Official Summary Text
HB2996 - 572R - Senate Fact Sheet
Assigned to
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COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
FACT SHEET FOR
H.B. 2996
DIFI; certificates
of insurance
Purpose
Defines
certificate
of insurance
and establishes regulations for a certificate of insurance.
Prohibits a certificate of insurance from misrepresenting an insurance policy
and allows the Director of the Department of Financial Institutions (Director)
to investigate and act on any violation of the prohibition.
Background
Established in
2020 after consolidating the Department of Insurance and the Department of
Financial Institutions, the Department of Insurance and Financial Institutions (DIFI)
is responsible for regulating the insurance industry, financial institutions,
financial service professionals and business entities. DIFI conducts
examinations on licensees and businesses and investigates fraud, deceptive
practices, unprofessional conduct, claim delays and unfair claim settlement
practices (
A.R.S. Title 20
).
The insurance
industry typically uses certificates of insurance in lieu of providing a full
copy of an insurance policy, serving as proof of insurance and summarizing
policy forms. Statute prohibits a person from misrepresenting the coverage or
terms of an insurance policy. An insurer or insurance producer who issues a
certificate of insurance that misrepresents or obscures the terms or conditions
of the underlying policy may be subject to administrative action for suspension
or revocation of a producer�s license or an insurer�s certificate or authority,
civil penalties and, if applicable, restitution (
DIFI
Regulatory Bulletin 2011-01
;
A.R.S.
� 20-443
).
There is no anticipated fiscal impact to the state
General Fund associated with this legislation.
Provisions
1.
Defines
certificate of insurance
as any 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 or an insurance
producer, or their representative, and excluding an insurance policy, insurance
binder, policy endorsement or automobile insurance identification or
information card.
2.
Specifies
that a certificate of insurance prepared or issued by an insurer or insurance
producer, or their representative:
a)
is not an insurance policy;
b)
does not amend, extend or alter the coverage that is provided by an
insurance policy; and
c)
does not confer any new or additional rights beyond those expressly
stated in the insurance policy.
3.
Prohibits
a person from preparing, issuing, requesting or requiring a certificate of
insurance that:
a)
contains false or misleading information about the insurance policy;
b)
alters, amends or extends coverage that is provided for in the insurance
policy; or
c)
claims
that the insurance policy complies with the insurance or indemnification
requirements of a contract.
4.
Entitles a person, other than the policyholder, to a 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.
5.
Allows
the Director to investigate any violation of the prescribed certificate of
insurance prohibition and to take one or both of the following actions:
a)
issue an order that requires the person to cease and desist from the
actions that constitute the violation; or
b)
assess
a civil penalty of up to $1,000 per violation.
6.
Specifies that the Director's authority to investigate any violation of
the prescribed certificate of insurance prohibition does not limit the
authority of the Director to investigate, enforce or issue civil penalties
pursuant to any other applicable law.
7.
Allows the Director to adopt rules to implement the certificate of
insurance regulations.
8.
Applies the prescribed certificate of insurance regulations to any certificate
of insurance that is issued in connection with property and casualty risks
located in Arizona without regard to the location of the policyholder, insurer,
insurance producer or any person who requests or requires a certificate of
insurance to be issued.
9.
Voids a certificate of insurance or any other document or correspondence
that is prepared, issued, requested or required in violation of the certificate
of insurance prohibition.
10.
Applies
the certificate of insurance considerations to any contract or addendum that is
entered into on or after the general effective date.
11.
Becomes
effective on the general effective date.
House Action
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Prepared by
Senate Research
March 12, 2026
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Current Bill Text
Read the full stored bill text
Chapter 0122 - 572R - H Ver of HB2996
House Engrossed
DIFI; certificates of
insurance
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 122
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_STATUTE
20-443.03.
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.
END_STATUTE
Sec. 2.
Applicability
This act applies to any contract or
addendum that is entered into from and after the effective date of this act.
APPROVED BY THE GOVERNOR JUNE 4, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 5, 2026.