Arkansas Code Title 27. Transportation § 27-19-107. Self-insurers

(a)(1) Except as described in subsection (d) of this section, a person or religious denomination may qualify as a self-insurer by obtaining a certificate of self-insurance issued by the Office of Motor Vehicle as described in subsection (b) of this section if:

(2) A person or religious denomination under subdivision (a)(1) of this section shall apply for a certificate of self-insurance annually, using the form prescribed by the Office of Motor Vehicle, and provide proof of his, her, or its ability to pay judgments against him, her, or it.

(b)(1) The Office of Motor Vehicle may, in its discretion, upon the annual application of the religious denomination, person, political subdivision, or municipality, individually or collectively, issue a certificate of self-insurance when it is satisfied that the religious denomination, person, political subdivision, or municipality is possessed and will continue to be possessed of ability to pay judgments against the religious denomination, person, political subdivision, or municipality.

(2) The certificate may be issued authorizing a religious denomination, person, political subdivision, or municipality, individually or collectively, to act as a self-insurer for either property damage or bodily injury, or both.

(c)(1) Upon not less than five (5) days' notice and a hearing pursuant to the notice, the Office of Motor Vehicle may, upon reasonable grounds, cancel a certificate of self-insurance.

(2) Failure to pay any judgment within thirty (30) days after the judgment is final shall constitute a reasonable ground for the cancellation of a certificate of self-insurance.