Insurance & Commerce - Senate
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Bills discussed (11)
| Bill | Title | Sponsor | Status |
|---|---|---|---|
|
HB1193
· 3 mentions in transcript, chapter, agenda
Matched: “You passed your bill. Next is House Bill 1193.”
|
TO REQUIRE AN INSURER TO INCLUDE A LIENHOLDER ON PAYMENTS MADE UNDER AN INSURANCE POLICY. | Cavenaugh | Died in House at Sine Die adjournment. |
|
SB242
Act 344
· 2 mentions in chapter, agenda
Matched: “SB242 Hill TO AMEND THE LAW CONCERNING LOANS INVOLVING THE STOCK…”
|
TO AMEND THE LAW CONCERNING LOANS INVOLVING THE STOCK OF A STATE BANK. | Hill | Notification that SB242 is now Act 344 |
|
HB1238
Act 306
· 1 mention in agenda
Matched: “…rs and Staff Only'. DEFERRED BILLS Number Sponsor Subtitle HB1238 Cavenaugh TO AUTHORIZE A MORTGAGOR TO RECOVER FEES IN CERTA…”
|
TO AUTHORIZE A MORTGAGOR TO RECOVER FEES IN CERTAIN CIRCUMSTANCES UNDER THE STATUTORY FORECLOSURE LAW. | Cavenaugh | Notification that HB1238 is now Act 306 |
|
HB1307
Act 308
· 1 mention in agenda
Matched: “…DE A LIENHOLDER ON PAYMENTS MADE UNDER AN INSURANCE POLICY. HB1307 McAlindon TO ENSURE RESPONSIBLE FUND MANAGEMENT; AND TO AME…”
|
TO ENSURE RESPONSIBLE FUND MANAGEMENT; AND TO AMEND THE UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS … | McAlindon | Notification that HB1307 is now Act 308 |
|
SB103
Act 425
· 1 mention in agenda
Matched: “…MUM REIMBURSEMENT RATE FOR BREAST RECONSTRUCTION SURGERIES. SB103 C. Penzo TO CREATE THE PHARMACY NONDISCRIMINATION ACT; TO R…”
|
TO CREATE THE PHARMACY NONDISCRIMINATION ACT; TO REQUIRE PHARMACY BENEFITS MANAGERS TO ACCEPT ANY PHARMACY … | C. Penzo | Notification that SB103 is now Act 425 |
|
SB104
Act 514
· 1 mention in agenda
Matched: “…ONABLE TERMS OF PARTICIPATION; AND TO DECLARE AN EMERGENCY. SB104 C. Penzo TO AMEND THE ARKANSAS PHARMACY BENEFITS MANAGER LI…”
|
TO AMEND THE ARKANSAS PHARMACY BENEFITS MANAGER LICENSURE ACT; TO PROTECT PATIENTS' RIGHTS AND ACCESS … | C. Penzo | Notification that SB104 is now Act 514 |
|
SB123
Act 553
· 1 mention in agenda
Matched: “…HTS AND ACCESS TO MEDICATIONS; AND TO DECLARE AN EMERGENCY. SB123 G. Leding TO AMEND THE LAW CONCERNING COVERAGE FOR MAMMOGRA…”
|
TO AMEND THE LAW CONCERNING COVERAGE FOR MAMMOGRAMS AND BREAST ULTRASOUNDS. | G. Leding | Notification that SB123 is now Act 553 |
|
SB140
· 1 mention in agenda
Matched: “…CONCERNING COVERAGE FOR MAMMOGRAMS AND BREAST ULTRASOUNDS. SB140 J. Boyd TO MANDATE THE USE OF BIOSIMILAR MEDICINES UNDER HE…”
|
TO MANDATE THE USE OF BIOSIMILAR MEDICINES UNDER HEALTH BENEFIT PLANS; TO REQUIRE A HEALTHCARE … | J. Boyd | Sine Die adjournment |
|
SB179
· 1 mention in agenda
Matched: “…CERTAIN CIRCUMSTANCES UNDER THE STATUTORY FORECLOSURE LAW. SB179 J. Boyd TO ESTABLISH THE STRENGTHEN ARKANSAS HOMES ACT; AND…”
|
TO ESTABLISH THE STRENGTHEN ARKANSAS HOMES ACT; AND TO CREATE THE STRENGTHEN ARKANSAS HOMES PROGRAM … | J. Boyd | Sine Die adjournment |
|
SB276
Act 345
· 1 mention in agenda
Matched: “…AL FUNDS ACT (2006). REGULAR AGENDA Number Sponsor Subtitle SB276 B. Johnson TO AMEND THE LAW CONCERNING SURPLUS LINES INSURA…”
|
TO AMEND THE LAW CONCERNING SURPLUS LINES INSURANCE; AND TO CLARIFY THAT SURPLUS LINES INSURANCE … | B. Johnson | Notification that SB276 is now Act 345 |
|
SB83
Act 424
· 1 mention in agenda
Matched: “…NCE COVERAGE. PENDING FISCAL IMPACT Number Sponsor Subtitle SB83 J. Bryant TO MANDATE COVERAGE FOR BREAST RECONSTRUCTION SUR…”
|
