Insurance & Commerce- House
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Bills discussed (22)
| Bill | Title | Sponsor | Status |
|---|---|---|---|
|
SB350
· 5 mentions in chapter, transcript, agenda
Matched: “SB350 J. Bryant TO INCREASE THE PERCENTAGE FOR DAMAGES ON LOSS CL…”
|
TO INCREASE THE PERCENTAGE FOR DAMAGES ON LOSS CLAIMS UNDER AN INSURANCE POLICY. | J. Bryant | Died in House Committee at Sine Die Adjournment |
|
HB1020
Act 795
· 2 mentions in agenda, chapter
Matched: “…Johnson CONCUR IN SENATE AMENDMENT Number Sponsor Subtitle HB1020 Maddox TO AMEND THE UNIFORM LIMITED LIABILITY COMPANY ACT;…”
|
TO AMEND THE UNIFORM LIMITED LIABILITY COMPANY ACT; AND TO REVISE CHARGING ORDERS UNDER THE … | Maddox | Notification that HB1020 is now Act 795 |
|
HB1277
· 2 mentions in agenda, chapter
Matched: “…G RETIREMENT REVIEW. DEFERRED BILLS Number Sponsor Subtitle HB1277 L. Johnson TO REGULATE A PRUDENT LAY PERSON REVIEW PROCESS…”
|
TO REGULATE A PRUDENT LAY PERSON REVIEW PROCESS BY AN INSURER; AND TO PROHIBIT THE … | L. Johnson | Died in House Committee at Sine Die Adjournment |
|
HB1304
· 2 mentions in agenda, chapter
Matched: “…DICAL PROFESSIONAL TO REVIEW A PRUDENT LAY PERSON DECISION. HB1304 Ennett TO MANDATE COVERAGE FOR PRENATAL VITAMINS. HB1356 L.…”
|
TO MANDATE COVERAGE FOR PRENATAL VITAMINS. | Ennett | Died in House Committee at Sine Die Adjournment |
|
HB1356
· 2 mentions in chapter, agenda
Matched: “HB1356 L. Johnson CONCERNING THE PRACTICES OF CERTAIN HEALTHCARE I…”
|
CONCERNING THE PRACTICES OF CERTAIN HEALTHCARE INSURERS; AND TO CLARIFY THE PROCESS TO DETERMINE IF … | L. Johnson | Died in House Committee at Sine Die Adjournment |
|
HB1361
· 2 mentions in chapter, agenda
Matched: “HB1361 McGrew TO AMEND THE REAL ESTATE LICENSE LAW; TO CREATE A PR…”
|
TO AMEND THE REAL ESTATE LICENSE LAW; TO CREATE A PROPERTY MANAGER LICENSE REQUIREMENT; AND … | McGrew | Died in House Committee at Sine Die Adjournment |
|
HB1477
· 2 mentions in agenda, chapter
Matched: “…ABILITY COMPANY ACT. REGULAR AGENDA Number Sponsor Subtitle HB1477 Pilkington TO AMEND THE ARKANSAS ELECTRIC UTILITY AND GAS U…”
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TO AMEND THE ARKANSAS ELECTRIC UTILITY AND GAS UTILITY STORM RECOVERY SECURITIZATION ACT; TO EXEMPT … | Pilkington | Died in House Committee at Sine Die Adjournment |
|
HB1500
· 2 mentions in chapter, agenda
Matched: “HB1500 Achor TO MODIFY THE ARKANSAS PHARMACY BENEFITS MANAGER LICE…”
|
TO MODIFY THE ARKANSAS PHARMACY BENEFITS MANAGER LICENSURE ACT. | Achor | Died in House Committee at Sine Die Adjournment |
|
HB1573
· 2 mentions in agenda, chapter
Matched: “…RM RECOVERY COSTS AND CHARGES; AND TO DECLARE AN EMERGENCY. HB1573 McGrew TO AMEND THE LAW CONCERNING THE ARKANSAS REAL ESTATE…”
|
TO AMEND THE LAW CONCERNING THE ARKANSAS REAL ESTATE COMMISSION; TO CREATE A PROPERTY MANAGEMENT … | McGrew | Died in House Committee at Sine Die Adjournment |
|
HB1620
· 2 mentions in agenda, chapter
Matched: “…NTAGE FOR DAMAGES ON LOSS CLAIMS UNDER AN INSURANCE POLICY. HB1620 Long TO CREATE THE SECOND AMENDMENT FINANCIAL PRIVACY ACT;…”
|
TO CREATE THE SECOND AMENDMENT FINANCIAL PRIVACY ACT; TO PROHIBIT FINANCIAL INSTITUTIONS FROM USING CERTAIN … | Long | Died in House Committee at Sine Die Adjournment |
|
HB1628
· 2 mentions in chapter, agenda
Matched: “HB1628 S. Meeks TO PROHIBIT COVENANT NOT TO COMPETE AGREEMENTS; AN…”
|
TO PROHIBIT COVENANT NOT TO COMPETE AGREEMENTS; AND TO AMEND THE LAW CONCERNING A COVENANT … | S. Meeks | Died in House Committee at Sine Die Adjournment |
|
HB1630
· 2 mentions in agenda, chapter
Matched: “…END THE LAW CONCERNING A COVENANT NOT TO COMPETE AGREEMENT. HB1630 Long TO REQUIRE SPECIFIC PERFORMANCE AS THE REMEDY FOR THE…”
|
