HB2076 Summary: Life Insurance Illustrations

• Establishes comprehensive regulatory requirements for life insurance policy illustrations in Arizona, including definitions of key terms like "basic illustration," "guaranteed elements," "nonguaranteed elements," and "illustrated scale."

• Requires insurers to notify the director whether policy forms will be marketed with or without illustrations, and prohibits use of illustrations for policies designated as non-illustrated before the first policy anniversary.

• Mandates basic illustrations include narrative summaries, numeric summaries at specified policy years and ages, and tabular details showing guaranteed and nonguaranteed elements with specific disclosure statements signed by applicants and producers.

• Requires insurers to appoint illustration actuaries who must certify that disciplined current scales comply with actuarial standards and meet article requirements; prohibits lapse-supported illustrations and requires self-supporting illustrations.

• Mandates annual reports to policyowners showing policy status including death benefits, values, credits, debits, and notices of adverse changes; allows policyowners to request in-force illustrations at no charge; establishes penalties for violations as unfair trade practices.

• Effective date: December 31, 2025.