House of Representatives

HB 2009

mandatory motor vehicle insurance; study

Sponsors: Brimhall

DP	Committee on Banking and Insurance
Dp	Caucus and COW
x	As Passed the House

HB 2009 establishes a nine-member committee to study mandatory vehicle insurance.

History

Liability insurance is divided into two methods: financial responsibility and mandatory auto insurance. Financial responsibility requires proof of insurance after an accident. Mandatory auto insurance, also called compulsory insurance, requires an individual to verify auto insurance to the State before an accident. The Department of Motor Vehicles monitors current insureds. If an individual does not have current insurance, DMV suspends the individual’s license plates.

Provisions

· HB 2009 establishes a joint study committee (nine members) on mandatory vehicle insurance. The Speaker of the House, the President of the Senate and the Governor shall each appoint these members.

· The committee shall submit a report of its findings to the Speaker of the House, the President of the Senate and the Governor by December 1, 2000. This act will be repealed on December 31, 2000.

· The committee is required to conduct hearings that examine mandatory motor vehicle insurance requirements, the economic impact mandatory auto insurance has on Arizona citizens and the efficacy of requiring mandatory auto insurance to compensate accident victims.

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44th Legislature Analyst Initials _______

Second Regular Session February 11, 2000

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