TO REQUIRE SPECIFIC PERFORMANCE AS THE REMEDY FOR THE BREACH OF CONTRACTS THAT INCLUDE CERTAIN … | Long | Died in House Committee at Sine Die Adjournment |
|
HB1770
· 2 mentions in agenda, chapter
Matched: “…RY PRACTICES; AND TO PROVIDE FOR ENFORCEMENT OF VIOLATIONS. HB1770 G. Hodges TO REPEAL THE SERVICE CONTRACTS ACT; TO TRANSFER…”
|
TO REPEAL THE SERVICE CONTRACTS ACT; TO TRANSFER THE DUTIES OF REGULATION OF SERVICE CONTRACTS … | G. Hodges | Recommended for study in the Interim by Joint … |
|
SB181
Act 876
· 2 mentions in agenda, chapter
Matched: “…ANY GAIN REALIZED FROM THE SALE OF CERTAIN PRECIOUS METALS. SB181 K. Hammer TO MANDATE COVERAGE FOR USE OF INTRAVENOUS IMMUNO…”
|
TO MANDATE COVERAGE FOR USE OF INTRAVENOUS IMMUNOGLOBULIN TO TREAT CERTAIN PEDIATRIC DISORDERS CAUSED BY … | K. Hammer | Notification that SB181 is now Act 876 |
|
SB351
· 2 mentions in transcript
Matched: “…le and pay out their claim in a timely manner. Then I filed Senate Bill 351, which is more the nuclear option that was a right to file…”
|
TO CREATE A CAUSE OF ACTION FOR BREACH OF AN IMPLIED COVENANT OF GOOD FAITH … | J. Bryant | Sine Die adjournment |
|
SB454
Act 701
· 2 mentions in chapter, agenda
Matched: “SB454 M. McKee CONCERNING PUBLIC UTILITY CONTRACTS FOR INTERRUPTI…”
|
CONCERNING PUBLIC UTILITY CONTRACTS FOR INTERRUPTIBLE SERVICE. | M. McKee | Notification that SB454 is now Act 701 |
|
SB484
Act 708
· 2 mentions in agenda, chapter
Matched: “…CERNING PUBLIC UTILITY CONTRACTS FOR INTERRUPTIBLE SERVICE. SB484 C. Tucker TO MODIFY THE LAW CONCERNING CHARITABLE ORGANIZAT…”
|
TO MODIFY THE LAW CONCERNING CHARITABLE ORGANIZATIONS; TO CLARIFY CONTRIBUTIONS OF CHARITABLE ORGANIZATIONS; AND TO … | C. Tucker | Notification that SB484 is now Act 708 |
|
SB513
Act 715
· 2 mentions in chapter, agenda
Matched: “SB513 M. Johnson TO AMEND THE LAW CONCERNING ANNUAL DISCLOSURES F…”
|
TO AMEND THE LAW CONCERNING ANNUAL DISCLOSURES FOR THE SECRETARY OF STATE; TO AMEND THE … | M. Johnson | Notification that SB513 is now Act 715 |
|
SB536
Act 718
· 2 mentions in agenda, chapter
Matched: “…S FOR CERTAIN BUSINESS ENTITIES FOR THE SECRETARY OF STATE. SB536 Irvin TO AMEND THE ARKANSAS AFFORDABLE ENERGY ACT; AND TO A…”
|
TO AMEND THE ARKANSAS AFFORDABLE ENERGY ACT; AND TO AMEND THE LAW REGARDING RETIREMENT REVIEW. | Irvin | Notification that SB536 is now Act 718 |
|
HB1259
· 1 mention in chapter
Matched: “HB1259 L. Johnson TO CREATE THE HEALTHCARE COST-SHARING COLLECTION…”
|
TO CREATE THE HEALTHCARE COST-SHARING COLLECTIONS ACT. | L. Johnson | Died in House Committee at Sine Die Adjournment |
|
HB1585
· 1 mention in chapter
Matched: “HB1585 Maddox TO CREATE THE DELIVERY NETWORK COMPANY INSURANCE ACT…”
|
TO CREATE THE DELIVERY NETWORK COMPANY INSURANCE ACT. | Maddox | Died in House Committee at Sine Die Adjournment |
|
HB1820
· 1 mention in chapter
Matched: “HB1820 Beaty Jr. TO AMEND THE LAW REGARDING ENERGY; TO AMEND THE L…”
|
TO AMEND THE LAW REGARDING ENERGY; TO AMEND THE LAW CONCERNING COAL-POWERED ELECTRICAL GENERATION FACILITIES; … | Beaty Jr. | Died in House Committee at Sine Die Adjournment |
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Representative Ryan A. Rose
Unverified
0:00
Members, let's call this meeting into order. Senator Bryant is already at the end of the table. I believe you're here on SB 350. Yes, Mr. Chair. If you don't
mind, go ahead and just introduce yourself for the record, and you may proceed with your bill. Thank
Senator Joshua Bryant
Unverified
0:17
you, Mr. Chair. Thank you, Committee. Joshua Bryant, State Senate, District 32. This bill, Senate Bill 350, is a simple change to a code that was established in 1949 and has not been touched since. And the reason that we came about is I was contacted by a constituent that had an insurance claim that he's been fighting for two years over a roof issue.
And then it became a second claim with a separate property with a separate insurance company. And he was pushing through his claim, and they kept giving excuses. They kept asking for more information to the point where he had to go to the Insurance Commission and report it and then open up a case and work that dialogue. And so as I was addressing Rule 43, which governs the insurance world for the state of Arkansas, I found there were several issues that needed to be addressed.
So I filed two bills. I filed this bill, Senate Bill 350, which ultimately adjusts this, and what this is is an incentive for insurance companies to come to the table and pay out their claim in a timely manner. Then I filed Senate Bill 351, which is more the nuclear option that was a right to file suit, a right to a claim against an insurance company for bad faith. And that obviously fleshed out trial attorneys that had issues with insurance companies and insurance companies that did not want the target to move and so we fleshed out
with Senate bill 351 that the rules do need to be amended and changed and and had great dialogue with that but at the end of the day our consumers our citizens of Arkansas are still dealing with insurance companies delaying the claim delaying timely payment of the claim so what this bill does is it Increases that incentive for them to file their to to pay the claim from 12% established in 1949 To 25% to get them to come to the table faster and actually make good on their on their claim
So the reason for the statute is just merely to be a deterrent to make sure that our insurance companies are acting in good faith This only applies to breach of contract claims which means only if a carrier forces suit to be filed in a court of law and then is in violation of the time limits deemed by the courts will these penalties be assessed and charged and so instead of 12% on a $50,000 policy claim it moves it to 25% of the $50,000 policy claim in addition to reasonable attorney fees
and everything else allowed by statute. So these insurance companies know they'll be penalized currently at a rate of 12% which may not obviously I believe is not enough of a factor to get them to come to the table and and pay in a timely manner but I believe 25% will move that ball a little bit faster to get them there now the question I had concerns with is does this affect our premium rates because if they are paying more out by being you know potentially bad faith as determined by a court or raise our premiums the answer is
absolutely not you can't that's an administrative cost that cannot that the insurance company will our department will not allow to be considered into premium factors so that's that's what I bring for you to be here today
Representative Ryan A. Rose
Unverified
3:42
and I'll be glad to answer any questions thank you senator questions by the committee good
Chair
Unverified
3:51
seeing none I do not know that anyone has
Representative Ryan A. Rose
Unverified
3:56
signed up to speak for against but I see someone standing so mr. Smith if you would come and introduce yourself and who you're with and proceed with your testimony.
Derek Smith
Unverified
4:08
Good afternoon, Mr. Chair of the Committee. My name is Derek Smith. I'm an attorney with
Chair
Unverified
4:14
the Mitchell-Williams, Sealy-Gates & Woodyard Law Firm here in Little Rock, Arkansas, where I specialize in the regulation of insurance companies. And today I'm authorized to speak on behalf of State Farm Insurance Company. Just quickly, a couple of points. One, I think as far as the 12% interest, It's our understanding that that was imposed in 1991, and the question has been, how does
that relate to general interest rates? In 1991, when that was established, the prime interest rate was 9%, which is greater than it is now. So carriers are not holding funds in an effort to save interest or make money on delaying paying claims. The business of insurance is to take on risk and to pay justified claims. On occasion, claims are paid late, and the legislature, in its wisdom, has imposed a 12% penalty.
That penalty is in line with the penalty statutes in almost every other jurisdiction. The proposal to more than double the penalty would have Arkansas as the second-highest statutory penalty in the country. Only one other state that I'm aware of has a penalty that really exceeds 18%. Most are in the range of 10 to 15 percent, and other states tend to have a prime rate plus. So because this proposal would put Arkansas way out of line with other states
and really does nothing to promote the payment of timely claims because the insurance department can investigate practices where carriers intentionally delay claims payment, We opposed the bill and would ask for a no vote. Happy to take any questions. Thank you for your testimony. Mr. Smith,
would you be willing to accept some questions? Absolutely. I see my friend, Representative. Looks like Representative is ready. The first person I noticed was Representative Eaves.
