HB2137 Summary

• Amends Arkansas Code § 23-79-107(a) to change language from "all statements" to "a statement" in life and health insurance applications and negotiations

• Clarifies that statements in insurance applications are representations and not warranties

• Removes a third condition that allowed insurers to rescind policies based on good faith beliefs about whether they would have issued coverage differently if facts had been disclosed

• Retains two grounds for preventing recovery: statements that are fraudulent or material to acceptance of risk or hazard assumed by the insurer