ARIZONA HOUSE OF REPRESENTATIVES

SB 1008: insurance; prohibited inducements; exceptions

PRIME SPONSOR: Senator Livingston, LD 22

BILL STATUS: Transmitted to Governor

Overview

Allows an insurer to offer or provide certain ancillary products or services in connection with an insurance transaction.

History

Insurers are prohibited from knowingly charging, demanding or receiving a premium for any insurance policy except in accordance with any applicable filing on file with the Department of Insurance.

Additionally, insurers are prohibited from offering, paying, or giving any rebate, discount, or premium reduction on insurance policies.  The named insured may not knowingly receive or accept any such rebate, discount, or reduction of premium. (A.R.S. § 20-451)

Pursuant to A.R.S. § 20-452 insurers are prohibited from offering or providing certain inducements in connection with insurance transactions.  Prohibited inducements include employment, shares of stock or other securities, advisory board contracts or agreements that offer or provide for any special profits, and prizes, good, or tangible property valued at more than $100.

Provisions

1. Permits an insurer to offer or provide products or services that are ancillary, related to any insurance coverage, or related to any policy of insurance and that are intended to minimize or prevent claims-related losses or expenses or harm to the public.

a. Adds such products or services are exempt from statutes relating to prohibited inducements or rebates. (Sec. 2, 3)

b. Adds statute relating to unfair discrimination practices do not prohibit the offering of such products or services. (Sec. 1)

2. Makes technical changes. (Sec. 1, 2, 3)

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6. Fifty-fourth Legislature                       SB 1008

7. First Regular Session                            Version 4: Transmitted

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