AZ| Arizona’s Department of Insurance and Financial Institutions issued guidance on Short-Term, Limited Duration Insurance (STLDI) stating it will not enforce the 2024 federal term and duration limits in Arizona, allowing STLDI policies up to under 12 months per term and up to 36 months including renewals, but it will enforce the 2024 federal notice requirements to prevent consumer confusion.
What changes
- Non-enforcement of 2024 duration limits: Insurers may offer STLDI terms of less than 12 months and cumulative durations up to 36 months in Arizona.
- Enforcement of notice rules: Insurers must prominently include the 2024 federal STLDI notice on policies and in marketing, application, and enrollment materials; the Department encourages even more robust disclosures.
- Marketing guardrails: STLDI cannot be marketed as major medical; insurers should educate agents and consumers about STLDI limitations.