AR HB1907

Requires that subrogation and reimbursement rights of insurance parties be defined by the insurance contract terms, which are controlling and binding on insureds and their agents, beneficiaries, and assigns.

Establishes that subrogation and reimbursement rights arise at the time of first payment of benefits or provision of services to an insured or covered person.

Creates a presumption that an insured or covered person is made whole upon court approval of settlement, written/oral agreement, payment less than full insurance limits, endorsement of checks to the insurer, or reimbursement to the insurer.

Requires insureds or covered persons to prove by clear and convincing evidence they have not been made whole to overcome the presumption.

Specifies that collection costs and attorney's fees are assessed proportionally to insurers and insureds based on recovery benefits, unless the insurer agreed in writing to pay those fees.