# AR Insurance Bulletin 1-96: Personal Lines Loss Settlements > Arkansas · Agency guidance · In force URL: https://www.frixlaw.com/law-library/statutes/AR_INS_B_1996-01 ## Section - **Citation:** AR Insurance Bulletin 1-96 - **Heading:** Personal Lines Loss Settlements - **Jurisdiction:** Arkansas - **Kind:** Agency guidance - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Arkansas Insurance Department Bulletins and Directives / Personal Lines Loss Settlements ## Text Bulletin 1-96 PERSONAL LINES LOSS SETTLEMENTS March 1, 1996 This Bulletin is intended to supersede Bulletins 9-94 and 9A-94. As a result of recent disasters in California and Florida and increased pressure from reinsurers, property insurers are proposing further limitations on the amount of Replacement Cost for dwellings. The definitions of “Guaranteed Replacement Cost,” “Excess Dwelling Coverage,” “Replacement Cost” and “Actual Cash Value as used by the Arkansas Insurance Department are as follows: GUARANTEED REPLACEMENT COST—In the event of a covered loss to the dwelling, the insurance company will pay the full amount needed to repair or replace the damaged or destroyed dwelling with like or equivalent construction without regard to the policy limit and without depreciation. EXCESS DWELLING COVERAGE—In the event of a covered loss to the dwelling, the insurance company will pay the full amount needed to repair or replace the damaged or destroyed dwelling with like or equivalent construction without depreciation, and without regard to the policy limit, up to an additional amount separately specified in the policy contract. REPLACEMENT COST—In the event of a covered loss to the dwelling, the insurance company will pay the full amount needed to repair or replace the damaged or destroyed dwelling with like or equivalent construction without depreciation up to the policy limit. ACTUAL CASH VALUE (ACV)—Replacement Cost less depreciation. In addition to Guaranteed Replacement Cost, Replacement Cost and Actual Cash Value policies, an insurer may offer policies covering a residential dwelling with amounts in excess of Replacement Cost (referred to as Excess Dwelling Coverage). Excess Dwelling Coverage, if offered, may not be less than 25% above the dwelling limit it. ACTUAL CASH VALUE (ACV)—Replacement Cost less depreciation. In addition to Guaranteed Replacement Cost, Replacement Cost and Actual Cash Value policies, an insurer may offer policies covering a residential dwelling with amounts in excess of Replacement Cost (referred to as Excess Dwelling Coverage). Excess Dwelling Coverage, if offered, may not be less than 25% above the dwelling limit. Insurers no longer wishing to offer Guaranteed Replacement Cost must file for approval and offer to all current Guaranteed Replacement Cost insurers an endorsement providing EXCESS Dwelling Coverage. It shall be the insured’s decision which amount to elect if multiple excess limits are offered. A disclosure, which must be pre-approved by the Department, must accompany all policies reducing coverage from Guaranteed Replacement Cost to Excess Dwelling Coverage. Such notice must clearly and concisely state that Replacement Cost is no longer an unlimited amount. Questions concerning this Bulletin may be directed to Becky Harrington, Senior Analyst, Property and Casualty Division of this Department, at (501) 686-2975. Lee Douglass INSURANCE COMMISSIONER ARKANSAS INSURANCE DEPARTMENT LEGAL DIVISION 1200 West Third Street Little Rock, AR 72201-1904 501-371-2820 FAX 501-371-2629 ## Nearby sections - [AR Insurance Bulletin 1-83 Mortgage Guaranty Insurance: Commitment Fees](https://www.frixlaw.com/law-library/statutes/AR_INS_B_1983-01.md) - [AR Insurance Bulletin 1-84 Act 357 Of 1983](https://www.frixlaw.com/law-library/statutes/AR_INS_B_1984-01.md) - [AR Insurance Bulletin 1-87 Policy Loan Interest Rates](https://www.frixlaw.com/law-library/statutes/AR_INS_B_1987-01.md) - [AR Insurance Bulletin 1-95 WC Employers Paying Claims Directly -- SEE 1-95 AMENDMENT ABOVE DATED AUGUST 4, 2011](https://www.frixlaw.com/law-library/statutes/AR_INS_B_1995-01.md) - [AR Insurance Bulletin 1-96 Personal Lines Loss Settlements](https://www.frixlaw.com/law-library/statutes/AR_INS_B_1996-01.md) - [AR Insurance Bulletin 1-98 Required Reports](https://www.frixlaw.com/law-library/statutes/AR_INS_B_1998-01.md) - [AR Insurance Bulletin 1-2001 JOINT BULLETIN-Sales of Securities Products by Insurance Agents](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2001-01.md) - [AR Insurance Bulletin 1-2002 Voluntary Expedited Filing Procedures For Exclusions Related To Acts Of Terrorism](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2002-01.md) - [AR Insurance Bulletin 1-2006 Act 1526 of 2005](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2006-01.md) - [AR Insurance Bulletin 1-2008 Filing Procedures for Compliance with the Provisions of the Terrorism Risk Insurance Program Re-authorization Act of 2007](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2008-01.md) - [AR Insurance Bulletin 1-2009 Ark. Code Ann. § 23-86-119 “Disclosure to Policyholders”](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2009-01.md) - [AR Insurance Bulletin 1-2010 Replacement of Life Insurance Policies or Annuity Contracts; Compliance with Department Rule 97](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2010-01.md) - [AR Insurance Bulletin 1-2013 Requirements for Accreditation for Participation in the Arkansas Federally-facilitated Exchange Partnership](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2013-01.md) - [AR Insurance Bulletin 1-2014 Requirement to Provide Additional Language to be Included with the Delivery of Their Individual Policies](https://www.frixlaw.com/law-library/statutes/AR_INS_B_2014-01.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/AR_INS_B_1996-01. Check the current official text before relying on it. Not legal advice.