AZ Updated Rules on Life Insurance Solicitations

The Arizona Department of Insurance and Financial Institutions has updated rules governing life insurance solicitations to align with NAIC Model Regulations and new state laws enacted in 2025. These amendments focus on illustrations, disclosures, and consumer protections.

Insurers must provide the NAIC Life Insurance Buyer’s Guide to prospective purchasers before accepting initial premiums, with some exceptions allowing delivery with the policy. Policy summaries showing guarantees only are required for policies not marketed with illustrations.

For policies issued before Jan. 1, 2026, companies must provide policy data or an in-force illustration upon request. For policies issued after that date, requirements depend on whether illustrations are used. Policy data must include guaranteed and nonguaranteed elements and may incur a nominal fee.

Producers must identify themselves as life insurance producers and disclose the insurance company name before sales presentations. Use of terms implying advisory roles unrelated to sales compensation is restricted unless accurate.

The producer must not use terms such as “financial planner,” “investment advisor,” “financial consultant” or “financial counseling” to imply that the producer is generally engaged in an advisory business in which compensation is unrelated to sales unless that is true. This rule is not intended to preclude producers who hold some form of formal recognized financial planning or consultant designation from using this designation even when they are only selling insurance.

If you have questions about this update, please contact the Arizona Department of Insurance and Financial Institutions at (602) 364-3100.