Local Rule 2015-1 of the Arkansas Bankruptcy Courts:
As a Chapter 13 debtor, if you own an automobile that has a lien, 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 the Trustee with proof of such coverage by providing the following information:
ALL INFORMATION BELOW MUST BE PROVIDED.
1. Your name and case number.
2. Year, make, and model of vehicle.
3. Date insurance coverage is effective.
4. Name of insurance company.
5. Name, address and phone number of insurance agent.
IF YOU DO NOT CURRENTLY HAVE OTHER AUTOMOBILE INSURANCE, pursuant to a Local Rule of the Bankruptcy Court, insurance coverage will be automatically placed on your vehicle beginning with the date you filed your Chapter 13 case. The charges for this insurance will be added to, and paid by, you in your Chapter 13 case. The insurance charges will cause your monthly plan payment to increase.
Please note that the insurance paid through your bankruptcy plan is Comprehensive and Collision only. The insurance 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 case, you must immediately provide the Trustee with proof of insurance for your automobile.
IF YOU FAIL TO PROVIDE PROOF OF INSURANCE COVERAGE ON YOUR AUTOMOBILE 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
Attn: Auto Insurance Program
P.O. Box 8064
Little Rock, AR 72201-8064
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.
IMPORTANT NOTICE REGARDING INSURANCE COVERAGE ON YOUR VEHICLE:
GENERAL INFORMATION REGARDING THE CHAPTER 13 AUTO INSURANCE PROGRAM
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 case at all times.
The auto insurance coverage provided to Debtors is for Comprehensive and Collision coverage only.
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. The Trustee's office cannot assist you with obtaining this Liability coverage.
Comprehensive Coverage under this policy generally covers glass damage; vandalism; hail damage; and damage from other acts of nature as described in the policy.
Collision Coverage under this policy covers YOUR (owned by the Debtor) automobile only. The policy will not cover damages to another automobile or other property, if you are involved in an accident. Only consumer vehicles are covered; motorcycles and business vehicles are not covered.
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.
Deductibles under this policy are as follows: Comprehensive - $50.00; Collision - $100.00.
For additional information regarding the insurance coverage and policy, contact:
Priority Insurance Agency
Phone: (501) 244-2288
Toll Free: (866) 283-0585
Fax: (501) 244-9851