HB2342 - 522R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 20-286, Arizona Revised Statutes, is amended to read:

START_STATUTE20-286. Licensure; lines of authority

A. Unless the director denies a license pursuant to section 20‑295, the director shall issue a resident insurance producer license to any person who meets the requirements prescribed in sections 20‑284 and 20‑285. An insurance producer may qualify for a license in one or more of the following lines of authority:

1. Life. Life insurance is coverage on human lives, including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income.

2. Accident and health or sickness. Accident and health or sickness insurance is coverage for sickness, bodily injury or accidental death and may include benefits for disability income.

3. Property. Property insurance is coverage for the direct or consequential loss or damage to property of every kind.

4. Casualty. Casualty insurance is coverage against legal liability, including liability for death, injury, disability or damage to real or personal property.

5. Variable life and variable annuity products. Variable life and variable annuity is insurance coverage that is provided under a variable life insurance contract or a variable annuity.

6. Personal lines. Personal lines is property and casualty insurance coverage that is sold to individuals and families for primarily noncommercial purposes.

7. Credit. Credit insurance is limited line credit insurance.

8. Any other line of insurance allowed under state law or rules adopted by the director.

B. The license shall contain the licensee's name, address and identification number, the date of issuance, the lines of authority, the expiration date and any other information the director deems necessary. The director may make the information prescribed by this section available electronically.

C. A licensee shall inform the director in writing within thirty days of any change in the licensee's:

1. Residential, or business or e‑mail address.

2. Members, directors, officers or designated producer. The director may require that a licensee who notifies the director of a change pursuant to this paragraph submit a full set of fingerprints of each new member, director, officer or designated producer to the director for the purpose of obtaining a state and federal criminal records check pursuant to section 41‑1750 and Public Law 92‑544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.

3. Name.

D. In order to assist in the performance of the director's duties, the director may contract with a third party to perform any ministerial functions that are related to producer licensing and that the director deems appropriate, including the collection of fees. END_STATUTE

Sec. 2. Section 20-321, Arizona Revised Statutes, is amended to read:

START_STATUTE20-321. Definitions

In this article, unless the context otherwise requires:

1. "Adjuster":

(a) Means any person who for compensation, fee or commission either:

(i) Adjusts, investigates or negotiates settlement of claims arising under property and casualty insurance contracts on behalf of either the insurer or the insured.

(ii) Holds oneself out to perform a service listed in item (i) of this subdivision.

(b) Does not include:

(i) A licensed attorney‑at‑law who is qualified to practice law in this state.

(ii) A salaried employee of an insurer or of a managing general agent. For the purposes of this item, "salaried employee" means an employee whose compensation is not contingent on the outcome of a claim determination.

(iii) A licensed insurance producer who adjusts or assists in adjustment of losses arising under policies procured through the insurance producer.

(iv) An employee of a political subdivision who adjusts or assists in the adjustment of losses arising under policies covering the political subdivision or persons indemnified by the political subdivision.

(v) An independent contractor retained by a licensed adjuster or a person listed in items (i) through (iv) of this subdivision for the sole purpose of providing technical assistance in connection with a claim. Independent contractors may include photographers, estimators, engineers, private detectives or handwriting experts.

(vi) An individual who collects claim information from or furnishes claim information to insureds or claimants and who conducts data entry, including entering data into an automated claims adjudication system, if no more than twenty‑five persons, as described in this item, are under the supervision of a single licensed adjuster or licensed producer. A licensed insurance producer who is supervising or adjusting claims pursuant to this item is not required to be licensed as an adjuster.

(vii) Registered third‑party administrators and their employees who are engaged in administering accident and health or life insurance claims.

2. "Automated claims adjudication system" means a preprogrammed computer system that is designed for the collection, data entry, calculation and final resolution of portable consumer electronic products insurance claims and that:

(a) May be used only by a licensed adjuster, a licensed producer or supervised individuals operating pursuant to this paragraph.

(b) Must comply with all claims payment requirements under this title and be certified as compliant by a licensed adjuster.

3. "Portable consumer electronic products" means electronic devices and related accessories that are portable in nature. END_STATUTE

Sec. 3. Section 20-1693, Arizona Revised Statutes, is amended to read:

START_STATUTE20-1693. Definitions

In this article, unless the context otherwise requires:

1. "Customer" means a person who purchases portable electronics or services.

2. "Enrolled customer" means a customer who elects coverage under a portable electronics insurance policy issued to a vendor of portable electronics.

3. "Location" means any physical location in this state or any website, call center site or similar location directed to residents of this state.

4. "Portable electronics" means personal, self-contained, easily carried by an individual, battery‑operated electronic communication, viewing, listening, recording, gaming, computing or global positioning devices, including cell or satellite phones, pagers, personal global positioning satellite units, portable computers, portable audio listening devices, video viewing or recording devices, digital cameras, video camcorders, portable gaming systems, docking stations, automatic answering devices and other similar devices and the devices' accessories.

5. "Portable electronics insurance":

(a) Means insurance providing coverage for the repair or replacement of portable electronics that may provide coverage for portable electronics against loss, theft or inoperability, or any combination thereof, due to mechanical failure, malfunction, damage or other similar causes of loss.

(b) Does not include:

(i) A service contract under chapter 4, article 11 of this title.

(ii) An insurance policy covering a seller's or manufacturer's obligations under a warranty.

(iii) A homeowner's, renter's, private passenger automobile, commercial multiperil or similar policy.

6. "Portable electronics transaction" means either:

(a) The sale or lease of portable electronics by a vendor to a customer.

(b) The sale of a service related to the use of portable electronics by a vendor to a customer.

7. "Supervising entity" means a business entity that is a licensed insurer or insurance producer and that is authorized by an insurer to supervise the administration of a portable electronics insurance policy.

8. "Vendor" means a person business in the business of engaging in portable electronics transactions directly or indirectly. END_STATUTE