HB1193

House Bill 1193 requires motor vehicle liability insurers to include both the insured (or third-party claimant) and the vehicle's lienholder as joint payees on insurance settlement payments. This mandate applies when a claim for damages to a motor vehicle is filed. However, the bill provides specific exemptions to this requirement. Specifically, the insurer does not need to include the lienholder if the lienholder lacks a physical location in Arkansas. Furthermore, even if a lienholder has a physical location in the state, the requirement is waived if the total claim amount is less than $2,500, or if the insurer issues the payment directly to the repair facility performing the work.