Detailed answer — what you can do and how Arkansas law applies

When an insurance company says its offer is final and refuses to raise it, you have several paths available. Which path is best depends on the type of claim (first‑party property or benefits claim vs. third‑party liability), the strength of your evidence, your policy limits, and the likely value of your case. Below is a practical step‑by‑step explanation, illustrated with a short hypothetical, and a plain explanation of relevant Arkansas law and consumer remedies.

Short hypothetical to illustrate

Hypothetical: You are in a car crash and suffer $35,000 in medical bills and clear liability. The insurer for the at‑fault driver offers $8,000 and calls it a final offer. You believe the true value of your claim is $40,000.

Key options and what happens next

• Reopen negotiations with facts: Before walking away, provide the insurer new or stronger documentation (medical records, bills, repair estimates, photos, witness statements). Label a written settlement demand with a deadline and state the amount and basis for it. Insurers often respond to fresh, document‑backed demands.
• Invoke contractual dispute tools (first‑party property claims): If this is a first‑party property or benefits claim (your own insurer), check for an appraisal clause, appraisal or arbitration language, or an internal appeal procedure in your policy. Appraisal can force a neutral valuation of property damage, which may raise the amount the insurer must pay.
• Use alternative dispute resolution: Offer mediation or arbitration if the policy or rules of the claims adjuster allow it (or if the other party will agree). Mediation can produce settlement without the time and cost of a lawsuit.
• Consider filing a lawsuit: For third‑party injury claims, you can file suit in civil court. Filing starts the litigation process where pretrial discovery, depositions, and expert testimony can greatly strengthen your negotiation position. If you get a judgment larger than the insurer’s final offer, the court enforces it — and the insured may look to their insurer to satisfy it up to policy limits.
• Evaluate a bad‑faith or breach claim (limited and fact specific): Arkansas law restricts insurer misconduct. If an insurer unreasonably refuses to settle within policy limits when there is a clear exposure to a higher judgment, an insured (not usually a third‑party claimant) may have a claim against its own insurer for unreasonable conduct. Arkansas also prohibits unfair settlement practices and allows consumers to file complaints. If you believe an insurer acted dishonestly or unreasonably, you can consult counsel about a bad‑faith or unfair‑practice claim and file a complaint with the Arkansas Insurance Department (see the consumer complaint process below).
• File a complaint with the Arkansas Insurance Department: The Arkansas Insurance Department handles consumer complaints about unfair claims practices, bad faith, and other insurance conduct. An administrative complaint does not replace a lawsuit but can trigger an investigation that may help your case.

How Arkansas law matters

Arkansas regulates insurance and prohibits unfair or deceptive insurance practices. The Arkansas Insurance Department accepts consumer complaints and enforces insurance laws. For more information about filing a consumer complaint, see the Arkansas Insurance Department consumer complaint page: https://insurance.arkansas.gov/consumers/file-a-complaint/. You can also review insurance statutes and rules through the Arkansas General Assembly and the Insurance Department for details about statutory protections and remedies.

Note: Claims for insurer “bad faith” or statutory unfair practices involve complex fact questions and procedural rules. Whether a refusal to increase a final offer supports a legal claim turns on case‑specific facts: policy language, whether the insurer investigated reasonably, whether it refused to accept reasonable settlement demands, and whether its conduct violated Arkansas insurance law or created exposure for the insured beyond policy limits.

Practical timeline and what to expect

1. Immediate (0–30 days): Preserve all evidence. Send a written demand with supporting records and a reasonable deadline. Consider mediated settlement.
2. Short term (30–90 days): If the insurer refuses, evaluate filing suit. Discuss deadlines (statute of limitations) with an attorney early so you do not lose the right to sue.
3. Mid term (3–12 months): If you file suit, discovery can uncover additional facts that support settlement or trial. If you file an administrative complaint, the Department may investigate.
4. Long term (post‑judgment): If you win a judgment larger than the insurer’s offer, you may collect up to available insurance limits; if the insurer acted unreasonably, an insured may have additional claims against the insurer, depending on facts and law.

Helpful Hints — practical advice to strengthen your position

• Keep a single file with all claim documents: police reports, photos, medical records, bills, correspondence, and repair estimates.
• Write everything down: record dates, names of adjusters, what each phone call covered, and any promises made.
• Send a clear written demand: include total damages, itemized support, and a firm but reasonable deadline for a response.
• Consider mediation early: mediators can bridge gaps and often produce results faster and cheaper than litigation.
• Check your policy carefully: know your coverage limits, reservation of rights language, and any required pre‑suit steps (notice, appraisal, or arbitration clauses).
• Act before deadlines: statute of limitations and policy notice requirements matter. Contact an attorney early to avoid losing rights.
• File a consumer complaint if you suspect unfair practices: use the Arkansas Insurance Department complaint process at https://insurance.arkansas.gov/consumers/file-a-complaint/.
• Get legal help when needed: an attorney experienced in insurance disputes can evaluate whether the insurer’s final offer was reasonable, whether appraisal or arbitration applies, and whether a bad‑faith claim exists.