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Senate committee advances omnibus insurance bill updating licensing and modernizing code
Summary
The Senate Insurance & Commerce Committee advanced House Bill 12 38, an omnibus package that updates outdated insurance code, modernizes payment and filing practices, clarifies captive insurer confidentiality, and narrows the corporate governance annual disclosure requirement for smaller single‑state companies.
House Bill 12 38, an omnibus insurance bill, was presented and advanced by the Senate Insurance & Commerce Committee after a section‑by‑section overview from the sponsor and a departmental counsel.
The bill amends numerous provisions across the Arkansas Insurance Code to modernize language and practice. Committee members were told the bill replaces antiquated terms (for example replacing the word “surety” with “fidelity”), adds coverage for “any fraudulent or dishonest act,” updates filing and payment methods to permit electronic funds transfers, and clarifies that captive‑insurer filings and correspondence are confidential. The sponsor said changes in sections 1–8 are largely technical and intended to conform to current bonding and regulatory practice.
Jim Bridal, general counsel for the Arkansas Insurance Department, told the committee the omnibus package also seeks to align statutory language with administrative rules and current practices. On section 14, which limits application of the corporate governance annual disclosure act, Bridal said the amendment narrows the requirement to single‑state domestic companies to reduce the compliance burden on smaller Arkansas firms. On captive insurers he said, “all filings, correspondence, or any submission made by a captive insurer is confidential.”
Senators asked clarifying questions on particular provisions, including why some archival filing requirements (such as filing merger plans with county clerks) were changed from a mandatory to permissive obligation. Bridal said such filings are vestigial and the department is subject to the Freedom of Information Act so interested parties can obtain records from the department rather than a county clerk.
After the presentation and limited discussion, a motion to “do pass” was made, seconded and adopted by voice vote. The committee chair announced that the bill would move forward.
The bill’s material changes are procedural and regulatory rather than substantive policy reversals; the committee did not record a roll‑call vote during this hearing and advanced the bill by voice vote. The next step is floor consideration by the Senate.
