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ARIZONA HOUSE OF REPRESENTATIVESFifty-fourth Legislature Second Regular Session |
Senate:
FIN DPA 9-0-1-0 | 3rd Read 30-0-0-0
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SB 1040: insurers; notices; methods of delivery
Sponsor: Senator Livingston, LD 22
House Engrossed
Overview
Clarifies that an insurer can send correspondence by means other than mail.
History
All required insurance transaction notices or documents (Notice) that serve as evidence of insurance coverage may be delivered, stored and presented by electronic means. An insurer must obtain distinct advanced electronic consent before delivering a Notice by electronic means to a party (A.R.S. § 20-239).
Every insurer writing automobile liability or motor vehicle liability policies must make available to the named insured uninsured and underinsured motorist coverage. The offer must be made to the named insured or applicant at the time of the application (A.R.S. § 20-259.01).
A notice of cancellation, nonrenewal or reduction of limits of liability or coverage for reasons other than nonpayment by the insurer to the policy holder must be mailed, and the insurer must obtain proof of United States Post Office (USPS). shipping method using intelligent mail barcode or another similar, approved USPS tracking method (A.R.S. § 20-1632) & (A.R.S. § 20-1676).
Provisions
1. States that if a notice or correspondence is sent by mail or electronic means, the insurer must send the notice or correspondence to the recipients last known mailing address or email address. (Sec. 2)
2. Replaces the requirement that a communication, notice or correspondence be sent rather than mailed. (Sec. 3, 4, 6-30)
3. Removes the requirement that every insurer writing automobile or motor vehicle liability policies must offer uninsured and underinsured motorist coverage to an insured or applicant at the time of the application. (Sec. 5)
4. Removes the requirement that a specified insurer obtain proof of mailing by U.S. certified mail, U.S. post office certificate of mailing, first class mail or another similar tracking method when a notice of cancelation or reduction in specified insurance is mailed to the insured. (Sec. 12, 18)
5. Removes the requirement that a specified insurer mail a notice of cancellation or nonrenewal at the policyholder's last address on record with the insurer by first class mail. (Sec. 13, 14, 15)
6.
States that any method of proof retained
by the specified insurer for sending a notice of cancellation by any method other
than by mail is sufficient. (Sec. 16, 20)
7. Requires a health care insurer to provide a member access to a copy of their information packet on its website. (Sec. 24)
8. Defines send, sending or sent means to deliver by the U.S. mail, personal delivery, fax or by electronic means. (Sec. 1)
9. Makes a conforming change. (Sec. 1)
10. Makes technical changes. (Sec. 3, 4, 8, 10- 25, 27, 29)
Committee of the Whole
1. Passed without the Regulatory Affairs Committee amendment.
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5. SB 1040
6. Initials JR Page 0 House Engrossed
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