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Arkansas Insurance Fraud Laws

When false statements or intentional misrepresentations are made in order to improperly obtain a benefit from an insurance policy then insurance fraud has been committed. This particular type of fraud generally occurs when an insured individual submits a fraudulent claim for a loss that didn't actually occur, or exaggerates the extent of a loss that was suffered. However, insurance fraud can also be committed by offenders who sell bogus insurance policies to consumers. The following chart highlights Arkansas' main insurance fraud laws.

Code Section

Arkansas Code section 23-66-501 through 23-66-513: Fraudulent Insurance Acts Prevention

What's Prohibited?

Committing a "fraudulent insurance act."

A fraudulent insurance act means an act or omission committed by a person who, knowingly and with the intent to defraud, deceive, conceal, or misrepresent does any of the following:

  • Presents (or prepares) false information as part of an application for insurance, the rating of an insurance policy, a claim for a payment or benefit under an insurance policy, premiums paid on an insurance policy, payments made under an insurance policy, a document filed with a chief insurance regulatory official, the financial condition of an insurer, the status of an insurer, the issuance of written evidence of insurance, or the reinstatement of an insurance policy
  • Soliciting or accepting insurance risks on behalf of an insurer by a person who should know that the insurer is insolvent
  • Removing, concealing, altering, or destroying the assets or records of an insurer
  • Embezzling property from an insurer
  • Transacting insurance business in violation of the law
  • Attempting to commit (or conspiring to commit) any illegal act listed in this section
  • Issuing counterfeit insurance policies
  • Possessing counterfeit insurance policies or other insurance documents (or possessing any device used to make these counterfeit documents), or
  • Falsely holding himself or herself out as a representative of an insurance company


Class D felony. Punishable by imprisonment for up to six years, and/or a fine of up to $10,000 (per violation).

Offenders are also ordered to pay restitution to the victims of their crime.

Mandatory Reporting

Under Arkansas' insurance fraud laws, anyone who is engaged in the insurance business who has knowledge (or a reasonable belief) that a fraudulent insurance act is being, will be, or has been committed is required to report the alleged fraud to the Insurance Commissioner. Failure to do so constitutes a Class A misdemeanor that is punishable by imprisonment for up to one year and/or a fine of up to $15,000.

Additional Resources

State laws change frequently. For case specific information regarding Arkansas' insurance fraud law contact a local criminal defense attorney.

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