TO MANDATE COVERAGE FOR BREAST RECONSTRUCTION SURGERIES; TO REQUIRE PRIOR AUTHORIZATION FOR BREAST RECONSTRUCTION SURGERIES; … | J. Bryant | Notification that SB83 is now Act 424 |
Machine transcript
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Speaker 3
0:19
Mr. Chair, if you would just introduce yourself and explain your
Senator Ricky Hill
Unverified
0:22
amendment, Ricky Hill, Senate District 11. Me just changes two words on page 2. Line 15. If we're on the le where it says a renewal. And replace it with each renewal. And that is all it does. Motion to
Speaker 9
0:47
adopt the amendment by Senator Flowers second by
Speaker 3
0:50
Senator McKee all in favor. Say aye. I'll oppose like sign. Thank you, senators. We have adopted the amendment, if you would present your bill as amended. Do
Speaker 1
0:58
you need somebody to come, come to the table with you, or yeah, yes sir, I'm going to ask Ms.
Senator Ricky Hill
Unverified
1:03
Marshall from the bank department to come here. All right. And Drew, if she wants to
Speaker 14
1:08
bring him, that's up to her. You know, center, we are
Senator Ricky Hill
Unverified
1:22
approve this bill out of committee and we pulled it back because Simmons Bank CEO found where we
actually had a renewal instead of each renewal, and so that's the only change it is and so we're bringing this back to comedians instead of trying to do it any other way to mean anything on the other end, just to be transparent. We want to do everything here before it
goes to all the different, different levels that way everything's correct when it leaves committee. And so with that I'm going to turn it over to Ms. Marshall
Speaker 16
1:47
for for any questions. All right, Susannah Marshall, State Bank commissioner. All right.
Speaker 3
1:53
Eric Roberts, State Bank department. All right, you're, you're welcome to, uh, to present your bill. As amended. No, sir,
Senator Ricky Hill
Unverified
2:03
it's not my bill. I'm just here to answer any questions. I brought her down to questions that we've already presented the bill. I'll just bring her down in case
Speaker 22
2:09
you didn't want to have any questions. Was there any questions?
Senator Stephanie Flowers
Unverified
2:15
Go ahead, Senator Flowers. Well, it's not so much a question, but I spoke with So I forgot your names Eric Robert
I forgot your names Eric Roberts Eric Roberts. And they satisfied me with the issues that I had, which was about more of a trust issue. Uh, and, uh, Banks becoming guardians of veterans and states, but I understand that that all be uh
looked at. Uh, by Arkansas and if another state has a law contrary that allows the bank. To have taken out a mortgage for a veteran that they have under a
guardianship estate that would be looked at. Only concern I have is about the cost of the fees for these extensions or renewals if they have to occur. And I wish you kind of
explain how that happens, whether that's automatically going to be charged to say War. Of a guardianship. Yes, ma'am, as far as
Senator Ricky Hill
Unverified
3:19
the fees go, it's charging at renewals would actually be up to each individual bank how they do it
because every bank has a different policy on the amount of fees they
Senator Stephanie Flowers
Unverified
3:31
charge on a loan renewal. Well, I understand that, but I would like to see that. Customers that
have engaged with the a bank from another state that merges with the bank in this
state is not subjected to to more fees and I just wonder how in the world could that even occur if you want to
respond to that. It was a bank commissioner.
