Arkansas Senate approves insurer-notice extension, codifies surplus-line fee practice; several measures advanced

The Arkansas Senate on Jan. 27 approved two insurance-related measures and advanced several other items during its morning session.

Senate Bill 70, carried by Sen. Alan Hickey, passed on a roll call of 35-0. The bill changes notice windows insurers must give when imposing premium increases greater than 25 percent: the insurer-to-agent notice period is extended from 30 days to 60 days, and the notice period to the insured is increased from 10 days to 30 days, as described by Hickey on the floor.

Senate Bill 76, carried by Sen. Blake Johnson, also passed by a recorded vote of 35-0. Johnson told colleagues the bill does not change Arkansas public policy but instead codifies the Arkansas Insurance Department’s longstanding interpretation — first set out in a February 2015 bulletin — that surplus-line brokers are exempt from a 20 percent fee cap. Johnson said surplus-line policies serve consumers who cannot obtain coverage through standard lines and that putting the exemption into statute should encourage surplus-line availability in Arkansas.

The chamber also approved Senate Resolution 4 to welcome Lieutenant General Jay Silveria as the new president of the University of Arkansas System. Sen. Breanne Tucker introduced the resolution and recognized Silveria and his wife on the floor; the resolution passed by voice vote. The Senate later filed a separate resolution (Senate Resolution 5) to commemorate National School Choice Week during Jan. 26–Feb. 1; that resolution was placed on the calendar.

On procedural matters, the Senate agreed to re-refer Senate Bill 102 from the State Agencies Committee to the City, County & Local Affairs Committee after a motion from Sen. Mark Davis; the motion carried by voice vote. The Senate also acknowledged a letter from Gov. Sarah Sanders noting that measures signed on Jan. 27 included Senate Bill 1 (now Act 9) for the fiscal session.

All actions and tallies recorded on the floor were entered into the Senate journal and, when applicable, transmitted to the House of Representatives for the next steps in the legislative process.

Votes at a glance - Senate Bill 70 (Hickey): Amend insurance standards; revise notice requirements for premium increases over 25%. Vote: 35 yes, 0 no. Outcome: Passed; transmit to House. - Senate Bill 76 (Blake Johnson): Clarify fees and surplus-line broker fee exemption under Arkansas insurance code (codifies 02/2015 interpretation). Vote: 35 yes, 0 no. Outcome: Passed; transmit to House. - Senate Resolution 4 (Tucker): Welcome Lieutenant General Jay Silveria as president, University of Arkansas System. Outcome: Adopted (voice vote). - Senate Resolution 5 (Dodson): Commemorate National School Choice Week (Jan. 26–Feb. 1). Outcome: Placed on calendar. - Senate Bill 102 (Davis motion): Withdrawn from State Agencies and re-referred to City, County & Local Affairs. Outcome: Motion to re-refer adopted (voice vote).

Context and next steps The insurance-notice change (SB70) applies when an insurer proposes a premium increase exceeding 25 percent; it extends the time insurers must provide formal notice to agents and to policyholders, with the stated intent of giving affected parties additional time to arrange coverage. SB76 places the Department of Insurance’s existing practice about surplus-line broker fees into statute; proponents said the change is intended to improve market access for hard-to-place risks.

Most roll-call tallies were unanimous; none of the recorded votes on the bills listed above produced dissent on the floor during this session. When a bill passed on the floor, clerks were instructed to transmit the measure to the House for consideration or to proceed with the next required steps per legislative rules.

Evidence on the record Senate debate and votes appear in the Senate journal and the Jan. 27 transcript entries for the bills and motions listed above. Excerpts include sponsor explanations for SB70 (Sen. Hickey) and SB76 (Sen. Blake Johnson) and the recorded roll-call tallies for both bills.