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HB 1595

TO ENACT THE STATE INSURANCE DEPARTMENT'S GENERAL OMNIBUS AMENDMENT OF ARKANSAS INSURANCE CODE.

2025 Regular Session Introduced by Justin Boyd and 1 co-sponsor

Act 349 modernizes Arkansas insurance laws, impacting insurers, employers, and consumers by enhancing oversight, updating bond requirements, and repealing outdated health coverage provisions.

Notification that HB1595 is now Act 349
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Bill Summary · HB 1595

Summary of House Bill 1595 (Act 349)

Overview

House Bill 1595, now known as Act 349, was introduced on February 26, 2025, during the 95th General Assembly of Arkansas. The bill aims to enact a comprehensive amendment to the Arkansas Insurance Code, addressing various aspects of insurance regulation and administration in the state.

Purpose and Intent

The primary intent of HB 1595 is to modernize and clarify existing laws related to the Arkansas Insurance Code. This includes amendments to the Arkansas Workers' Compensation Insurance Plan, regulations concerning reciprocal insurers, attorney bond requirements, and the examination of hospital and medical service corporations. Additionally, the bill repeals the Comprehensive Health Insurance Pool Act, reflecting a shift in how health insurance coverage is managed for certain individuals.

Key Provisions

HB 1595 includes several significant amendments and repeals:

  1. Workers' Compensation Insurance Plan:

    • Grants the Insurance Commissioner the authority to delegate responsibilities for establishing and operating the Arkansas Workers' Compensation Insurance Plan.
    • Requires prior approval from the commissioner for any plan or amendments, ensuring oversight and competitive selection of plan administrators.

  2. Reciprocal Insurers:

    • Updates the bond requirements for attorneys representing domestic reciprocal insurers, ensuring that bonds are executed by authorized sureties and approved by the commissioner.

  3. Examinations of Service Corporations:

    • Mandates that examinations of hospital and medical service corporations occur at least every three years, enhancing regulatory oversight.

  4. Service of Process:

    • Clarifies the procedures for serving legal process against insurers, specifying methods for domestic and foreign insurers.

  5. Repeal of the Comprehensive Health Insurance Pool Act:

    • Eliminates the existing framework for the Arkansas Comprehensive Health Insurance Pool, which was intended to provide health insurance options for uninsurable residents. This repeal indicates a shift towards alternative mechanisms for providing health insurance coverage.

Impact

The enactment of HB 1595 will primarily affect:
- Insurance Companies: Changes in operational requirements and regulatory oversight will impact how insurers conduct business in Arkansas.
- Employers and Employees: The amendments to the Workers' Compensation Insurance Plan may influence how claims are managed and processed.
- Legal Practitioners: Attorneys working with reciprocal insurers will need to comply with updated bond requirements.
- Health Insurance Consumers: The repeal of the Comprehensive Health Insurance Pool Act may affect individuals seeking alternative health insurance coverage.

Legislative Timeline

  • February 26, 2025: Bill filed and referred to the Committee on Insurance & Commerce.
  • March 5, 2025: Committee recommended the bill do pass.
  • March 6, 2025: Bill passed in the House and transmitted to the Senate.
  • March 17, 2025: Bill passed in the Senate and returned to the House.
  • March 20, 2025: Notification that HB 1595 is now Act 349.

Conclusion

HB 1595 represents a significant overhaul of the Arkansas Insurance Code, aimed at improving regulatory clarity and operational efficiency within the state's insurance framework. The bill's provisions are designed to enhance oversight, promote competition, and streamline processes for insurers and consumers alike.

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

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