Speaker 20
3:56
To if a customer in another state is subject to a renewal fee because of this bill, um, as, as Senator Hill said, that would be independent to each individual institution. We we do not have fees really structured in any of the banking code because those are individual business decisions between the banks and their customers. In Senator, if I may add
Senator Ricky Hill
Unverified
4:19
to that, now this would not happen unless it's own renewal, which the loan would be maturing
automatically, so they would be at that time. The renewing. So
Senator Stephanie Flowers
Unverified
4:33
it It doesn't apply to modifications, renewal is a modification, yes,
ma'am. Well, two words are separated here, uh,
what page are you on? I'm on the same page that at page 2, line 15, you change A to each. And it says renewal extension
modification, so a renewal is not necessarily a modification. modification changes something. The multiplication will change your
Senator Ricky Hill
Unverified
5:04
terms and conditions, yes, and so and a renewal can
Senator Stephanie Flowers
Unverified
5:10
do the same thing as well. I understand, but I'm talking about a renewal can do that, but the
renewal suggests that it's up for renewing. It could be one of those loans where you have uh uh I forgot what they call it, but um.
It comes up for for change or when it matures. Yeah, might be every 2 years or something like that, but I'm talking about a modification that's caused simply because uh a
bank in another state. There Contract with the customer is not complying with Arkansas law, and I gave the example to To the I keep forgetting your name. I'm sorry. Eric, OK, Eric.
And he assured me that That the trust department would look at that. But I guess When I think about it, If they, if the Arkansas Uh, bank. Commissioner A commission looks at it and determines, say, That they are not. Complying Like I gave the example of the veteran who is under A state guardianship by a bank.
It seems to me that The bank should give up. Or go back to the court and ask for a change of guardian of the estate. Would I be right in that thinking. Instead of charging the the veterans estate with a thing, so Senator, I
Speaker 20
7:00
think the intent of the bill is simply to if a bank acquires one of these loans
that is secured by their own stock that then becomes in violation at the next time it normally is going to mature or if the borrower asks for a modification or some other change needs to occur to that loan at a normal period of time. This will allow for that to happen without the bank being in violation. It's giving the bank more latitude so that they are not in violation automatically and that it does not burden the customer at that point in time. They're not forcing the customer
to renew upon the acquisition of this loan. They're going to work with the customer at the next renewal or modification that would normally incur a fee anyway, but it's not going to be an extra fee, they're not going to try to rush that to moderate to modification. or renewal. They're going to let it mature naturally and then make any adjustments
Senator Stephanie Flowers
Unverified
8:00
as needed at that time. And I suppose that notice would be given to Any customers say,
and I keep you going back to the um guardianship estates.
That Given notice. It seems to me like the Department of Veterans Affairs could petition. To take that guardianship away from that
Speaker 20
8:29
bank. Uh, I believe that maybe that issue is something a little bit is it separate? Yeah, yes, the issue that you all were visiting with specifically on the veterans, that is a little bit
specific and different issue than what
Senator Stephanie Flowers
Unverified
8:48
This is for secured banks. I understand that, but
the whole thing with um Guardian Banks that are guardians of veterans estate could happen. I had
a bill that became law, forgot what year it is, but Uh which prohibited a bank. From
Having a mortgage on a veteran's home. So to me that
sounds like The stock of the bank. Am I right
Senator Ricky Hill
Unverified
9:24
with that? No, ma'am. This is about this is stock certificates held by an individual that is a stockholder of the bank. I
Senator Stephanie Flowers
Unverified
9:33
wish you'd go into more detail with that because I'm not following shares of stock if you secure
Senator Ricky Hill
Unverified
9:38
a loan with shares of stock. That you own in a bank that's acquired outside of me to say like in the state of Arkansas
right now you've got several publicly traded banks if they acquire a private owned bank out of state. And a loan is secured by stock in that private owned bank. That whenever the whenever this bank X Y Z from Arkansas acquires that bank. That they give them enough time to change it where it's not secured by the stock of the. Obtained bank. And so you're talking about a trust, that trust would have to
have stock in the bank for it to secure it. Which could happen it could happen, yes, I'm, but, but the bank's not gonna just come in. Let's just make it legal for them to do that. When I see them do that to hold the stock and give them time to check.
either sell the stock or change the type of collateral they're using on the formerly owned bank because it no longer exists. Seems like that banquet.