Speaker 13
6:15
You're recognized for a question. Well, I'm not sure my question is really, I guess, maybe for him and, sorry, Senator Bryant now. Are you saying the 12% was based on some math on the old year ago, 1991 or 1992 interest rate? And if that is the case, what is the 25% based on now, or is it just some trial lawyer random number? And I apologize. Either one can answer either way.
Derek Smith
Unverified
6:46
I don't care. I think I'll take the first
Chair
Unverified
6:50
half and let Senator Bryan address the second half. The 12%, I don't think it was necessarily based on an existing number. That tends to be where most states have landed. I was just comparing that to the interest rates that you could earn at the time it was placed. But I don't know if that was the basis for the selection. All
Senator Joshua Bryant
Unverified
7:07
right. Yeah, I will say when I asked Bialardo to research that 12%, she sent me a screenshot of a picture. She had to go down and take a picture of an actual book. And I misspoke her.
It was Act 148 of 1950. is when that 12% was codified. And so it hasn't changed since 1959. And the reason for 12%, I just, you know, it's been, how many years is that, 60 years? And everything goes up. Interest rates goes up, the cost of goods, cost of services, cost of life, inflation, everything has gone up. So I just simply doubled, you know, times two, added one, asked the insurance department,
asked several different people in the industry obviously not I didn't ask the
Speaker 13
7:52
insurance companies what they thought would be reasonable so that 25% in your bill would be 25% penalty of the total claim yeah yes attorneys fees yeah again only only established by
Senator Joshua Bryant
Unverified
8:06
a court because the courts found that the that the insurance companies did not pay in a timely manner and are forcing them to pay and get to the table. Because right now, so they would pay the claim plus 25 percent plus
Speaker 13
8:21
attorney's fees. Correct. Okay, let me digest that for a second. I'll
Derek Smith
Unverified
8:26
come back. And I would only mention as far
Chair
Unverified
8:31
as expense and things, the beauty of a rate is that as claim cost goes up, so with the penalty. If you, and so it levels out. And I would note that when interest rates were at virtually zero the past 10 years. Insurance companies didn't come in to ask to reduce the rate.
Representative Flowers, you recognize for a
Representative Vivian Flowers
Unverified
8:58
question. Thank you, Mr. Chair. I don't know who would answer this, but
and maybe it would be the insurance department, but what kinds of claims have we seen with the current rate? Like, have we seen annually an average of, you know, 10 complaints, and then it turns out that of those 10 complaints,
two of those complaints bear out that the insurance company, you know, flagrantly sort of eked out time? Or, like, what is that? What does it currently look like in terms of the impact of
Senator Joshua Bryant
Unverified
9:45
the current rate? I don't know. Yeah, I found three recent cases within the last year where courts have imposed a 12% penalty,
and then the providers have tried to reject that claim in the courts, but basically on various different reasons from that they eventually did come to the table because the courts were going to, you know, the things that got flushed out in court, they were going to come to the table, so they decided to pay the claim and the attorney's fees, but they omitted that, so the attorney had to go back and get, again, this is for consumers, get that consumer their payment for their punitive suffering
for having to wait two years or three years or whatever that, you know, when the claim got filed, and they just keep, the insurance company just keep dragging their feet because there is no incentive to get them there until the courts make them go there. Then that's the incentive, is the courts make them, but the 12% was there. So I don't think the insurance department keeps those statistics. They had other statistics, such as how many claims get filed and how many times they step in to try to mediate that. But I don't know if I can answer.
Representative Deborah Ferguson
Unverified
11:01
Representative Ferguson, you recognized. i i think you may have answered my question you you had addressed it initially as a property and casualty claim but it would also apply to compensatory and punitive damages for a liability claim is that right
Representative Kenneth B. Ferguson
Unverified
11:22
either i will just just read it because it's broad and
Senator Joshua Bryant
Unverified
11:26
it's it's it's not you know entrances at my world so i'll rely on anybody in the industry but it's cargo property marine casualty
fidelity surety cyclone tornado life accident health medical hospital and surgical benefit insurance companies and fraternal benefit society or farmers mutual aid so
Representative Deborah Ferguson
Unverified
11:42
we're going to pay an additional 25 on a liability punitive damage claim is that correct and plus attorney's face of 30 percent yeah yeah currently it's 12 percent
Senator Joshua Bryant
Unverified
11:54
and and attorney's fees again only if only if it was brought to suit because of of bad faith or you know not wanting to pay the claim and proven
that it was it was not on behalf of fault of the of the insurance of the policy holder but that the policy maker was doing that sounds like a trial lawyer stream bill I'd like I'd just like to dance that I am it may but trial lawyers weren't this is this was constituent and it was me having these conversations to say what what do we do to get insurance companies to to start acting in better faith and if anybody was lobbied by trial lawyer that wasn't
I don't think anybody is because they haven't kind of shook
Chair
Unverified
12:48
my hand. Representative Perry, you're recognized for a question. Thank you, Mr. Chairman. So Senator or Mr.
