Bill Text: AZ HB2357 | 2013 | Fifty-first Legislature 1st Regular | Chaptered
Bill Title: Insurance; fees; exception
Spectrum: Partisan Bill (Republican 8-0)
Status: (Passed) 2013-04-11 - Governor Signed [HB2357 Detail]
Download: Arizona-2013-HB2357-Chaptered.html
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House Engrossed |
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State of Arizona House of Representatives Fifty-first Legislature First Regular Session 2013
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CHAPTER 96
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HOUSE BILL 2357 |
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AN ACT
Amending section 20‑465, Arizona Revised Statutes; 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. Section 20-465, Arizona Revised Statutes, is amended to read:
20-465. Fees; deposits; exception
A. An insurer and insurance producer shall not charge or receive any fee or service charge in addition to the premium charged for services customarily provided in the transaction of insurance for motor vehicle insurance policies that insure six or fewer motor vehicles.
B. An insurer and insurance producer may charge and receive a fee for services not customarily provided in the transaction of insurance if the fee is filed with the director and the following conditions exist:
1. The services performed by the insurer or insurance producer are in excess of those normally performed for insureds.
2. The service charge and the specific services for which the charge is made are disclosed and agreed to in writing by the insured on a form that is approved by the director.
3. The amount of the service charge is reasonably related to the cost of the service performed.
C. After notice and a hearing, the director shall prescribe the services that are customarily provided in the transaction of insurance.
D. If after an examination and a hearing the director determines that an insurer or insurance producer has violated subsection A of this section, the director may order the insurer or insurance producer to refund the fee or that part of the fee that the director determines was excessive and may impose civil penalties as set forth in section 20‑456. The insurer or insurance producer shall pay the costs of the examination from monies deposited with the director pursuant to section 20‑159 regardless of the findings of the examination.
E. Nothing in This section prohibits does not prohibit fees, including membership fees charged by a reciprocal or mutual insurer, if the fees are filed with the director and are included by an insurer in supplemental rate information.
F. This section does not apply to insurers and insurance producers transacting commercial insurance. For the purposes of this subsection, "commercial insurance" means insurance that insures against the risks resulting from the responsibilities or activities of one or more businesses, including motor vehicle insurance policies insuring seven or more motor vehicles.
APPROVED BY THE GOVERNOR APRIL 11, 2013.
FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 11, 2013.
