Arkansas Consumers Benefit from New Anti-Fraud Law Drafted by Shelter Insurance®
Columbia, MO — A significant loophole in Arkansas insurance law was closed when Governor Asa Hutchinson signed a new insurance bill into law in 2015. Closing this loophole helps protect against potential fraud. It also takes away an incentive to purchase multiple policies for the same risk, and thus receive payments many times the value of the risk, which is like playing the lottery or placing a wager. Both of these things can cause everyday consumers to pay more for their insurance coverage. A Ceremonial Bill Presentation featuring local state legislators and celebrating the passage of this legislation occurred June 2, 2016 at the Shelter Insurance® Claims office in Little Rock, Arkansas.
The problem came to light when Shelter Insurance® paid policy limits of $1,000,000 to a customer who suffered a total fire loss to his home, only to discover that the customer had also purchased another homeowners policy a few days before the fire from a different company. That carrier also paid the limits of coverage, resulting in the insured receiving a double recovery.
Fixing this problem required updating a portion of Arkansas' insurance law. This anti-fraud measure was drafted by Shelter Insurance®, who then secured the support of both the Arkansas insurance industry and the Arkansas Department of Insurance to get it passed into law.
The following local state legislators: Representative Andy Davis, Representative Kim Hammer, Senator Jane English and Senator Jason Rapert, presented Shelter's Little Rock Branch Manager Terry Martin with a copy of the legislative bill, a souvenir pen used by Governor Asa Hutchinson to sign the bill into law, and a picture of the Shelter agents and employees who attended the bill signing ceremony with the Governor last June. The ceremony was held at 9:00 a.m. at the Shelter Branch Claims office located at 17 Corporate Hill Dr., Little Rock, AR 72401.
For more information, contact Brian Waller, Director of Government Relations, Shelter Insurance® at 573-268-4599.