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HB 1950

TO PROTECT LICENSED FAMILY CHILDCARE HOMES FROM TERMINATION OF HOMEOWNERS INSURANCE COVERAGE; AND TO PROHIBIT DISCRIMINATION AGAINST LICENSED FAMILY CHILDCARE HOMES BY HOMEOWNERS INSURANCE PROVIDERS.

2025 Regular Session Introduced by Tyler Dees and 1 co-sponsor

HB 1950 protects licensed family childcare homes in Arkansas from insurance discrimination, ensuring coverage stability and requiring minimum liability insurance of $100,000.

Recommended for study in the Interim by the Committee on INSURANCE & COMMERCE- HOUSE
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Bill Summary · HB 1950

Summary of House Bill 1950

Bill Number: HB 1950
Title: To Protect Licensed Family Childcare Homes from Termination of Homeowners Insurance Coverage; and to Prohibit Discrimination Against Licensed Family Childcare Homes by Homeowners Insurance Providers
Status: Recommended for study in the Interim by the Committee on Insurance & Commerce - House
Introduced: April 01, 2025
Authors: Representative Torres, Senator Dees

Purpose and Intent

House Bill 1950 aims to protect licensed family childcare homes in Arkansas from the termination or non-renewal of their homeowners insurance policies solely due to their operation as childcare providers. The bill seeks to ensure that these homes are not discriminated against by homeowners insurance providers, thereby promoting the stability and viability of family childcare services in the state.

Key Provisions

The bill introduces several important provisions, including:

  1. Prohibition of Discrimination:

    • Homeowners insurance providers cannot cancel or refuse to renew a policy for a licensed family childcare home based solely on its operation as such, provided the home complies with all applicable Department of Education regulations.
    • Insurance providers are also prohibited from charging higher rates than those for homeowners insurance policies of similar size and value.

  2. Minimum Liability Insurance Requirement:

    • Operators of licensed family childcare homes must maintain a separate personal liability insurance policy with a minimum coverage of $100,000 per occurrence specifically for liabilities arising from their childcare operations.

  3. Notification and Remediation:

    • Insurance providers must give written notice to childcare home operators regarding any potential cancellation or non-renewal of their policy, along with an opportunity to remedy the situation without having to cease operations.

  4. Compliance and Proof of Insurance:

    • Operators are required to submit proof of their separate personal liability insurance policy to their homeowners insurance provider annually or upon renewal.
    • Compliance with local, state, and federal regulations is necessary to maintain eligibility for the protections offered by this bill.

  5. Enforcement:

    • The Department of Education is designated to enforce the provisions of this bill and will develop rules for its implementation.
    • Operators can file complaints with the Department if they believe their insurance provider has violated the bill's provisions.

  6. Severability Clause:

    • If any part of the bill is found unconstitutional or invalid, the remaining provisions will still be in effect.

Impact

The bill is expected to benefit licensed family childcare homes by providing them with greater security regarding their homeowners insurance coverage. This could lead to increased stability for childcare providers, potentially encouraging more families to enter the childcare business. Additionally, it aims to reduce discrimination from insurance providers, ensuring fair treatment for those operating licensed childcare services.

Legislative Timeline

  • April 01, 2025: Bill filed.
  • April 02, 2025: Read for the first time, rules suspended, read a second time, and referred to the Committee on Insurance & Commerce.
  • April 08, 2025: Withdrawn by author and recommended for study in the Interim by the Committee.

This summary provides an overview of HB 1950, highlighting its purpose, key provisions, and potential impact on licensed family childcare homes in Arkansas.

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

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