Ark. Code Ann. § 23-81-117: Life insurance - Indebtedness deducted from proceeds

In determining the amount due under any life insurance policy issued, deduction may be made of:

(1) Any unpaid premiums or installments thereof for the current policy year due under the terms of the policy; and

(2) The amount of principal and accrued interest of any policy loan or other indebtedness against the policy then remaining unpaid.