SB 1118
Initials PRB Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
Senate: FIN DPA 10-0-0-0 | 3
rd
Read 28-0-2-0
House: COM DPA 10-0-0-0
SB 1118: insurance; fees; consent; medicare supplement
Sponsor: Senator Livingston, LD 22
House Engrossed
Overview
Makes various changes to statutes relating to electronic communications, Medicare supplement
insurance, title insurance agencies.
History
An insurer may deliver a notice or document to a party by electronic means if the party
electronically consents to that method of electronic delivery. An insured is deemed to have
consented to receive notices and documents electronically if the insured effectuates insurance
transactions by electronic means. An oral communication or a recording of an oral communication
does not qualify as consent to deliver a notice or document by electronic means (A.R.S. § 20-
239).
Title insurance: a) insures owners of real property against loss or damage suffered by reasons of
liens, encumbrances upon, defects in or the unmarketability of the title to such property; or b)
insures the correctness of searches relating to the title to real property (A.R.S. § 20-1562).
An agent for a title insurer is prohibited from adopting a corporate or business name containing
certain words or phrases indicating that the agent in the business of title insurance, unless those
words are followed by agent or agency (A.R.S. § 20-1583).
Provisions
1. Removes the minimum amount of the nonrefundable fee for a certificate of director, under
seal. (Sec. 1)
2. Allows a specified oral communication as a means of consent for an insurer to deliver a notice
or document by electronic means. (Sec. 2)
3. Specifies the oral consent to deliver a notice or document electronically applies only to an
agreement to the use of electronic communication with the insurer and is not an agreement
by the insured to any other insurance matter. (Sec. 2)
4. Changes the definition of advisory organizations to mean a person who assists two or more
insurers or rate services organizations in the making of rates. (Sec. 3)
5. Permits an insurer, for the purposes of Medicare supplement insurance, to file for Medicare
supplement rates that include an early enrollment discount that will not be considered an
attained age rating structure. (Sec. 4)
6. Requires an early enrollment discount to diminish over a period of time and an insurer to
disclose to all applicants how it will diminish over time. (Sec. 4)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1118
Initials PRB Page 2 House Engrossed
7. Specifies an early enrollment discount is only available to enrollees who purchase the plan
within the early enrollment period designated by the insurer. (Sec. 4)
8. Specifies an insurer, if the federal laws that require providing a certificate of creditable
coverage are superseded by the prohibition on preexisting condition exclusions, is not require
to:
a) provide a certificate of creditable coverage; or
b) comply with certain annual reporting requirements. (Sec. 5, 6, 8)
9. Removes the restrictions on the corporate or business name of an agent for a title insurer.
(Sec. 7)
10. Makes technical changes. (Sec. 3, 4)