(a) When making payment to a third party on a claim under a motor vehicle insurance policy for damage to a motor vehicle, a motor vehicle liability insurer shall provide a written notice to the third-party claimant in substantially the following form:
"Failure to use the insurance proceeds in accordance with a security agreement between you and a lienholder, if any, may constitute the criminal offense of defrauding a secured creditor in violation of Arkansas Code ยง 5-37-203. If you have any questions, contact your lienholder."
(b) The written notice required by subsection (a) of this section may be provided by including the written notice on each written loss estimate prepared in connection with the claim.
Section: Previous 23-89-203 23-89-204 23-89-205 23-89-206 23-89-207 23-89-208 23-89-209 23-89-210 23-89-211 23-89-212 23-89-213 23-89-214 23-89-215 23-89-216Last modified: November 15, 2016