Vote Smart's Synopsis:

Vote to pass a bill that establishes a more sustainable system of property insurance for state owned property in Arkansas.

Highlights:

• Establishes a more sustainable system of property insurance for public schools, state supported institutions of higher education, and state-owned property (Sec. 1-26).

• Establishes the office of property risk within the department of transformation and shared services (Sec. 1-26).

• Amends 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 (Sec. 1-26).

• Establishes the state captive insurance program act (Sec. 1-26).

• Prohibits the use of public adjusting in property insurance claims (Sec. 1-26).

• Authorizes for the creation of a captive insurance company by the state of Arkansas.”

• Establishes 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 (Sec. 1-26).

• Specifies that these increases are not sustainable under the current system; that a new system for property insurance for public school, 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 (Sec. 1-26).

• ​​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 (Sec. 

• Specifies that the provisions of this bill shall take effect immediately upon passage and approval by the Governor (Sec. 1-26).

Full Bill Text