________________]

IV. "OTHER INSURANCE" CLAUSE CONSIDERATIONS

The Insured takes no position at this time regarding the priority, allocation, or contribution among insurers. Under Arkansas law, ambiguities in "other insurance" clauses are construed against the insurer.

V. REQUESTS TO EACH INSURER

Each Insurer is requested to:

1. Acknowledge receipt within 15 working days (per Rule 43)
2. Assign a claim number and adjuster
3. Provide a complete copy of the applicable policy
4. Provide a written coverage position within 30 days
5. Advise whether the insurer contends its policy is primary, excess, or inapplicable

VI. RESERVATION OF RIGHTS

The Insured reserves all rights under all policies and applicable Arkansas law.

Sincerely,

________________________________________
[________________________________]
Counsel for [________________________________]

CC: [List all insurers]

DOCUMENT 6: CLAIMS DIARY / TIMELINE TEMPLATE (ARKANSAS)

CLAIM ACTIVITY LOG

Insured: [________________________________]
Claim No.: [________________________________]
Policy No.: [________________________________]
Date of Loss: [__/__/____]
Adjuster: [________________________________]

Key Arkansas Regulatory Deadlines (Rule 43)

Chronological Claim Activity Log

Bad Faith Documentation Notes (Arkansas)

DOCUMENT 7: COMMON CLAIM TYPES ADDENDA (ARKANSAS)

ADDENDUM A: PROPERTY DAMAGE CLAIMS (ARKANSAS)

Scope of Loss Documentation Checklist

☐ Photographs of all damaged areas
☐ Video walkthrough of damaged property
☐ Pre-loss photographs (if available)
☐ Contractor scope of loss / repair estimate (minimum two recommended)
☐ Emergency mitigation contractor invoices
☐ Building code upgrade requirements
☐ Contents inventory with values (insurer cannot require depreciation calculation)
☐ Receipts, purchase records, or appraisals
☐ Fire marshal or cause-and-origin report
☐ Engineering or structural assessment
☐ Environmental testing results
☐ National Weather Service storm reports

Arkansas-Specific Property Claim Considerations

• Tornado / Severe Weather: Arkansas is in "Tornado Alley" and experiences frequent severe weather. For wind/hail claims, document the specific weather event with NWS reports. Distinguish between wind, hail, and flood damage — flood requires separate NFIP coverage.
• Standard Fire Policy: Arkansas has adopted the standard fire policy form under Ark. Code Ann. § 23-79-202. The standard proof of loss period is 60 days from the date of loss. The insurer must provide proof of loss forms within 20 calendar days or waive the requirement.
• Depreciation Calculation Prohibited on POL Forms: Under Rule 43, insurers shall not require a claimant to calculate the depreciated value of personal property on proof of loss forms. This is the insurer's responsibility.
• Valued Policy Law: Arkansas does not have a valued policy statute for real property. Coverage is generally limited to actual loss sustained.

ADDENDUM B: LIABILITY / THIRD-PARTY CLAIMS (ARKANSAS)

Notice Checklist

☐ Copy of complaint served on insured
☐ Demand letter (pre-suit)
☐ Summons and all attachments
☐ Answer deadline identified (Arkansas Rules of Civil Procedure Rule 12(a): 30 days after service)
☐ All potentially applicable policies identified
☐ Defense counsel appointment requested
☐ Potential conflicts of interest identified

Arkansas-Specific Liability Considerations

• Comparative Fault: Arkansas follows a modified comparative fault rule (50% bar). A plaintiff whose fault is equal to or greater than 50% is barred from recovery. Ark. Code Ann. § 16-64-122.
• Joint and Several Liability: Abolished for most cases; each defendant is liable only for its proportionate share of fault. Ark. Code Ann. § 16-55-201.
• Policy Construction: Arkansas courts construe ambiguous insurance policy provisions against the insurer and liberally in favor of the insured. Unambiguous provisions are read according to their plain meaning.
• Notice to Agent = Notice to Insurer: Notification given to an agent of an insurer constitutes notification to the insurer under Arkansas Rule 43.

