Punitive Or Exemplary Damage Exclusions

, tt e • • • • • 'AC W. H. L. Woodyard III Insurance Commissioner BULLETIN NO. 4-82 ARKANSAS INSURANCE DEPARTMENT 400 University Tower Building • Little Rock, Arkansas 72204 April 27, 1982 TO: ALL PROPERTY AND CASUALTY INSURERS LICENSED IN THE STATE OF ARKANSAS FROM: INSURANCE COMMISSIONER OF THE STATE OF ARKANSAS RE: PUNITIVE OR EXEMPLARY DAMAGE EXCLUSIONS Ph. 501 371-1325 The Department has received a number of filings containing exclusions for punitive or exemplary damages which cannot be approved for use in this State as submitted. Punitive or exemplary damage exclusions will not be approved by the Department unless the policy or endorsement having the exclusions has an acceptable definition of the terms punitive damages or exemplary damages. An acceptable definition of these terms is a definition substantially similar to the definition in Arkansas Model Instruction 2217 which states that "Punitive damages may be imposed to punish a wrongdoer and to deter others from similar conduct." In the future, please do not submit filings containing a punitive or exemplary damage exclusion not having an acceptable definition of those terms. W. H. L. Wood ard Insurance Commis oner AN AGENCY OF THE ARKANSAS DEPARTMENT OF COMMERCE An equal opportunity employer