Arkansas Uninsured & Underinsured Motorist Coverage

Arkansas UM bodily-injury coverage is included unless rejected in writing

Section 23-89-403 requires qualifying Arkansas automobile liability policies to provide uninsured-motorist bodily-injury coverage at not less than the statutory minimum limits unless an insured named in the policy rejects it in writing. When higher liability limits are selected, the statute also requires higher UM limits to be made available up to those liability limits within its written-election framework. Obtain the declarations, UM endorsement and rejection/election records. A carrier's claim that UM is absent or lower than liability limits should be checked against the statutory framework and the actual policy history.

UIM is a separate offered coverage with its own conditions

Section 23-89-209 requires an opportunity to purchase underinsured-motorist coverage on qualifying private-passenger policies and allows written rejection. The statute says UIM is not mandated to be offered unless UM has been elected and does not permit UIM to be issued without UM in coordination with it. UIM protects against bodily-injury damages that exceed the responsible driver's liability limits, subject to the statute and policy. Do not treat the UM rejection, UIM rejection and first-party-benefit rejection as one document or one legal question.

A liability-limits settlement triggers an Arkansas UIM procedure

When a tentative settlement for the liability limits is reached, § 23-89-209(c) allows the injured insured to give the UIM carrier written notice with specified supporting material. Under subsection (d), the UIM insurer has 30 days after receipt to pay an amount equal to the tentative settlement if it wishes to preserve the statutory subrogation route described there. If it does not make that payment within the statutory period, the section limits the carrier's ability to recoup the settlement amount or refuse UIM payment because the insured completed the settlement. Follow the statute and policy precisely before releasing the tortfeasor.

Separate entitlement, limits, stacking and damages

First identify every policy under which the injured person may qualify as an insured. Then determine the UM/UIM limits, any applicable rejection or election, other-insurance language, anti-stacking terms, exclusions and settlement conditions. Finally calculate legally recoverable damages and amounts available from the responsible driver. Section 23-89-209 provides that UIM coverage is not reduced by tortfeasor insurance except to prevent recovery above damages, but that does not by itself answer every priority or stacking issue. Those questions require the policy and controlling Arkansas case law.

Closing guidance

Arkansas UM and UIM are related but distinct. Preserve the policy and written elections, identify who qualifies as an insured, and follow the UIM settlement/subrogation procedure before completing a liability-limits release.