|Local Rule 2015-1 of the
Arkansas Bankruptcy Courts:
IMPORTANT NOTICE REGARDING INSURANCE
Under Chapter 13, if you own an automobile that has a lien on it, YOU ARE REQUIRED TO CARRY COMPREHENSIVE AND COLLISION INSURANCE COVERAGE on that automobile until the lien has been paid in full.
If you currently have Comprehensive and Collision insurance coverage on your automobile, it is your responsibility to immediately provide your Trustee with proof of such coverage, by providing the following information:
IF YOU DO NOT CURRENTLY HAVE OTHER AUTO INSURANCE, insurance coverage will be automatically placed on your auto beginning with the date you filed your Chapter 13 petition. The charges for this insurance will be added to, and paid by, your Chapter 13 case, which will cause your monthly plan payment to increase.
This insurance is Comprehensive and Collision only. It is not Liability coverage, as required by the State of Arkansas to obtain a license tag for your automobile.
IF YOU OBTAIN OTHER INSURANCE COVERAGE on your vehicle at any time after the filing of your Chapter 13 petition, you must immediately provide the Trustee with proof of insurance for your automobile.
IF YOU FAIL TO PROVIDE PROOF OF INSURANCE COVERAGE ON YOUR AUTO by your first scheduled 341(a) Meeting of Creditors hearing, Comprehensive and Collision insurance will be automatically placed for you, and a new payroll order will be entered increasing your chapter 13 plan payment by the amount of the insurance premium(s).
YOU SHOULD MAIL YOUR PROOF OF COVERAGE TO:
Joyce Babin, Trustee
If you do not have Comprehensive and Collision coverage on your automobile and would like the Trustee to obtain coverage for you, you should contact the local agent for Arch Insurance Company, Priority Insurance Agency at (501) 244-2288 or 1-866-283-0585.
GENERAL INFORMATION REGARDING THE
q All cases in which the debtor has insurance coverage provided through the Chapter 13 Auto Insurance Program, MUST RETAIN A MINIMUM BALANCE ON HAND of $100.00 in their Chapter 13 plan at all times.
q The auto insurance coverage provided to Debtors is for COMPREHENSIVE and COLLISION coverage only.
q LIABILITY INSURANCE is not part of the policy. Liability insurance is required by the State of Arkansas to obtain a license tag for your automobile. Our office cannot assist you with obtaining this type of coverage.
q COMPREHENSIVE COVERAGE under this policy covers glass damage; vandalism; hail damage; and damage from other acts of nature.
q COLLISON COVERAGE under this policy covers YOUR automobile only. This policy will not cover damages to another automobile or other property, if you are involved in an accident.
q RATES under this policy are the same for everyone regardless of age, sex or driving record. All rates are based on the make and model of the car and are set based on the value of your automobile as set by the N.A.D.A. Retail Cost Book.
under this policy are as follows:
REFER ALL CALLS REGARDING INSURANCE TO: