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 1950 3
4
By: Representative Torres 5
By: Senator Dees 6
7
For An Act To Be Entitled 8
AN ACT TO PROTECT LICENSED FAMILY CHILDCARE HOMES 9
FROM TERMINATION OF HOMEOWNERS INSURANCE COVERAGE; TO 10
PROHIBIT DISCRIMINATION AGAINST LICENSED FAMILY 11
CHILDCARE HOMES BY HOMEOWNERS INSURANCE PROVIDERS; 12
AND FOR OTHER PURPOSES. 13
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Subtitle 16
TO PROTECT LICENSED FAMILY CHILDCARE 17
HOMES FROM TERMINATION OF HOMEOWNERS 18
INSURANCE COVERAGE; AND TO PROHIBIT 19
DISCRIMINATION AGAINST LICENSED FAMILY 20
CHILDCARE HOMES BY HOMEOWNERS INSURANCE 21
PROVIDERS. 22
23
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
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SECTION 1. Arkansas Code Title 23, Chapter 88, is amended to add an 26
additional subchapter to read as follows: 27
Subchapter 6 — Prohibition of Discrimination Against Licensed Family 28
Childcare Homes 29
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23-88-601. Purpose. 31
The purpose of this subchapter is to ensure that licensed family 32
childcare homes in Arkansas are protected from the termination or nonrenewal 33
of homeowners insurance based solely on their operation as licensed family 34
childcare homes. 35
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23-88-602. Definitions. 1
As used in this subchapter: 2
(1) "Homeowners insurance policy" means a type of property 3
insurance policy that provides financial protection against certain risks 4
associated with homeownership; 5
(2) "Licensed family childcare home" means a residence licensed 6
by the Department of Education to provide childcare services to a specified 7
number of children; 8
(3) "Personal liability insurance policy" means an insurance 9
policy that provides coverage for claims made against the insured for bodily 10
injury or property damage caused by the insured's negligence; and 11
(4) "Separate personal liability insurance policy" means an 12
insurance policy that provides a minimum coverage of one hundred thousand 13
dollars ($100,000) per occurrence specifically for liabilities arising from 14
operation of a licensed family childcare home. 15
16
23-88-603. Protection from insurance cancellations — Discrimination 17
against licensed family childcare homes prohibited — Minimum personal 18
liability insurance required. 19
(a) A homeowners insurance provider shall not: 20
(1) Cancel or refuse to renew a homeowners insurance policy of a 21
licensed family childcare home based solely on the operation of a licensed 22
family childcare home if the licensed family childcare home meets or exceeds 23
all applicable rules of the Department of Education; or 24
(2) Charge rates that exceed the rate amount of a homeowners 25
insurance policy with the same square footage or value. 26
(b) An operator of a licensed family childcare home shall maintain a 27
separate personal liability insurance policy with a minimum coverage amount 28
of one hundred thousand dollars ($100,000) per occurrence in addition to the 29
operator's homeowners insurance policy. 30
(c) A homeowners insurance provider shall provide: 31
(1) Written notice to a licensed family childcare home of any 32
reason for potential cancellation of the homeowners insurance policy or 33
nonrenewal of the homeowners insurance policy; and 34
(2) An opportunity for an operator of a licensed family 35
childcare home to remedy the situation that resulted in the potential 36 HB1950
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cancellation of the homeowners insurance policy or nonrenewal of the 1
homeowners insurance policy that does not include ceasing operations of the 2
licensed family childcare home. 3
4
23-88-604. Responsibilities of operators of licensed family childcare 5
homes. 6
(a) An operator of a licensed family childcare home shall submit proof 7
of the operator's separate personal liability insurance policy to the 8
operator's homeowners insurance provider annually or upon renewal of the 9
operator's homeowners insurance policy. 10
(b) An operator of a licensed family childcare home shall comply with 11
all local and state rules and federal regulations regarding the operation of 12
a licensed family childcare home to remain eligible for the protections 13
described in this subchapter. 14
15
23-88-605. Enforcement. 16
(a)(1) The Department of Education shall enforce this subchapter. 17
(2) The Department of Education shall promulgate rules to 18
implement and administer this subchapter. 19
(b)(1) An operator of a licensed childcare facility may file a 20
complaint with the Department of Education if the operator believes the 21
operator's homeowners insurance provider has violated this subchapter. 22
(2) If an operator of a licensed childcare facility files a 23
complaint with the Department of Education under subdivision (b)(1) of this 24
section shall make a referral to the State Insurance Department. 25
26
23-88-606. Severability. 27
If any provision of this subchapter is found to be unconstitutional or 28
otherwise invalid, the remaining provisions shall continue in effect. 29
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