Latest news with #ArkansasGovernor'sOffice
Yahoo
2 days ago
- Politics
- Yahoo
Arkansas lawmakers give initial approval to new state insurance captives rate structure
Arkansas Gov. Sarah Huckabee Sanders tours tornado-damaged Wynne High School on April 2, 2023. (Randall Lee/Arkansas Governor's Office) A legislative committee on Monday granted preliminary permission for officials to move forward with proposed rates for Arkansas' new state property insurance program, the result of nearly two years of work aimed at developing a plan to control rising insurance premiums for schools. Following the recommendation of consultants to create the State Captive Insurance Program, an insurance company owned by the state, lawmakers this year passed Act 560 and Act 779 and approved contracts with vendors to run the self-insurance program. Under the newly approved legislation, the captive will be formed by July 1 and apply to buildings and property owned by a public school, state-supported institution of higher education or the state. During the Arkansas Legislative Council's Executive Subcommittee meeting Monday, Crossett Republican and panel chair Sen. Ben Gilmore recognized everyone who has been involved with forming the captive, which 'has been quite the process.' 'It's important that we acknowledge where we started and where we are now, and this is coming to an end…what we did is something we should acknowledge is very big with the State Captive Insurance Program,' Gilmore said. 'So we are on to the next step with that, and I appreciate your involvement, and we'll continue to work and make this successful.' Insurance premiums have been increasing nationwide due to more frequent natural disasters, additional legal liability from more lawsuits and the growing frequency of cybercrimes, according to Education Week. Arkansas firm recommends plan for controlling schools' increasing insurance rates The issue came into focus for Arkansas in July 2023 when Gov. Sarah Huckabee Sanders announced the state would help school districts cover the cost of rising insurance premiums. State lawmakers approved a request from the Arkansas Insurance Department to transfer $10.8 million from the state's restricted reserve account to offset the cost of increased premiums. The funding was split three ways — $6.3 million for the 170 districts in the Arkansas School Boards Association-managed program, $4.46 million for the 68 districts in the Arkansas Public School Insurance Trust (which is managed by the Insurance Department), and nearly $118,000 for the Bentonville School District, which procured insurance directly through the open market. Kyle Hales, a principal consulting actuary at Perr & Knight, told the committee Monday that the total cost of premiums for the three agencies approximately tripled between 2021 and 2024 insurance renewals. J.R. Bizzell, senior vice president in Stephens Insurance's risk management group, said the intent of the captive is to 'improve efficiencies with purchasing reinsurance or excess property insurance,' which is what the Little Rock-based firm is primarily helping obtain. 'There's going to be a centralized claims and underwriting component, as well as overall it should help stabilize long-term insurance costs for all of the districts, all the agencies and all the participants of this program,' Bizzell said. For the first year of the captive, Stephens recommends a flat rate for all participants. Premiums are calculated by multiplying the rate by building values, Bizzell said. All schools should have a flat rate, he said. If they change their value due to an assessment, or by adding or removing a building, 'they will experience some level of premium change, but it should be modest in nature,' he said. Stephens also recommends that participants carry a maintenance deductible that's below the captive, Bizzell said. The deductible structure would be changed to a minimum of $25,000 per occurrence, per participant, and $50,000 per occurrence if their total insured values (i.e. asset values) are over $100 million. For state agencies, the recommendation is to move to a $250,000 flat deductible for the first year, he said. The rate and deductible structure for year two is continuing to be evaluated, so Stephens made no recommendation 'outside of there is an expectation that deductibles need to continue to be rightsided and that detail will come in the future,' Bizzell said. Stephens has been coordinating with the Legislature as well as the newly created Office of Property Risk, which will be managing the program after July 1, Bizzell said. In the coming weeks, all participants will receive a summary of their expected premium and deductible, he said. The subcommittee authorized Stephens to move forward with its proposed rate and deductible structure and for the Arkansas Legislative Council's co-chairs to approve that direction by emergency action. The new rates and deductibles will be effective for the 2025-2026 academic year, if they receive final approval from the Arkansas State Board of Finance and ALC, Bureau of Legislative Research Director Marty Garrity told the Advocate. They're scheduled to meet on June 12 and June 20, respectively. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
21-05-2025
- Business
- Yahoo
Disaster Unemployment Assistance available for Arkansans affected by March storms
Gov. Sarah Huckabee Sanders (left) tours storm damage with local officials in Fifty-Six, Arkansas, on March 20, 2025. (Photo by Becca Paschal/Arkansas Governor's Office) Arkansans who lost jobs or whose work was interrupted due to severe storms and tornadoes on March 14-15 can now apply for disaster unemployment assistance, Secretary of Commerce Hugh McDonald announced Tuesday. Assistance is available to residents of Greene, Hot Spring, Independence, Izard, Jackson, Lawrence, Randolph, Sharp and Stone counties, and claims must be filed by July 7, according to a press release. President Donald Trump approved a major disaster declaration for Arkansas last week after denying the governor's initial request in April. Assistance is available to individuals who: Worked or were self-employed, or were scheduled to begin work or self-employment Can no longer work or perform services, including lack of work or loss of revenue because of physical damage or destruction to the place of employment as a direct result of a disaster, which can also include the physical inaccessibility of the place of employment due to its closure by the federal, state, or local government in immediate response to the disaster Establish that the work or self-employment they can no longer perform was their primary source of income Do not qualify for regular unemployment insurance benefits from any state Cannot work or resume self-employment because of an injury as a direct result of the disaster Became the breadwinner or major support of a household because of the death of the head of the household Are unable to reach their job or self-employment location because they must travel through the affected area and are prevented from doing so by the disaster. Arkansans can file a claim online or in person at any Arkansas Workforce Center, which are open from 8 a.m. to 4:30 p.m. Monday through Friday. More information is available on the Arkansas Workforce Connections website or by calling 1-844-908-2178. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