Senator Stephanie Flowers
Unverified
10:45
would know all that before they're supposed to know that by
Senator Matt McKee
Unverified
10:50
the due diligence that they do. OK. Thank you. Thank you, Mr. Chair. Thank you, Senator McKee. Thank you, Mr. Chair, just real briefly, I know we adopted your amendment. I was just going to see if there was some kind of significance to changing that that phrase to each renewal as opposed to A renewal attorneys
Speaker 42
11:12
just verbiage. Not a problem. No, ma'am. Is there any other questions?
Senator Ricky Hill
Unverified
11:24
Seeing no you are close to you Bill.
Speaker 3
11:28
I'm clothing appreciate a good vote as amended. All right, motion by Senator McKee, seconded by Senator Flowers. All in favor say aye. All opposed like sign. Thank you, Senator.
Speaker 9
11:51
You passed your bill. Next is House Bill 1193.
Speaker 3
11:56
We have an amendment on this bill. All right. Representative Kevanaugh, if you would just uh introduce yourself
Representative Frances Cavenaugh
Unverified
12:27
and present your amendment. Thank you, Mr. Chair. Uh, this amendment just does some clarifying language. It still makes sure that there's not a physical location for the lien holder in the state. They don't have to, does not apply to them and that if the damages for the motor vehicles less than $2500 or a payment is made directly to a repair facility for the amount of repairs than their name doesn't need to be on the payment also. Well
Speaker 3
13:00
motion to adopt the amendment by Senator McKee, 2, all in favor, say aye. All opposed likean right. If you would uh go ahead with your bill as amended. This bill
Representative Frances Cavenaugh
Unverified
13:14
will just require that when an insurance claim is made on property damage on a vehicle and there is a perfected lien holder unless the lienholder doesn't have a physical presence in the state of Arkansas if the claim is less than $2500 or the
payment is made directly to a repair facility for the amount of the repairs than the lien holder's name doesn't need to be on the payment, otherwise it
Speaker 22
13:40
does. All right, is there any questions? Members, there was,
Speaker 3
13:46
there was some concern in the process about that and that's why the amendment was made to To be able to send a check to the, uh, shop, so go ahead and send her the flowers.
Senator Stephanie Flowers
Unverified
14:03
Thank you, Representative Kevin I've been contacted by auto repair. Sha owners And you know, I'm looking at the amount that you have in the amendment of that 2500 less than Uh, $2500. That's not a
lot of money when you talk about
Representative Frances Cavenaugh
Unverified
14:28
a repair, if you go down to light B. It
says when a repair is made directly to a repair facility for the amount of repairs, so it could be $20,000 and they would get the money without our name on it, yeah, but
Senator Stephanie Flowers
Unverified
14:43
now what you've done is Cut the customer out, the insured out. And I have some issues. The customer's name is still can be on the check. It's not
Representative Frances Cavenaugh
Unverified
14:53
taking the customer's name out. All this is saying is this is the only time the lien holder's name doesn't have to be on the check. Or the payment because a lot of them are done electronically.
Senator Stephanie Flowers
Unverified
15:08
Yeah, but So what you're saying is it's going to be now the lien holder and the auto repair shop.
Representative Frances Cavenaugh
Unverified
15:19
No, what I'm saying now is it'll be exactly like it is now, which is usually has the length, it has the repair facility payment and if it's on a check, it usually has the customer's name on it. If it's an electronic payment, it usually just goes straight to the repair facility in itself. This will allow this
to have still continue. Only thing this bill is doing is saying under these 3 separate conditions, lien holder's name except for these three conditions, the lien holder's name needs to be. be on the check. So as long as the repair or the damage to the vehicle is less than $2500. The lienholder's name doesn't need to be on the check. If the lienholder doesn't have a physical presence in the state of Arkansas. Their name doesn't need to be on the payment or check, and then if the payment
is made directly to a repair facility for the amount of repairs to the damage, the lien holder's name doesn't need to be on the check. So the
Senator Stephanie Flowers
Unverified
16:23
repair facilities are covered 100%. Or OK, how What, if any, response that you received to Your proposal here. From insurance companies. Most won't like it because they
Representative Frances Cavenaugh
Unverified
16:37
don't want to have to put the lienholder's name on the check
under certain circumstances, but lienholders in the state of Arkansas are now experiencing losses because their names are not on the check on certain instances, and they're taking losses because checks are being issued to people. They are not repairing vehicles. They they are not applied to the debt that they owe on those vehicles and so lien holders are there taking the risk. Here's an example. Customer gets hit and it's a third party pan, and the insurance company says we're going to pay you $10,000
damages, and they give a check to the customer for $10,000 to cover the repairs. Then they get in the repair shop, the repair shop sees that actually it's more damage than they initially thought once they got to looking at the damage and they decide the vehicle is a total loss, so they say now The damage to the vehicle is $20,000. So they want to reach out to the secured lien holder perfected lien holder in the state of Arkansas. They want them to work with them and release their lien on that vehicle so they can have it.
