The proposed bill aims to establish comprehensive standards for the evaluation of insurance claims in Arkansas, ensuring good faith and fair dealing in the insurance business. It introduces new sections to the Arkansas Code that outline specific requirements for insurers regarding the documentation, investigation, evaluation, communication, and payment of claims. Key provisions include mandates for insurers to maintain thorough and accurate claim files, complete investigations within specified timeframes, and communicate clearly with claimants about coverage and payment decisions. Insurers are prohibited from misrepresenting evidence, altering claim files, or denying claims based on unreliable information.

Additionally, the bill sets forth standards for appraisal arbitration, specifically for first-party property claims exceeding $10,000. It emphasizes the need for impartiality among appraisers and umpires, requiring them to disclose any potential conflicts of interest. The bill also stipulates that insurers must not deny participation in the appraisal process based on coverage disputes and mandates that the appraisal process be completed within 60 days. Overall, the legislation seeks to enhance transparency and accountability in the insurance claims process, ultimately benefiting policyholders.