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REFERENCE TITLE: commercial cancellation; notice; unearned premium |
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State of Arizona House of Representatives Fifty-third Legislature First Regular Session 2017
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HB 2232 |
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Introduced by Representative Livingston
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AN ACT
amending section 20‑1674, Arizona Revised Statutes; relating to commercial insurance.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 20-1674, Arizona Revised Statutes, is amended to read:
20-1674. Notice of cancellation; refund of unearned premium
A. No cancellation under section 20‑1673 is effective unless the insurer mails or electronically delivers, consistent with the requirements of title 44, chapter 26, a copy of the notice of cancellation to the insured's agent and written notice of the cancellation is mailed with the insurer obtaining proof of mail mailing by United States certified mail or first class mail using intelligent mail barcode or another similar tracking method used or approved by the United States postal service to the named insured at the address shown in the policy or to the last known address of the insured at least forty-five days before the effective date of the cancellation, except that, if cancellation is for nonpayment of premium, at least ten days' notice of cancellation must be given. The notice must state the specific facts that constitute the grounds set forth in section 20‑1673 that are relied on.
B. The notice of cancellation shall be accompanied by a refund of unearned premium, Except for cancellation for nonpayment of premium and a premium that has been financed, If the insurer owes the insured unearned premium, the insurer shall either mail the notice and refund of unearned premium together or mail the notice before the refund of unearned premium if both the notice and the refund of unearned premium are mailed separately to the insured at least forty‑five days before the effective date of the cancellation.