Car insurance rules don't change if you're an 18-year-old living at home, a 19-year-old college student, or an adult living with your parents. If you share a permanent address or if your car usually spends the night at your parents' house, you can continue to share a car insurance policy regardless of your age. Learn more about children staying on their parents' car insurance. You can purchase two car insurance policies to insure two separate vehicles.
However, buying two policies to insure the same vehicle may result in the automatic cancellation of one of them. What coverages are mandatory? Uninsured motorist coverages cover you and your car if the other driver is at fault and doesn't have liability insurance. Underinsured motorist coverage gives you additional protection if the other driver is at fault and doesn't have enough coverage to cover your injuries. Personal injury protection provides you with medical coverage, lost wages, death benefits, and medical coverage regardless of fault.
What other coverages are available? A. You can also purchase comprehensive and collision coverage. Comprehensive coverage protects against damage to your car caused by acts of nature or other events unrelated to the operation of the car. Collision coverage protects against damage to your car when you are involved in an accident.
Are there any discounts that should be offered? A. Yes, the college graduate discount and the defensive driver discount for those insured age 55 or older who have successfully completed a course approved by the Office of Driver Services. Check with your agent for any other discounts your insurer may offer. Probably because the insurer increased its overall rates because it paid more losses than expected.
You can personally receive a lower or higher rate depending on several factors. Why haven't my premiums for physical damage decreased as my vehicle ages? A. The price of vehicle repair doesn't go down as the vehicle ages. Will my policy cover me if I rent a car? A.
Ask your agent if your policy covers you, the people you could harm if you are at fault, and the rental agency's car. You are not required to have homeowners coverage by any law in Arkansas. However, if you have a mortgage on your home, your mortgage agreement or loan agreement may require you to have full coverage or that you are in breach of your agreement. Your lender may have more information about the levels of coverage it requires you to maintain.
What different types of homeowner coverage are available? A. There are several different types, but most homeowners have full coverage for all hazards, including losses associated with any sudden and accidental event. In the event that your home is completely destroyed, you can consider purchasing replacement cost coverage so that you can rebuild your home. Comprehensive coverage usually includes covering your liability to your guests.
Other types of homeowners insurance only cover fires and weather events. Some are specifically designed for tenants. Can insurance companies use my credit information to deny me insurance or increase the premium I pay? A. An insurance company can use credit as part of the process of determining if coverage will be provided and how much it costs.
A consumer brochure on the use of credit in homeowners and personal car insurance is now available. This brochure, “Understanding How Insurers Use Credit Information”, contains information on Act 1452 of 2003 and its effect on the use of credit information in underwriting and qualifying insurance for homeowners and personal cars. What is a public protection classification? A. A grade determined by a fire district's equipment, labor, water source, and other factors.
The rankings range from 1 to 10, with 10 being a very rural area with very little fire protection. Who determines a public protection classification? A. The Office of Insurance Services, or ISO, inspects local fire departments and establishes the classification. In general, the lower the protection class rating, the lower the base premium.
You can contact your local fire department and ask them for their “ISO public protection class” classification. What is the difference between replacement cost (RC) and actual cash value (ACV)? A. The ACV allows depreciation to determine how much you should pay for your claim, while the replacement cost does not. How do I know what type of policy I have (RC or ACV)? A.
You may want to contact your agent. You can also read the loss settlement provision of your policy. Why have my rates increased if I haven't filed any claims? Q. Does the Department of Insurance set insurance rates? A.
No, that is a common misconception regarding the Department's oversight of rates. Rate changes proposed by insurers must be filed with the Arkansas Department of Insurance at least twenty (20) days before the effective date. We have extensive authority to review how the fee is distributed among policyholders according to factors that could predict future losses, but we cannot disapprove a general rate unless it is actuarially “excessive, inadequate, or unfairly discriminatory.”. We review the rates for life insurance, health insurance, private passenger cars, homeowners, workers' compensation and professional liability.
What role does the Arkansas Department of Insurance play in workers' compensation issues and claims? A. The Arkansas Department of Insurance is only involved in approving the rates and forms that insurance companies use to insure the employer. We are not involved in determining if a claim is covered by workers' compensation. That responsibility lies with the Arkansas Workers' Compensation Commission.
