# Ark. Code Ann. § 23-101-106: Calculation and payment of premiums

> Arkansas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-106

## Section

- **Citation:** Ark. Code Ann. § 23-101-106
- **Heading:** Calculation and payment of premiums
- **Jurisdiction:** Arkansas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** AR Code / Title 23 / Chapter 101 / Section 23-101-106

## Text

(a) Premiums for creditor-placed insurance coverage may be calculated based on: (1) An amount not exceeding the net debt even though the coverage may limit the insurer's liability to the net debt, actual cash value, or cost of repair; or (2) Other premium calculation methods that more closely reflect the exposure of each item insured and approximate the premium calculation method of the coverage required by the credit agreement. (b) (1) An insurer shall not write creditor-placed insurance for which the premium rate differs from that determined by the schedules of the insurer on file with the Insurance Commissioner. (2) The premium or amount charged to the debtor for creditor-placed insurance shall not exceed the premiums charged by the insurer, computed at the time the charge to the debtor is determined. (c) A method of billing insurance charges to the debtor on closed-end credit transactions that creates a balloon payment at the end of the credit transaction or extends the credit transaction's maturity date is prohibited unless specifically disclosed at the time of the origination of the credit agreement and specifically agreed to by the debtor. Acts 1997, No. 930, § 5.

(a) Premiums for creditor-placed insurance coverage may be calculated based on: (1) An amount not exceeding the net debt even though the coverage may limit the insurer's liability to the net debt, actual cash value, or cost of repair; or (2) Other premium calculation methods that more closely reflect the exposure of each item insured and approximate the premium calculation method of the coverage required by the credit agreement.

(1) An amount not exceeding the net debt even though the coverage may limit the insurer's liability to the net debt, actual cash value, or cost of repair; or

(2) Other premium calculation methods that more closely reflect the exposure of each item insured and approximate the premium calculation method of the coverage required by the credit agreement.

(b) (1) An insurer shall not write creditor-placed insurance for which the premium rate differs from that determined by the schedules of the insurer on file with the Insurance Commissioner. (2) The premium or amount charged to the debtor for creditor-placed insurance shall not exceed the premiums charged by the insurer, computed at the time the charge to the debtor is determined.

(1) An insurer shall not write creditor-placed insurance for which the premium rate differs from that determined by the schedules of the insurer on file with the Insurance Commissioner.

(2) The premium or amount charged to the debtor for creditor-placed insurance shall not exceed the premiums charged by the insurer, computed at the time the charge to the debtor is determined.

(c) A method of billing insurance charges to the debtor on closed-end credit transactions that creates a balloon payment at the end of the credit transaction or extends the credit transaction's maturity date is prohibited unless specifically disclosed at the time of the origination of the credit agreement and specifically agreed to by the debtor.

Acts 1997, No. 930, § 5.

## 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_S23-101-106. Check the current official text before relying on it. Not legal advice.