# Ark. Code Ann. § 23-101-104: Prohibited coverages

> Arkansas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-104

## Section

- **Citation:** Ark. Code Ann. § 23-101-104
- **Heading:** Prohibited coverages
- **Jurisdiction:** Arkansas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** AR Code / Title 23 / Chapter 101 / Section 23-101-104

## Text

(a) Creditor-placed insurance coverage shall not include: (1) Coverage for the cost of repossession; (2) Skip, confiscation, and conversion coverage; (3) Coverage for payment of mechanics' or other liens that do not arise from a covered loss occurrence; (4) Coverage that requires a debtor's insurance deductible to be less than two hundred fifty dollars ($250); or (5) Coverage that is broader than the insurance coverages that meet the minimum insurance requirements of the credit agreement. (b) Nothing in this section shall be deemed to prohibit the issuance of a separate policy or endorsement providing the coverages listed in subsection (a) of this section. However, no charge shall be passed along to the debtor for the coverages. Acts 1997, No. 930, § 6.

(a) Creditor-placed insurance coverage shall not include: (1) Coverage for the cost of repossession; (2) Skip, confiscation, and conversion coverage; (3) Coverage for payment of mechanics' or other liens that do not arise from a covered loss occurrence; (4) Coverage that requires a debtor's insurance deductible to be less than two hundred fifty dollars ($250); or (5) Coverage that is broader than the insurance coverages that meet the minimum insurance requirements of the credit agreement.

(1) Coverage for the cost of repossession;

(2) Skip, confiscation, and conversion coverage;

(3) Coverage for payment of mechanics' or other liens that do not arise from a covered loss occurrence;

(4) Coverage that requires a debtor's insurance deductible to be less than two hundred fifty dollars ($250); or

(5) Coverage that is broader than the insurance coverages that meet the minimum insurance requirements of the credit agreement.

(b) Nothing in this section shall be deemed to prohibit the issuance of a separate policy or endorsement providing the coverages listed in subsection (a) of this section. However, no charge shall be passed along to the debtor for the coverages.

Acts 1997, No. 930, § 6.

## Nearby sections

- [Ark. Code Ann. § 23-101-101 Purpose](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-101.md)
- [Ark. Code Ann. § 23-101-102 Scope](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-102.md)
- [Ark. Code Ann. § 23-101-103 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-103.md)
- [Ark. Code Ann. § 23-101-104 Prohibited coverages](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-104.md)
- [Ark. Code Ann. § 23-101-105 Term of insurance policy](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-105.md)
- [Ark. Code Ann. § 23-101-106 Calculation and payment of premiums](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-106.md)
- [Ark. Code Ann. § 23-101-107 Evidence of coverage](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-107.md)
- [Ark. Code Ann. § 23-101-108 Filing, approval, and withdrawal of forms and rates](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-108.md)
- [Ark. Code Ann. § 23-101-109 Refund of unearned premiums](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-109.md)
- [Ark. Code Ann. § 23-101-110 Claims](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-110.md)
- [Ark. Code Ann. § 23-101-111 Rights and obligations of the parties](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-111.md)
- [Ark. Code Ann. § 23-101-112 Remittance of premiums and payment of compensation](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-112.md)
- [Ark. Code Ann. § 23-101-113 Disclosures to debtor](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-113.md)
- [Ark. Code Ann. § 23-101-114 Rules](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-114.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-104. Check the current official text before relying on it. Not legal advice.