SB545

Senate Bill 545 establishes specific regulatory standards for how insurance companies document, investigate, evaluate, and settle claims in Arkansas. The bill mandates that insurers maintain comprehensive and accurate claim files subject to examination by the Insurance Commissioner. It sets strict timelines for the investigation of claims, generally requiring completion within 45 days, with a maximum allowable extension of 30 days. The legislation prohibits unfair practices, such as misrepresenting evidence, altering files, or providing financial incentives to employees for denying or underpaying claims. Additionally, it creates new standards for the appraisal process in first-party property insurance disputes, including requirements for the impartiality of appraisers and umpires and the prohibition of ex parte communications. The bill requires insurers to treat policyholders with equal regard and prohibits treating the claim evaluation process as adversarial. It also requires insurers to clearly communicate the reasons for any claim denials.