Assigned to BI & TRANS                                                                                                           FOR COMMITTEE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR S.B. 1139

 

public transit; insurance coverage

 

Purpose

 

Requires motor vehicles engaging in hired transportation activities to carry underinsured and uninsured motorist coverage.

 

Background

 

Passengers who carry underinsured and uninsured motorist coverage on a vehicle are protected in the event of an accident involving an uninsured or underinsured driver while riding in a public motor vehicle.  There has been concern that there is the possibility that noninsured passengers on government operated motor vehicles will not receive coverage in the event of an accident

 

Statute currently requires privately owned bus and taxi companies to maintain uninsured motorist coverage of at least $300,000 but it does not require their operators to carry underinsured motorist coverage.  This $300,000 covers bodily injury only.  However, statute does not require state or municipal passenger-carrying motor vehicles to carry uninsured or underinsured coverage. 

 

According to the Joint Legislative Budget Committee, there is no known fiscal impact.

 

Provisions

 

1.      Requires an operator of a public motor vehicle, bus or van carrying passengers for hire to maintain uninsured and underinsured motorist coverage.

 

2.      Excludes car pool operators.

 

3.      Provides a general effective date.

 

 

Prepared by Senate Staff

January 22, 2001