Bill > HB2996

This bill clarifies the role and limitations of certificates of insurance, which are documents that describe or summarize insurance coverage but are not insurance policies themselves. It explicitly states that these certificates do not alter or extend the coverage provided by an actual insurance policy and do not grant any rights beyond what is in the policy. The bill empowers the Director of the Department of Insurance (DIFI) to prohibit the use of certificates that are misleading, deceptive, or violate public policy or law, and it prohibits anyone from issuing or requiring certificates that contain false information, attempt to change policy terms, or falsely claim compliance with contractual insurance requirements. Furthermore, it clarifies that individuals are only entitled to notice of cancellation, nonrenewal, or material changes to an insurance policy if the policy itself or an endorsement requires it. The DIFI can issue cease and desist orders and assess civil penalties of up to $1,000 per violation for non-compliance, with these penalties being in addition to any other legal actions. The bill also defines "certificate of insurance" broadly to include various documents describing coverage but excludes actual insurance policies, binders, endorsements, and auto insurance cards, and defines "person" to include individuals, corporations, and governmental entities. This new section applies to certificates issued for property and casualty risks located in Arizona, regardless of where the parties involved are located, and any certificate issued in violation of these provisions will be void.

Business and Industry

https://apps.azleg.gov/BillStatus/BillOverview/85508