Assigned to TRANSIT FOR
COMMITTEE
Assigned to TRANSIT FOR
COMMITTEE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
vehicle liability insurance; minimum limits
Purpose
Increases minimum coverage limits for motor vehicle liability policies.
Background
A motor vehicle liability policy is an owner's or an operator's policy of liability insurance that is issued by an authorized insurance carrier to the benefit of the person named as the insured. A motor vehicle liability policy must be certified as proof of financial responsibility (A.R.S. § 28-4001).
Current motor vehicle liability policy limits are statutorily set as follows:
1) $15,000 for bodily injury or death of one person in any one accident;
2) $30,000 for bodily injury or death of two or more persons in any one accident; and
3) $10,000 for injury or destruction of others' property in any one accident (A.R.S. § 28-4009).
There may be a fiscal impact to the state General Fund if this legislation results in a change in insurance premium tax revenue or state General Fund spending by the Arizona Health Care Cost Containment System.
Provisions
1. Requires a motor vehicle liability policy, beginning June 1, 2019, to insure the insured subject to the following minimum limits:
a) $25,000 for bodily injury or death of one person in any one accident;
b) $50,000 for bodily injury or death of two or more persons in any one accident; and
c) $25,000 for injury or destruction of others' property in any one accident.
2. Applies previously mandated minimum limits to policies issued or renewed on or before May 31, 2019.
3. Makes conforming changes.
4. Becomes effective on the general effective date.
Prepared by Senate Research
January 12, 2018
KN/CU/lb