Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1811 3
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By: Representative Steimel 5
By: Senator B. Johnson 6
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For An Act To Be Entitled 8
AN ACT TO AMEND PROPERTY AND CASUALTY LAW; TO REQUIRE 9
REASONABLE PROOF OF PAYMENT OF A DEDUCTIBLE TO RECOUP 10
RECOVERABLE DEPRECIATION UNDER PROPERTY AND CASUALTY 11
LAW; AND FOR OTHER PURPOSES. 12
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Subtitle 15
TO AMEND PROPERTY AND CASUALTY LAW; AND 16
TO REQUIRE REASONABLE PROOF OF PAYMENT 17
OF A DEDUCTIBLE TO RECOUP RECOVERABLE 18
DEPRECIATION UNDER PROPERTY AND CASUALTY 19
LAW. 20
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
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SECTION 1. Arkansas Code Title 23, Chapter 88, Subchapter 1, is 24
amended to add an additional section to read as follows: 25
23-88-107. Reasonable proof of payment for deductible — Recoverable 26
depreciation — Definitions. 27
(a) As used in this section: 28
(1) "Fraudulent insurance act" means the same as defined in § 29
23-66-501; 30
(2) "Person" means an individual, corporation, association, 31
partnership, limited liability company, or other legal entity; 32
(3) "Property insurance policy" means an insurance policy issued 33
by a property and casualty insurer that provides first -party coverage for 34
loss or damage to real property; and 35
(4)(A) "Reasonable proof of payment" means evidence of payment. 36 HB1811
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(B) "Reasonable proof of payment" includes: 1
(i) A canceled check; 2
(ii) A money order receipt; 3
(iii) A credit card statement; 4
(iv) A copy of an executed installment plan 5
contract; or 6
(v) Another financing arrangement that requires full 7
payment of a deductible over time. 8
(b)(1) A person insured under a property insurance policy shall pay 9
any deductible applicable to a first -party claim made under the property 10
insurance policy. 11
(2) A person that fails to pay a deductible applicable to a 12
first-party claim under subdivision (b)(1) of this section is committing a 13
fraudulent insurance act. 14
(c) A person that waives a deductible, provides a rebate in lieu of a 15
deductible, or otherwise does not require a deductible to be paid under a 16
property insurance policy is committing a fraudulent insurance act. 17
(d) A property and casualty insurer that issues a property insurance 18
policy with replacement cost coverage may refuse to pay a claim for withheld 19
recoverable depreciation or a replacement cost holdback under the property 20
insurance policy until the insurer receives reasonable proof of payment by 21
the policyholder of any deductible applicable to the claim filed under the 22
property insurance policy. 23
(e) A person that violates this section is subject to the Trade 24
Practices Act, § 23-66-201 et seq. 25
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