The bill proposes an amendment to Arkansas Code 23-79-208(a)(1), which pertains to the liability of insurance companies for loss claims. The key change is that when an insurance company fails to pay a loss within the specified time after a demand is made, the company will be liable to pay the policyholder not only the amount of the loss but also an increased percentage of damages. Specifically, the damages will rise from the previous rate of twelve percent (12%) to twenty-five percent (25%).

Additionally, the bill stipulates that the insurance company must also cover all reasonable attorney's fees incurred in the prosecution and collection of the loss. This amendment aims to provide greater financial protection and incentive for timely payment by insurance companies to policyholders.

Statutes affected:
SB 350: 23-79-208(a)