What is a “pre-existing condition”? A. It's a health condition that you had before you purchased your health insurance coverage, such as cancer, regardless of whether you received a diagnosis or treatment before the purchase. Health insurance companies can sometimes refuse to cover your pre-existing illnesses. When can my health insurance company exclude coverage for my pre-existing conditions? Q.
Can my pregnancy be ruled out as a pre-existing condition? A. Unauthorized health insurance has been a big problem in Arkansas in recent years. Hundreds of Arkansas consumers have bought insurance from companies they thought were legitimate, only to be left with thousands of dollars in unpaid medical claims. What is the Arkansas law on any voluntary provider? Q.
How long does a health insurance company have to pay a health insurance claim? A. Health insurance companies, including HMOs, have 30 days to pay a claim to you or your medical provider if the claim is filed electronically with the health insurance company. If the claim is mailed to the health insurance company, the health insurance company has forty-five days to pay the claim. All of these time frames mean that the claim is considered a clean claim or a claim that falls directly within the coverage of the health plan, in which the health insurer does not need more information to process the claim.
However, if the claim is not justified or the health insurer needs more information to process it, the health insurer has 30 days to collect the information and, once the health insurer has received all the required information, the 30-day (non-electronic) and 45-day (non-electronic) payment rules will apply (non-electronic). Is maternity a compulsory benefit? A. No, it is not required by the Arkansas Department of Insurance. The complication of pregnancy is a covered benefit.
In employer groups with more than 15 employees, Title VII of the Civil Rights Act of 1964 states that any health insurance offered must cover expenses for pregnancy-related conditions in the same way as expenses for other medical conditions. Is in vitro fertilization a mandatory benefit? Q. In what situation is a newborn automatically covered by an insurance policy? A. According to section 23-79-129 of the ACA: if an insured has a policy (individual or group) that covers the insured and at least one family member (spouse or child), the newborn must be covered from birth for at least 90 days.
If an insured has an individual policy or certificate with no dependents, in most cases, the newborn will have to go through a subscription, unless otherwise stated in the text of the contract. Is there a state health insurance continuation law? Q. Can a medical provider file a complaint with the Department for slow payment issues against a health insurer or an HMO? A. However, the Department requires the medical provider to submit evidence in the complaint that demonstrates a pattern of slow payment practices on the part of the health insurer or the HMO.
Are there any statutes or rules regarding the use of age and gender as subscription criteria in Arkansas? Q. What if I need the requested treatment as soon as possible? A. You may be eligible for an accelerated external review, in which a decision is made as soon as necessary, but no later than 72 hours after the IRO receives the request for external review. What types of plans does external review apply to? A.
All health insurance plans, except for specific illnesses, limited supplemental benefits, long-term care insurance, self-insured plans, the CHIP pool plan, Medicare, the WC, or the payment for auto medications. For more information, see Section 1 (E) Q. What if I or my health insurance company don't like the IRO's decision? A. You can then file a lawsuit.
Both the health care provider and the covered person have the right to go to court. Who can request an external review? A. An independent review organization (“IRO”) certified by the Department. It is independent of both the insurance company and the covered person.
When can I request an external review? Q. When should I request an external review? A. You have sixty days after receiving an initial denial or a final denial (once the airline's internal appeals process has been completed). Where can I get information about the external review? Q.
Where can I learn more about external review? A. You can call your health insurance company or the Arkansas Department of Insurance. How do I request an external review? A. Your health insurance company will provide you with this information in your policy and after your request is denied.
How long does it take for the IRO to complete an external review? A. Within 45 calendar days of receipt by the IRO of the request for external review. In the case of an accelerated review, the review is completed as soon as necessary, but no later than 72 hours after the IRO receives the request for an accelerated review. Are Professional Employers Organization (PEO) services licensed in Arkansas? A.
By using our company search database, you can find out if someone who offers PEO services has a valid license to sell those services. You can also get a full list of all licensed PEOs doing business in Arkansas. What's the difference between a PEO and an employee leasing company? A. In 2003, the name of the license was changed from employee lease license to professional employer organization license.
