The proposed bill, if enacted, would introduce new provisions regarding certificates of insurance under Title 20, Chapter 2, Article 6 of the Arizona Revised Statutes. Specifically, it would clarify that a certificate of insurance is not an insurance policy and does not alter or extend the coverage provided by an insurance policy. The bill would also prohibit the use of certificates that are unfair, misleading, or violate public policy or law. Additionally, it would establish that individuals are entitled to notice of cancellation or changes in policy terms only if such requirements are included in the insurance policy itself.

Furthermore, the bill would empower the director of the Department of Insurance and Financial Institutions (DIFI) to investigate violations and take actions such as issuing cease and desist orders or assessing civil penalties. It would also allow DIFI to adopt rules for implementing these requirements and specify that any certificate of insurance issued in violation of the new provisions would be void. The definitions of "certificate of insurance" and "person" would be expanded to ensure clarity in the application of these regulations. Overall, the bill aims to enhance the regulatory framework surrounding certificates of insurance in Arizona.

Statutes affected:
Introduced Version: 20-443.03