AR SB579

Amends Arkansas Code § 23-88-101 to establish that in case of total loss by fire or natural disaster (excluding flood and earthquake), property insurance policies are treated as liquidated demands for the full stated amount or amount on which premiums were charged.

Reduces payout amounts for commercial insurance policies by the retention or deductible amount provided in the policy.

Excludes valued policy law protections when total loss is caused by the insured through criminal acts, intentional misrepresentation, fraud, or deceit.

Limits recovery to the lesser of the highest policy limit or the insured's actual interest in the property when multiple policies cover the same property, with each insurer paying their proportionate share.

Exempts builder's risk insurance policies on completed buildings and blanket insurance policies covering multiple buildings or buildings and personal property, which settle based on actual replacement cost or cash value rather than stated policy amounts.