AR SB488

Requires insurance companies writing automobile liability insurance in Arkansas to demand proof of a valid driver's license from all applicants for new policies issued after October 1, 2013, and reissued policies after January 1, 2014.

Defines "valid driver's license" as a license issued by Arkansas, another state, U.S. armed services, or a country with reciprocal agreement with Arkansas that is not expired, suspended, revoked, or canceled.

Prohibits insurance companies from issuing automobile liability policies to persons unable to produce a valid driver's license.

Allows the State Insurance Department to deny, suspend, or revoke certificates of authority, managing general agent licenses, and insurance producer licenses for violations of the requirement.

Adds lack of a valid driver's license as a valid ground for policy cancellation for named insureds or drivers who customarily operate the insured vehicle.