ADDENDUM C: AUTO / VEHICLE CLAIMS (ARKANSAS)

Auto Claim Documentation Checklist

☐ Arkansas State Police or local police accident report
☐ Photographs of vehicle damage
☐ Other driver's insurance information
☐ Witness statements
☐ Medical records and bills
☐ Vehicle repair estimate or total loss valuation
☐ Rental car receipts
☐ Vehicle registration

Arkansas-Specific Auto Considerations

• Minimum Liability Limits: Ark. Code Ann. § 27-22-104 requires minimum limits of $25,000/$50,000 bodily injury and $25,000 property damage.
• UM/UIM Coverage: Uninsured and underinsured motorist coverage is mandatory unless rejected in writing. Ark. Code Ann. § 23-89-403.
• No-Pay, No-Play: Arkansas has a modified no-pay, no-play law that limits recovery for uninsured drivers. Ark. Code Ann. § 27-22-115.
• Total Loss: The insurer must settle total loss claims based on fair market value. Under Rule 43, specific standards apply.

ADDENDUM D: BUSINESS INTERRUPTION CLAIMS (ARKANSAS)

Documentation Checklist

☐ Prior three years of financial statements
☐ Prior three years of tax returns
☐ Monthly revenue records (pre- and post-loss)
☐ Payroll records
☐ Extra expense documentation
☐ Timeline of business closure and resumption
☐ Customer contracts affected
☐ Mitigation efforts documentation

Arkansas-Specific Considerations

• Agriculture / Poultry Industry: Arkansas is a major poultry-producing state. Business interruption claims related to agricultural operations may require specialized documentation including production records, USDA reports, and commodity pricing data.
• Seasonal Businesses: Tourism and outdoor recreation businesses may have seasonal revenue patterns. Document the seasonal cycle to support loss calculations.

ADDENDUM E: PROFESSIONAL LIABILITY / E&O CLAIMS (ARKANSAS)

E&O Claim Notice Checklist

☐ Date wrongful act first occurred
☐ Date claim first made
☐ Retroactive date confirmed
☐ Description of professional services provided
☐ Claimant(s) identified
☐ Damages alleged or demanded
☐ All related claims identified

Arkansas E&O Considerations

• Claims-Made Strict Compliance: Arkansas has held that a claims-made insurer is not required to demonstrate prejudice to sustain a late notice defense. Dardanelle & Russellville R.R., Inc. v. Certain Underwriters at Lloyd's London (Ark. Ct. App. 2010). Timely reporting is essential.
• Medical Malpractice: Arkansas has specific pre-suit notice requirements for medical malpractice claims (Ark. Code Ann. § 16-114-209).

DOCUMENT 8: ARKANSAS-SPECIFIC PRACTICE NOTES

A. ARKANSAS NOTICE LAW — KEY DISTINCTIONS

Arkansas's approach to insurance notice is nuanced:

Occurrence Policies: Arkansas courts may apply a notice-prejudice analysis for occurrence-based policies, requiring the insurer to show prejudice from late notice before denying coverage. However, Arkansas has historically been classified among the stricter jurisdictions.

Claims-Made Policies: For claims-made-and-reported policies, Arkansas holds that late notice bars coverage without a showing of prejudice. The reporting requirement defines the scope of coverage. Dardanelle & Russellville R.R., Inc. v. Certain Underwriters at Lloyd's London (Ark. Ct. App. 2010).

Notice to Agent: Notification given to an agent of an insurer constitutes notification to the insurer. This is codified in Rule 43 and is a significant policyholder protection.

Practical Guidance: Given the uncertainty in Arkansas notice law, always provide notice at the earliest possible time. Do not rely on the notice-prejudice rule as a safety net.

B. ARKANSAS UNFAIR CLAIMS PRACTICES — Ark. Code Ann. § 23-66-206

Section 23-66-206(10) defines the following unfair claims settlement practices:

1. Misrepresenting pertinent facts or insurance policy provisions
2. Failing to acknowledge and act reasonably promptly upon communications
3. Failing to adopt and implement reasonable standards for prompt investigation
4. Refusing to pay claims without conducting a reasonable investigation
5. Failing to affirm or deny coverage within a reasonable time
6. Not attempting in good faith to effectuate prompt, fair settlements when liability is reasonably clear
7. Compelling claimants to litigate by offering substantially less than amounts ultimately recovered
8. Attempting to settle for less than a reasonable person would believe was owed based on advertising materials
9. Attempting to settle on the basis of an altered application without the knowledge or consent of the insured
10. Making claims payments not accompanied by a statement of coverage
11. Making known claims payments without a reasonable explanation for denial of remaining balance
12. Delaying investigation by requiring duplicative documentation
13. Failing to settle promptly under one portion of coverage to influence settlement under another
14. Failing to provide a reasonable explanation for denial

C. VEXATIOUS DELAY PENALTY — Ark. Code Ann. § 23-79-208

Arkansas provides a significant penalty for unreasonable delay:

• If a loss is not paid within the time specified in the policy after demand, and the insurer's failure to pay is found to be vexatious, the insured may recover 12% of the amount of the loss as a penalty, plus reasonable attorney's fees.
• This penalty applies in addition to the amount owed under the policy.
• "Vexatious" delay does not require a showing of bad faith; it requires only that the insurer did not have a reasonable basis for the delay.

