# Ark. Code Ann. § 23-101-110: Claims

> Arkansas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C101_S23-101-110

## Section

- **Citation:** Ark. Code Ann. § 23-101-110
- **Heading:** Claims
- **Jurisdiction:** Arkansas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** AR Code / Title 23 / Chapter 101 / Section 23-101-110

## Text

(a) In the event of a loss under the creditor-placed insurance policy, the insurer shall pay, at a minimum, the least of the following, the value of which shall be determined as of the date of loss: (1) The cost to repair the collateral less any applicable deductible; (2) The actual cash value of the collateral, less any applicable deductible; (3) The net debt, less any applicable deductible. The method of calculation of net debt payable pursuant to this subdivision (a)(3) shall be identical to the method of calculation of net debt for payment of premiums pursuant to § 23-101-106(a) ; or (4) If single interest insurance is provided, the amount by which the creditor's interest is impaired. (b) The net debt or actual cash value amounts in subsection (a) of this section may be reduced by the value of salvage if the insurer does not take possession of the insured property. (c) In the event of a loss, no subrogation shall run against the debtor from the insurer. (d) Whenever a claim is made on a creditor-placed insurance policy, the insurer shall furnish to the claimant a written statement of the loss explaining the settlement amount and the method of settlement. (e) (1) A creditor or insurer may not abandon salvage to a towing or storage facility in lieu of payment of storage fees without the consent of the facility and the claimant. (2) (A) After the filing of a claim as provided in the policy or certificate of insurance, the insurer shall be responsible for the payment of towing and storage charges for a covered loss occurrence from the time storage is reported to the insurer or lender to the time the claim is paid. (B) The insurer shall give written notice to the claimant when the claim is paid that the claimant may incur storage charges after the date the claim is paid. Acts 1997, No. 930, § 10.

(a) In the event of a loss under the creditor-placed insurance policy, the insurer shall pay, at a minimum, the least of the following, the value of which shall be determined as of the date of loss: (1) The cost to repair the collateral less any applicable deductible; (2) The actual cash value of the collateral, less any applicable deductible; (3) The net debt, less any applicable deductible. The method of calculation of net debt payable pursuant to this subdivision (a)(3) shall be identical to the method of calculation of net debt for payment of premiums pursuant to § 23-101-106(a) ; or (4) If single interest insurance is provided, the amount by which the creditor's interest is impaired.

(1) The cost to repair the collateral less any applicable deductible;

(2) The actual cash value of the collateral, less any applicable deductible;

(3) The net debt, less any applicable deductible. The method of calculation of net debt payable pursuant to this subdivision (a)(3) shall be identical to the method of calculation of net debt for payment of premiums pursuant to § 23-101-106(a) ; or

(4) If single interest insurance is provided, the amount by which the creditor's interest is impaired.

(b) The net debt or actual cash value amounts in subsection (a) of this section may be reduced by the value of salvage if the insurer does not take possession of the insured property.

(c) In the event of a loss, no subrogation shall run against the debtor from the insurer.

(d) Whenever a claim is made on a creditor-placed insurance policy, the insurer shall furnish to the claimant a written statement of the loss explaining the settlement amount and the method of settlement.
may be reduced by the value of salvage if the insurer does not take possession of the insured property.

(c) In the event of a loss, no subrogation shall run against the debtor from the insurer.

(d) Whenever a claim is made on a creditor-placed insurance policy, the insurer shall furnish to the claimant a written statement of the loss explaining the settlement amount and the method of settlement.

(e) (1) A creditor or insurer may not abandon salvage to a towing or storage facility in lieu of payment of storage fees without the consent of the facility and the claimant. (2) (A) After the filing of a claim as provided in the policy or certificate of insurance, the insurer shall be responsible for the payment of towing and storage charges for a covered loss occurrence from the time storage is reported to the insurer or lender to the time the claim is paid. (B) The insurer shall give written notice to the claimant when the claim is paid that the claimant may incur storage charges after the date the claim is paid.

(1) A creditor or insurer may not abandon salvage to a towing or storage facility in lieu of payment of storage fees without the consent of the facility and the claimant.

(2) (A) After the filing of a claim as provided in the policy or certificate of insurance, the insurer shall be responsible for the payment of towing and storage charges for a covered loss occurrence from the time storage is reported to the insurer or lender to the time the claim is paid. (B) The insurer shall give written notice to the claimant when the claim is paid that the claimant may incur storage charges after the date the claim is paid.

(A) After the filing of a claim as provided in the policy or certificate of insurance, the insurer shall be responsible for the payment of towing and storage charges for a covered loss occurrence from the time storage is reported to the insurer or lender to the time the claim is paid.

(B) The insurer shall give written notice to the claimant when the claim is paid that the claimant may incur storage charges after the date the claim is paid.

Acts 1997, No. 930, § 10.

## 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_S23-101-110. Check the current official text before relying on it. Not legal advice.