What they'll do is say we're gonna settle for $20,000. 0, but by the way, that check that we gave the customer for $10,000 and they cashed and didn't repair the vehicle. We're not giving that to you either. You're going to have to eat that $10,000. And so the lienholders. So the
Speaker 68
17:57
customer. Right, but that doesn't help the consumer because then
Representative Frances Cavenaugh
Unverified
18:00
the consumer now has a lawsuit that they don't have, they don't need, where if it had lien holder's name had been on it, they wouldn't wouldn't have occurred. Well, but they pretty much caused the lawsuit.
But again, If we don't have to have so many lawsuits in the courts, and we can find a simple way of putting a secured lienholder who is the person at risk on the loan. It's the person that took the risk to finance the automobile is the one that's at risk, and if they can get their name added, then it creates a lot less problems for the consumer and the, and the court systems because no, no lien holder wants to be filing lawsuits to go after $10,000 and let's face it, most consumers
don't have that $10,000. after they've cashed the check. So you're, you're, you're creating lawsuits for things you cannot collect. Of course you know I'm a
Speaker 22
18:53
lawyer. Thank you. Senator Flowers, there's nobody signed up to speak against the bill or for the bill, so. Do you have
Speaker 3
18:59
any other questions? Seeing no other questions you want to close the bill.
Speaker 9
19:04
I appreciate y'all. I think the amendment
Representative Frances Cavenaugh
Unverified
19:07
is a good amendment. It does secure the repair shops, and I think that's good and it does if it's a small amount, allow it not to have to be
included. I think it's a reasonable amendment, and I
Speaker 3
19:19
would appreciate a good vote. All right, thank you. Motion by Senator McKee to to adopt his amended second by Senator Boyd, all in favor say aye. All opposed lasan. Alright, thank you, Representative. All right, roll call. Senator Mark Johnson.
Speaker 81
19:47
Senator Mark Johnson. Senator Reginald Murdoch,
Speaker 82
19:52
Senator Reginald Murdoch. Senator Senator Matt McKee, Senator Matt McKee, I, Senator Clint Penzo. Senator Clint Penzo, Senator Stephanie Flowers. Senator Stephanie Flowers, no. Senator Missy Irvin, Senator Missy Irvin, I.
Speaker 9
20:32
Sorry, Representative Kevin I will do this again
Speaker 3
20:43
and pass it next time. Thank you. All right.
Speaker 62
20:49
Next is 1307. Senator Boy. Just in time. like
Unknown speaker
21:27
All right. We are adjourned. aren't present here? No.
Agenda
Call To Order
RE-REFERRED TO COMMITTEE
SB242 Hill TO AMEND THE LAW CONCERNING LOANS INVOLVING THE STOCK OF A STATE BANK.
HB1193 Cavenaugh TO REQUIRE AN INSURER TO INCLUDE A LIENHOLDER ON PAYMENTS MADE UNDER AN INSURANCE POLICY.
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — INSURANCE & COMMERCE - SENATE, Mar 4, 2025 | Agenda | 2 | Official source ↗ |
Speakers
Speaker 3
Senator Ricky Hill
Unverified
Speaker 9
Speaker 1
Speaker 14
Speaker 16
Speaker 22
Senator Stephanie Flowers
Unverified
Speaker 20
Speaker 2
Senator Matt McKee
Unverified
Speaker 42
Representative Frances Cavenaugh
Unverified
Speaker 68
Speaker 81
Speaker 82
Speaker 62