Representative Mark Perry
Unverified
12:54
Smith, either one, being 37 years in the insurance business, I look at this and I can understand the reasoning. The insurance department has people in place to help consumers. In fact, I've referred several to the Consumer Protection Division to help them get involved to make sure things get settled properly.
Even with all the, I mean, our Jacksonville is hit with a tornado, and I see all the CAT adjusters, that's catastrophe adjusters, coming in to settle these claims. They've got to be done in a timely manner. But out of the three that you found, Case, what types of claims were those? They weren't a roof claim. I mean, something like that, a good agent should have referred them to the insurance department and had that resolved probably within a matter of 30, 45 days.
I don't do roof stuff anymore, by the way. I'm not soliciting business here. So, you know, years ago when I did this, I did a lot of commercial insurance, and I got certified to do medical malpractice. And I never forget, you know, handling some of the claims and issuing. Those aren't things you settle in a timely manner, especially if death was involved. You know, there's a lot of research and studies to do
and people to witness and testify, and you go to court, and those cases take a year to two years, sometimes three, and they're million-dollar settlements. I'm
Speaker 6
14:36
sorry, Representative Perry, we're still in question phase. Yes, so when those
Representative Mark Perry
Unverified
14:41
amounts come down to it, you said earlier those would not be included in the rate structure, but I don't see how that could be. Can you verify and have someone from the insurance department clarify that that amount paid is not factored into the rating structure?
Senator Joshua Bryant
Unverified
15:03
There's your question. Let me just let me go to it. So Mr. Booth-Rand lost his house in a tornado. So he's very occupied. So the question I asked this morning at 8.13 a.m. to Mr. Alan McLean and Booth-Rand. Can or do the insurance companies include the 12% fine in their loss categories to pass on to consumer and affect rates? Mr. Rand stated, I don't think so.
The questions will be for Jimmy. Mr. McClain said, no, that would be considered an administrative penalty, so that would not be allowed. Booth Rand says, he says, no, they can't. Commissioner, read me to it. And then he said, hard to do that. But they
both confirmed that it cannot be passed along as
Chair
Unverified
15:53
a rate structure for penalty. If I may. While the penalty itself may not be part of the rate structure, I do want to remind the committee that every lawsuit that's brought against a carrier is not successful.
And under this statute, the attorney's fees that carriers have to pay to defend themselves against unsuccessful suits, those can't be recovered by the insurance company from the claiming party. So those are expenses that can be included within the rate structure, and it's our belief that raising the penalty at such a large rate and to such a degree will encourage some invalid claims, will increase attorney's fees, and will increase premium costs.
Representative Les Warren
Unverified
16:42
Representative Warren, you recognize for a question? I guess my question is, Is this just a few bad apples or is this a, like, just a few companies that over and over don't try to settle? Or is this across-the-board companies, insurance companies that don't settle? What are we looking at here? As far as how many?
Well, I mean, is this a common practice? Well, how many are dragging out settling? I mean, because what I'm hearing is there's a problem with people settling with the insurance companies. Is this a common practice? Is this something we're looking at happening on
Representative Kenneth B. Ferguson
Unverified
17:31
a regular basis? I would say is, you know, and you have to go back
Senator Joshua Bryant
Unverified
17:36
and watch the two different bills I ran in the Senate that got everybody to the fact that we've got to go into a rule change.
We've got to look at Rule 43 and start adding better timelines, better structuring, because there is an abundance of these cases being brought to the insurance department for them to navigate
and arbitrate between the carrier and the policyholder. Okay, so follow up. Were you
Representative Les Warren
Unverified
18:02
seeing a couple of particular companies, or was it just any and all companies? Any and all. Okay, thank you. Representative
Chair
Unverified
18:12
Brown, you're right now for a question.
Representative Matt Brown
Unverified
18:21
that last comment I just heard, and I'm just going to comment back, I mean, some insurance companies are more highly rated, and it's because they do pay quickly and they have more ethical practices. But it sounds to me, I'm just reading this bill, this doesn't deal just with medical malpractice. It would be if an insurance company or a life insurance policy did not pay or a property and casualty did not pay.
That's what I'm reading here. And I just want to make sure the additional penalty would not be added, would not be calculated on the attorney's fees. It would just simply be the attorney's fees that were incurred to collect the loss, correct? Is that how I'm reading this correctly?
Senator Joshua Bryant
Unverified
19:11
If I understand you right, yes, it's two separate. It's not 12% on the total amount of claim. That's awarded. It's just on the payment to the policyholder.
Representative Matt Brown
Unverified
19:21
So if I had a $100,000 life, if somebody had a $100,000 life insurance policy and I was the beneficiary and I reported the death and it didn't come and it didn't come and it didn't come, So if I had to go to court to collect my benefits and the judge said, well, you know, determined that I should get this 25% for damages, then it would be calculated only on the amount that I should have received.