D. KEY ARKANSAS REGULATORY DEADLINES (Rule 43)

E. BAD FAITH IN ARKANSAS

Arkansas recognizes a cause of action for bad faith refusal to pay insurance claims:

• Aetna Cas. & Surety Co. v. Broadway Arms Corp., 281 Ark. 128, 664 S.W.2d 463 (1984): Established the framework for first-party bad faith claims in Arkansas.
• Elements: The insured must show that (1) the insurer denied the claim, (2) the denial was without reasonable cause, and (3) the insurer knew or should have known the denial was without reasonable cause.
• Damages: Compensatory damages, including consequential damages and emotional distress. Punitive damages may be available for egregious conduct.

F. ARKANSAS INSURANCE DEPARTMENT — CONTACT INFORMATION

Arkansas Insurance Department

Filing a Complaint:

1. Attempt to resolve the issue directly with the insurance company first.
2. File online (preferred), by mail, fax, or phone.
3. Provide policy information, claim details, and a description of the problem.
4. The Consumer Services Division investigates all complaints and works with the insurer and consumer to resolve the issue.
5. The Insurance Commissioner has enforcement authority and can take action against insurers violating Arkansas law.

G. ARKANSAS STATUTE OF LIMITATIONS

• Contract Actions (including insurance disputes): 5 years (Ark. Code Ann. § 16-56-115)
• Tort Actions (bad faith): 3 years (Ark. Code Ann. § 16-56-105)
• Property Damage: 5 years (contract) or 3 years (tort)
• Vexatious Delay Penalty (§ 23-79-208): Must be brought with or as part of the contract action
• Policy Suit Limitation Clauses: Arkansas courts generally enforce reasonable contractual limitation periods, but they cannot be shorter than the statutory minimum.

Sources and References

• Arkansas Insurance Code — Title 23: https://law.justia.com/codes/arkansas/title-23/
• Ark. Code Ann. § 23-66-206 — Unfair Claims Practices: https://law.justia.com/codes/arkansas/title-23/subtitle-3/chapter-66/subchapter-2/section-23-66-206/
• Ark. Code Ann. § 23-79-208 — Vexatious Delay Penalty
• Ark. Code Ann. § 23-79-301 et seq. — Minimum Standards for Commercial P&C Policies: https://law.justia.com/codes/arkansas/title-23/subtitle-3/chapter-79/subchapter-3/
• Arkansas Insurance Department Rule 43 — Unfair Claims Settlement Practices: https://www.law.cornell.edu/regulations/arkansas/054-00-00-Ark-Code-R-SS-008
• Dardanelle & Russellville R.R., Inc. v. Certain Underwriters at Lloyd's London (Ark. Ct. App. 2010) (claims-made late notice)
• Aetna Cas. & Surety Co. v. Broadway Arms Corp., 281 Ark. 128, 664 S.W.2d 463 (1984) (bad faith)
• Arkansas Insurance Department — Consumer Services: https://insurance.arkansas.gov/consumer-services/consumer-services/
• Arkansas Insurance Department — File a Complaint: https://insurance.arkansas.gov/consumer-services/consumer-services/file-a-complaint/
• United Policyholders — Insurance Consumer Rights in Arkansas: https://uphelp.org/claim-guidance-publications/insurance-consumer-rights-in-the-state-of-arkansas-2022/
• ALFA International — Arkansas Insurance Law: https://www.alfainternational.com/compendium/insurance-law/arkansas/
• Property Insurance Coverage Law Blog — Arkansas Claims Handling: https://www.propertyinsurancecoveragelaw.com/2017/02/articles/insurance/claims-handling-requirements-by-state-arkansas/

This template is provided for informational purposes only and does not constitute legal advice. It must be reviewed and customized by a qualified attorney licensed in Arkansas before use. Arkansas insurance law requirements, deadlines, and remedies may change. Always verify current statutes and regulations.

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