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 deductibles before they can recoup recoverable depreciation. This new section 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 a deductible or waiving it constitutes a fraudulent insurance act.

Additionally, the bill stipulates that property and casualty insurers may withhold payment for recoverable depreciation until they receive proof of deductible payment from the policyholder. Violations of this section will be subject to penalties under the Trade Practices Act. Overall, the bill aims to ensure that deductibles are paid before claims for recoverable depreciation are processed, thereby reinforcing accountability in the insurance claims process.