HB1420
To Enact The State Insurance Department's General Omnibus Amendment Of Arkansas Insurance Code.
AI-Generated Summary
This bill proposes several amendments to Arkansas insurance laws. It aims to enact a "General Omnibus Amendment" to the Arkansas Insurance Code, touching upon various aspects of insurance regulation and consumer protection. Key changes include modifications to the delegation of responsibilities within the Arkansas Workers' Compensation Insurance Plan, clarification of attorney bond requirements for reciprocal insurers, and amendments concerning benefits for alcohol and drug dependency treatment. The bill also alters the procedures for service of process in suits involving insurers. Notably, it repeals the Comprehensive Health Insurance Pool Act and the Minimum Benefits for Mental Illness in Group Accident and Health Insurance Policies or Subscriber's Contracts. Finally, it amends the Arkansas Mental Health Parity Act of 2009. The overall intent appears to be a consolidation and modernization of existing insurance statutes.
Potential Impact Analysis
Who Might Benefit?
If enacted, this bill could benefit various groups through its diverse provisions. The Arkansas State Insurance Department would likely see enhanced operational flexibility and oversight capabilities regarding the Workers' Compensation Insurance Plan due to clarified delegation powers. Insurers and their attorneys might benefit from clearer guidelines on bond requirements. Individuals seeking treatment for alcohol and drug dependency could experience changes in the availability and scope of benefits, potentially leading to improved access to care. Employers and employees participating in workers' compensation plans may also see improvements in service and complaint resolution processes.
Who Might Suffer?
Several groups could be negatively impacted by this bill. The repeal of the Comprehensive Health Insurance Pool Act would eliminate a specific mechanism for uninsurable Arkansas residents to obtain health insurance, potentially leaving these individuals with fewer options. The repeal of the minimum benefits for mental illness and amendments to the Mental Health Parity Act could result in reduced or altered coverage for mental health services for individuals with group accident and health insurance policies. Insurers might face new administrative burdens or compliance requirements related to the altered provisions for workers' compensation plans, attorney bonds, and service of process. Additionally, individuals reliant on the services provided by the now-repealed Comprehensive Health Insurance Pool would be most directly and negatively affected.