ARIZONA
HOUSE OF REPRESENTATIVES
|
HB 2175: insurance; third-party administrators; exemptions |
||
|
PRIME SPONSOR: Representative Weninger, LD 17 BILL STATUS: Transmitted to Governor |
|
|
History
Title 20, Chapter 2, Article 9 governs insurance administrators, or Third-Party Administrators. An administrator is a person who collects charges or premiums, or adjusts or settles claims, from Arizona residents in connection with life or health insurance. An individual must obtain a valid certification of registration in order to act as an administrator (A.R.S. § 20-485.12).
A qualified marketplace platform (QMP) is an organization that operates a digital website or smartphone application to facilitate services by a qualified marketplace contractor (QMC) and that accepts service requests from the public only through such website or application. A QMC is a person or organization that enters an agreement with a QMP to use its digital platform to provide services. Such services do not include transporting freight or sealed and closed envelopes, parcels or containers (A.R.S. § 23-1603).
Pursuant to A.R.S. § 20-1404, blanket disability insurance covers special groups of persons and includes policies issued: to an owner or operator of a means of transportation, covering its passengers; to a school or its principal, covering students, employees and volunteers; to a creditor, covering its debtors; and to a restaurant or hotel, covering its patrons or guests.
Provisions
1. Exempts the following from statute governing insurance administrators:
a. A credit card processing company that processes payments or charges for premiums and that does not adjust or settle claims;
b. A QMP on behalf of QMCs that have executed a written contract with the QMP;
c. An employee of the group policyholder who collects or remits premiums for group life insurance, group annuities or group or blanket disability insurance who does not adjust claims or receive commissions;
d. A licensed life or disability insurance producer who does not adjust or settle claims;
e. An employee of a licensed life or disability insurance producer, provided the employee:
i. Is working at the direction and under the supervisor of the licensed producer, and
ii. Does not adjust or settle claims;
f. A money transmitter who does not adjust or settle claims; and
g. An administrator of certain types of trusts who acts only as an administrator of those trusts and does not adjust or settle claims. (Sec. 1)
2. Permits an insurer to issue a group blanket disability insurance policy to a QMP covering QMCs. (Sec. 2)
3. Permits an insurer to issue a blanket disability insurance policy to a QMP covering QMCs. (Sec. 3)
4. Defines QMC and QMP. (Sec. 1)
5. Makes technical and conforming changes. (Sec. 1, 2, 3)
6.
7.
8. ---------- DOCUMENT FOOTER ---------
9. Fifty-fourth Legislature HB 2175
10. First Regular Session Version 4: Transmitted
11.
12. ---------- DOCUMENT FOOTER ---------