Senate Bill 1109 Summary

• Amends section 20-1379 and adds section 20-1384 of Arizona Revised Statutes to regulate short-term limited duration insurance offerings in Arizona.

• Requires all short-term limited duration insurance policies to display a federal disclosure notice in at least 14-point type on the policy's fact page and application materials warning that the coverage is not subject to Affordable Care Act requirements and may exclude preexisting conditions, limit benefits, or include lifetime/annual dollar limits.

• Defines "short-term limited duration insurance" as health insurance coverage with an expiration date less than 12 months after the original effective date and a maximum duration of 36 months including any renewals or extensions.

• Requires health care insurers to provide notice to insured individuals before their short-term limited duration policy expires or needs renewal.

• Establishes that short-term limited duration insurance is creditable coverage under state law but clarifies it is not subject to state health coverage mandates contained in Title 20.