Some Common Arkansas Ins FAQs

Insurance in Arkansas is governed by a number of regulations and codes. Some of these can be confusing, but clients can raise any queries with either their insurer or relevant authorities. Here are some common Arkansas ins FAQs.What coverage is mandatory in car insurance?Under state law, every motorist is obligated to have at least a liability cover. This caters for third party damage that is caused by the insured party. The minimum liability amounts can be found in the insurance department website.What other auto policies are available?Apart from liability insurance, one can also purchase comprehensive and collision policies. The former is meant to provide an umbrella cover against several risks. The risks covered depend on the particular firm. Collision coverage is meant to indemnify the insured against vehicular damage sustained in an accident.What types of homeowner policies are available?There are several types available. Most people prefer those that cover all perils, including losses resulting from unexpected events. Replacement polices are also available. These indemnify home owners when their houses are completely destroyed, say by a fire. Most policies extend the liability to guests.Can insurers use credit information to determine premiums?Absolutely. Firms use credit information to determine the risk of default on premiums. The company may also use this information to determine if they will insure you. The extent of use of such information is however regulated by state laws.How does one determine the credibility of their insurance binder?These binders are temporary policies that are issued by agents. Not every firm gives authority to agents to issue such policies. You can ask the agent for proof of authorization from the insurer. If they are duly authorized, then the firm will honor terms of the binder. The binder however expires after 3 months.Is one allowed to buy policies on other people/property?One is only allowed to insure other people and property if they have an insurable interest at that particular moment. For property, one must produce proof of ownership or direct interest. For people, one can only insure if they are of direct benefit to them. For instance, a company may insure their key staff to the benefit of the firm. These are some of the common Arkansas ins FAQs.