Arkansas recently enacted a law that amends the state's valued policy statute.
The revised statute allows a commercial property insurer to reduce the amount for which it is liable to an insured by the amount of retention or deductible in a commercial insurance policy.
The latest law also establishes exceptional situations in which the valued policy statute does not apply, including criminal acts, availability of other insurance, or the property being insured under a builder's risk or a blanket policy.
The law takes effect July 22, 2015. AAIS will advise affiliates in affected lines of filing action for amendatory endorsements.
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