The Arkansas State Legislature has passed HB1821, a bill that aims to set up a property captive for public education facilities in the State.
The Act has been drafted to: “create a more sustainable system of property insurance for public schools, state supported institutions of higher education, and state-owned property; to create the office of property risk within the department of transformation and shared services; to amend the public elementary and secondary school insurance act; to revise the employee benefits division oversight subcommittee; to amend the Arkansas multi-agency insurance trust fund act; to combine public elementary and secondary schools with state-supported institutions of higher education and state-owned property under a single program to ensure proper valuation for property insurance purposes; to create the state captive insurance program act; to prohibit the use of public adjusting in property insurance claims; to allow for the creation of a captive insurance company by the state of Arkansas.”
The bill also declares an emergency over: “an instability in the property insurance industry has led to increases in costs for public schools, state supported institutions of higher education, and taxpayers for state-owned property; that these increases are not sustainable under the current system; that a new system for property insurance for public schools, state-supported institutions of higher education, and state-owned property is needed to alleviate the impact of high costs and provide a greater amount of certainty concerning costs; and that this act is immediately necessary because it establishes a new system for property insurance for public schools, state supported institutions of higher education, and state-owned property to allow for better utilization of state resources and greater control to regulate costs.”
The bill, having been passed, now goes to the Insurance & Commerce – Senate committee for further inspection and debate.
For more information contact the Arkansas State Legislature page about HB1821 here.
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Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.