Bill > HB1811

This bill amends Arkansas property and casualty insurance law to establish new requirements and definitions related to insurance deductibles and claim payments. The legislation defines key terms such as "reasonable proof of payment" to include documents like canceled checks, money order receipts, credit card statements, and installment plan contracts that demonstrate a policyholder has paid their insurance deductible. The bill mandates that individuals insured under property insurance policies must pay their applicable deductibles, and failing to do so is considered a fraudulent insurance act. Additionally, the bill prohibits insurance providers from waiving deductibles or providing rebates in lieu of deductible payments, which would also be considered fraudulent. Under the new law, property and casualty insurers offering replacement cost coverage can refuse to pay claims for recoverable depreciation until the policyholder provides reasonable proof of deductible payment. Violations of these provisions can result in penalties under the state's Trade Practices Act, thereby creating a legal framework to ensure transparency and prevent potential insurance fraud by holding both insurers and policyholders accountable for proper deductible handling.

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https://arkleg.state.ar.us/Bills/Detail?id=hb1811&ddBienniumSession=2025%2F2025R