Bill > HB2996

This bill clarifies the role and limitations of certificates of insurance, which are documents that provide a summary of insurance coverage but are not the actual insurance policy itself. It establishes that these certificates, prepared by insurers or their representatives, do not alter or extend the coverage of an insurance policy and do not grant any new rights beyond what's explicitly stated in the policy. The bill prohibits the creation or use of certificates that contain false or misleading information, attempt to modify policy terms, or falsely claim compliance with contractual insurance requirements. It also specifies that only the policyholder is automatically entitled to notice of cancellation or changes unless the policy itself grants such rights to others. The Director of the Department of Insurance (DIFI) is empowered to investigate violations, issue cease and desist orders, and impose civil penalties of up to $1,000 per violation, with this authority not precluding other enforcement actions. The Director can also create rules to implement these provisions, which will apply to certificates issued for property and casualty risks in Arizona, regardless of where the parties involved are located. Any certificate issued in violation of this bill will be considered void. The bill defines a certificate of insurance broadly to include various documents summarizing coverage but excludes actual insurance policies, binders, endorsements, and automobile insurance cards.