The Arizona Revised Statutes have been updated to include the revised sections from the 57th Legislature, 1st Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 57th Legislature, 2nd Regular Session, which convenes in January 2026.
This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
20-431.07. Annual report; notice to policyowners
A. If a policy is designated as one that will use illustrations, the insurer shall provide each policyowner with an annual report on the status of the policy as follows:
1. For universal life policies, the annual report shall include:
(a) The beginning date and end date of the current report period.
(b) The policy value at the end of the previous report period and at the end of the current report period.
(c) The total amounts that have been credited or debited to the policy value during the current report period, identifying each by type and including interest, mortality, expense and riders.
(d) The current death benefit at the end of the current report period on each life covered by the policy.
(e) The net cash surrender value of the policy as of the end of the current report period.
(f) The amount of outstanding loans, if any, as of the end of the current report period.
(g) For fixed premium policies, a notice whether the policy's net cash surrender value is such that it would not maintain insurance in force until the end of the next reporting period, assuming guaranteed interest, mortality and expense loads and continued scheduled premium payments.
(h) For flexible premium policies, a notice whether the policy's net cash surrender value will not maintain insurance in force until the end of the next reporting period unless further premium payments are made, assuming guaranteed interest, mortality and expense loads.
2. For all other policies, where applicable, the annual report shall include the following:
(a) Current death benefit.
(b) Annual contract premium.
(c) Current cash surrender value.
(d) Current dividend.
(e) Application of current dividend.
(f) Amount of outstanding loan.
B. Insurers writing life insurance policies that do not build nonforfeiture values shall be required to provide an annual report with respect to such policies only for those years when the insurer has made a change to nonguaranteed policy elements.
C. If the annual report does not include an in-force illustration, the annual report shall contain the following prominently displayed notice: "important policyowner notice: you should consider requesting more detailed information about your policy to understand how it may perform in the future. You should not consider replacement of your policy or make changes in your coverage without requesting a current illustration. You may annually request, without charge, an illustration by calling (insurer's telephone number), writing to (insurer's name) at (insurer's address or email address) or contacting your agent. If you do not receive a current illustration of your policy within thirty days from the date of your request, you should contact your state insurance department." The insurer may vary the sequential order of the methods for obtaining an in-force illustration.
D. On request of a policyowner, the insurer shall furnish an in-force illustration of current and future benefits and values based on the insurer's present illustrated scale. This illustration shall comply with section 20-431.03, subsections A and B and section 20-431.04, subsections A and F. A signature or other acknowledgment of receipt of this illustration is not required.
E. If the insurer makes an adverse change in nonguaranteed elements that could affect the policy since the last annual report, the annual report shall contain a notice of that fact and shall prominently display the nature of the change.