The bill proposes the complete repeal of the Arkansas Legal Insurance Act, which is currently codified in Arkansas Code Title 23, Chapter 91, Subchapter 2. This repeal will eliminate all provisions related to the Act, including its title, definitions, purposes, and the regulatory framework governing legal insurance in the state. By removing this legal structure, the bill aims to impact the availability and regulation of legal services provided through insurance, effectively stripping consumers of their rights to choose attorneys and the requirements for insurers in this sector.

In addition to the repeal, the bill amends existing regulations concerning the oversight of legal insurance by the Insurance Commissioner. It removes specific provisions regarding rate filings that could endanger an insurer's solidity or contradict the law, streamlining the rate filing process by eliminating certain procedural requirements. The bill clarifies that rates must adhere to generally accepted insurance principles and cannot be excessive or discriminatory. It also outlines insurer responsibilities, mandates annual reports, and specifies the taxation rate on legal insurance premiums, ensuring that all collected taxes are deposited into the State Treasury as general revenues. Overall, the bill seeks to enhance regulatory efficiency while protecting policyholders and maintaining the integrity of the insurance market.