Assigned to FIN &                                                                                                                     FOR COMMITTEE

ARIZONA STATE SENATE

Fifty-Third Legislature, Second Regular Session

FACT SHEET FOR H.B. 2098

insurance; inducements

Purpose

Increases, from $25 to $100, the maximum aggregate value of permissible inducements offered by an insurer in connection with any insurance transaction.

Background

Current statute prohibits an insurer, insurance producer or other person from offering certain inducements to an insured or in an insurance policy in connection with any transaction. Prohibited inducements include: 1) any employment offers; 2) shares of stocks or securities; 3) advisory board contracts or other agreements providing for special profits; and 4) prizes, goods, merchandise or tangible property valued at more than $25 (A.R.S. § 20-452).

These prohibitions do not, however, prevent an insurer from retaining an independent third party to conduct customer feedback efforts in which a reasonable incentive, not exceeding $200, may be offered to participants (A.R.S. § 20-452).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Increases, from $25 to $100, the maximum aggregate value of permissible inducements offered by an insurer in connection with any insurance transaction.

2. Becomes effective on the general effective date.

House Action

BI                    1/11/18     DP     6-2-0-0

3^rd Read          2/6/18                 43-15-1-0-1

Prepared by Senate Research

February 26, 2018

FB/ZD/lb