The proposed bill mandates that insurance companies are required to pay a fair and reasonable service fee directly to fire departments for firefighting services rendered during emergencies. This fee is to be calculated based on the "time on scene," which is defined as the documented duration that a fire department spends at the site of a structure fire, accident, or motor vehicle fire, starting from their arrival until the scene is cleared.

To implement this, the bill introduces a new section to the Arkansas Code, specifically 23-88-107, which outlines the definition of "time on scene" and establishes the obligation of insurers to compensate fire departments when responding to incidents involving insured properties. This legislative change aims to ensure that fire departments receive appropriate financial support for their emergency services, thereby enhancing their operational sustainability.