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Summary: The statute of limitations on debt in Arkansas is five years for most types of debt, but it is two years for medical debt and three years for debt resulting from an oral contract.
For example, if a health insurance policyholder is injured in an accident and the insurer pays $20,000 to cover the medical bills, the insurer may sue to collect that $20,000 from the at-fault party or that party's insurer.
The Common Law's collateral source rule (CSR) holds that in order to be considered compensation for tortious harm, benefits received by the tort victim must be: 1) directly inspired by the tortious harm and; 2) bestowed by the tortfeasor or by someone acting on the tortfeasor's behalf.
The collateral source rule prevents the defendant from submitting evidence that your medical bills were covered by insurance. Likewise, the collateral source rule also prevents the defendant from trying to reduce the value of your claim because you received money from a third party.
The mechanics of this statute are that: (1) amounts paid to a plaintiff from a collateral source can and do reduce the amount of the verdict, and this reduction will be applied by the court following the jury verdict; (2) but in nearly all instances, evidence of payments from collateral sources will not be presented to ...
Arkansas' collateral source rule provides that a trial court must ?exclude evidence of payments received by an injured party from sources 'collateral' to ... the wrongdoer, such as private insurance or government benefits....? Bell v. Estate of Bell, 318 Ark.
The collateral source rule is a common law doctrine under which an injured party's damage award may not be reduced by payments, also intended to compensate the harm caused by the tortfeasor, received from third parties. Restatement (Second) of Torts § 920A cmt. b & d (1979).
In Arkansas, pain and suffering damages are one type of non-economic damages that may be available to you. Non-economic damages are not intended to pay you back for bills you incurred as a result of your injury.