Bill Text: AZ SB1494 | 2016 | Fifty-second Legislature 2nd Regular | Engrossed
Bill Title: Insurance; prohibited inducements; exceptions
Spectrum: Bipartisan Bill
Status: (Passed) 2016-05-06 - Chapter 113 [SB1494 Detail]
Download: Arizona-2016-SB1494-Engrossed.html
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Senate Engrossed |
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State of Arizona Senate Fifty-second Legislature Second Regular Session 2016
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SENATE BILL 1494 |
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AN ACT
Amending sections 20‑449 and 20‑452, Arizona Revised Statutes; relating to Insurance business.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 20-449, Arizona Revised Statutes, is amended to read:
20-449. Rebates on life or disability insurance
A. Except as otherwise expressly provided by law, no person shall knowingly permit or offer to make or make any contract of life insurance, life annuity or disability insurance, or agreement as to such contract other than as plainly expressed in the contract issued thereon, or pay or allow, or give or offer to pay, allow or give, directly or indirectly, as an inducement to such insurance or annuity, any rebate of premiums payable on the contract, or any special favor or advantage in the dividends or other benefits thereon, or any valuable consideration or inducement whatever not specified in the contract.
B. This section does not prohibit an insurer from retaining an independent third party to conduct a customer feedback effort intended to help the insurer improve the quality of its products or services and to offer an insured business or individual a reasonable incentive to participate in the feedback effort. An incentive is presumed reasonable if it does not exceed two hundred dollars. An insurer may not offer, reference or promote an incentive or feedback effort under this section in connection with an application for or renewal of insurance coverage. For the purposes of this subsection, "feedback effort" means activities that are designed to elicit customer perceptions on a predetermined set of topics that are related to the insurer's products or services, including in person, telephonic or online surveys, polls, focus groups, interviews, questionnaires and other recognized opinion gathering mechanisms.
Sec. 2. Section 20-452, Arizona Revised Statutes, is amended to read:
20-452. Prohibited inducements
Except as permitted in sections 20‑453 and 20‑454, any insurer, insurance producer or other person, as an inducement to insurance or in connection with any insurance transaction, shall not provide in any policy for or offer, sell, buy or offer or promise to buy, sell, give, promise or allow to the insured or prospective insured or to any other person on behalf of the insured or prospective insured in any manner:
1. Any employment.
2. Any shares of stock or other securities issued or at any time to be issued or any interest therein or rights thereto.
3. Any advisory board contract, or any similar contract, agreement or understanding, offering, providing for or promising any special profits.
4. Any prizes, goods, wares, merchandise or tangible property of an aggregate value of more than twenty‑five dollars. This paragraph does not prohibit an insurer from retaining an independent third party to conduct a customer feedback effort intended to help the insurer improve the quality of its products or services and to offer an insured business or individual a reasonable incentive to participate in the feedback effort. An incentive is presumed reasonable if it does not exceed two hundred dollars. An insurer may not offer, reference or promote an incentive or feedback effort under this paragraph in connection with an application for or renewal of insurance coverage. For the purposes of this paragraph, "feedback effort" means activities that are designed to elicit customer perceptions on a predetermined set of topics that are related to the insurer's products or services, including in person, telephonic or online surveys, polls, focus groups, interviews, questionnaires and other recognized opinion gathering mechanisms.
