ARIZONA HOUSE OF REPRESENTATIVES Fifty-fourth Legislature Second Regular Session
	Senate: FIN DP 9-0-1-0 | 3^rd Read 30-0-0-0 House: RA DP 7-0-0-0 | 3^rd Read 58-0-2-0

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SB 1038: insurance policies; transfers; affiliated insurers

Sponsor:  Senator Livingston, LD 22

House Engrossed

Overview

States that an insurer can transfer any of its insurance policies, without it being considered a nonrenewal, to an affiliated insurer. 

History

For an insurance policy renewal, or a new policy that has been in effect for sixty days, a notice of cancellation must be based on specified occurrences that transpire after the effective date of the policy. If an occurrence meets the outlined conditions and an insurer does not renew a policy, the insured must be given 30 days' notice to remedy the identified conditions. If remedied, coverage must be renewed; If not remedied, the insured may pay the premium and be given an additional 30 days to meet satisfactory conditions (A.R.S. § 20-1652).

If an insurer does not mail or deliver a notice of its intention to not renew a policy to the named insured at the address shown in the policy, the insurer must renew the policy on the effective date of the renewal, upon payment of the premium. (A.R.S. § 20-1654)

Provisions

1. States that nonrenewal does not include the issuance and delivery of a new policy within the same insurer or an insurer under the same ownership or management as the original insurer. (Sec. 1, 2)

2. Allows an insurer to transfer any of its policies to an affiliated insurer. (Sec. 1, 2)

3. Restricts an insurer from transferring a policyholder on the basis of the policyholder's location of residence, age, race, color, religion, sex, national origin or ancestry. (Sec. 1, 2)

4. States that in the occurrence of a transfer, this insurer is not allowed to apply a new unrestricted 60-day period for cancellation or nonrenewal. (Sec. 1, 2)

5. Makes technical and conforming changes. (Sec. 1, 2)

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9.                   SB 1038

10. Initials JR/LB        Page 0 House Engrossed

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