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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
insurance; policy summaries
Purpose
Specifies that in the event of a conflict between an insurance contract and a summary of that insurance contract, the insurance policy (policy) controls. Provides requirements for policy summaries.
Background
Current statute
requires that every insurance contract shall be construed according to the
entirety of its terms and conditions as set forth in the policy and as
amplified, extended or modified by any rider, endorsement or application attached
to and made a part of the policy (A.R.S.
§ 20-1119).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows an insurer to provide or make available to insureds a summary of policy coverages and exclusions.
2. Requires that summary to include:
a) a brief description of the coverages provided under the policy;
b) a brief description of the exclusions under the policy that operate to limit or negate the coverages otherwise provided under the policy; and
c) a notice that is prominently displayed on the cover page, that is in a contrasting color or bold-face type and that states, "this policy summary is for informational purposes only and is designed to provide a basic description of insurance coverages and exclusions in your policy. This summary does not reflect all of the coverages and exclusions contained in your policy. The policy controls in the event of a conflict between your policy and this summary."
3. Specifies that an insurer's election to provide a policy summary does not obligate the insurer to provide a policy summary at policy renewal or for any other policies issued to the same insured.
4. Specifies that a policy summary is not a replacement for the policy, does not have the effect of altering the coverages or exclusions under the policy, and does not confer new or additional rights beyond those expressly provided for in the policy.
5. Prohibits a person engaged in the business of insurance from providing or using a policy summary that contains false, misleading or deceptive representations or statements. Provides that a violation of this provision is an unfair trade practice.
6. Specifies that this legislation does not create or imply a private cause of action for violation.
7. Becomes effective on the general effective date.
Prepared by Senate Research
February 18, 2019
CS/kja