# Ark. Code Ann. § 23-101-105: Term of insurance policy > Arkansas · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-105 ## Section - **Citation:** Ark. Code Ann. § 23-101-105 - **Heading:** Term of insurance policy - **Jurisdiction:** Arkansas - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** AR Code / Title 23 / Chapter 101 / Section 23-101-105 ## Text (a) Creditor-placed insurance shall become effective on the latest of the following dates: (1) The date of the credit transaction; (2) The date prior coverage, including prior creditor-placed insurance coverage, lapsed; (3) One (1) year before the date on which the related insurance charge is made to the debtor's account; or (4) A later date provided for in the agreement between the creditor and insurer. (b) Creditor-placed insurance shall terminate on the earliest of the following dates: (1) The date other acceptable insurance becomes effective, subject to the debtor's providing acceptable evidence of the other insurance to the creditor; (2) The date the collateralized personal property is repossessed, unless the property is returned to the debtor within ten (10) days of the repossession; (3) The date the collateralized personal property is determined by the insurer to be a total loss; (4) The date the debt is completely extinguished; or (5) An earlier date specified in the individual policy or certificate of insurance. (c) An insurance charge shall not be made to a debtor for a term longer than the scheduled term of the creditor-placed insurance when it becomes effective, nor may an insurance charge be made to the debtor for creditor-placed insurance before the effective date of the insurance. (d) If a charge is made to a debtor for creditor-placed insurance coverage that exceeds a term of one (1) year, the debtor shall be notified at least annually that the insurance will be canceled and a refund or credit of unearned charges made if evidence of acceptable insurance secured by the debtor is provided. Acts 1997, No. 930, § 4. (a) Creditor-placed insurance shall become effective on the latest of the following dates: (1) The date of the credit transaction; (2) The date prior coverage, including prior creditor-placed insurance coverage, lapsed; (3) One (1) year before the date on which the related insurance charge is made to the debtor's account; or (4) A later date provided for in the agreement between the creditor and insurer. (1) The date of the credit transaction; (2) The date prior coverage, including prior creditor-placed insurance coverage, lapsed; (3) One (1) year before the date on which the related insurance charge is made to the debtor's account; or (4) A later date provided for in the agreement between the creditor and insurer. (b) Creditor-placed insurance shall terminate on the earliest of the following dates: (1) The date other acceptable insurance becomes effective, subject to the debtor's providing acceptable evidence of the other insurance to the creditor; (2) The date the collateralized personal property is repossessed, unless the property is returned to the debtor within ten (10) days of the repossession; (3) The date the collateralized personal property is determined by the insurer to be a total loss; (4) The date the debt is completely extinguished; or (5) An earlier date specified in the individual policy or certificate of insurance. (1) The date other acceptable insurance becomes effective, subject to the debtor's providing acceptable evidence of the other insurance to the creditor; (2) The date the collateralized personal property is repossessed, unless the property is returned to the debtor within ten (10) days of the repossession; (3) The date the collateralized personal property is determined by the insurer to be a total loss; (4) The date the debt is completely extinguished; or (5) An earlier date specified in the individual policy or certificate of insurance. (c) An insurance charge shall not be made to a debtor for a term longer than the scheduled term of the creditor-placed insurance when it becomes effective, nor may an insurance charge be made to the debtor for creditor-placed insurance before the effective date of the insurance. ebt is completely extinguished; or (5) An earlier date specified in the individual policy or certificate of insurance. (c) An insurance charge shall not be made to a debtor for a term longer than the scheduled term of the creditor-placed insurance when it becomes effective, nor may an insurance charge be made to the debtor for creditor-placed insurance before the effective date of the insurance. (d) If a charge is made to a debtor for creditor-placed insurance coverage that exceeds a term of one (1) year, the debtor shall be notified at least annually that the insurance will be canceled and a refund or credit of unearned charges made if evidence of acceptable insurance secured by the debtor is provided. Acts 1997, No. 930, § 4. ## 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) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-105. Check the current official text before relying on it. Not legal advice.