The proposed bill amends Arkansas property and casualty law by introducing a new section that requires individuals insured under property insurance policies to provide reasonable proof of payment for any applicable deductible in order to recoup recoverable depreciation. The bill defines "reasonable proof of payment" to include various forms of evidence such as canceled checks, money order receipts, credit card statements, and installment plan contracts. It also establishes that failing to pay the deductible or waiving it constitutes a fraudulent insurance act.

Additionally, the bill allows property and casualty insurers to withhold payment for recoverable depreciation or replacement cost holdbacks until they receive the necessary proof of deductible payment from the policyholder. Violations of this section are subject to penalties under the Trade Practices Act. Overall, the bill aims to ensure compliance with deductible payments and prevent fraudulent activities in the insurance sector.