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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
AMENDED
insurance; prohibited inducements; exceptions
Purpose
Allows insurers to offer products or services related to insurance coverage to existing policyholders and new consumers in connection with insurance transactions.
Background
Current statute prohibits insurers from offering inducements to consumers in connection with insurance transactions. Prohibited inducements include: 1) employment; 2) shares of stock or other securities; 3) advisory board contracts; or 4) tangible property of more than $100. Statute also prohibits insurers from offering, and persons insured from accepting, a rebate, discount, credit or premium reduction on insurance policies, other than life or disability insurance.
However, insurers may conduct customer feedback efforts with reasonable incentives not exceeding $200 (A.R.S. §§ 20-451 and 20-452).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows insurers to offer products or services that are ancillary or related to insurance coverage and that are intended to prevent claims-related losses or harm to the public, to consumers in connection with an insurance transaction.
2. Allows insurers to offer products or services that are ancillary or related to existing insurance policies, other than life or disability insurance, and that are intended to prevent claims-related losses or harm to the public.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Adds language allowing insurers to offer certain products or services to rebate statute.
2.
Expands allowed inducements to
include products or services that are intended to deter
claims-related losses, injury or death.
3. Makes technical and conforming changes.
Senate Action
FIN 1/16/19 DPA 10-0-0
Prepared by Senate Research
January 17, 2019
CS/LC/kja