It wouldn't be calculated on what I had to spend for an
Senator Joshua Bryant
Unverified
20:02
attorney to collect that money. Correct. Yeah, assuming you won. the judgment would be for your actual loss plus
your penalty plus your attorney's fees. Before we... Go ahead.
Speaker 48
20:14
No, I'm just... I don't... I haven't done this business for a while, but I'm just
Representative Matt Brown
Unverified
20:20
wondering how close... You know, I know there's a lot of insurance companies out there,
and some do have a better reputation than others, and I'm just wondering if this is, you know, some of the less reputable companies that are causing the problem, or if it's all of them.
Representative Ryan A. Rose
Unverified
20:37
Thank you. Thank you. So, members, I don't frankly know exactly what to do it this way. Everyone is getting back in the queue, it seems, and my recollection is the speaker said we're trying to go back at 6. So how I'm going to handle this is we're going to be deferential to the senator.
and however I mean I don't think he's going to want to stop at this stage obviously but I'm going to, we'll come back or we'll do whatever we need to do. We're already thinking we're going to have to meet again tomorrow but I want to defer to you on how you want to handle your bill but I think we're going to have to stop very soon unfortunately and I
Senator Joshua Bryant
Unverified
21:20
apologize for that so yeah I'm respectful of your time if you've got two or three I think we can knock them out.
Chair
Unverified
21:28
If you've got 10, then maybe. Well, it just depends on
Speaker 17
21:39
who's asking the question. Representative Evans, you're right in the middle. Thank you, Mr. Chair. Mine will be quick, and this may be for Mr. Smith. In line 3132, the last sentence says, together with all reasonable attorney fees. What is the practice of that? I mean, who determines what a reasonable attorney fee is? Not to say that an attorney wouldn't have a reasonable fee, but who decides that?
Chair
Unverified
22:01
The court. The courts decide what a reasonable fee is. Now, they will typically, if an attorney's fee will be awarded in a court action, the court will ask the plaintiff's attorney to submit evidence of their fees, and based on that, they will determine what's reasonable or not. Sometimes they adjust up or down, but based on what evidence or records the attorneys present in support of their fee request.
Representative Jim Wooten
Unverified
22:38
Thank you. Representative Wooten, do you recognize your question? First of all, I need a clarification. I need a
Senator Joshua Bryant
Unverified
22:58
clarification. on the 12%, was it 1948, 1959, or 1991? So what I received from BLR, that photo of a code
Representative Jim Wooten
Unverified
23:07
book was Act 148 of 1959. 59. Okay. My question is, were there extenuating circumstances in your constituent's case that caused the delay?
Did he have, was there situations or questions that was raised by the insurance company that maybe he didn't answer, or vice versa, or just what were the circumstances that
Senator Joshua Bryant
Unverified
23:40
created this dilemma for you? So those are still being addressed in the dialogue in the courts? It was, for his particular case, they did not want to pay out the maximum claim amount.
They made a low offer for that, so he had to go through and get an appraiser and then fight that battle, and every time it would come back up for review, the offer would go up another few hundred thousand dollars, and then he pushed back, and then the offer would go up another few hundred thousand dollars and they just until eventually they're getting to the point where it's closer to the to the claim amount okay one more one quick one do you
Representative Jim Wooten
Unverified
24:26
know how what was the you you say you found three cases in the past year do you know how many other do you
know how many claims or cases have ended up in court or how many no how many total claims are they're out there in the state each year. You may not be able to add to
that. But I mean, three seems like a small number.
Speaker 49
24:54
If you'll... We're running out of time. I do have
Senator Joshua Bryant
Unverified
24:59
some of that information because we pulled that data out and it was significant how many claims get brought before the insurance department.
But as far as making it to the
Representative Jim Wooten
Unverified
25:13
court, I do not know. Okay, but there were many more than just three claims filed is what I'm saying. I mean, I'm talking about total claims against all the insurance companies. I do not know the total number.
Senator Joshua Bryant
Unverified
25:26
Okay. That made it to court. Again, this is just if suit. This is just three that were adjudicated. Yes.
Representative Jim Wooten
Unverified
25:34
Okay. Thank you. Thank you, Mr. Chairman. Sorry, committee. Thank you.
Speaker 70
25:40
Representative Flowers. It sounds like the
Representative Vivian Flowers
Unverified
25:46
process starts with a complaint and then goes all the way through a court process after the delay, after someone saying, hey, this is taking an inordinate amount
Chair
Unverified
26:04
of time. Actually, the statutory penalty applies any time a claim is paid beyond the statutory or regulatory time periods.
