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Back to HB 1193
Arkansas General Assembly· HB 1193Died in House at Sine Die adjournment.

An act TO REQUIRE AN INSURER TO INCLUDE A LIENHOLDER 10 ON PAYMENTS MADE UNDER AN INSURANCE POLICY, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas       As Engrossed: H1/27/25 H1/30/25 S3/10/25

2 95th General Assembly                      A Bill

3 Regular Session, 2025                                             HOUSE BILL 1193

4

5 By: Representative Cavenaugh

6 By: Senator B. Johnson

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8                               For An Act To Be Entitled

9   AN ACT TO REQUIRE AN INSURER TO INCLUDE A LIENHOLDER

10  ON PAYMENTS MADE UNDER AN INSURANCE POLICY; AND FOR

11  OTHER PURPOSES.

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14                                           Subtitle

15                        TO REQUIRE AN INSURER TO INCLUDE A

16                        LIENHOLDER ON PAYMENTS MADE UNDER AN

17                        INSURANCE POLICY.

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19 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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21  SECTION 1. Arkansas Code Title 23, Chapter 89, Subchapter 2, is

22 amended to add an additional section to read as follows:

23  23-89-218. Lienholder included on payment of insurance proceeds.

24  (a) If an insured or third-party claimant makes a demand or files a

25 claim for damages to a motor vehicle, either with an insurer or in a court of

26 law, and there is a perfected lienholder for an automobile loan on the motor

27 vehicle, the motor vehicle liability insurer shall tender payment in the name

28 of the insured or third-party claimant and the lienholder.

29  (b) This section does not apply to a lienholder that:

30  (1) Does not have a physical location in the state; or

31  (2) Has a physical location in the state, but:

32                        (A) The claim for damages to a motor vehicle is less than

33 two thousand five hundred dollars ($2,500); or

34                        (B) The payment is made directly to a repair facility for

35 the amount of the repairs.

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    *ANS043*                                                    03-10-2025 14:04:30 ANS043
    As Engrossed: H1/27/25 H1/30/25 S3/10/25                                      HB1193
                                              03-10-2025 14:04:30 ANS043
1   /s/Cavenaugh

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