An act TO AMEND PROPERTY AND CASUALTY LAW, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas              A Bill
2 95th General Assembly

3 Regular Session, 2025                                             HOUSE BILL 1811

4

5 By: Representative Steimel

6 By: Senator B. Johnson

7

8                               For An Act To Be Entitled

9              AN ACT TO AMEND PROPERTY AND CASUALTY LAW; TO REQUIRE

10             REASONABLE PROOF OF PAYMENT OF A DEDUCTIBLE TO RECOUP

11             RECOVERABLE DEPRECIATION UNDER PROPERTY AND CASUALTY

12             LAW; AND FOR OTHER PURPOSES.

13

14

15                                Subtitle

16                        TO AMEND PROPERTY AND CASUALTY LAW; AND

17                        TO REQUIRE REASONABLE PROOF OF PAYMENT

18                        OF A DEDUCTIBLE TO RECOUP RECOVERABLE

19                        DEPRECIATION UNDER PROPERTY AND CASUALTY

20                        LAW.

21

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

23

24  SECTION 1. Arkansas Code Title 23, Chapter 88, Subchapter 1, is

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

26  23-88-107. Reasonable proof of payment for deductible -- Recoverable

27 depreciation -- Definitions.

28  (a) As used in this section:

29             (1) "Fraudulent insurance act" means the same as defined in �

30 23-66-501;

31             (2) "Person" means an individual, corporation, association,

32 partnership, limited liability company, or other legal entity;

33             (3) "Property insurance policy" means an insurance policy issued

34 by a property and casualty insurer that provides first-party coverage for

35 loss or damage to real property; and

36             (4)(A) "Reasonable proof of payment" means evidence of payment.

    *ANS343*                                                     03/17/2025 12:16:41 PM ANS343
                                                                        HB1811

1                     (B) "Reasonable proof of payment" includes:

2                     (i) A canceled check;

3                     (ii) A money order receipt;

4                     (iii) A credit card statement;

5                     (iv) A copy of an executed installment plan

6 contract; or

7                     (v) Another financing arrangement that requires full

8 payment of a deductible over time.

9   (b)(1) A person insured under a property insurance policy shall pay

10 any deductible applicable to a first-party claim made under the property

11 insurance policy.

12  (2) A person that fails to pay a deductible applicable to a

13 first-party claim under subdivision (b)(1) of this section is committing a

14 fraudulent insurance act.

15  (c) A person that waives a deductible, provides a rebate in lieu of a

16 deductible, or otherwise does not require a deductible to be paid under a

17 property insurance policy is committing a fraudulent insurance act.

18  (d) A property and casualty insurer that issues a property insurance

19 policy with replacement cost coverage may refuse to pay a claim for withheld

20 recoverable depreciation or a replacement cost holdback under the property

21 insurance policy until the insurer receives reasonable proof of payment by

22 the policyholder of any deductible applicable to the claim filed under the

23 property insurance policy.

24  (e) A person that violates this section is subject to the Trade

25 Practices Act, � 23-66-201 et seq.

26

27

28

29

30

31

32

33

34

35

36

                                       2           03/17/2025 12:16:41 PM ANS343