HB 2076: life insurance; illustrations - Arizona

Senate Engrossed Version → Chaptered Version · 5 edits

MODERATE

This bill was formatted and finalized into Chapter 121, adding new statutory requirements for life insurance illustrations in Arizona. The changes primarily involve reorganizing the bill's structure, updating section numbering, and incorporating additional definitions and operational requirements for insurers.

Scope change

The bill's scope remains focused on regulating life insurance illustrations, but the formatting changes reflect its transition from a draft version to an approved chaptered version.

TECHNICAL

Added new definitions for 'policyowner', 'policyowner value', 'premium outlay', 'self-supporting illustration', 'supplemental illustration', and 'nonterm group life' to clarify regulatory requirements.

Changed the bill title from 'Senate Engrossed House Bill' to 'Chapter 0121 - 571R - S Ver of HB2076' and updated formatting to reflect it has been approved by the Governor and filed with the Secretary of State.

REQUIREMENT

Added new sections requiring insurers to notify the director about policy forms with illustrations, identify marketing strategies by January 1, 2026, and provide specific disclosures about nonguaranteed elements.

TIMELINE

Established effective date of December 31, 2025, and set January 1, 2026, as the date for insurers to identify policy forms being marketed with or without illustrations.

ENFORCEMENT

Added penalty provisions stating that violations of the illustration requirements constitute unfair trade practices under existing law.

House Engrossed Version → Senate Engrossed Version · 5 edits · Apr 9, 2025

MODERATE

This bill amends Arizona insurance laws to update definitions and requirements for life insurance illustrations and policy replacements. It clarifies when illustrations must be provided, adds new definitions for terms like 'financed purchase' and 'replacement', and modifies reporting requirements for insurers. The changes aim to improve consumer protection by ensuring clearer disclosure of policy performance and preventing misleading sales practices.

Scope change

The bill expands the scope by adding new definitions to Article 5.1 and modifying applicability rules for policy illustrations and replacement transactions.

DEFINITION

Added comprehensive definitions for terms including 'contract', 'direct response solicitation', 'direct solicitation', 'existing insurer', 'financed purchase', 'illustration', 'policy summary', 'registered contract', 'replaced', 'replacing insurer', and 'sales material'.

REQUIREMENT

Modified requirements for when insurers must provide illustrations and policy summaries, adding specific conditions for group life insurance and nonterm policies.

Added requirement that insurers provide basic illustrations to nonterm group life insurance enrollees who have enrolled in more than minimum premium coverage.

ELIGIBILITY

Modified applicability criteria for life insurance policies, clarifying which policies are subject to illustration requirements and adding exceptions for certain policy types.

TECHNICAL

Made technical formatting changes to bill versioning and section numbering, converting from House to Senate engrossed version.

Introduced Version → House Engrossed Version · 4 edits · Apr 9, 2025

MODERATE

The bill was reformatted and slightly modified during its passage from the Introduced Version to the House Engrossed Version. The substantive policy content regarding life insurance illustrations remained largely the same, but several technical edits were made to definitions and formatting. Most notably, the definition of 'Minimum-assumed expenses' was changed to require approval by the 'director' instead of the 'National Association of Insurance Commissioners', and some capitalization inconsistencies were corrected throughout the text.

Scope change

The scope of the bill remains unchanged; it still applies to group and individual life insurance policies with specific exclusions for variable life, annuities, credit life, and small policies.

DEFINITION

The definition of 'Minimum-assumed expenses' was changed to require approval by the state insurance director rather than the National Association of Insurance Commissioners.

TECHNICAL

Capitalization inconsistencies were corrected throughout the bill, such as changing 'Actuarial standards board' to lowercase and standardizing terms like 'RECOGNIZED' and 'SIGNIFICANT'.

New definitions were added for 'policyowner', 'policyowner value', 'premium outlay', 'self-supporting illustration', and 'supplemental illustration' to clarify terminology.

Minor formatting changes were made to the bill structure, including reorganizing the title page and removing pre-filing reference text.

life insurance; illustrations

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