AZ| The Arizona Department of Insurance and Financial Institutions issued Substantive Policy Statement 2025-03 to address compliance concerns regarding the offering of service contract coverages within insurance products by entities that have not obtained the required service company permit under Arizona law. The Department recognizes that some insurers may have historically included such coverages without proper permits and, to facilitate a collaborative transition to compliance, will not enforce permit requirements or reject related filings until at least January 1, 2027, while engaging stakeholders to develop workable solutions and timelines.
Key Points:
- Insurers offering service contract coverages within insurance policies must obtain a service company permit, but enforcement will be delayed until at least January 1, 2027, as the Department works with industry stakeholders to ensure compliance.
- The Department will host a stakeholder meeting in May 2025 to gather input and provide further guidance, with updates to be posted on its website.