The bill amends section 20-1812 of the Arizona Revised Statutes to introduce additional disclosure requirements for life care contracts that offer a refund. Specifically, it mandates that providers deliver a separate disclosure document to purchasers, detailing the conditions surrounding entrance fees, refund eligibility, amounts, and any specific conditions or limits on refunds. This document must be printed in at least ten-point boldface type, signed by the contract holder and their partner or spouse, and witnessed by two independent persons. Additionally, purchasers must initial each disclosure to confirm they have read and understood the information.

The new provisions apply to both new and existing life care contracts, enhancing transparency for consumers regarding financial commitments and refund policies. The bill also allows the Director of the Department of Insurance and Financial Institutions to recommend or require a specific format for these disclosures, ensuring that all necessary information is clearly presented. Overall, the changes aim to protect consumers by ensuring they are fully informed before entering into life care contracts.

Statutes affected:
Introduced Version: 4-203.06
House Engrossed Version: 4-203.02, 4-203.06, 4-206.01, 4-243, 4-112, 4-244, 4-210.02, 4-201, 4-203, 4-210, 4-205.02
Senate Engrossed Version: 20-1812
Chaptered Version: 20-1812