Bill Text: AZ HB2342 | 2016 | Fifty-second Legislature 2nd Regular | Chaptered
Bill Title: Insurance; licensed entities
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2016-04-05 - Chapter 101 [HB2342 Detail]
Download: Arizona-2016-HB2342-Chaptered.html
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House Engrossed |
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State of Arizona House of Representatives Fifty-second Legislature Second Regular Session 2016
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CHAPTER 101
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HOUSE BILL 2342 |
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AN ACT
Amending sections 20‑229, 20‑286 and 20‑1693, Arizona Revised Statutes; Repealing section 20‑2405, Arizona Revised Statutes; relating to insurance.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 20-229, Arizona Revised Statutes, is amended to read:
20-229. Insurance producer; identification; exceptions
A. An authorized insurer shall not issue a policy
covering a subject of insurance resident, located or to be performed in this
state unless the policy or countersignature
endorsement attached to the policy is countersigned by its licensed insurance
producer or bail bond agent, as applicable declaration page or endorsement identifies the name
of the producer licensed for that line of authority in this state.
B. Subsection A of this section does not apply to:
1. Reinsurance or life, disability or title insurance.
2. Insurance of the rolling stock, vessels or aircraft of any common carrier in interstate or foreign commerce, or of any vehicle principally garaged and used in another state or covering any liability or other risks incident to the ownership, maintenance or operation thereof.
3. Insurance of property in the course of transportation interstate or in foreign trade, or any liability or risk incident thereto.
4. Insurance of ocean marine risks.
5. Policies issued through salaried insurance producers or issued by insurers not using insurance producers in the general solicitation of business.
6. Bid bonds issued by any surety insurer in connection with any public or private contracts.
7. Policies issued by a vending machine pursuant to section 20‑293.
C. A violation of this section shall not invalidate the policy.
D. The countersignature
that is required under subsection A of this section may be made by a facsimile
signature or other printed or reproduced signature and shall be presumed to be
the authorized signature of the person.
Sec. 2. Section 20-286, Arizona Revised Statutes, is amended to read:
20-286. Licensure; lines of authority
A. Unless the director denies a license pursuant to section 20‑295, the director shall issue a resident insurance producer license to any person who meets the requirements prescribed in sections 20‑284 and 20‑285. An insurance producer may qualify for a license in one or more of the following lines of authority:
1. Life. Life insurance is coverage on human lives, including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income.
2. Accident and health or sickness. Accident and health or sickness insurance is coverage for sickness, bodily injury or accidental death and may include benefits for disability income.
3. Property. Property insurance is coverage for the direct or consequential loss or damage to property of every kind.
4. Casualty. Casualty insurance is coverage against legal liability, including liability for death, injury, disability or damage to real or personal property.
5. Variable life and variable annuity products. Variable life and variable annuity is insurance coverage that is provided under a variable life insurance contract or a variable annuity.
6. Personal lines. Personal lines is property and casualty insurance coverage that is sold to individuals and families for primarily noncommercial purposes.
7. Credit. Credit insurance is limited line credit insurance.
8. Any other line of insurance allowed under state law or rules adopted by the director.
B. The license shall contain the licensee's name, address and identification number, the date of issuance, the lines of authority, the expiration date and any other information the director deems necessary. The director may make the information prescribed by this section available electronically.
C. A licensee shall inform the director in writing within thirty days of any change in the licensee's:
1. Residential, or business or e‑mail address.
2. Members, directors, officers or designated producer. The director may require that a licensee who notifies the director of a change pursuant to this paragraph submit a full set of fingerprints of each new member, director, officer or designated producer to the director for the purpose of obtaining a state and federal criminal records check pursuant to section 41‑1750 and Public Law 92‑544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation.
3. Name.
D. In order to assist in the performance of the director's duties, the director may contract with a third party to perform any ministerial functions that are related to producer licensing and that the director deems appropriate, including the collection of fees.
Sec. 3. Section 20-1693, Arizona Revised Statutes, is amended to read:
20-1693. Definitions
In this article, unless the context otherwise requires:
1. "Customer" means a person who purchases portable electronics or services.
2. "Enrolled customer" means a customer who elects coverage under a portable electronics insurance policy issued to a vendor of portable electronics.
3. "Location" means any physical location in this state or any website, call center site or similar location directed to residents of this state.
4. "Portable electronics" means personal, self-contained, easily carried by an individual, battery‑operated electronic communication, viewing, listening, recording, gaming, computing or global positioning devices, including cell or satellite phones, pagers, personal global positioning satellite units, portable computers, portable audio listening devices, video viewing or recording devices, digital cameras, video camcorders, portable gaming systems, docking stations, automatic answering devices and other similar devices and the devices' accessories.
5. "Portable electronics insurance":
(a) Means insurance providing coverage for the repair or replacement of portable electronics that may provide coverage for portable electronics against loss, theft or inoperability, or any combination thereof, due to mechanical failure, malfunction, damage or other similar causes of loss.
(b) Does not include:
(i) A service contract under chapter 4, article 11 of this title.
(ii) An insurance policy covering a seller's or manufacturer's obligations under a warranty.
(iii) A homeowner's, renter's, private passenger automobile, commercial multiperil or similar policy.
6. "Portable electronics transaction" means either:
(a) The sale or lease of portable electronics by a vendor to a customer.
(b) The sale of a service related to the use of portable electronics by a vendor to a customer.
7. "Supervising entity" means a business entity that is a licensed insurer or insurance producer and that is authorized by an insurer to supervise the administration of a portable electronics insurance policy.
8. "Vendor" means a person business in the business of engaging in portable electronics transactions directly or indirectly.
Sec. 4. Repeal
Section 20-2405, Arizona Revised Statutes, is repealed.
APPROVED BY THE GOVERNOR APRIL 5, 2016.
FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 6, 2016.
