The bill addresses an insurer's right to subrogation and reimbursement for medical and hospital benefits, specifically limiting its applicability to a maximum of $5,000 in benefits under Arkansas Code 23-89-202(1). It establishes that when a recipient of these benefits recovers damages through a tort claim, the insurer is entitled to reimbursement from that recovery, minus collection costs. Additionally, if the recipient does not pursue recovery from a liable third party, the insurer has the right to subrogation. The bill also clarifies that the common law doctrine requiring a party to be made whole before an insurer can be reimbursed does not apply in this context.

Key amendments include the deletion of certain provisions regarding the insurer's lien on recovery and the introduction of new language that specifies the insurer's rights and obligations. Notably, the bill prohibits insurers from conditioning settlements on issuing joint checks to the injured party and their insurance company. Furthermore, it clarifies that the subchapter does not affect the rights and obligations under the Workers' Compensation Law.