Assigned
to FIN AS
PASSED BY COW
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
AMENDED
insurance; fees; consent; limits(NOW: insurance; fees; consent;
medicare supplement)
Decreases the minimum amount of the nonrefundable fee for the certificate of the Director of the Department of Insurance and Financial Institutions (DIFI), under seal. Requires an oral communication that meets outlined requirements to qualify as consent for an insurer to deliver documents electronically and requires the oral consent to apply only to an agreement to the use of electronic communication with the insurer.
Background
Fees and Communications
DIFI collects nonrefundable fees from financial institutions and enterprises with the filing of certain documents and applications (A.R.S. § 6-126).
Any notice to a party or other document required in an insurance transaction may be delivered, stored and presented electronically if certain requirements are met. An oral communication or a recording of an oral communication does not qualify as consent to deliver a notice or document by electronic means (A.R.S. § 20-239).
Title Insurance Agencies
An agent for a title insurer may not adopt a corporate or business name that contains the words title insurance, title guaranty or title guarantee or other words indicating that the agent is in the business of title insurance, unless followed by agent or agency. The words agent or agency must be the same size and type as the words preceding them in any print or advertisement. A title insurer is not responsible for an agent's violation of corporate or business name and is not liable for a civil penalty imposed on an agent (A.R.S. § 20-1583).
Motor Vehicle Liability Policy
A motor vehicle liability policy is an owner's or operator's policy of liability insurance issued by an authorized insurance carrier to the benefit of the named insured (A.R.S. § 28-4001). A motor vehicle liability policy is not required to insure liability outlined under any worker's compensation law or for intentional damage or injury authorized or executed by the insured (A.R.S. § 28-4009).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Fees and Communications
1. Reduces, from $1.50 to $0.00, the minimum amount of the nonrefundable fee for the certificate of the Director, under seal.
2. Requires either an oral communication with a contemporaneous written record made of the communication or an archived recording, subject to the insurer's written record retention policy, to qualify as consent for an insurer to deliver a notice or document by electronic means.
3. Specifies that oral consent applies only to an agreement to the use of electronic communication with the insurer and is not an agreement to any other insurance matter.
Medicare Supplement Insurance
4. Prohibits the Director from prohibiting Medicare supplement insurance providers from offering discounts to enrollees for early enrollment or payment method.
Title Insurance Agencies
5. Removes the restrictions on the corporate or business name of an agent for a title insurer.
Motor Vehicle Liability Policy
6. Specifies that a motor vehicle liability policy is not required to provide coverage for any liability that is not required under state law.
7. Allows a motor vehicle liability policy to contain exclusions except miscellaneous as specifically prohibited by law.
Miscellaneous
8. Requires a person, to qualify as an advisory organization, to assist two or more insurers or rate service organizations in the making of rates.
9. Makes technical and conforming changes.
10. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Modifies consent through oral communication by requiring, rather than allowing, either the contemporaneous record to be written or a recording to be archived subject to the insurer's written record retention policy.
2. Prohibits the Director from prohibiting Medicare supplement insurance from offering discounts to enrollees for early enrollment or payment method.
Amendments Adopted by Committee of the Whole
1. Specifies that oral consent to electronic delivery applies only to an agreement to the use of electronic communication with the insurer and is not an agreement to any other insurance matter.
2. Removes the requirement for an insurance producer to disclose fees and service charges in writing.
3. Requires a person, to qualify as an advisory organization, to assist two or more insurers or rate service organizations in the making of rates.
4. Makes technical changes.
Senate Action
FIN 1/26/22 DPA 10-0-0
Prepared by Senate Research
February 23, 2022
MG/AN/slp