ARIZONA
HOUSE OF REPRESENTATIVES
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SB 1075: vehicle liability insurance; minimum limits |
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PRIME SPONSOR: Senator Brophy McGee, LD 28 BILL STATUS: Caucus & COW |
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Relating to motor vehicle liability minimum
coverage limits.
Provisions
1. Increases the motor vehicle minimum coverage limits for a motor vehicle liability policy that is issued or renewed, beginning July 1, 2019, to the following:
a. $25,000 for one person sustaining bodily injury or death in an accident;
b. $50,000 for two or more persons sustaining bodily injury or death in an accident; and
c. $25,000 for injury or damage to others' property in an accident.
i. Exempts certificates of self-insurance. (Sec. 3)
2. Maintains current motor vehicle minimum coverage limits for a motor vehicle liability policy issued or renewed prior to July 1, 2019. (Sec. 3)
3.
Permits an
insurer to prohibit the assignment of rights by an insured, for claims
pertaining to property damage if the insurance policy, endorsement or rider
contains the prohibition. (Sec. 2) (BI)
4. Specifies that the uninsured or underinsured policy declaration page is valid for, extends to and covers all persons insured under the policy and must be sent to the named insured. (Sec. 1)
5. Asserts the uninsured or underinsured policy declarations page, rather than the insured's selection or rejection of limits on a form approved by the Director, constitutes the final expression of the named insured's decision to purchase or reject the coverage. (Sec. 1)
6. Specifies the offering of uninsured or underinsured motorist coverage must be made at the time of the application. (Sec. 1)
7. Removes the requirement for an insurer to confirm the selection or rejection of uninsured or underinsured motorist coverage as a condition for satisfying the insurer's standard of care. (Sec. 1)
8. Specifies that an insurer does not need to reoffer uninsured or underinsured motorist coverage as a result of a change to the current minimum liability limits for bodily injury or death. (Sec. 1)
9. Contains an applicability clause. (Sec. 4)
10. Makes technical and conforming changes. (Sec. 1, 3)
Current Law
A person operating a motor vehicle on a roadway is required to demonstrate an ability to respond to damages by providing proof of financial responsibility. Financial responsibility may be evidenced by an auto liability policy, a certificate of self-insurance or an alternate method of coverage (A.R.S. § 28-4135).
An individual may purchase an auto liability policy from a licensed insurer. A.R.S. § 28-4009 establishes minimum coverage limits for auto liability policies, commonly referred to as 15/30/10 coverage:
1. $15,000 for one person sustaining bodily injury or death in an accident;
2. $30,000 for two or more persons sustaining bodily injury or death in an accident; and
3. $10,000 for injury or damage to others' property in an accident.
The director of ADOT may issue a certificate of self-insurance as proof of financial responsibility to individuals who own at least 10 vehicles and are determined to be financially able (and will continue to be able) to pay for judgements against them (A.R.S. § 28-4007).
Alternatively, individuals may obtain a certificate of deposit as proof of financial responsibility by depositing $40,000 with the Office of the State Treasurer (A.R.S. § 28-4084).
Additional Information
According to the Insurance Information Institute, in 2015 the national percentage of uninsured motorists was 13%, and the percentage of uninsured motorists in Arizona was 12%.
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Fifty-third Legislature SB 1075
Second Regular Session Version 2: Caucus & COW
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