# AZ Circular Letter 1990-05A: AZ Circular Letter 1990-05A: Arizona House Bill 2181 (Chapter 394) > Arizona · Agency guidance · Rescinded URL: https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1990_05A ## Section - **Citation:** AZ Circular Letter 1990-05A - **Heading:** AZ Circular Letter 1990-05A: Arizona House Bill 2181 (Chapter 394) - **Jurisdiction:** Arizona - **Kind:** Agency guidance - **Status:** Rescinded - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Arizona Department of Insurance and Financial Institutions Bulletins / AZ Circular Letter 1990-05A: Arizona House Bill 2181 (Chapter 394) ## Text STATE OF ARIZONA DEPARTMENT OF INSURANCE JANE DEE HULL 2910 NORTH 44th STREET, SUITE 210 CHARLES R. COHEN Governor PHOENIX, ARIZONA 85018-7256 Director of Insurance 602/912-8456 (phone) 602/912-8452 (fax) Former Director Susan Gallinger issued the following Circular Letter on September 27, 1990: CIRCULAR LETTER 90-5A TO: ALL INSURANCE TRADE ASSOCIATIONS, INSURANCE MEDIA PUBLICATIONS AND INTERESTED PERSONS FROM: SUSAN GALLINGER, DIRECTOR OF INSURANCE DATE: SEPTEMBER 27, 1990 RE: ARIZONA HOUSE BILL 2181 (Chapter 394) On September 27, 1990, House Bill 2181 will become effective. A number of questions regarding interpretation of this bill have been raised by the insurance industry, health care professionals, and consumers. The following guidelines are designed to address the issues most often raised by those parties: 1. Under H.B. 2181 insurance coverage must relate to the claimant’s “condition” and practitioner reimbursement must also relate to reasonable and necessary services to treat the condition rather than provide coverage for the procedures. 2. Any preferred provider arrangement (PPO’s) subject to the provisions of H.B. 2181 must be structured so as not to discriminate against any type of practitioner addressed by the bill. A non-discriminatory limit to the number of participating practitioners is permitted. 3. Similarly, all deductibles, coinsurance, cost containment measures and quality assurance measures must be structured so as not to discriminate against any type of practitioner addressed by the bill. A non-discriminatory limit to the number of participating practitioners is permitted. 4. H.B. 2181 does not require expansion of coverage to include conditions not previously covered under the policy. Similarly, all deductibles, coinsurance, cost containment measures and quality assurance measures must be structured so as not to discriminate against any type of practitioner addressed by the bill. A non-discriminatory limit to the number of participating practitioners is permitted. 4. H.B. 2181 does not require expansion of coverage to include conditions not previously covered under the policy. Circular Letter 90-5A September 27, 1990 Page 2 5. H.B. 2181 applies to existing health insurance policies already in force – not just new policies. 1 6. H.B. 2181 applies to all subscriber contracts underwritten by Hospital Services Corporations. 7. H.B. 2181 does not apply to group health insurance policies underwritten by insurers. 8. H.B. 2181 does not apply to health care service organizations. 1 Except to the extent that expansion of benefits and/or benefit reimbursement would be required, in which case such expansion will be required only upon renewal. ## Nearby sections - [AZ Circular Letter 1981-02 AZ Circular Letter 1981-02: Department Investigation of Workers' Compensation Insurance Replacement](https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1981_02.md) - [AZ Circular Letter 1981-03 AZ Circular Letter 1981-03: Reasonableness of Benefits in Relation to Premium Charged](https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1981_03.md) - [AZ Circular Letter 1985-02 AZ Circular Letter 1985-02: Intentional Misquoting of Personal Lines Property and Casualty Rates](https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1985_02.md) - [AZ Circular Letter 1987-06 AZ Circular Letter 1987-06: Credit Insurance](https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1987_06.md) - [AZ Circular Letter 1988-01 AZ Circular Letter 1988-01: Testing of Officers and Employees of Title Insurance Agents](https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1988_01.md) - [AZ Circular Letter 1989-02 AZ Circular Letter 1989-02: Unclaimed Property](https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1989_02.md) - [AZ Circular Letter 1990-01A AZ Circular Letter 1990-01A: Cancellation or Nonrenewal of Homeowners' Policies](https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1990_01A.md) - [AZ Circular Letter 1990-04A AZ Circular Letter 1990-04A: AIDS/HIV Testing and Consent Form](https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1990_04A.md) - [AZ Circular Letter 1990-05A AZ Circular Letter 1990-05A: Arizona House Bill 2181 (Chapter 394)](https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1990_05A.md) - [AZ Circular Letter 1990-07A AZ Circular Letter 1990-07A: "Moving" Auto Insurance Policyholders to New Companies](https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1990_07A.md) - [AZ Circular Letter 1992-01 AZ Circular Letter 1992-01: Medicare Open Enrollment](https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1992_01.md) - [AZ Circular Letter 1992-03 AZ Circular Letter 1992-03: Use of United States Drug Enforcement Administration (DEA) Registration Numbers as Physician Identification Numbers](https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1992_03.md) - [AZ Circular Letter 1992-05 AZ Circular Letter 1992-05: Joint State/Federal Statement on Regulation of MEWAs](https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1992_05.md) - [AZ Circular Letter 1994-02 AZ Circular Letter 1994-02: Premium Credit for Subscription to Fire Protection Service](https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1994_02.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/AZ_INS_CL_1990_05A. Check the current official text before relying on it. Not legal advice.