Bill > HB2076

This bill establishes comprehensive regulations for life insurance policy illustrations in Arizona, creating detailed requirements for how insurance companies must prepare, present, and deliver illustrations to potential policyholders. The bill defines numerous technical terms related to insurance illustrations, such as "basic illustration," "disciplined current scale," and "nonguaranteed elements," and sets forth strict guidelines for how these illustrations must be formatted, what information they must contain, and how they must be presented to consumers. Key provisions include mandating that illustrations clearly distinguish between guaranteed and nonguaranteed elements, require specific disclosures about the speculative nature of nonguaranteed projections, and impose requirements on insurance producers about how they can use and describe illustrations. The bill also requires insurers to appoint illustration actuaries who must annually certify that the illustrations conform to professional standards and accurately represent the potential performance of life insurance policies. Additionally, the bill establishes penalties for insurers and producers who violate these illustration requirements, treating such violations as unfair trade practices. The new regulations will become effective on December 31, 2025, giving insurance companies time to adapt to the new standards.

Budget and Finance, Business and Industry

https://apps.azleg.gov/BillStatus/BillOverview/81743