Arkansas Bill Would Prevent Claim Denial for Damage by Stolen Vehicle

March 25, 2015

A bill to be considered by the Arkansas Senate today would prevent auto insurers from denying a claim for damage caused by a stolen vehicle even if “a valid police report of the theft of vehicle has not been filed.”

Senate Bill 889 states that if “a claim is filed under a motor vehicle liability insurance policy for damages caused by a stolen motor vehicle insured under the policy, the insurer cannot deny the claim based on the fact that the insured motor vehicle is stolen if a valid police report of the theft of the insured motor vehicle has not been filed.”

The bill, sponsored by Sen. Alan Clark of Lonsdale, is scheduled to be heard by the Senate Committee on Insurance and Commerce.

Topics Auto Fraud

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Latest Comments

  • March 26, 2015 at 10:56 pm
    boonedoggle says:
    I agree that auto insurer's should provide a defense to the named insured, relatives as defined and any other person driving with permission. If the thief somehow qualifies ... read more
  • March 26, 2015 at 2:16 pm
    Fair Playing Field says:
    Here's the bill summary: "To provide that an insurer cannot deny a claim based on the fact that the insured motor vehicle is stolen if a valid police report of the theft of ve... read more
  • March 26, 2015 at 11:34 am
    BJW says:
    I read that as the company CAN deny liability only if a police report has been filed stating the vehicle was in fact stolen.

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