AR HB1753

Abolishes the common law rule that equitable subrogation and the "made whole" doctrine cannot be modified by insurance contracts, overturning Arkansas Supreme Court precedent in Franklin v. Healthsource of Arkansas and Ryder v. State Farm Mutual Automobile Insurance Company.

Makes insurance contract terms controlling and binding on covered persons and their agents, beneficiaries, assigns, and derivative claim holders regarding subrogation and reimbursement rights.

Establishes that the right to seek subrogation and reimbursement arises and attaches at the time of first payment of benefits or services to a covered person.

Caps an insurer's share of collection costs and attorney's fees at 25 percent of the amount recovered through reimbursement, unless the insurer hires its own attorney to pursue the claim.

Applies these subrogation and reimbursement provisions to property and casualty insurers, accident and health insurers, health maintenance organizations, self-funded groups, multiple-employer welfare arrangements, and hospital or medical services corporations.