SB350

Senate Bill 350 amends Arkansas Code § 23-79-208(a)(1) to increase the penalty percentage for insurance companies that fail to pay loss claims within the time specified in a policy after a demand is made. Currently, insurers who default on these payments are liable for an additional twelve percent of the loss amount, along with reasonable attorney's fees. This bill proposes raising that statutory penalty from twelve percent to twenty-five percent. The bill applies to a broad range of insurance entities, including casualty, fidelity, health, life, and property insurance providers. The purpose of the act is to increase the financial liability of insurers that delay or fail to process legitimate loss claims in a timely manner.