So even without involving a court or an attorney, if a claim is paid beyond the timelines required by statute or by Rule 43, the claimant is entitled to the penalty, whether they bring an action or not. Now, there are times, if you have a dispute over the value of the claim and you're successful, but the amount that you win is a percentage less than what you actually ask for,
then you may not be entitled to it. But generally, any time a claim is paid beyond timelines, the
Representative Vivian Flowers
Unverified
26:53
claimant's entitled. I'm sorry? When does that happen? Does that happen
Derek Smith
Unverified
26:57
often and under what circumstances? Would
Representative Vivian Flowers
Unverified
27:00
you collect less than you? Would the insurance company pay beyond that time
Chair
Unverified
27:05
frame? I can't tell you how often it happens. I can tell you that the Arkansas Insurance Department is vested with the authority to investigate practices
where insurers routinely pay beyond the timelines and can take action involving significant fine up to and including revoking a license.
Speaker 12
27:34
Well, committee, if you'll let me close.
Representative Ryan A. Rose
Unverified
27:38
Absolutely. If you're ready. Yep, and if I compel any member to give a motion,
I'll I'll take it at the at the will of the committee you absolutely right senator and I saw a couple in the queue if they'll if
Senator Joshua Bryant
Unverified
28:00
they'll give me that latitude um I'd be glad so so just if that's okay with you I don't does not bother me at all so again this this is only if you're a good actor it's it's like you know a sentence of a of a felony. If you're a good actor, you don't have to worry about this. It's the bad actors
because this is, and I want insurance companies to be successful and be profitable in the state of Arkansas. But many of them, since there is nothing that can put the teeth in the consumer, again, as I fleshed out those other bills, there are many that have just 12% is worth it because if they can prolong you and prolong you and get you and whittle you down to take less money, they're going to win.
And so what this does is force them, because that 25% that I'm asking, it goes to the consumer for dealing with insurance companies that are acting in bad faith. And so I want them to be successful. But at the same time, as hundreds of million dollar business comes through the state of Arkansas, we also want to protect Arkansans. So if you've ever thought of a time that you have thought they've been acting in bad faith or in the future when you feel that it's in bad faith, how do you get them to deal with it?
You get them on the front end to say, if you do not deal with
Representative Ryan A. Rose
Unverified
29:35
this, there are repercussions. So that's that's my spiel, and I'll close
for my bill. Thank you. Thank you, Senator The senator that's closed for his bill What is the will of the committee? Representative Rose you're recognized. Motion do pass. Representative Rose has motion do pass. That's a proper motion Is there any discussion on the motion? Okay, seeing none all in favor of Representative Rose motion do pass say aye. Aye. Any opposed say no. No
I apologize, Senator. It appears your bill has failed. Thank you, committee, and keep this in the forefront because it's coming. Not this bill, but insurance issues are coming back. Thank you, Senator. Thank you, committee. Committee, one last. Could we go
Representative Robin Lundstrum
Unverified
30:22
ahead and run that one bill that has a short runway on that? I think that LLC bill could probably get out quickly tonight. It
Representative Ryan A. Rose
Unverified
30:30
can't. They have not been re-referred yet. That was the plan. Okay. So that's why we're having to – that was my – you stole my thunder.
We're going to have to meet tomorrow, so I apologize, committee. We're working on time in a room right now, so I'll let you know. Yes, sir. Mr. Chair, did you have an amendment to run yourself? Yes, but it has not been re-referred yet, is my understanding. So we're not allowed to do that. All right. There was our hope that we get it done, but they just haven't, and under the rules we cannot do it. So thank you. Thank you.
Agenda
CONCUR IN SENATE AMENDMENT
Number Sponsor Subtitle
HB1020 Maddox TO AMEND THE UNIFORM LIMITED LIABILITY COMPANY ACT; AND TO REVISE CHARGING ORDERS UNDER THE UNIFORM LIMITED LIABILITY COMPANY ACT.
REGULAR AGENDA
Number Sponsor Subtitle
HB1477 Pilkington TO AMEND THE ARKANSAS ELECTRIC UTILITY AND GAS UTILITY STORM RECOVERY SECURITIZATION ACT; TO EXEMPT CERTAIN DATA CENTERS FROM STORM RECOVERY COSTS AND CHARGES; AND TO DECLARE AN EMERGENCY.
HB1573 McGrew TO AMEND THE LAW CONCERNING THE ARKANSAS REAL ESTATE COMMISSION; TO CREATE A PROPERTY MANAGEMENT BROKER AND PROPERTY MANAGEMENT ASSOCIATE LICENSE; AND TO AMEND THE REAL ESTATE LICENSE LAW.
SB350 J. Bryant TO INCREASE THE PERCENTAGE FOR DAMAGES ON LOSS CLAIMS UNDER AN INSURANCE POLICY.
HB1620 Long TO CREATE THE SECOND AMENDMENT FINANCIAL PRIVACY ACT; TO PROHIBIT FINANCIAL INSTITUTIONS FROM USING CERTAIN DISCRIMINATORY PRACTICES; AND TO PROVIDE FOR ENFORCEMENT OF VIOLATIONS.
