Stricken language would be deleted from and underlined language would be added to present law.
Act 345 of the Regular Session
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 276 3
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By: Senator B. Johnson 5
By: Representative Steimel 6
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For An Act To Be Entitled 8
AN ACT TO AMEND THE LAW CONCERNING SURPLUS LINES 9
INSURANCE; TO CLARIFY THAT SURPLUS LINES INSURANCE IS 10
ACCEPTABLE COVERAGE FOR FINANCIAL RESPONSIBILITY OF 11
MOTOR VEHICLE INSURANCE COVERAGE; AND FOR OTHER 12
PURPOSES. 13
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Subtitle 16
TO AMEND THE LAW CONCERNING SURPLUS 17
LINES INSURANCE; AND TO CLARIFY THAT 18
SURPLUS LINES INSURANCE IS ACCEPTABLE 19
COVERAGE FOR FINANCIAL RESPONSIBILITY OF 20
MOTOR VEHICLE INSURANCE COVERAGE. 21
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23
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SECTION 1. Arkansas Code § 27 -19-605 is amended to read as follows: 25
27-19-605. Requirements as to policy or bond. 26
(a) No A policy or bond shall not be effective under § 27 -19-604 27
unless issued by an insurance company or surety company authorized or 28
eligible to do business in this state except as provided in subsection (b) of 29
this section, nor unless the policy or bond is subject, if the accident 30
resulted in bodily injury or death, to a limit, exclusive of interest and 31
costs, of not less than twenty -five thousand dollars ($25,000) because of 32
bodily injury or death of one (1) person in any one (1) accident and subject 33
to said limit for one (1) person, to a limit of not less than fifty thousand 34
dollars ($50,000) because of bodily injury or death of two (2) or more 35
persons in any one (1) accident, and if the accident has resulted in injury 36 SB276
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to or destruction of property, to a limit of not less than twenty -five 1
thousand dollars ($25,000) because of injury to or destruction of property of 2
others in any one (1) accident. 3
(b) No A policy or bond shall not be effective under § 27 -19-604 with 4
respect to any vehicle which was not registered in this state or was a 5
vehicle which was registered elsewhere than in this state at the effective 6
date of the policy or bond or the most recent renewal thereof, unless the 7
insurance company or surety company issuing the policy or bond is authorized 8
or eligible to do business in this state, or if the company is not authorized 9
to do business in this state, unless it shall execute a power of attorney 10
authorizing the Secretary of the Department of Finance and Administration to 11
accept service on its behalf of notice or process in any action upon the 12
policy or bond arising out of an accident. 13
(c) The Office of Driver Services may rely upon the accuracy of the 14
information in a required report of an accident as to the existence of 15
insurance or a bond unless and until the Office of Driver Services has reason 16
to believe that the information is erroneous. 17
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SECTION 2. Arkansas Code § 27 -19-712 is amended to read as follows: 19
27-19-712. Certificate of insurance as proof. 20
(a)(1) Proof of financial responsibility for the future may be 21
furnished by filing with the Office of Driver Services the written 22
certificate of any insurance carrier duly authorized or eligible to do 23
business in this state certifying that there is in effect a motor vehicle 24
liability policy for the benefit of the person required to furnish proof of 25
financial responsibility. 26
(2) The certificate shall give the effective date of the motor 27
vehicle liability policy, which date shall be the same as the effective date 28
of the certificate, and shall designate by explicit description or by 29
appropriate reference all vehicles covered thereby, unless the policy is 30
issued to a person who is not the owner of a motor vehicle. 31
(b)(1) A nonresident may give proof of financial responsibility by 32
filing with the Office of Driver Services a written certificate of an 33
insurance carrier authorized or eligible to transact business in the state in 34
which the vehicle owned by the nonresident is registered, or in the state in 35
which the nonresident resides, if he or she does not own a vehicle, provided 36 SB276
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the certificate otherwise conforms with the provisions of this subchapter. 1
(2) The Office of Driver Services shall accept the certificate 2
upon condition that the insurance carrier complies with the following 3
provisions with respect to the policies so certified: 4
(A) The insurance carrier shall execute a power of 5
attorney authorizing the Secretary of the Department of Finance and 6
Administration to accept on its behalf service of notice or process in any 7
action arising out of a motor vehicle accident in this state; and 8
(B) The insurance carrier shall agree in writing that the 9
policies shall be deemed to conform with the laws of this state relating to 10
the terms of motor vehicle liability policies issued therein. 11
(c) If any insurance carrier not authorized or eligible to transact 12
business in this state, which has qualified to furnish proof of financial 13
responsibility, defaults in any such undertakings or agreements, the Office 14
of Driver Services shall not thereafter accept as proof any certificate of 15
the carrier, whether theretofore filed or thereafter tendered, as proof, so 16
long as the default continues. 17
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SECTION 3. Arkansas Code § 27 -19-713(a), concerning the definition of 19
"motor vehicle liability policy", is amended to read as follows: 20
(a) Certification. As used in this chapter, “motor vehicle liability 21
policy” means an “owner's policy” or an “operator's policy” of liability 22
insurance, certified as provided in § 27 -19-712 as proof of financial 23
responsibility for the future, and issued, except as otherwise provided in § 24
27-19-712 by an insurance carrier duly authorized or eligible to transact 25
business in this state, to or for the benefit of the person named therein as 26
insured. 27
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SECTION 4. Arkansas Code § 27 -22-104(a)(1), concerning minimum 29
coverage of motor vehicle insurance required, is amended to read as follows: 30
(a)(1) It is unlawful for a person to operate a motor vehicle within 31
this state unless the motor vehicle and the person's operation of the motor 32
vehicle are each covered by: 33
(A) A certificate of self -insurance under § 27 -19-107; or 34
(B) An insurance policy issued by an insurance company 35
authorized or eligible to do business in this state. 36 SB276
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1
SECTION 5. Arkansas Code § 27 -22-202(4), concerning the definition of 2
"insurer" used under the Arkansas Online Insurance Verification System Act, 3
is amended to read as follows: 4
(4) "Insurer" means a motor vehicle insurance company licensed 5
or authorized or eligible to do business in this state. 6
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APPROVED: 3/20/25 9
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