DIFI; certificates of insurance, the official text

House Engrossed

DIFI; certificates of
insurance

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2996

AN
ACT

amending title 20, chapter 2, article 6, arizona
revised statutes, by adding section 20-443.03; relating to the
transaction of insurance business.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1. Title 20, chapter 2, article 6,
Arizona Revised Statutes, is amended by adding section 20-443.03, to read:

START_STATUTE20-443.03. Certificates of
insurance; notice; civil penalty; rules; applicability; definition

A. A certificate of insurance that is
prepared or issued by an insurer, an insurance producer or a representative of
an insurer or an insurance producer is not an insurance policy, does not amend,
extend or alter the coverage that is provided by an
insurance policy and does not confer any new or additional rights beyond those expressly stated in the
insurance policy.

B. A person may not prepare, issue,
request or require a certificate of insurance that:

1. Contains false or misleading
information about the insurance policy.

2. alters,
amends or extends coverage that is provided for in the insurance policy.

3. Claims that the insurance policy
complies with the insurance or indemnification requirements of a contract.

C. A person,
other than the policyholder is entitled to notice of cancellation, nonrenewal
or a material change in the terms of an insurance policy only
if the policy or an endorsement to the policy affords
such notice rights to the person.

D. The director may investigate any violation of this section, and the director may
take one or both of the following actions:

1. Issue an order that requires the
person to cease and desist from the actions that constitute the violation.

2. Assess a civil penalty of not more
than $1,000 per violation.

E. Subsection D
of this section does not limit the authority of the director to investigate,
enforce or issue civil penalties pursuant to any other applicable law.

F. The director may adopt rules to
implement this section.

G. This section applies to any
certificate of insurance that is issued in connection with property and
casualty risks located in this state without regard to the location of the
policyholder, insurer or insurance producer or any person who requests or
requires a certificate of insurance to be issued.

H. A certificate of insurance or any
other document or correspondence that is prepared, issued, requested or
required in violation of this section is void.

I. For the purposes of this section, "Certificate of insurance":

1. Means a document, form, template,
submission, questionnaire or other instrument regardless of title that includes
a description, summary, interpretation or evidence of property or casualty
insurance coverage and that is prepared or issued by an insurer, an insurance
producer or a representative of an insurer or producer.

2. Does not include any of the
following:

(a) An
insurance policy.

(b) An
insurance binder.

(c) A policy
endorsement.

(d) An
automobile insurance identification or information card.

Sec. 2. Applicability

This act applies to any contract or
addendum that is entered into from and after the effective date of this act.