Ark. Code Ann. § 6-21-707: Inspection and safety program

(a) The State Insurance Department is authorized to maintain an inspection and safety program designed to reduce the hazard of accidents involving motor vehicles insured under the Public School Motor Vehicle Insurance Program.

(b) The department may refuse to insure motor vehicles when it believes the vehicles to be a hazard to life or property. If the vehicle is deemed no longer insurable, thirty (30) days' notice must be given in advance of cancellation or nonrenewal.