ARIZONA STATE SENATE
Phoenix, Arizona
mandatory motor vehicle
insurance; study
Establishes a study committee to examine requirements and impacts of mandatory motor vehicle insurance.
Arizona’s first mandatory
insurance legislation was passed in 1982.
The bill prohibited the operation of a motor vehicle in Arizona unless
it was covered by an auto liability policy, or an alternate method of financial
responsibility. In 1983, the
Legislature passed a bill to correct enforcement problems that occurred due to
previous legislation. Requirements for
mandatory insurance were established and clarified. In 1986, these requirements were further changed. Current statute reflects similar required
motor vehicle insurance and mandates Arizona drivers to carry liability
insurance.
The mandatory liability
policy must provide for a minimum $15,000 coverage in cases of bodily injury or
death of one person, a minimum $30,000 in coverage for the bodily injury or
death of two or more persons, and $10,000 in coverage for injury to, or
property damage of, others in any one accident.
Laws 1988, Chapter 251,
established a 15 member study committee on private passenger auto
insurance. This legislation required a
written report submitted no later than December 31, 1989. Laws 1995, 2nd Special Session,
Chapter 1, established an eight member joint legislative committee of on
private passenger automobile insurance.
This committee examined the possible use of no-fault auto insurance in
the state. Currently, statute requires
the Director of the Department of Insurance to submit an annual report, which
outlines the degree of competition among insurers of liability insurance.
There is no fiscal impact
associated with this legislation.
1. Establishes a nine-member study committee on mandatory vehicle insurance, appointed by the Speaker of the House of Representatives, the Governor, and the President of the Senate.
2. Requires the committee to hold hearings and examine the number of motor vehicles covered by liability insurance, the economic impact of the mandatory insurance and cost fluctuations for injuries and damages from liability insurance coverage.
3. Requires the committee to submit a report on its findings by December 1, 2000 to the Speaker of the House, the President of the Senate, and the Governor.
4. Contains a delayed repeal date of January 1, 2001.
5. Provides for a general effective date.
BI 1/11/00 DP 3-2-1-0
3rd Read 1/18/00 DP 35-23-2-0
Prepared by Senate Staff
February 15, 2000