HB 2819
Initials JB/GG Page 1 Appropriations
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
HB 2819: residential property insurance; fire; underwriting
Sponsor: Representative Stahl Hamilton, LD 21
Committee on Appropriations
Overview
Establishes data collection requirements for the Arizona Department of Insurance and
Financial Institutions (DIFI) and underwriting reporting requirements for residential
property insurance companies.
History
DIFI was established to safeguard the public welfare by protecting the financial assets of the
citizens of Arizona and is charged with licensing, supervising and regulating state-chartered
financial institutions and enterprises. DIFI ensures that financial institutions in this state
are in compliance with federal, state and local laws related to insurance, banking and other
enterprises under DIFI's jurisdiction (A.R.S. 20-141 et seq.).
Residential property insurers are prohibited from charging more premium for residential
property insurance coverage on a property with a single below deductible claim, not exceeding
$500 in the previous three years, than it would charge for similar coverage on the same
property if the property had no below deductible claims.
Below deductible claims are defined as claims for indemnification for a loss under a
residential property insurance policy that provided coverage for the loss that was closed
without any payment because the amount of the loss was less than the amount of the
deductible provided by the policy (A.R.S. 20-270).
Provisions
1. Requires DIFI to annually compile a list of residential property insurance companies in
this state and, for each residential property insurance company, publish each of the
following on DIFI's website:
a) the premiums and associated fees charged at the inception of the policy;
b) the number of insureds and the average premiums paid by zip code;
c) the number of insureds who were denied reinsurance coverage by the same insurer
and why;
d) the number of insureds who were denied reinsurance coverage by zip code;
e) the number of insureds whose policies lapsed;
f) the number of insurance claims that were paid by the insurer;
g) the number of insurance claims that were paid by the insurer after the insured filed
an appeal;
h) the list of the public protection classification fire rating scores for each zip code or
designated area with the corresponding premium rates; and
i) the total dollar amount collected for premiums paid each year. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2819
Initials JB/GG Page 2 Appropriations
2. Requires residential property insurance companies in this state to file with DIFI a copy
of the insurers underwriting guidelines. (Sec. 2)
3. Directs residential property insurers to update their underwriting filing with DIFI any
time the insurer's guidelines are changed. (Sec. 2)
4. Specifies that if a group of residential property insurance companies files one set of
underwriting guidelines for the group of insurers, the group must identify which
underwriting guidelines apply to each residential property insurer within the group. (Sec.
2)
5. States the underwriting guidelines submitted to DIFI may not be unfairly discriminatory
and must be actuarily justified, reasonable and substantially commensurate with a
contemplated risk. (Sec. 2)
6. Defines residential property insurance as insurance coverage against loss to residential
real property at a fixed location, and includes:
a) a residential fire insurance policy;
b) an allied lines insurance policy; or
c) any tangible personal property pursuant to a homeowner's insurance policy. (Sec. 1)
7. Defines underwriting guideline as a rule, standard, guideline or practice, whether
written, oral or electronic, that an insurer or an agent of the insurer uses to:
a) decide whether to accept or reject an application for coverage under a residential
property insurance policy; or
b) determine how to classify those risks that are accepted for the purpose of determining
a rate. (Sec. 2)