The bill mandates that insurance companies in Arkansas disclose the monetary amount of a deductible that is based on a percentage of the insured value for residential property insurance policies. Specifically, it requires that this information be included on the policy declaration page or in the notice of renewal for any loss, except for losses due to earthquakes.

To implement this requirement, the bill introduces a new section to the Arkansas Code, designated as 23-79-168, which outlines the disclosure obligations for insurance policies issued or renewed in the state. This aims to enhance transparency for policyholders regarding their financial responsibilities in the event of a claim.