This bill proposes to amend current statutes by adding a new section, 20-443.03, to define and regulate certificates of insurance. The bill clarifies that a certificate of insurance is not an insurance policy and does not alter the coverage provided by an insurance policy or confer additional rights beyond what is explicitly stated in the policy. It prohibits the preparation, issuance, or requirement of certificates that contain false information, alter coverage, or misrepresent compliance with contractual requirements. Additionally, it establishes that only policyholders are entitled to notice of changes in the insurance policy unless otherwise specified.

The bill grants the Director of the Department of Financial Institutions the authority to investigate violations of these regulations and to impose civil penalties of up to $1,000 per violation. It also allows the Director to adopt rules for implementation and applies these regulations to all certificates of insurance related to property and casualty risks in Arizona, regardless of the location of the involved parties. Any certificate issued in violation of these provisions would be deemed void.

Statutes affected:
Introduced Version: 20-443.03
House Engrossed Version: 20-443.03
Chaptered Version: 20-443.03