HB1950
To Protect Licensed Family Childcare Homes From Termination Of Homeowners Insurance Coverage; And To Prohibit Discrimination Against Licensed Family Childcare Homes By Homeowners Insurance Providers.
Last Action (April 1, 2025): Recommended for study in the Interim by the Committee on INSURANCE & COMMERCE- HOUSE
Sponsors
AI-Generated Summary
House Bill 1950 seeks to prevent homeowners insurance providers from cancelling or refusing to renew policies for licensed family childcare homes based solely on the operation of the childcare business. The bill prohibits insurers from charging higher premiums to these homes compared to other homeowners with similar property value or square footage. In exchange for these protections, operators of licensed family childcare homes are required to maintain a separate personal liability insurance policy of at least $100,000 per occurrence. Providers are required to give written notice and an opportunity for operators to remedy issues before cancelling coverage. The Department of Education is tasked with enforcing these provisions and can refer complaints to the State Insurance Department. Operators must provide proof of their separate liability coverage annually to remain eligible for these protections.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are operators of licensed family childcare homes in Arkansas, who will gain greater security in maintaining their homeowners insurance policies and protection against discriminatory rate hikes. Additionally, families and parents who rely on these home-based childcare services benefit from increased stability and the potential for a more robust supply of licensed childcare options within their communities.
Who Might Suffer?
Homeowners insurance providers operating in Arkansas would be negatively impacted as the bill restricts their underwriting discretion and ability to price policies based on their own assessment of the risks associated with running a home-based business. These providers may also face increased administrative burdens related to compliance and regulatory oversight from the Department of Education.
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