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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB 2996: DIFI; certificates of insurance
Sponsor: Representative Weninger, LD 13
Committee on Commerce
Overview
Provides requirements applicable to a certificate of insurance.
History
The Department of Insurance and Financial Institutions (DIFI) regulates the insurance industry through licensure and examination of insurance professionals and businesses, including insurance producers and adjusters.
Insurance is a contract by which one undertakes to indemnify another or to pay a specified amount on determinable contingencies (Title 20, A.R.S.).
Provisions
1. Declares a certificate of insurance that is issued by an insurer, or an insurance producer is not an insurance policy and does not:
a. amend, extend or alter the coverage that an insurance policy provides; and
b. confer any new or additional right beyond what is expressly stated in the insurance policy. (Sec. 1)
2. Stipulates the use of a certificate of insurance is prohibited if it:
a. is unfair, misleading or deceptive; or
b. violates public policy, any law or adopt rule. (Sec. 1)
3. Prohibits a person from preparing, issuing or requiring a certificate of insurance that:
a. contains false or misleading information;
b. purports to alter, amend or extend coverage; or
c. claims that the insurance policy complies with the insurance or indemnification requirements of a contract. (Sec. 1)
4. Provides stipulations that entitle a person to notice of cancellation, nonrenewal or a material change in the policy terms. (Sec. 1)
5. Instructs DIFI to investigate any violation and take appropriate action, including issuing a cease and desist order or assessing a civil penalty. (Sec. 1)
6. Specifies actions taken for violations do not limit DIFI's authority to investigate, enforce or issue civil penalties in accordance with any other applicable law. (Sec. 1)
7. Allows DIFI to adopt rules to implement the certificate of insurance requirements. (Sec. 1)
8. Specifies the outlined requirements apply to any certificate of insurance that is issued in connection with property and casualty risks. (Sec. 1)
9. Voids a certificate of insurance or other documents that is in violation of the outlined requirements. (Sec. 1)
10. Defines certificate of insurance and person. (Sec. 1)
11. Applies the outlined certificate of insurance requirements to any contract or addendum that is entered into after the effective date of this act. (Sec. 2)
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15. Initials PB HB 2996
16. 2/14/2026 Page 0 Commerce
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