WeVote
Log In

Bill

Bill

HB 1821

TO CREATE A MORE SUSTAINABLE SYSTEM OF PROPERTY INSURANCE FOR PUBLIC SCHOOLS, INSTITUTIONS OF HIGHER EDUCATION, AND STATE-OWNED PROPERTY; AND TO DECLARE AN EMERGENCY.

2025 Regular Session Introduced by Brandon Achor and 47 co-sponsors

House Bill 1821 establishes a captive insurance program to stabilize property insurance for public schools and state institutions, improving coverage and reducing costs.

Notification that HB1821 is now Act 560
0
WeVote Research Nonpartisan
Bill Summary · HB 1821

Summary of House Bill 1821 (HB 1821)

Purpose and Intent

House Bill 1821, now enacted as Act 560, aims to establish a more sustainable property insurance system for public schools, state-supported institutions of higher education, and state-owned properties in Arkansas. The bill addresses the current crisis in property insurance programs and seeks to create a long-term solution to stabilize insurance premiums and coverage.

Key Provisions

HB 1821 includes several significant changes and provisions:

  1. Creation of the Office of Property Risk:

    • Establishes a new office within the Department of Transformation and Shared Services to oversee property insurance for public entities.

  2. State Captive Insurance Program:

    • Introduces the State Captive Insurance Program, allowing the state to create a captive insurance company to manage property insurance for public schools and state institutions.
    • This program aims to provide better valuation and coverage options for properties.

  3. Amendments to Existing Laws:

    • Revises the Public Elementary and Secondary School Insurance Act and the Arkansas Multi-Agency Insurance Trust Fund Act to integrate public schools and higher education institutions under a unified insurance program.

  4. Prohibition of Public Adjusting:

    • Prohibits the use of public adjusting in property insurance claims, which has been identified as a factor contributing to rising premiums.

  5. Cooperation Among State Entities:

    • Mandates cooperation among various state departments and agencies to ensure effective implementation of the new insurance program.

  6. Transitional Provisions:

    • Outlines the transfer of existing property insurance programs to the new State Captive Insurance Program, ensuring continuity of coverage during the transition.

Affected Entities

The bill primarily impacts:
- Public Schools: Aims to stabilize insurance premiums and improve coverage options.
- Institutions of Higher Education: Addresses historical undervaluation of properties and seeks to provide better insurance solutions.
- State-Owned Properties: Ensures that state-owned buildings and facilities are adequately covered under the new insurance framework.

Procedural Aspects

  • Emergency Clause: The bill includes an emergency clause, allowing for immediate implementation upon enactment.
  • Timeline:
    • Introduced on March 18, 2025.
    • Passed by the House and Senate on April 9, 2025.
    • Enacted as Act 560 on April 14, 2025.

Conclusion

HB 1821 represents a significant legislative effort to reform property insurance for public entities in Arkansas. By creating a captive insurance program and restructuring existing insurance frameworks, the bill aims to provide more sustainable and effective coverage for public schools, higher education institutions, and state-owned properties, ultimately enhancing financial stability and risk management in the face of rising insurance costs.

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

Sign in to ask a question.