ARIZONA STATE SENATE
Phoenix, Arizona
automobile insurance;
medical condition; prohibition
Prohibits automobile insurance companies from denying liability to individuals solely due to pre-existing medical conditions that were unknown at the time the policy was issued.
Background
Historically, insurers have been able to deny liability for accidents when their at-fault insured subsequently have discovered pre-existing medical conditions that were unknown at the time the policy was issued. Evidence has surfaced recently that insurance companies may be willing to deny liability solely based on claims that the insured had an unknown pre-existing medical condition that affects the policyholder’s ability to operate a motor vehicle. Not-at-fault drivers are unable to collect from their own insurance companies because the accidents are not covered under uninsured or underinsured areas of their policies, and are left to their own devices to pay for damages. S.B. 1173 prohibits automobile insurance companies from claiming immunity from liability based on a subsequent medical condition that was unknown at the time the policy was issued.
According to Joint Legislative Budget Committee staff, there is no fiscal impact to the state general fund associated with S.B. 1173.
Provisions
1. Prohibits automobile insurance companies from denying liability due to pre-existing medical conditions that affect the driving ability of the insured.
2. Provides for a general effective date.
Prepared by Senate Staff
January 23, 2001