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HB 1193

RELATING TO PARENTAGE.

2025 Regular Session Introduced by Linda Ichiyama

House Bill 1193 aimed to require insurers to include lienholders in auto insurance payments, protecting their financial interests during claims.

Carried over to 2026 Regular Session.
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Bill Summary · HB 1193

Summary of House Bill 1193

Bill Number: HB 1193
Title: To Require an Insurer to Include a Lienholder on Payments Made Under an Insurance Policy
Status: Died in House at Sine Die adjournment
Introduced: January 22, 2025
Classification: Bill

Purpose and Intent

House Bill 1193 aimed to amend existing insurance regulations in Arkansas by requiring insurers to include lienholders in payments made under automobile insurance policies. The intent was to ensure that any payments made for damages to a motor vehicle would recognize the financial interests of lienholders, thereby protecting their rights in the event of a claim.

Key Provisions

The bill proposed the following key provisions:

  1. Inclusion of Lienholders in Payments:

    • If an insured individual or a third-party claimant files a claim for damages to a motor vehicle, the insurer would be required to issue payment in the names of both the insured or claimant and the lienholder if there is a perfected lien on the vehicle.

  2. Exemptions:

    • The requirement would not apply to lienholders who:
      • Do not have a physical location in Arkansas.
      • Have a physical location in Arkansas but are involved in claims where:
      • The damages are less than $2,500.
      • Payments are made directly to a repair facility for the repair costs.

Affected Parties

  • Insurers: Insurance companies would need to adjust their payment processes to comply with the new requirement.
  • Lienholders: Financial institutions or individuals holding liens on vehicles would benefit from the protection of their financial interests.
  • Insured Individuals and Third-Party Claimants: These parties would see changes in how their claims are processed, ensuring that lienholders are acknowledged in payment distributions.

Legislative Actions and Timeline

  • January 22, 2025: Bill filed and read for the first time.
  • February 6, 2025: Passed in the House and transmitted to the Senate.
  • March 10, 2025: Amendments were adopted, and the bill was reported correctly engrossed.
  • April 9, 2025: The bill failed to pass in the Senate and was returned to the House.
  • May 5, 2025: The bill died in the House at Sine Die adjournment.

Conclusion

House Bill 1193 sought to enhance the protection of lienholders in the context of automobile insurance claims. Despite its introduction and subsequent amendments, the bill ultimately did not progress through the legislative process and was not enacted.

Compiled from official sources — confirm details with the bill’s official record.

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