An insurance institution, insurance producer or insurance support organization shall not seek information in connection with an insurance transaction concerning any previous adverse underwriting decision experienced by an individual or any previous insurance coverage obtained by an individual through a residual market mechanism, unless the inquiry also requests the reasons for any previous adverse underwriting decision or the reasons why insurance coverage was previously obtained through a residual market mechanism.

Terms Used In Arizona Laws 20-2111

  • Adverse underwriting decision: means any of the following actions involving insurance coverage which is individually underwritten:

    (a) A declination of insurance coverage. See Arizona Laws 20-2102

  • Individual: means any natural person who:

    (a) In the case of property or casualty insurance, is a past, present or proposed named insured or certificate holder. See Arizona Laws 20-2102

  • Insurance institution: means any corporation, association, partnership, reciprocal insurer, inter-insurer, Lloyd's association, fraternal benefit society or other person engaged in the business of insurance, including health care service organizations and hospital, medical, dental and optometric service corporations as defined in this title. See Arizona Laws 20-2102
  • Insurance producer: means an insurance producer as defined in section 20-281. See Arizona Laws 20-2102
  • Insurance support organization: means :

    (a) Any person who regularly engages, in whole or in part, in the practice of assembling or collecting information about natural persons for the primary purpose of providing the information to an insurance institution or insurance producer for insurance transactions, including the furnishing of consumer reports or investigative consumer reports to an insurance institution or insurance producer for use in connection with an insurance transaction or the collection of personal information from insurance institutions, insurance producers or other insurance support organizations for the purpose of detecting or preventing fraud, material misrepresentation or material nondisclosure in connection with insurance underwriting or insurance claim activity. See Arizona Laws 20-2102

  • Insurance transaction: means any transaction that involves insurance primarily for personal, family or household needs rather than business or professional needs and that entails the determination of an individual's eligibility for an insurance coverage, benefit or payment or the servicing of an insurance application, policy, contract or certificate, including transfers of business. See Arizona Laws 20-2102
  • Residual market mechanism: means an agreement for the equitable apportionment among insurers of insurance afforded applicants who are in good faith entitled to but who are unable to procure insurance through ordinary methods. See Arizona Laws 20-2102

 

 

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