Arizona law now says a certificate of insurance is not an insurance policy and cannot change coverage, bars anyone from preparing, issuing, requesting or requiring a false, misleading or coverage-altering certificate, and lets the director impose a civil penalty of up to $1,000 per violation.
Official title: DIFI; certificates of insurance
- September 12, 2026
- Applies to contracts or addenda entered into on or after the law's effective date: Contracts and addenda covered by the act
What changes
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NowA certificate of insurance prepared or issued by an insurer, an insurance producer (such as an agent) or their representative is not an insurance policy. It does not amend, extend or alter coverage, and it gives no rights beyond those expressly stated in the policy.
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NowNo person may prepare, issue, request or require a certificate of insurance that contains false or misleading information about the policy, alters, amends or extends the policy's coverage, or claims that the policy complies with the insurance or indemnification requirements of a contract. A certificate or other document made, requested or required in violation of these rules is void, meaning it has no legal effect.
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NowA person other than the policyholder is entitled to notice of a policy's cancellation, nonrenewal or material change in terms only if the policy or an endorsement to the policy gives that person the right to notice.
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NowThe director may investigate violations. The director may order a person to stop the violating actions, assess a civil penalty of up to $1,000 per violation, or both. The director keeps any other enforcement powers under other laws and may adopt rules.
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NowThe rules cover any certificate of insurance issued for property and casualty risks located in Arizona, no matter where the policyholder, insurer, producer or requester is located. Insurance policies, binders, policy endorsements and auto insurance ID cards are not certificates of insurance under this law.
Who it affects
- Businesses and other people who request or require certificates of insurance, for example under contracts
- Policyholders with property or casualty insurance
- Insurers, insurance producers and their representatives
- The director who oversees insurance in Arizona
What you need to do
Nothing for most people. Anyone who requests or requires certificates of insurance may not ask for one that is false or misleading, changes the policy's coverage, or claims the policy meets a contract's insurance or indemnification requirements.
What the law doesn't answer
- What happens to certificates of insurance or contracts created before the effective date
- What counts as a "material change" in a policy's terms
- Whether people harmed by a violation can sue
- How the director will decide on penalty amounts or what rules, if any, will be adopted
- How the voiding of a certificate affects the contract it was requested for
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.