HB 2007 Summary

• Adds Article 6 to Title 20, Chapter 6 of Arizona Revised Statutes to establish a new regulatory framework for group excess liability insurance policies issued by authorized and unauthorized insurers in Arizona.

• Permits group excess liability insurance to cover employees (including officers, directors, managers, partners, and immediate family members) of employers and may include excess uninsured motorist, excess underinsured motorist, and excess uninsured or underinsured liability coverage.

• Requires separate limits of coverage for each certificate holder and mandates that certificate holders receive clear disclosure of all material terms, conditions, limitations, exclusions, and required underlying coverage.

• Establishes that insurers may cancel or nonrenew group policies or individual certificates after 60 days for reasons including nonpayment, fraud, material misrepresentation, conviction of crimes, substantial risk changes, or loss of reinsurance, with at least 30 days' written notice to affected parties.

• Prohibits insurers from disclosing certificate holder claims information to the group policyholder except for the existence of a claim, and ensures coverage remains effective for losses occurring before cancellation, nonrenewal, or conditional renewal takes effect.