ARIZONA HOUSE OF REPRESENTATIVES

SB 1113: insurance; information practices

PRIME SPONSOR: Senator Livingston, LD 22

BILL STATUS: House Engrossed

Overview

Stipulates an insurer is not required to provide an annual insurance information practices notification if certain requirements are met.

History

Pursuant to A.R.S. § 20-2104, an insurance institution or insurance producer must provide a notice of information practices to applicants and policyholders in connection with insurance transactions and outlines the times when the notice must be provided.

Specifically, the notice must be provided at least annually in the case of a policy renewal, and no later than the time when the insurer receives a request for a policy reinstatement or change in insurance benefits.  However, in the case of a policy reinstatement or change in insurance benefits, the notice is not required if the notice was already provided within the immediately preceding 12 months.

The notice of information practices must contain the information as required under federal law, or must state the following:

a. Whether personal information may be collected from persons other than the individual proposed for coverage;

b. The types of personal information that may be collected and the types of sources and investigative techniques that may be used to collect the information;

c. The types of disclosures as identified under statute relating to limitations and conditions of disclosing personal information, and the circumstances under which the disclosures may be made without prior authorization;

d. A description of the rights as established under law and the manner in which those rights may be exercised; and

e. That information obtained from a report prepared by an insurance support organization may be retained by the insurance support organization and disclosed to other persons.

The insurer is not required to provide a notice to a policyholder whose policy is lapsed, expired or otherwise inactive.

Provisions

1. Specifies an insurance institution or insurance producer is not required to provide a notice of information practices at policy renewals or policy reinstatements, provided the insurer:

a. Provides personal information in accordance with statute relating to limitations and conditions of disclosing personal information; and

b. Has not changed the policies and practices relating to disclosing personal information since the customer was last notified. (Sec. 1)

c.

d.

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f. Fifty-fourth Legislature                               SB 1113

g. First Regular Session                    Version 3: House Engrossed

h.

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