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ARKANSAS STATUTES AND CODES

§ 23-79-152 - Cancellation, increase in premium, and negative risk rating prohibited when insured not at fault.

23-79-152. Cancellation, increase in premium, and negative risk rating prohibited when insured not at fault.

(a) Except as provided in subsection (c) of this section, when a person is innocent of any negligent or intentional act that was the proximate cause of an accident or injury whether or not a claim is filed under any policy or contract of insurance, no insurer authorized to transact the business of motor vehicle liability insurance in this state shall solely as a result of the accident or injury:

(1) Cancel the person's insurance policy or contract;

(2) Increase the premium during the term or upon renewal of the person's insurance policy or contract; or

(3) Lower or otherwise negatively impact the risk rating of the person.

(b) Any insurer that violates the provisions of this section shall be subject to the procedure and penalties provided under the Trade Practices Act, 23-66-201 et seq.

(c) Nothing in this section shall prevent an insurer from canceling, not renewing, or revising the rating of an insurance policy if the insurer is otherwise permitted to do so by statute or regulation.

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