The definition of what constituted these businesses did not change. Is there insurance available for damage caused by earthquakes? As for coverage for homeowners, your company should let you know if it doesn't offer earthquake coverage and provide you with information on how to get coverage through the MAP. National Council on Compensation Insurance (NCCI) Little Rock, AR-501-834-9123 or 1-800-622-4271 Arkansas Rural Risk Underwriters Association (ARRUA) Arkansas Auto Insurance Plan Agents Only. Consumers should access this plan through their insurance agent.
What is “Surplus Lines” and when can I take out insurance with a Surplus Lines company? A. If licensed insurers don't want or can't provide the necessary coverage, you can get coverage with an approved overage line insurer through an authorized surplus line broker. Individuals or corporations can obtain insurance coverage directly from an unadmitted insurer. This coverage is considered self-purchase.
Your agent can help if you need coverage for leftover lines. Does the Arkansas Department of Insurance license or regulate premium finance companies? A. Federal and state bank regulators do this, along with the U.S. UU.
The Arkansas Attorney and Attorney General. Contact the Arkansas Attorney General online through the links on the state's website at www, ag, arkansas, gov. Can producers charge policyholders fees higher than the gross premiums charged by airlines for policies offered to policyholders? A. The fee is indicated separately on the insured's bill; and Q.
Can I buy an insurance policy for other people or properties? A. If you are related to a person in the ways approved by law, you can. You can do this if you have title to real estate or personal property, such as a car or boat. If your company considers you to be a key official, director, or manager, you can take out a life insurance policy to benefit the company.
Anyone who wants to purchase insurance for other people or property must have an insurable interest at the time the insurance contract is signed and sometimes also when the loss occurs. The law is found in Ark. What is the Valued Policy Act on total losses of buildings and buildings due to fires? Q. How can I know if my insurance folder is valid? Q.
I have a prepaid funeral contract with a funeral home. Now I want to change my funeral home and transfer the money I paid at the first funeral home to the new one. Can I cancel with the first funeral home and transfer the money to the new one? Q. Do state or federal laws of not calling the insurance business and insurance agents apply? Q.
Are life insurance revenues protected from creditors? Q. Are annuity revenues protected from creditors? Q. If a company that sells long-term care insurance is liquidated, what would the Guarantee Fund cover? Q. I have a policy issued by Union Life Insurance Company.
Can you tell me who is in control of this policy and who I can contact to discuss the policy? A. In 1990, Union Life Insurance Company merged with Jefferson National Life Insurance Company. Jefferson National later merged with Great American Reserve and Great American Reserve later merged with Conesco Life Insurance Company. Union Life's life insurance business was transferred to Conesco Variable Insurance Company.
Conesco Variable Insurance Company changed its name to Jefferson National Life Insurance Company and signed an agreement with Protective Life Insurance Company of Birmingham, Alabama, to provide services to Union Life. You can call 1-800-866-3555 to speak with a customer service representative. To request information about your policy, use the letters KK and then your original policy number when referring to your policy number. Should a licensed car dealer offer primary insurance for cars on loan? A.
Insurance coverage generally follows the car and not the person. This law eases the insurance burden for dealers by extending the insured's coverage to cases where the dealer lends a vehicle to the insured. We have a dedicated team that is ready to guide you in the right direction and connect you with the right people. The Property and Accident Division of the Arkansas Department of Insurance manages residual or assigned risk plans for workers' compensation and auto insurance.
In fact, Progressive requires that college students who are away from home but who occasionally drive their parents' car be on their parents' policy. In that case, you would need two car insurance policies, one for your vehicle that stays overnight in Connecticut and another policy from another state in New York for the vehicle you keep at work. The main reason why car insurance is mandatory in almost every state is because of your personal liability (liability) if you cause an accident. If you plan to add or keep a college student in your policy, you must notify your car insurance company before your child moves in.
That means that your insurance will cover your medical bills regardless of who caused the car accident. That's why it's also important to know how much car insurance you need, so as not to jeopardize your personal assets in the event of an accident. .