14-05-2025
- Politics
- Yahoo
Arkansas' request for federal disaster assistance approved after initial denial
Gov. Sarah Huckabee Sanders and First Gentleman Bryan Sanders survey storm damage in Cave City on Saturday, March 15, 2025. (Photo by Becca Paschal/Arkansas Governor's Office) President Donald Trump approved a major disaster declaration for Arkansas Tuesday after denying the request last month. Federal disaster assistance is available to Arkansans in Green, Hot Spring, Independence, Izard, Jackson, Lawrence, Randolph, Sharp and Stone counties who were affected by severe storms and tornadoes March 14-15, according to a press release issued by the Federal Emergency Management Agency (FEMA) Tuesday night. Assistance can include grants for temporary housing and home repairs, low-interest loans to cover uninsured property losses and other programs to help individuals and business owners with their recovery efforts, according to the release. The president issued the disaster declaration after a call with Gov. Sarah Huckabee Sanders, according to a statement issued by the governor's office late Tuesday. 'Our entire state is grateful for President Trump's leadership and assistance as we recover from the devastating storms that struck Arkansas earlier this spring,' Sanders said. 'I had a productive conversation with the President in which he expressed his support for our state and I offered my full endorsement of his plans to reform FEMA to save money and provide greater direct assistance to disaster victims.' Arkansas governor seeks federal disaster decree for March 14-15 tornadoes, storms Trump has convened a council to review and recommend 'improvements or structural changes' to FEMA, and suggested the agency might 'go away.' He has also said states would best take care of disasters on their own, with the federal government reimbursing some of the costs. Under Trump, FEMA has denied federal assistance to Arkansas, West Virginia and Washington state, and refused North Carolina's request for extended relief funding following Hurricane Helene, according to Stateline. Sanders requested Major Disaster Relief for Arkansas on April 2. The state received a denial from the federal government regarding Individual Assistance funding through FEMA on April 11, according to the Arkansas Division of Emergency Management. Sanders sent a letter appealing the denial on April 18. 'Arkansas communities are still recovering from this spring's tornadoes, as the sheer magnitude of this event resulted in overwhelming amounts of debris, widespread destruction to homes and businesses, the tragic loss of three lives, and injuries to many others,' Sanders said in a statement last month. 'To relieve the burden on these counties, cities, and towns, I am appealing FEMA's decision to deny Arkansas' Major Disaster Declaration request.' Individuals and business owners in the designated counties who sustained losses can apply for assistance by registering online, using the FEMA App or calling 1-800-621-3362. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
18-03-2025
- Climate
- Yahoo
Six twisters hit Arkansas over weekend, killing three in one small town
Gov. Sarah Huckabee Sanders and First Gentleman Bryan Sanders survey storm damage in Cave City on Saturday, March 15, 2025. (Photo by Becca Paschal/Arkansas Governor's Office) The severe storm system that swept across Arkansas over the weekend spawned six tornadoes, including two strong EF-4 twisters, according to a Monday report from the National Weather Service's Little Rock office. Three deaths occurred overnight Friday when a tornado struck Cushman, a town of about 500 in southeastern Independence County, according to KARK-TV. The Weather Service estimated that storm as an EF-3 with peak winds of 165 mph. It tracked for nearly 26 miles before devastating Cave City in Sharp County. The NWS updated preliminary damage assessment said an EF-4 tornado with a top wind speed of 170 mph formed southwest of Fifty-Six in Stone County before moving into Izard County, where it toppled many trees and shoved cabins off their foundations. The second EF-4 tornado, with estimated peak winds of 190 mph, began near Oil Trough in Independence County. The twister continued into Jackson County over 14.5 miles and an estimated width of about one mile, according to the Weather Service. The Arkansas Public Safety Department on Saturday said 32 people had been injured in the storms. The agency's Division of Emergency Management reported 16 counties affected by storm damage: Baxter, Clark, Fulton, Greene, Hempstead, Hot Spring, Independence, Izard, Jackson, Lawrence, Nevada, Phillips, Randolph, Sharp, Stone, and Woodruff. In a brief press conference while visiting storm-hit Cave City on Saturday, Gov. Sarah Huckabee Sanders said she'd spoken with President Donald Trump and Homeland Security Secretary Kristi Noem that morning, 'who have already let us know that they will be with us to help and provide resources as requested.' Sanders had already declared an emergency in the storm-affected areas and released $250,000 from state disaster relief funds to assist with recovery efforts. 'We'll take care of people first and worry about the paperwork later,' she said in another public comment on Monday. The Weather Service said the two EF-4 tornadoes marked the first time since 1997 that two storms of the same strength had struck the state on the same day. Here's a list of the other tornadoes, according to the NWS's preliminary assessment: An EF-1 storm with maximum winds of 100 mph touched down near the town of Gamaliel in Baxter County, damaging the post office and a fire station, before moving into Missouri. An EF-2 with top winds of 120 mph began just south of Smithville in Lawrence County and tracked toward Black Rock and into Reyno in Clay County, for almost 39 miles. Another EF-2 storm with 120 mph peak wind hit Fitzhugh in Woodruff County on a 5-mile path, damaging power lines and felling trees. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
