Committee considers House Bill 1193 amendment to lienholder payment rules for vehicle repairs; vote unclear on record

House Bill 1193 was brought before the Senate Insurance & Commerce committee with an amendment that narrows when a perfected lienholder must be named on an insurance payment for vehicle property damage.

Representative Kavanaugh presented the amendment, saying the change clarifies that a lienholder without a physical presence in the state need not be named on a payment and that the lienholder's name is not required when damages to a motor vehicle are less than $2,500 or when a payment is made directly to a repair facility for the amount of repairs.

"This bill will just require that when an insurance claim is made on property damage on a vehicle and there is a perfected lienholder, unless the lienholder doesn't have a physical presence in the state of Arkansas, if the claim is less than $2,500 or the payment is made directly to a repair facility for the amount of the repairs, then the lienholder's name doesn't need to be on the…