House of Representatives

SB 1164

appropriation; county jail juvenile beds

(now: unfair claim settlements)

Sponsors: Senators: Richardson, Rios, Guenther

 

DP

Committee on Public Institutions and Rural Affairs

DPA

S/E

Committee on Appropriations

DPA S/E

Caucus and COW

 

X

As Passed the House

 

SB 1164 adds to the list of insurance practices that are in violation of A.R.S. 20-461 when performed with such frequency as to indicate a general business practice.  The bill makes it a violation of the Unfair Claims Settlement Practices Act if a person denies liability for a claim on the sole basis that the insured’s medical condition affected his/her driving ability without conducting a reasonable investigation supporting the denial.

 

History

 

Automobile insurance policies provide liability coverage when an insured’s negligence causes damage to a person and/or property.  In the event that an insured is not at fault, yet causes damage due to a circumstance such as a medical condition, the insured may not be covered by his/her insurer because the cause of the accident was not due to a negligent act.

 

Provisions

·                      Makes it a violation of the Unfair Claims Settlement Practices Act if a person denies a liability claim on the sole basis that the insured’s medical condition affected his/her driving ability without conducting a reasonable investigation to support the denial.

 

The Appropriations Committee adopted a strike-everything amendment to SB 1164 with the following provisions:

·                      Makes it a violation of the Unfair Claims Settlement Practices Act if a person denies a liability claim on the sole basis that the insured’s medical condition affected his/her driving ability without conducting a reasonable investigation and providing medical opinion supporting the denial.

 

The Appropriations Committee strike-everything amendment was adopted in the Committee of the Whole with the following changes:

·                      Removed the requirement of a medical opinion to justify a denial for damages, i.e. only “reasonable investigation” is necessary to deny damages.

·                      Amended the new statutory language to clarify that the provisions of the bill deal with motor vehicle liability policies.

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·                      44th Legislature                    

·                      Second Regular Session        2          May 11, 2001

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