Arkansas Senate Bill SB481

Arkansas 2025 Regular Session

• Introduced: 3/17/25
• Refer: 3/17/25
• Report Pass: 4/1/25
• Engrossed: 4/2/25
• Refer: 4/2/25
• Report Pass: 4/9/25
• Enrolled: 4/15/25
• Chaptered: 4/18/25
• Passed: 4/18/25

Caption

To Create A More Sustainable System Of Property Insurance For Public Schools, State-supported Institutions Of Higher Education, And State-owned Property; And To Declare An Emergency.

Impact

The implementation of SB481 is expected to significantly reshape how property insurance is handled for public entities in Arkansas. By restructuring the existing public school and multi-agency insurance programs under a captive insurance model, the state aims to reduce premiums and enhance service delivery through more direct control and oversight. This includes provisions for more actuarially sound funding methods and the prohibition of public adjusting—a move that has drawn both support and criticism from different stakeholder groups.

Summary

Senate Bill 481 aims to create a more sustainable and efficient system of property insurance for public schools, state-supported institutions of higher education, and state-owned properties in Arkansas. The bill establishes the State Captive Insurance Program, which combines existing property insurance programs into one streamlined system. This change is designed to ensure proper valuation of properties and manage risks more effectively while addressing the increasing costs associated with property insurance.

Sentiment

General sentiment surrounding SB481 reflects a mix of support for its intent to stabilize insurance costs and concerns over its rigid approach to claims management without public adjusters. Proponents argue that it is a necessary reform to bring stability and accountability to the insurance process for public schools and state properties. Conversely, opponents express worries that the prohibition on public adjusting could lead to challenges for schools in effectively managing claims, potentially resulting in inadequate compensation during the claims process.

Contention

Key points of contention include the prohibition of public adjusting in the new insurance framework, with critics arguing that this limits schools’ options for effective advocacy during claims. Furthermore, the bill’s emphasis on centralized risk management raises concerns about local control and the ability of institutions to respond flexibly to their unique insurance needs. The overarching theme of the debate centers around balancing fiscal responsibility with ensuring adequate support and coverage for public educational institutions.