ARIZONA STATE SENATE
Phoenix, Arizona
FINAL
REVISED
motor vehicle insurance;
noncancellation
Allows auto insurers to
combine a policy holder’s at-fault accidents under any auto insurance policy
issued by the insurer for the purpose of transferring the insured to an
affiliated insurer. Clarifies and
conforms language, including notification requirements, about auto insurance
nonrenewals and cancellations for reasons other than nonpayment of premium.
Currently, auto insurers are authorized to transfer, up to one percent of its policies to an affiliated auto insurer within one calendar year, if the insured had two or more at-fault accidents within three years in which the property damage paid by the auto insurer for each accident exceeded $1,500. Or alternatively, if the insured had three or more moving violations. S.B. 1010 permits the requirements for transferring a policy holder to an affiliated auto insurer to apply to individuals who have had accidents under different auto insurance policies issued by the same insurer.
A.R.S. §20-1632 and §20-1632.01 prescribe written notification requirements that auto insurance companies must follow for cancellation or nonrenewal of an auto insurance policy. S.B. 1010 clarifies which of these statutes apply to nonrenewal or cancellations of policies due to nonpayment of premiums or for any other reason.
According to the Department of Insurance, there is no fiscal impact of this bill on the general fund.
1. Allows at-fault accidents incurred by drivers under different auto insurance policies issued by the same insurer to count as though the incidents occurred under a single auto insurance policy.
2. Requires that insurers not discriminate against the insured based on location of residence, age, race, color, religion, sex, marital status, sexual orientation, national origin, ancestry or driving record when canceling policies due to nonpayment of premium.
3. Clarifies the written notification requirements for cancellation or nonrenewal of auto insurance policies for reasons other than nonpayment of premiums and those reporting requirements for cancellation or nonrenewal for nonpayment of premiums
4. Makes technical and conforming changes.
5. Provides for a general effective date.
Amendments Adopted by Committee
Requires that insurers not discriminate against the insured based on location of residence, age, race, color, religion, sex, national origin, ancestry or driving record when canceling policies due to nonpayment of premium.
Amendments Adopted by the House of Representatives
Inserts marital status and sexual orientation to list of non-discriminatory factors when canceling policies due to non-payment.
Senate Action House Action
BI 1/11/01 DP 5-1-0-0 FII 3/21/01 DP 9-0-0-1
BI 1/25/01 DPA 5-1-0-0 3rd Read 4/10/01 48-5-7-0
3rd Read 2/12/01 30-0-0-0
Enacted without signature.
Chapter 239
Prepared by Senate Staff
May 9, 2001