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HB 1950

Suffrage; restore to Omar Eugene Magee of Covington County.

2025 Regular Session Introduced by Noah Sanford

Arkansas bans canceling or rate hikes on homeowners insurance just for operating a licensed family childcare home; requires a separate $100,000 liability policy with proof.

Died In Committee
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Bill Summary · HB 1950

Summary — HB 1950 (Licensed Family Childcare Homes / Homeowners Insurance)

Note on source materials: The provided document appears to combine two different bills both labeled “HB 1950” from different jurisdictions (an Arkansas bill concerning licensed family childcare homes and an unrelated Illinois appropriation bill). The summary below focuses on the Arkansas bill text included in the document (Subchapter added to Arkansas Code Title 23, Chapter 88). The legislative status in your file is inconsistent (it lists “Died In Committee” but also shows other actions). Verify final status with the official Arkansas legislative record.

Purpose

The bill seeks to protect licensed family childcare homes from termination or nonrenewal of their homeowners insurance solely because they operate a licensed family childcare home. It also establishes minimum liability-insurance requirements for operators and prohibits discriminatory cancellation or rate increases based on that operation.

Key provisions

  • Adds a new subchapter (23-88-601 et seq.) to Arkansas Code Title 23, Chapter 88 titled “Prohibition of Discrimination Against Licensed Family Childcare Homes.”
  • Definitions:
    • “Homeowners insurance policy,” “licensed family childcare home” (residence licensed by Department of Education), “personal liability insurance policy,” and “separate personal liability insurance policy” (minimum $100,000 per occurrence for home childcare liabilities).
  • Prohibitions on insurers:
    • Insurers may not cancel or refuse renewal of a homeowners policy solely because the residence operates as a licensed family childcare home — provided the home meets applicable Department of Education rules.
    • Insurers may not charge higher rates than for similarly sized/valued homes on account of the childcare operation.
  • Operator responsibilities:
    • Operators must maintain a separate personal liability policy with minimum $100,000 per occurrence (in addition to homeowners coverage).
    • Operators must submit proof of that separate liability policy to their homeowners insurer annually or at homeowners policy renewal.
    • Operators must comply with local, state, and federal rules to remain eligible for protections.
  • Notice and remedy:
    • Insurers must give written notice of potential cancellation or nonrenewal and offer the operator an opportunity to remedy the issue — the remedy cannot be simply to cease childcare operations.
  • Enforcement and rulemaking:
    • The Arkansas Department of Education enforces the subchapter and will promulgate rules to implement it.
    • Operators may file complaints with the Department of Education; such complaints are to be referred to the State Insurance Department.
  • Severability clause.

Who is affected

  • Primary: Operators of licensed family childcare homes in Arkansas and their homeowners insurance providers.
  • Secondary: Parents/guardians who use licensed family childcare homes (increased stability of provider coverage), insurers underwriting homeowners and liability policies.

Procedural / status notes

  • The bill text shown appears as an Arkansas House Bill introduced January 17, 2025.
  • Your summary metadata lists the bill as “Died In Committee,” but the supplied legislative actions include contradictory entries (some appear to be from other jurisdictions). Confirm current status with the official Arkansas General Assembly tracking system before relying on the bill’s enactment or enforcement.

Potential impacts and considerations

  • Would reduce insurers’ ability to terminate/raise rates based solely on lawful licensed childcare operation, potentially preserving childcare supply in residential settings.
  • Shifts some risk-management responsibility to operators via a required separate liability policy (minimum $100,000 per occurrence).
  • Raises implementation questions: how insurers evaluate risk for mixed-use homes, how proof of compliance will be standardized, and how referrals between the Department of Education and insurance regulators will be handled.

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

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