now: unfair claims
settlement; medical conditions
SB 1502 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 and providing medical opinion supporting the denial.
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.