HB 2689 Summary

• Allows out-of-state health insurers to sell policies in Arizona if they maintain financial reserves equal to Arizona's requirements and are subject to their home state's insurance department jurisdiction.

• Requires out-of-state policies to meet actuarial standards established by the National Association of Insurance Commissioners.

• Permits the director to revoke out-of-state insurers' operating rights for violations including inadequate financial reserves, patterns of complaint about care denials or delays, claim payment failures, poor customer service, deceptive marketing, or fraudulent activities.

• Requires written notice in 12-point boldfaced type on all out-of-state policies stating the policy is governed by the domicile state's laws, may exclude Arizona-mandated benefits, and is subject to the domicile state's consumer protections rather than Arizona's.

• Grants Arizona residents purchasing out-of-state policies the right to independent external review in Arizona, with the review board's decision to authorize treatment binding on the insurer.