ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: COM DPA 10-0-0-1

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2996: DIFI; certificates of insurance

Sponsor: Representative Weninger, LD 13

House Engrossed

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.   Prohibits a person from preparing, issuing or requiring a certificate of insurance that:

a.   contains false or misleading information;

b.   alters, amends or extends coverage; or

c. claims that the insurance policy complies with the insurance or indemnification requirements of a contract. (Sec. 1)

3.   Provides stipulations that entitle a person, other than the policyholder, to notice of cancellation, nonrenewal or a material change in the policy terms. (Sec. 1)

4.   Authorizes DIFI to investigate any violation and take appropriate action, including issuing a cease and desist order or assessing a civil penalty. (Sec. 1)

5.   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)

6.   Allows DIFI to adopt rules to implement the certificate of insurance requirements. (Sec. 1)

7.   Specifies the outlined requirements apply to any certificate of insurance that is issued in connection with property and casualty risks. (Sec. 1)

8.   Voids a certificate of insurance or other documents that is in violation of the outlined requirements. (Sec. 1)

9.   Defines certificate of insurance. (Sec. 1)

10.  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)

11.  Makes technical changes. (Sec. 1)

 

 

 

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Initials PB                 HB 2996

2/25/2026        Page 0 House Engrossed

 

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