HB1770 G. Hodges TO REPEAL THE SERVICE CONTRACTS ACT; TO TRANSFER THE DUTIES OF REGULATION OF SERVICE CONTRACTS TO THE INSURANCE COMMISSIONER; TO ESTABLISH THE ARKANSAS SERVICE CONTRACTS ACT; AND TO REGULATE SERVICE CONTRACTS.
HB1820 Beaty Jr. TO AMEND THE LAW REGARDING ENERGY; TO AMEND THE LAW CONCERNING COAL-POWERED ELECTRICAL GENERATION FACILITIES; TO REQUIRE CERTAIN ACTIONS BEFORE DECOMMISSIONING OR DISPOSAL OF ASSETS; AND TO REQUIRE A STUDY.
HB1628 S. Meeks TO PROHIBIT COVENANT NOT TO COMPETE AGREEMENTS; AND TO AMEND THE LAW CONCERNING A COVENANT NOT TO COMPETE AGREEMENT.
HB1630 Long TO REQUIRE SPECIFIC PERFORMANCE AS THE REMEDY FOR THE BREACH OF
Notice: Silence your cell phones. Keep your personal conversations to a minimum. Observe restrictions designating areas as 'Members and Staff Only'.
CONTRACTS THAT INCLUDE CERTAIN PRECIOUS METALS AS CONSIDERATION; AND TO EXCLUDE FROM GROSS INCOME ANY GAIN REALIZED FROM THE SALE OF CERTAIN PRECIOUS METALS.
SB181 K. Hammer TO MANDATE COVERAGE FOR USE OF INTRAVENOUS IMMUNOGLOBULIN TO TREAT CERTAIN PEDIATRIC DISORDERS CAUSED BY INFECTIONS; AND TO DECLARE AN EMERGENCY.
SB454 M. McKee CONCERNING PUBLIC UTILITY CONTRACTS FOR INTERRUPTIBLE SERVICE.
SB484 C. Tucker TO MODIFY THE LAW CONCERNING CHARITABLE ORGANIZATIONS; TO CLARIFY CONTRIBUTIONS OF CHARITABLE ORGANIZATIONS; AND TO EXCLUDE CERTAIN BEQUESTS AND TESTAMENTARY DISTRIBUTIONS FROM TRUSTS FROM CONTRIBUTIONS.
SB513 M. Johnson TO AMEND THE LAW CONCERNING ANNUAL DISCLOSURES FOR THE SECRETARY OF STATE; TO AMEND THE LAW CONCERNING NAME AVAILABILITY; AND TO AMEND THE ANNUAL REPORT REQUIREMENTS FOR CERTAIN BUSINESS ENTITIES FOR THE SECRETARY OF STATE.
SB536 Irvin TO AMEND THE ARKANSAS AFFORDABLE ENERGY ACT; AND TO AMEND THE LAW REGARDING RETIREMENT REVIEW.
DEFERRED BILLS
Number Sponsor Subtitle
HB1277 L. Johnson TO REGULATE A PRUDENT LAY PERSON REVIEW PROCESS BY AN INSURER; AND TO PROHIBIT THE USE OF A LICENSED MEDICAL PROFESSIONAL TO REVIEW A PRUDENT LAY PERSON DECISION.
HB1304 Ennett TO MANDATE COVERAGE FOR PRENATAL VITAMINS.
HB1356 L. Johnson CONCERNING THE PRACTICES OF CERTAIN HEALTHCARE INSURERS; AND TO CLARIFY THE PROCESS TO DETERMINE IF A PROPOSED RATE IS EXCESSIVE.
HB1361 McGrew TO AMEND THE REAL ESTATE LICENSE LAW; TO CREATE A PROPERTY MANAGER LICENSE REQUIREMENT; AND TO AMEND THE LAW CONCERNING THE ARKANSAS REAL ESTATE COMMISSION.
HB1500 Achor TO MODIFY THE ARKANSAS PHARMACY BENEFITS MANAGER LICENSURE ACT.
HB1259 L. Johnson TO CREATE THE HEALTHCARE COST-SHARING COLLECTIONS ACT.
HB1585 Maddox TO CREATE THE DELIVERY NETWORK COMPANY INSURANCE ACT.
Page 2 of 2
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — INSURANCE & COMMERCE- HOUSE, Apr 5, 2023 | Agenda | 2 | Official source ↗ |
Speakers
Representative Ryan A. Rose
Unverified
Senator Joshua Bryant
Unverified
Chair
Unverified
Derek Smith
Unverified
Speaker 13
Representative Vivian Flowers
Unverified
Representative Deborah Ferguson
Unverified
Representative Kenneth B. Ferguson
Unverified
Representative Mark Perry
Unverified
Speaker 6
Representative Les Warren
Unverified
Speaker 45
Representative Matt Brown
Unverified
Speaker 48
Speaker 17
Representative Jim Wooten
Unverified
Speaker 49
Speaker 70
Speaker 12
Representative Robin Lundstrum
Unverified