Question 1

Does Arkansas allow UM/UIM stacking?

Accepted Answer

It depends on the policy wording. In Couch v. Farmers Insurance Co. (2008) the Arkansas Supreme Court enforced clear and unambiguous anti-stacking and other-insurance clauses and refused to let an insured stack UIM benefits from four policies. The statutes do not themselves authorize stacking, and the Court has noted that the legislature has not amended them to permit it.

Question 2

Is underinsured coverage automatic in Arkansas?

Accepted Answer

No. Uninsured motorist coverage must be included unless an insured named in the policy rejects it in writing. Underinsured coverage must be offered, the insured may reject it in writing, and it is not available unless the insured has elected uninsured motorist coverage.

Question 3

What do I have to do before UIM pays?

Accepted Answer

Exhaust the other driver's liability limits. The Arkansas Supreme Court has held that insureds must exhaust all liability policies of all tortfeasors. For a tentative settlement at the limits, Ark. Code 23-89-209(c) lets you give your UIM insurer certified-mail notice with your losses documented, and the insurer has 30 days to pay you that amount to preserve subrogation.

Question 4

How much UIM does Arkansas require?

Accepted Answer

If an insurer issues UIM coverage, it must be at least equal to the minimum liability limits in Ark. Code 27-19-605: $25,000 per person and $50,000 per accident for bodily injury.

Question 5

Is my UIM reduced by what the other driver paid?

Accepted Answer

Not by the statute's terms, except to the extent you would receive more than your damages (Ark. Code 23-89-209(a)(5)). Your policy wording can still matter, so ask your insurer how it computes the offset.

Arkansas UM/UIM Stacking Calculator

Estimate your UM/UIM benefits

Stacking turns on clear policy wording

Arkansas UM/UIM Stacking Calculator

Estimate your UM/UIM benefits

Stacking turns on clear policy wording

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