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Arkansas bill would let insureds sue over claim-handling; sponsor to refine language after committee feedback

INSURANCE & COMMERCE - SENATE · March 7, 2023
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Sen. Bryant’s consumer‑protection measure would allow private suits for violations of Arkansas Insurance Department trade‑practices (Rule 43) and permit recovery for insurers’ bad‑faith handling; proponents described prolonged claims and appraisal disputes, while industry and the insurance department urged changes. Sponsor said he will pull the bill to negotiate amendments.

Sen. Bryant told the Senate Insurance & Commerce Committee that a bill he brought at the request of constituents would allow Arkansans harmed by abusive claim handling to seek relief in court instead of relying solely on regulatory action.

“[T]his bill, as narrowly as I can figure out how to write it, is a constituent led issue,” Bryant said, describing examples he and his constituent witnesses brought to the committee.

Jim Brown, a commercial property owner who testified for the sponsor, told senators that after a May 2020 hail loss his insurer’s adjuster wrote "an estimate for about 20% of what it would cost" to make repairs and that pursuing a fair result left portions of his building vacant for more than a year. Brown said the appraisal process was the only contract…

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