Bill > SB481

This bill creates a comprehensive State Captive Insurance Program to provide property insurance coverage for public schools, state-supported institutions of higher education, and state-owned properties. The legislation establishes a captive insurance company within the Department of Transformation and Shared Services to manage and administer a more sustainable insurance system. Key provisions include mandatory participation for public schools and state agencies receiving state appropriations, a prohibition on using public insurance adjusters, and the creation of a State Captive Insurance Program Trust Fund. The bill aims to address the current crisis in property insurance by restructuring existing insurance programs, implementing stricter risk management practices, and providing more stable and cost-effective coverage. The program will be overseen by the Secretary of the Department of Transformation and Shared Services, with annual reporting to the Legislative Council and mandatory legislative oversight. The bill includes provisions for maintaining an optimal reserve balance, establishing premium rates based on actuarial assessments, and ensuring transparency in the insurance program's operations. An emergency clause is included, highlighting the urgent need to address rising insurance costs and instability in the current property insurance system for public institutions.

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https://arkleg.state.ar.us/Bills/Detail?id=sb481&ddBienniumSession=2025%2F2025R