(a) As used in this section:
(1) “Damaged property” means a damaged dwelling, a damaged structure, damaged personal property, or any other damaged property or service, the damage to which is covered under the terms of an insurance policy; and
(2) “Expense depreciation” means depreciation, including but not limited to the cost of goods, materials, labor, and services necessary to replace, repair, or rebuild damaged property.
(b) An insurance policy covering damaged property:
(1) May allow for expense depreciation; and
(2) Shall provide notice within the insurance policy in a form approved by the Insurance Commissioner that expense depreciation may be deducted.
(c) If expense depreciation is applied to a loss for damaged property, the insurer shall provide a written explanation as to how the expense depreciation was calculated.
Structure Arkansas Code
Title 23 - Public Utilities and Regulated Industries
Chapter 88 - Property Insurance
Subchapter 1 - General Provisions
§ 23-88-101. Valued policy law
§ 23-88-102. Paying costs of volunteer fire department services
§ 23-88-103. Rate credits or reduced rates in rural fire protection districts or areas
§ 23-88-104. Fire protection to be considered in property insurance rating plans
§ 23-88-105. Notice required prior to expiration of property insurance policy — Definition