Senate committee clears NAIC-model life insurance illustration bill
Summary
The Senate Ways and Means Committee voted to pass House Bill 2076, which adopts a National Association of Insurance Commissioners model for life insurance policy illustrations, including content, delivery, recordkeeping and appointed illustration actuaries; a 15-page amendment was adopted before the bill passed on a 6–1 vote.
The Arizona Senate Ways and Means Committee on March 7 voted to return House Bill 2076 with a "do pass" recommendation after adopting a 15-page amendment.
House Bill 2076 adopts an NAIC (National Association of Insurance Commissioners) model act governing life insurance policy illustrations, the bill sponsor and proponents told the committee. The measure prescribes what must appear on an illustration, sets limits on non‑guaranteed elements shown over time, and establishes delivery and record‑retention obligations for insurers.
"Illustration is a way that you describe how the life insurance policy works, what the rate of return, all those factors," said Mark Osborne, testifying for ACLI, a trade association for the life insurance industry. Osborne said the NAIC model creates uniform consumer protections across states and reduces regulatory burden for multistate insurers by standardizing filings.
The bill also requires each insurer board to appoint one or more illustration actuaries to certify that the illustration scales conform to actuarial standards of practice and the statute's requirements. The adopted amendment, placed in the chair’s name and dated March 3, 2025, specifies that if an insurer markets a policy form with an illustration subject to the bill’s requirements, the insurer need not also provide a separate policy summary otherwise required by administrative rule.
Committee members asked about the bill’s impact on consumers and its relationship to existing state regulation. Osborne said that many states implement similar protections by regulation and that codifying the model in statute provides greater certainty and faster market access for insurers seeking a uniform approach.
After debate the committee adopted the amendment and voted to return HB 2076 with a do‑pass recommendation. The roll call recorded six ayes and one no; the committee reported the bill passed as amended.
The bill, as passed by the committee, now proceeds to the next step in the legislative process where further review and floor action may occur.
