A recent Arkansas Supreme Court case will help victims of Arkansas car accidents. In State Farm Insurance Company vs. Stamps, the Arkansas Supreme Court affirmed a lower court decision upholding the award of statutory damages of 12% and attorney fees against State Farm Insurance Company. The Court found that these amounts were justified based upon Arkansas Code Annotated 23-79-208 because State Farm refused to settle with an accident victim after demand was made under their underinsured policy.
Arkansas law states that if an injured victim makes a settlement demand on their insurance company that is refused and they are awarded damages within 20% of the demanded amount, 12% damages and attorney fees will be awarded by the Court. This law is meant to punish insurance companies when they delay payment of a meritorious claim.
The Pfeifer Law Firm routinely handles insurance claims for injured accident victims in Arkansas. If you or a family member has been injured in an accident and would like to speak with an Arkansas accident lawyer, please contact us today.